Pedram Assadi

I was very disappointed when I read this post. It’s an example of a core problem with raising from VCs——bullsh*t criteria filters. It’s lazy and arrogant investing at its finest. 1- Passing because of a “signal”. This is just a weak excuse to not speak with a founder. If there is one thing I’ve learned as an investor, it’s that decks rarely tell the story well. With all the dynamics of early stage company building, relying solely on “minor flags” to pass is just a cheap excuse to not speak with someone. 2- Founder not “paying attention to detail”. Attention to the correct details is important. This type of “detail” is ridiculous. As an outsider, you have no idea what their document management is like. They may have updated the document that very day. You’re getting upset about naming conventions like it means that they can’t possibly build a billion dollar company. It doesn’t matter. 3- Being butt hurt when you realize you weren’t the top of their list. This one makes me laugh the most. What an arrogant stance to take. “Oh, I wasn’t your first call? Go jump off a cliff.” It doesn’t strike people like this that it may have taken months to network their way into the person that he knew so they would get an introduction so this investor would take it seriously? Note, “I was sent a fund deck the other day” means that it was a referral, presumably from someone they know and trust. 4- Fundraising must be tough because you’ve been in market for at least two months. Cut me a break. It’s hard for every company in this environment. Most of the best performing VC investments in history struggled to raise money in their first few rounds. And most of the company who raised huge amounts with no friction end up Hindenberging. This is so lazy and biased. These investors also tend to be logo investors—eg who else is committed to the raise. 5- Saving time by not taking the meeting. A VC cannot possibly take a call with every deck that comes across their desk. However, especially when it comes from a referral, and things sound “pretty good”, give it the benefit of the doubt. Especially when it’s so hard to tell a story to hundreds of investors who all have different expectations for “the perfect deck”. Your obligation to your fund LPs means you turn over every rock. Make the time. Pass it to an analyst to hear the full story. Don’t look for weak excuses like this to pass. If you’ve experienced at fundraising, I’m sure none of this is a surprise to you. Fundraising is extraordinarily difficult. If you’re new to venture fundraising, this is just one example in a sea of irrational behavior exuded by VCs and the analysts that filter deals for them. Buckle up. **Thanks to Alex Dunsdon for sharing this investor screenshot with his network first.

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"Getir: The Rise, Challenges, and Strategic Retreat of a Global Delivery Giant" Getir, founded in 2015 in Istanbul by Nazim Salur, skyrocketed to prominence by promising grocery delivery within 10 minutes. Its valuation soared to $11.8 billion, attracting investments from Sequoia Capital, Tiger Global, and Mubadala Investment Co. However, after expanding into Europe and the US, its last known valuation plummeted to $2.5 billion. Despite its rapid growth, Getir faced internal conflicts over strategy, notably between its Turkish leadership and European managers. Disagreements arose over the feasibility of maintaining the 10-minute delivery promise and the profitability of selling bananas at heavily discounted prices, with some markets questioning the sustainability of such tactics. The acquisition of rival Gorillas further strained Getir's finances, leading to a cash burn rate of $50 million per month by summer 2023. This financial strain, coupled with a mass exodus of high-ranking staff, forced Getir to reassess its priorities. In response, Getir decided to exit international markets and focus on its core market of Turkey. Mubadala, alongside investor G Squared, injected up to $200 million in funding, contingent on meeting specific targets. This strategic retreat signifies a shift towards financial discipline and a return to Getir's roots, emphasizing its resilience and adaptability in a fiercely competitive industry.

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Slow down in Venture across the board in Emerging Markets! As predicted, VC funding and deal flow continues to decline across the Middle East, Arica and South East Asia. If you haven’t yet had the chance to access MAGNiTT's latest report on Q1 figures, then this article might just be for you: https://lnkd.in/duwpEqf7 My two cents based on MAGNiTT’s data: 1. Venture funding to remain flat until the US FED decreases interest rates (which I don't see happening before Q4 if at all) 2. Dry powder is available as funds make announcements regionally...but raising funds and deploying takes time. Unlikely to translate into active investments before Q4’24-Q1’25 3. Deal activity in SEA and MENA likely to converge at some point in line with global trends (CB Insights 8th consecutive decline in funding globally!) 4. Underdog industries might see some investment with healthcare, and energy, to report increases in YoY deal flow while star industries like FinTech and e-commerce may decline With VC funding looking more and more baron, and a continued focus on early stage over late stage, start up founders will need to remain vigilant and frugal. Interesting to see how Emerging Ecosystems will develop in the coming quarters with seasonal lulls and international interest. You can forecast and benchmark quarterly investment activities across countries and regions using our analytics tool accessible via subscription: https://lnkd.in/d2J6TdYQ #VentureCapital #EmergingMarkets #MENA #InvestmentTrends #Entrepreneurship

