Arabnet - The Quarterly - - Entrepreneurship -

Ven­ture cap­i­tal is be­com­ing an as­set class in MENA that ev­ery in­sti­tu­tional in­vestor and fam­ily of­fice in the re­gion is al­lo­cat­ing cap­i­tal to. When Wamda Cap­i­tal closed its first fund in 2015, it was vir­tu­ally im­pos­si­ble to fund-raise for a VC fund in the re­gion out­side a few pock­ets of cap­i­tal here and there, pri­mar­ily an­chored by DFI'S like the IFC who have been bullish on the tech space in the re­gion since the start. The ecosys­tem his­tor­i­cally has de­pended heav­ily on in­di­vid­ual ad­vo­cates like Samih Toukan and Hus­sam Khoury from Jab­bar, and of course our Gen­eral Part­ner Fadi Ghandour along with fig­ures like Ahmed Alfi in Egypt, Hala Fadel in Le­banon, and oth­ers in the re­gion to ad­vo­cate and seed the ecosys­tem. This will now change as ap­peal to the as­set class will come from com­pa­nies that have achieved enough scale to war­rant at­ten­tion in and of them­selves. We've gone from a re­gion with ~$200M-$300M in VC in 2015 to ~$1.5B by YE 2018. That is a great op­por­tu­nity but also puts tremen­dous pres­sure on the as­set class to per­form. We need to ef­fec­tively cre­ate over $15B-$20B in value over the next 10-15 years in or­der for re­turns to make sense.

Newspapers in English

Newspapers from Lebanon

© PressReader. All rights reserved.