Venture capital – MS Coursing http://mscoursing.com/ Wed, 23 Nov 2022 17:13:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://mscoursing.com/wp-content/uploads/2021/07/icon-150x150.png Venture capital – MS Coursing http://mscoursing.com/ 32 32 The new Silicon Valley of the sands https://mscoursing.com/the-new-silicon-valley-of-the-sands/ Wed, 23 Nov 2022 16:45:19 +0000 https://mscoursing.com/the-new-silicon-valley-of-the-sands/ The 2021 record saw the Saudi Arabia The VC ecosystem grew 270% year-over-year, with startups racking up $548 million in funding. Companies like Kitopi have raised an incredible $800 million from global investors to build cloud kitchen software to serve global businesses. Today, its investors and founders are worth billions. Even huge content creators like […]]]>

The 2021 record saw the Saudi Arabia The VC ecosystem grew 270% year-over-year, with startups racking up $548 million in funding.

Companies like Kitopi have raised an incredible $800 million from global investors to build cloud kitchen software to serve global businesses. Today, its investors and founders are worth billions. Even huge content creators like NasDaily have decided to move to Dubai.

But why is so much money flowing into the Middle East and North Africa and why is this region so hot? Is it likely that we will see more Souq.com and Careems in the years to come or is it just a crazy mirage in the desert that will disappear without a trace?

In this article, we’ll explore exactly why the Middle East is attracting the attention of venture capitalists everywhere, what the MENA region’s opportunities and risks are, and how you can get yourself a slice of the pie.

What is the resume?

For those of you who don’t know, the goal of venture capitalists is to find the next Google, Microsoft, Uber and Amazon early on.

It’s about investing in startups or start-ups that are just getting started and therefore getting a piece of the pie right from the start. We, the investors, give them money, and they, in turn, give us a stake in the company. So we own a percentage of the business and therefore a share of the profits and any capital gains when they eventually go public or are acquired.

But with high reward always comes high risk.

Investing in startups is incredibly risky. For every AirBNB, Amazon, and Apple, there are 30 other failed businesses. But with winning ones, you can make profits unmatched by most asset types.

From Snoop Dogg and Oprah to Justin Bieber and Arnold Schwarzenegger, it’s no wonder that every millionaire and billionaire has a significant portion of their wealth invested in startups.

Think of it this way, imagine if you put $10,000 in Amazon stock when it first went public in 1997 for $18 a share, you would have made $16,454,196 today. A venture capitalist would have come in even earlier, so would have made at least another 10x return on that, which would mean their initial investment of $10,000 would be worth over $160 million.

That’s a pretty decent profit if you ask me.

VC is booming in the MENA region

Where venture capitalists are most successful is when there are broader macroeconomic trends giving huge tailwinds to certain sectors and geographies. Take the advent of the Internet for example, and Silicon Valley as the epicenter. Or take China or India with their huge and growing young and educated populations. Or take any country that is already rich or rapidly becoming so. These are all major trends that you are not betting against.

We believe that the Middle East and North Africa – often abbreviated as MENA – is one of the most important regions in the world for venture capitalists in the years to come.

First, the statistics are clear. Venture capital in the MENA region increases by 138% year-on-year.

Over the years, we have seen smashing unicorns come from the MENA region. A unicorn is a startup that has reached $1 billion in valuation.

We saw ridesharing app Careem come from the United Arab Emirates, which was bought by Uber for a whopping $3.1 billion.

We also saw Egyptian fintech Fawry, an e-payments company that processes 3 million payments a day, reach a valuation of $1.4 billion at the end of 2021.

Not to mention Saudi-based Stcpay is another unicorn payment company valued at $1 billion, with Western Union buying a 15% stake for $200 million.

So, as you can see, business is BOOM in the MENA region, but you’re probably wondering why?

Here’s why…

Much of the MENA region has been endowed with material resources, especially oil; the regions collectively know that oil is a finite resource and will inevitably run out, so they have each come up with regeneration plans that propel their nations forward – Saudi Arabia and Egypt with their Vision 2030 respectively, the United Arab Emirates with their Abu Dhabi Economic Vision 2030, Qatar and its plans for the 2022 FIFA Football World Cup. The leaders of these nations are sparing no effort in this mission, which is a victory major for the region.

