Digital wealth manager FinaMaze unlocks venture capital funds for retail clients

FinaMaze, a hybrid asset manager regulated by the global market in Abu Dhabi, has launched a new investment portfolio that will provide retail investors with exposure to venture capital funds in the Middle East and the region. North Africa.

The FinaMaze Top VC Booster portfolio will open up the “world of venture capital investments” to qualified individual investors starting at $ 10,000, the company said.

“Venture capital funds and private equity funds have always been a highly sought-after asset class that was reserved for institutional and accredited investors committing significant amounts,” said Mehdi Fichtali, Founder and CEO of FinaMaze, which offers investment advice through a combination of human experience and machine learning results.

“These unlisted private equity funds invest capital in long-term companies or projects with often decent returns, but are virtually unavailable to five-figure investors.”

Startups Mena raised $ 1.2 billion in the first half of 2021, up 64% from the same period a year ago, according to data platform Magnit.

However, the number of deals fell 20% to 254 as angel investors diverted funds to more traditional asset classes such as stock markets and real estate.

The UAE leads in terms of number of deals, obtaining 61% of all investments. Major fundraising in the first half of the year included $ 415 million for Dubai-based cloud kitchen company Kitopi, $ 30.5 million for Saudi Arabia’s e-commerce platform Sary and $ 30 million for the Egyptian freight start-up Trella.

The three main MENA centers – the United Arab Emirates, Egypt and Saudi Arabia – accounted for 71% of total invested capital during the period, according to Magnitt data.

The first of the VC Mena investment portfolios will be dedicated to one of the main VC leaders in the region “with a proven track record as an early investor in a number of Mena unicorns,” Fichtali said.

Venture and private equity funds have always been a highly sought-after asset class that was reserved for institutional and accredited investors committing significant amounts.

Mehdi Fichtali, Founder and Managing Director of FinaMaze

This is the first time in the Mena region that a digital wealth manager has offered clients access to this alternative asset class, the company said.

Last month, FinaMaze began offering leading retail investors access to its algorithm-based portfolios across a range of asset classes. He defines blue chip retail investors as those who invest a minimum of $ 2,000. Previously, only professional investors had access to the asset manager’s investment products.

Robo-advisers have become popular in the wealth management industry because algorithms can analyze large and complex data sets on different parameters faster, more precisely, and at larger volumes than most people.

In addition, they are reaching a historically underserved market of middle class investors unable to access portfolio management services due to minimum investment requirements.

FinaMaze was launched at the FinTech Abu Dhabi 2020 Forum in November 2020 and is regulated by the ADGM Financial Services Regulatory Authority.

Update: December 16, 2021, 7:32 a.m.


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