EBRD’s first investment in a venture capital fund in the West Bank and Gaza Strip

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  EBRD invests $3 million in Ibtikar Fund II
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  Ibtikar to invest in 25 early-stage Palestinian tech companies
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  Investments to promote digitalization and job creation

The European Bank for Reconstruction and Development (EBRD) is supporting the emerging venture capital ecosystem in the West Bank by committing USD 3 million to Ibtikar Fund II, a new fund launched by Ibtikar, a leading institutional fund manager in the region. The investment marks the EBRD’s first equity investment in a venture capital fund in the West Bank.

Ibtikar will seek to generate long-term capital growth from equity and equity-linked investments in up to 25 early-stage Palestinian technology companies, with the flexibility to also invest in select companies in neighboring countries with ties to the West Bank and Gaza Strip.

The fund closed with $25 million in total commitments, exceeding its initial goal of $15 million and doubling the size of its first fund.

Micro and small businesses are key to the Palestinian economy, accounting for over 98 percent of local businesses and generating over 60 percent of gross domestic product, but they face significant economic challenges and capital shortages. Ibtikar will provide local tech startups with the resources they need to scale their businesses, access new markets, and drive sustainable growth. It will help drive digitalization and support job creation by supporting young entrepreneurs and employing women. It will also strengthen economic ties between the West Bank and Gaza and neighboring countries.

Anne Fossemalle, EBRD’s Director of Private Equity Investments, said: “We are excited to support the further development of an early-stage innovation ecosystem in the West Bank in partnership with Ibtikar. This is our first investment in a venture capital fund in the West Bank and we look forward to playing our part in supporting local startups, especially in these unprecedented times.”

Habib Hazzan, Managing Partner of Ibtikar, said: “We are delighted to welcome the EBRD to Ibtikar Fund II as we share a common vision of supporting Palestinian entrepreneurs. This partnership will expand our capacity to fund innovative Palestinian startups that will become leaders in regional and global markets and demonstrate that the West Bank startup ecosystem has matured and is attractive to top international investors.”

Since it began operations in the West Bank and Gaza Strip in May 2017, the EBRD has approved 27 transactions with a total value of USD 142 million.