All of their plans fuel economic growth that increases prosperity for the rest of the country. It also means there’s a ton of money lying around. This has only increased with the recent oil boom.

A key advantage is that the population of the MENA region is one of the fastest growing in the world with 40% under the age of 25. 94% of the population in the MENA region owns a smartphone and 88% are active online daily.

Yet only 8% of SMEs in the MENA region have an online presence. This, combined with the highly digital and mobile-first young population, as mentioned, and an increasingly developed economy equals very fertile ground for economic activity. The middle class will emerge in the next two decades and the companies that establish themselves today will benefit from it.

Exactly what you need to create an environment conducive to startup culture.

The other key thing is that labor is still relatively cheap, the MENA region is a nice place to live, and the general mood is positive with regionally growing economies. Compare that to Europe where growth is now a distant mirage, populations are aging and the general mood is rather pessimistic at the moment.

Risks of MENA VC

Now, as always, things aren’t always black and white. Investing in startups in the MENA region comes with a few risks that you should definitely be aware of.

1 Education

The biggest concern is the lack of education and sophistication in the area. While the population is young and eager to leave, education standards in MENA are not as high as in Western countries, which means the workforce might not be up to par today. what is needed to really drive these startups to success.

2 Access

Access is also a serious issue – as startups are private companies, trying to invest in them usually means you have to have deep roots in the venture capital ecosystem to even have a chance of getting into the top ones. offers. This makes MENA VC, or just venture capital investing in general, out of reach for most regular Joes like you and me.

But there is a solution.

How to access MENA VC

There are about four ways to get yourself a piece of the action.

Number 1: Directly as an angel investor

Generally, this method is for those who have over £500,000 to invest and really know the startup industry inside and out. So you have to be rich and super savvy to be able to figure out which startups have potential and which don’t.

Most people won’t really meet these criteria, but don’t worry, there are other routes.

Number 2: Go through a providential syndicate

An angel syndicate usually refers to a group of investors who will come up with their own deals and pool their investments.

The advantage of an angel syndicate is that it is usually led by an experienced lead investor who knows what he is doing. Syndicates also attract more deal flow because they collectively invest a large share.

The downside of syndicates is that they’re usually best for the early stages – when a startup is at its most risky stage, and because an angel syndicate isn’t an active contributor to a startup, you don’t get a representative looking after your investment day in and day out.

Number 3: go through a funds

A fund is a pool of assets managed by an experienced fund manager and he or she chooses a basket of startups to invest in.

This has several advantages – first, only the best people in VC have the background and technical ability to be able to raise funds from institutions that do their due diligence. Second, pooling your investment across a range of startups significantly reduces risk for you. Third, the fund manager’s full-time job and compensation depends on the success of his startups, so he takes good care of those startups every month.

However, the downside is that these funds are usually long-term – typically 10 years – and are generally reserved for wealthy individuals who can invest seven figures or more, so they remain largely inaccessible to most.

Number 4: Capital Cur8.

We negotiate our way to access some of the best MENA venture capital funds and then offer it to our investors for a minimum of £5,000. So you benefit from the best way to invest in venture capital – via a fund – but at a much lower entry price.

The type of funds we invest in usually have other investors such as the sovereign wealth funds of Saudi Arabia, Qatar, Oman and the United Arab Emirates. So Zakariyyah or Sam from Manchester is literally investing alongside royalty.

Conclusion

We’ve long championed venture capital investing because it’s one of the few investment categories that can deliver life-changing returns. Admittedly, it is not without risk, but we believe that if Muslims are to upgrade themselves financially, sometimes those risks are worth taking.

The pendulum of power swings back to the East. The decline of Western economies coupled with the rise of Eastern economies, especially in the Middle East, has definitely turned the heads of many savvy investors.

The question is: are you one of them?

