Innovative Startups and SMEs Fund (ISSF)

The Innovative Startups and SMEs Fund (ISSF) is a $98 million fund established in 2017 as a private shareholding company in Jordan. It was created through a partnership between the Central Bank of Jordan, which invested $48 million, and the World Bank, which contributed $50 million. The ISSF aims to facilitate funding for Jordanian early-stage startups and SMEs by investing in venture capital funds and making direct investments in startups. Its mission is to foster a thriving entrepreneurial environment that enables local entrepreneurs to transform innovative projects into sustainable businesses, generate employment, and stimulate economic sectors that serve export markets by leveraging the creative and technical capabilities of entrepreneurs and management teams across Jordan.

The ISSF focuses on providing early-stage equity financing to innovative small and medium enterprises (SMEs) in Jordan. In addition to direct investments, the fund encourages entrepreneurship through outreach programs targeting underserved regions, sectors, and groups, including youth and women entrepreneurs. By increasing private early-stage equity finance, the ISSF contributes to job creation and economic development in the country.

Since its establishment, the ISSF has made several significant investments. In February 2023, it invested $5 million in Middle East Venture Partners' MEVF IV, a $150 million fund focused on the MENA region. In June 2023, the ISSF invested $2 million in VentureSouq Fund II, a MENA-based venture capital fund manager. These investments underscore the ISSF's commitment to empowering promising Jordanian startups and advancing the local entrepreneurial landscape.

The ISSF's investment strategy includes both direct and indirect investments. Direct investments involve providing capital to individual startups, while indirect investments are made through venture capital funds that, in turn, invest in multiple startups. This approach allows the ISSF to diversify its portfolio and support a broader range of innovative companies in Jordan. The fund's activities are aligned with the World Bank's Economic Modernization Vision, aiming to promote private sector-led growth, job creation, and innovation in the country.

Through its strategic investments and support programs, the ISSF plays a pivotal role in enhancing the entrepreneurial ecosystem in Jordan, contributing to the growth and sustainability of startups and SMEs across various sectors.