Innovative Startups and SMEs Fund (ISSF) raises $109 million and exceeds most of its targets

The project aimed to increase early-stage private equity funding for innovative small and medium-sized enterprises in Jordan, and operated through direct and indirect investment, in addition to supporting companies through accelerators, incubators, and investment readiness and business development programs.

83 companies received private venture capital funding against a target of 70 companies, while 74 companies received private funding in the early and seed stages against a target of 80 companies, which was the only output indicator that did not meet its target.

The percentage of women-led companies among the beneficiaries of venture capital funding reached 26% against a target of 25%, while the percentage of youth-led companies reached 43% against a target of 20%.

The number of financial intermediaries that received funding from the Innovative Startups and SMEs Fund (ISSF) project reached 22 intermediaries against a target of 10, including 10 venture capital intermediaries against a target of 6, and 12 intermediaries in the early and seed stages against a target of 4.

Additionally, 712 companies benefited from investment readiness and business development services against a target of 675 companies, while 317 beneficiaries received acceleration services against a target of 150 beneficiaries.

- $109 million in private capital

The private capital raised as of August 2025 reached approximately $108.9 million against a target of $71.5 million, exceeding the target by about 50%.

The raised private capital was distributed as $55.7 million for early and seed stages against a target of $14.5 million, and $53.3 million in venture capital against a target of $57 million.

Data as of December 2025 showed that nearly two-thirds of the funding received by companies went to companies in their early stages, including pre-seed, seed, and Series A investment rounds.

The report noted additional results that were not included in the original targets, as the fund's data showed the creation of 2,624 full-time jobs supported by the project, with an average wage equivalent to 3.5 times the national average.

Three companies supported by the fund also recorded successful exits, and the capital multiplier invested in these operations reached 1.56 times, while the number of fund managers operating in Jordan increased from 5 to 17 during the project period.

- Full disbursement of World Bank funding

The original cost of the project was estimated at approximately $63.875 million, including $50 million from the World Bank and $13.875 million from the Central Bank of Jordan.

At the project's closing, the actual cost reached $58.74 million, of which $50 million was fully disbursed from the World Bank's funding and $8.74 million from the Central Bank of Jordan.

The actual cost was distributed as $48.37 million for the equity and quasi-equity financing program, $4.58 million to support deal flow creation, and $5.66 million for project management, coordination, monitoring, and evaluation.

The report indicated that the figures at closing reflect the amounts disbursed within the project, while the fund had disbursed about $67 million by February 2026, in addition to $27.2 million in investment commitments to funds followed by subsequent disbursement through capital calls.

The Central Bank of Jordan had committed to contributing $48 million over the life of the fund, and its contribution reached $28.9 million by the project's closing, before providing $19.1 million after the closing.