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Midlands companies raise £110m in venture capital investment in the face of global economic challenges https://mscoursing.com/midlands-companies-raise-110m-in-venture-capital-investment-in-the-face-of-global-economic-challenges/ Mon, 21 Nov 2022 07:58:57 +0000 https://mscoursing.com/midlands-companies-raise-110m-in-venture-capital-investment-in-the-face-of-global-economic-challenges/ Growth businesses in the Midlands secured £110m in venture capital investments in the third quarter of the year, according to KPMG UK’s latest Venture Pulse report. A total of 31 innovative companies, 17 in the West Midlands and 14 in the East Midlands, received investment in the third quarter of the year, highlighting that the […]]]>

Growth businesses in the Midlands secured £110m in venture capital investments in the third quarter of the year, according to KPMG UK’s latest Venture Pulse report.

A total of 31 innovative companies, 17 in the West Midlands and 14 in the East Midlands, received investment in the third quarter of the year, highlighting that the UK scaling ecosystem continues to attract investors, but that they are increasingly cautious about the amount. invest.

Joining the Midlands Engine Investment Group as a leading investor in the region, the FSE Group has also supported Midlands SMEs with growth finance.

Among the companies that secured investment were Onto, the all-inclusive subscription for electric cars, and Worn Again Technologies, the recycling company working to revamp the textile industry. This signals growing investor interest in truly eco-friendly companies.

Khush Purewal, Partner and Head of Transactions at KPMG in the Midlands, said: “Amid a growing energy crisis, economic turmoil, continued pandemic impacts and increased pressure on businesses, funds continue to flow into companies from all sectors in the Midlands, especially those with strong ESG roots.

“While some VCs will focus on existing portfolios, many have a commitment to investors to deploy capital, so there is still dry powder and opportunity for good companies with solid growth plans.

“Competition for good companies in strong sectors will be fierce and could bring some heat as we head into the final quarter of the year. However, as economic conditions continue to deteriorate, it is likely that venture capital investments will remain subdued in the fourth quarter of 2022 and beyond.

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Deal Engine raises $5.3M to help airlines save after booking https://mscoursing.com/deal-engine-raises-5-3m-to-help-airlines-save-after-booking/ Fri, 18 Nov 2022 07:34:33 +0000 https://mscoursing.com/deal-engine-raises-5-3m-to-help-airlines-save-after-booking/ Skift grip There were no big numbers this week, but there were investments from some big venture capital firms: F-Prime Capital, JetBlue Ventures, Thayer Ventures and Plug and Play. Justin Dawes Three startups working in travel tech announced nearly $17 million in funding this week. >>Transaction Engine raised a $5.3 million seed round, led by […]]]>

Skift grip

There were no big numbers this week, but there were investments from some big venture capital firms: F-Prime Capital, JetBlue Ventures, Thayer Ventures and Plug and Play.

Justin Dawes

Three startups working in travel tech announced nearly $17 million in funding this week.

>>Transaction Engine raised a $5.3 million seed round, led by F-Prime Capital with participation from Thayer Ventures, PAR Capital, Plug and Play, Sandor Palfy and Gilad Bernstein.

The Deal Engine software platform automates airline ticket refunds and changes on behalf of airlines, online travel agencies and other customers.

Airlines spend 2-5% of their annual revenue on post-booking activities dedicated to call centers, as much of it is done manually, the company said. Deal Engine is intended to save some of that money by preventing consumers from making a phone call.

“The user interface enables customer service for our customers to process 100 times more in one-tenth the time,” said Alex Jara, CEO of Miami-based Deal Engine.

In total, he said, there are about 100,000 employees working full-time to change airline tickets.

“Our solution creates the space for these people to do other things,” Jara said.

Deal Engine said it has more than 90 customers from 25 countries, including two of the world’s top 10 online travel agencies and a major airline Latam.

The startup has a few other airline customers in the pipeline, he said.

The funding will be used to grow engineering, product and sales teams as the company expands beyond the Americas into Europe and the Middle East.

>>UrbanFox raised a $3.6 million (€3.5 million) seed round, co-led by MiddleGame Ventures and JetBlue Ventures, with participation from Furthr VC, IAG Capital Partners, Forward VC, WxNW, Twilightford and a number of angel investors.

The Dublin-based tech startup has created a software platform that uses artificial intelligence to reduce a growing type of online fraud, which involves using compromised financial information to create multiple synthetic identities to purchase goods or digital assets .

