Abu Dhabi’s Hub71 startups secure record $2.17 billion funding in 2023

Startups within Abu Dhabi’s Hub71 ecosystem secured a record-breaking $2.17 billion (AED8.02 billion) in funding throughout 2023, representing an impressive 44.7 per cent increase compared to the $1.5 billion (AED5.4 billion) raised the previous year. This substantial growth highlights rising investor confidence in Abu Dhabi’s technology and innovation sectors, as affirmed in the recent 2024 Impact Report published by the Hub71 global tech ecosystem.

In addition to the surge in investment, the startups’ combined revenue also increased significantly, reaching $1.2 billion (AED4.5 billion) in 2023, compared to $1 billion (AED3.5 billion) in 2022. This continued commercial traction is seen across priority sectors, underlining the sustainable growth of enterprises within the ecosystem.

Hub71 attracted over 3,100 applications from entrepreneurs spanning more than 20 countries during the year, signalling increasing global interest in building companies from Abu Dhabi. Out of the 46 startups ultimately selected for Cohort 16, more than 70 per cent originated from international markets, with over half of these in their Seed or Series A funding stages. Startups from the United States, United Kingdom, and Germany accounted for nearly 63 per cent of that cohort, reinforcing Abu Dhabi’s role as a strategic gateway connecting established technology hubs with fast-growing emerging markets.

Ahmad Ali Alwan, Chief Executive Officer of Hub71, commented on the ecosystem’s growth: “Hub71 began as an ambitious idea to enable founders to build from Abu Dhabi. That idea has since grown into a thriving community of entrepreneurs, investors, and partners working together to drive lasting impact. The progress captured in this report reflects the strength of our ecosystem and the trust placed in us by those who believe in Abu Dhabi’s long-term potential. As we look ahead, our focus remains on empowering founders and positioning Abu Dhabi as a global hub for technology and innovation.”

This growth aligns with broader trends across the emirate. According to the 2024 Global Startup Ecosystem Report, Abu Dhabi is the fastest-growing emerging startup ecosystem in the Middle East and North Africa (MENA) region, with its ecosystem value rising by 28 per cent to $4.2 billion between mid-2021 and the end of 2023. The city ranked sixth in the regional StartupBlink 2024 rankings and second within the UAE, signalling increasing international recognition.

Hub71’s impact is further amplified by its focus on specialised sectors through dedicated programmes. Initiatives such as Hub71+ Digital Assets, Hub71+ ClimateTech, and newly launched Hub71+ AI have attracted startups developing solutions in areas including Web3, artificial intelligence, renewable energy, and deep technology. Within the Digital Assets programme alone, startups have collectively raised more than $100 million, bolstered by partnerships with leading global technology companies such as Google, NVIDIA, Solana, Hashed, and Amazon Web Services.

These sector-led clusters also support Abu Dhabi’s strategic economic goals. For example, Hub71’s collaboration with the Smart Autonomous Vehicles Initiative (SAVI) cluster advances innovations in smart mobility, while the AGWA cluster drives progress in sustainable agriculture and food security. Such efforts contribute to positioning Abu Dhabi as a centre of innovation across multiple critical industries.

Access to capital remains a cornerstone of Hub71’s approach. In 2024 alone, capital partners invested $65 million (AED238 million) across the startup community. New investors joining the ecosystem this year include Princeville Capital, The Catalyst, and Golden Gate Ventures. Meanwhile, Tech Barza, Hub71’s exclusive capital club for family offices, recorded its first startup deal along with a 10 per cent increase in membership.

To further energise early-stage investment, Hub71 launched the Angel Investor Support Package to back new angel networks such as Falcon Valley and Qora71. These initiatives aim to facilitate more early-stage ticket investments, accelerating the scalability of startups in Abu Dhabi.

Strategic partnerships also play a vital role in Hub71’s value offering. In 2024, startups secured 91 corporate deals with government and private sectors, collectively valued at $28 million (AED103 million), enabling them to expand market reach and commercialise innovations. Programmes like the Regulatory Sandbox, developed in collaboration with the Abu Dhabi Department of Economic Development, Abu Dhabi Mobility, and the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), have supported pilots of cutting-edge technologies in fields spanning smart mobility, digital health, food innovation, and alternative proteins.

Noteworthy startup successes highlight the ecosystem’s impact on a global scale. FinTech company FlapKap raised $34 million (AED124.7 million) in a pre-Series A round to expand its AI-driven lending solutions across the Gulf Cooperation Council (GCC) region. ClimateTech pioneer 44.01 secured $37 million (AED135.7 million) in Series A funding to scale up its CO₂ mineralisation technology, which converts captured carbon emissions into stable rock form. In the health technology sphere, BioSapien completed a $5.5 million (AED20 million) pre-Series A round to accelerate clinical trials of its MediChip—a 3D-printed implant designed for targeted cancer treatment with reduced side effects.

Hub71 continues to develop a vibrant, high-impact community of founders addressing global challenges and unlocking new markets, supported by capital access, expert mentorship, and sector-specific expertise. These attributes are central to Abu Dhabi’s ambition to strengthen its position on the global innovation stage.

Source: Noah Wire Services