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Banner Image - Sovereign Funds Pause Startup Investments Amid Conflict

Sovereign Wealth Funds Pause Startup Investments as Middle East Conflict Escalates: Global Venture Capital Faces Shockwave

March 2026 —  A sharp shift in global capital flows is sending shockwaves through the startup ecosystem, as sovereign wealth funds from the Gulf region slow down or temporarily pause venture capital investments amid escalating geopolitical tensions in the Middle East. These funds—long regarded as among the most powerful drivers of

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