In the travel industry, fraudsters often obtain credit or bank card information by gaining online access to frequent flyer accounts. Alternatively, they try to drain loyalty accounts by redeeming miles for rewards at online stores.

The software platform uses artificial intelligence to track and prevent this fraudulent behavior. It can be applied in e-commerce, digital shopping and payment processing.

UrbanFox said it recently signed a deal with a major airline.

The company plans to use the capital to grow its team and reach more customers in the aviation and retail sectors. JetBlue Ventures claims to invest in early-stage startups that strive to improve the travel and hospitality industry.

“Current fraud detection solutions are no longer up to the job. UrbanFox is designed to more accurately identify the most sophisticated types of fraudulent attacks and stop fraudsters before they are about to use a compromised credit card,” said Daniel Loftus, Founder and CEO of UrbanFox. , in a press release.

>>Silkhaus, a Dubai-based startup that digitizes short-term rentals, raised $7.7m in seed funding. (See Skift’s story.)

Investors who joined in this round included Dubai-based Nuwa Capital, London-based Nordstar Partners, Berlin-based Global Founders Capital, Singapore-based Yuj Ventures, India-based Whiteboard Capital and Dubai-based VentureSouq.

Company Arrange Conduct Raise
Transaction Engine Plant F-Prime Capital $5.3 million
UrbanFox Plant MiddleGame Ventures and JetBlue Ventures $3.6 million
Silkhouse Plant Unspecified $7.7 million

Skift Cheat Sheet

Seed capital is the money used to start a business, often led by angel investors and friends or family.

A-Series funding usually comes from venture capitalists. The cycle aims to help startup founders ensure that their product is something customers actually want to buy.

B-series funding is mostly for venture capitalists that help a business grow faster. These fundraisers can help recruit skilled workers and develop profitable marketing.

C-Series financing generally consists of helping a company to grow, for example through acquisitions. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.

Series D, E and beyond These mostly mature companies and the funding cycle can help a company prepare to go public or be acquired. Various types of private investors could participate.

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Republic and Re7 Capital Announce Strategic Joint Venture to Collaborate on Crypto Asset Management Initiatives https://mscoursing.com/republic-and-re7-capital-announce-strategic-joint-venture-to-collaborate-on-crypto-asset-management-initiatives/ Wed, 16 Nov 2022 09:00:00 +0000 https://mscoursing.com/republic-and-re7-capital-announce-strategic-joint-venture-to-collaborate-on-crypto-asset-management-initiatives/ NEW YORK, November 16, 2022 /PRNewswire/ — Republic through its UK subsidiary and DeFi fund manager Capital Re7 announced a strategic joint venture to collaborate on liquidity-focused asset management initiatives crypto tokens. This partnership lays the foundation for new joint initiatives between the two companies. Raising venture capital funds for crypto and blockchain is well […]]]>

NEW YORK, November 16, 2022 /PRNewswire/ — Republic through its UK subsidiary and DeFi fund manager Capital Re7 announced a strategic joint venture to collaborate on liquidity-focused asset management initiatives crypto tokens. This partnership lays the foundation for new joint initiatives between the two companies.

Raising venture capital funds for crypto and blockchain is well on its way to a record year in 2022indicating that many institutional investors see long-term value in the crypto sector. Venture capital has always been the primary route through which institutional investors have been able to access crypto large-scale sector. However, the industry has matured in recent years and today there are more liquid opportunities to participate in the market, ranging from liquid tokens to staking and yield opportunities.

“Despite the crypto liquidation of the market this year, crypto adoption continued to deepen,” said Jon KnipperSenior Director, Crypto Treasury of the Republic Crypto. “We are delighted to partner with Re7 Capital to explore opportunities in the liquid segment of the crypto market; in addition to their deep engagement with decentralized finance protocols, Re7’s experience in managing a crypto hedge fund makes him a great partner for us.”

“Republic Crypto shares Re7’s vision to build the financial paradigm of the future, a more transparent, inclusive and efficient paradigm,” said Yevgeny Gokhberg, managing partner at Re7 Capital. “Few companies working in web3 have helped launch as many projects as Republic Crypto, and fewer still have as much deep-rooted industry expertise to advise projects in this space. We look forward to working closely together on a range of initiatives.”

By combining veterans of blue chip institutions such as Goldman Sachs, UBS and Bank of America, with crypto-native analysts and technologists, this new strategic joint venture aims to help professional investors participate in web3. In the midst of an economic transformation supported by blockchain technology, this partnership represents an exciting opportunity for innovation in digital asset management.

About the Republic

Republic is a global fintech company on the frontier of democratizing access to private markets. Republic operates several distinct business lines, including a retail investment platform, a private equity division, and a blockchain advisory practice. “Republic” refers to a family of legal entities owned by OpenDeal Inc., a Delaware public limited company, sharing the “République” brand and certain shareholders, resources, personnel and values. “Republic Crypto“often refers to the Republic Crypto Republic advisory arm Crypto LLC d/b/a Republic Advisory Services. In other contexts, the Republic Crypto can refer to a crypto investment fund managed by Republic Capital Adviser LLC entities. Other times, “Republic Crypto” may be used in the context of an offering of digital assets hosted by an entity licensed under “Republic Retail” regulations, such as OpenDeal Broker LLC or OpenDeal Portal LLC (not Republic Crypto LLC). Neither Republic Capital Adviser LLC, OpenDeal Broker LLC, nor OpenDeal Portal LLC are involved in the strategic joint venture. Republic Crypto LLC is a web3 strategy and technology consulting firm that accelerates the growth of the industry’s most ambitious builders and investors. For more information, please visit https://republiccrypto.com/

About Re7 Capital

Re7 Capital (“Re7”) is a team of Londoninvestment professionals specializing in liquid blockchain strategies. Re7 is a power user of DeFi, allowing it to be recognized as a liquidity provider across stablecoins and ETH.

Disclaimer
Nothing on this page should be construed as investment advice or a commercial solicitation.

Media Contact
[email protected]

SOURCE Crypto Republic

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Binance Creates Industry Recovery Fund to Help Projects Struggling with Liquidity https://mscoursing.com/binance-creates-industry-recovery-fund-to-help-projects-struggling-with-liquidity/ Mon, 14 Nov 2022 09:00:51 +0000 https://mscoursing.com/binance-creates-industry-recovery-fund-to-help-projects-struggling-with-liquidity/ As the effects of the FTX crisis continue to negatively affect the markets, crypto exchange Binance is creating a fund to help potentially strong projects that are having liquidity issues. In a tweet, Binance CEO Changpeng Zhao said that the fund aims to reduce the cascading negative effects of FTX’s collapse by aiding projects that […]]]>

As the effects of the FTX crisis continue to negatively affect the markets, crypto exchange Binance is creating a fund to help potentially strong projects that are having liquidity issues.

In a tweet, Binance CEO Changpeng Zhao said that the fund aims to reduce the cascading negative effects of FTX’s collapse by aiding projects that Binance’s CEO described as “strong, but in liquidity crisis.”

While Zhao didn’t provide full information on which projects would be eligible, he told teams who think they might meet the criteria to contact Binance Labs, the venture capital arm of the exchange. He also called on other industry players interested in co-investing to get in touch with them. “Crypto is not going away. We are always here. Let’s rebuild,” Zhao wrote.

Apparently confused by the announcement, a member of the crypto community replied to Zhao’s post asking why FTX would qualify for the fund. To clarify, the CEO of Binance Underline that the fund is not for FTX, but for other projects within the crypto ecosystem, adding that “liars or fraud are never considered solid projects.”

Related: Rumors continue to fly around Sam Bankman-Fried and FTX’s downfall

As the crypto markets continue to experience turbulence, a known crypto skeptic has started blaming crypto billionaires as the reason for slowing developments in the regulation of the space. U.S. Rep. Brad Sherman says the efforts of “crypto billionaire bros” in lobbying and campaign contributions have been successful in deterring meaningful legislation.

Meanwhile, as Cointelegraph previously reported, former FTX CEO Sam Bankman-Fried, three former FTX executives and Alameda Research CEO Caroline Ellison are looking for ways to flee to Dubai, UAE. United Arab Emirates (UAE). However, while the plan assumes the UAE does not have an extradition treaty with the United States, the two nations have signed a mutual assistance treaty to deal with criminals.