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5 key takeaways in the VC market from my trip to the UAE 🇦🇪 I recently returned from an engaging trip to the United Arab Emirates, a journey filled with client meetings, strategic partnerships, and groundwork for our upcoming launch in the DIFC. This visit has been nothing short of enlightening, offering a deeper understanding of the burgeoning VC and private equity landscape in the region. Here are my 5 key takeaways: 1. Investor Queries One prevalent question among investors is why seek funding in the UAE when markets like the UK and US are well-established? The answer lies in the unique strategic opportunities the UAE market offers, particularly in bridging Eastern and Western economic corridors. 2. Value to the Region UAE investors are particularly interested in how foreign businesses plan to integrate locally. Questions arise about setting up physical offices, serving regional customers, engaging in local M&A activities, and the broader impact these companies aim to have within the UAE. 3. Investment Dynamics There's a cautious approach among local investors who prefer not to lead investment rounds initially. They often seek reassurance through the presence of a lead investor, reflecting a risk-averse attitude typical of emerging markets. 4. Sustainability and Innovation Post-COP28, there's a noticeable increase in the emphasis on sustainability, supported by new regulations from entities like the Dubai Development Authority to ensure new developments adhere to stringent energy efficiency and sustainability standards. 5. Emerging Trends Alongside sustainability, sectors like AI and FinTech have seen significant interest and growth. These areas are rapidly becoming central to the UAE's economic diversification plans. While the UAE's economy and market are relatively nascent, the rapid development, entrepreneurial spirit, and favorable business regulations are positioning it as a formidable force in the VC and PE arenas. The UAE is not just a place to invest, but a thriving hub for initiating and scaling innovative businesses. As we plan our expansion into this vibrant region, we're excited about partnering with local investors and founders who share our vision for groundbreaking ventures. The UAE's dynamic market is ripe with opportunities, and we are committed to being a part of its growth story. If you’re an investor, entrepreneur, or industry stakeholder interested in the UAE market, I would love to connect and explore potential collaborations. #VCUAE #PrivateEquity #Innovation #Sustainability

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MAGNiTT’s MENA Q1 VC data is out now! Not looking great 👀 In line with my predictions in Jan, MENA's VC funding trajectory has followed a flattening trend, paralleling global VC investment patterns. MENA Q1 VC funding declined 60% YoY and 69% compared to Q4 2023 The FED has maintained interest rates in Q1. In fact Larry Summers even suggested the risk of higher rates in 2024. This backdrop highlights the challenge startups to secure funding rounds as investor appetite dampens. Until we see rates decline (still planned for H2) we don't anticipate an uptick in VC funding in 2024. This decline in MENA, however, echoes a broader global trend, as highlighted in CB Insights's latest report, which observed a 21% YoY decrease globally. More than ever, there has been a bigger disconnect between the public market rallies and the private market challenges. With the S&P up 6.73% YTD and the Nasdaq up 7.5%, we have yet to see public sentiment correlate with Venture Investment. Want to access the latest MENA insights? Get a subscription and speak to our research team:  https://lnkd.in/g_e4XXTM #VentureCapital #InvestmentTrends #MENAStartups #TechInvesting #AIBoom #MarketAnalysis #EconomicTrends

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Roosh Ventures is uniquely tailored to suit startup needs 🚀 I was delighted to contribute a piece to Maddyness UK’s #QVCS series recently about what separates Roosh Ventures from the VC pack — from our R&D and operational support to our access to a global network and partners. We have designed a comprehensive support system to address all facets of a startup’s growth. I shared what we look for in entrepreneurs at Roosh Ventures in the article linked below 👇What piece of advice would you give founders?

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"Saudi Arabia is second with six VC funds – Raed Ventures, Saudi Aramco's Wa'ed Ventures, Vision Ventures, Impact46, Seedra Ventures and Oqal – with a total of 67 investments. The UAE has two: Abu Dhabi's Shorooq Partners and Dubai's Global Ventures, with a combined 16 investments. The region falls behind others like Asia which has 786 and Europe with 1,227 VC funds. The US is the runaway leader with 2,298 – with the top seven VCs alone surpassing the Middle East's total. Data on how much these VCs are investing in AI is not clear, yet looking at the regional number of AI start-ups serves as a telling indicator of the sector's growth. There are 1,843 AI start-ups in the Middle East, with a total of 1,773 funding rounds that have raised $12.9 billion, data from industry tracker Crunchbase shows. In comparison, the whole of Europe has 9,994 AI start-ups with 10,598 funding rounds attracting $37.8 billion, according to the San Francisco-based start-up data platform. The top 10,000 AI start-ups in Asia have conducted 8,989 rounds that have raised $105.3 billion, while those in the US have had 17,320 rounds attracting $211.5 billion, it said. However, according to industry tracker Tracxn, there are an estimated 23,209 AI start-ups in the US."

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"For Mubadala’s next act, Ajami is seeking to milk his tech connections to put more money directly into startups. At the same time, Mubadala is increasingly using its clout to encourage Western companies and investors to deepen their ties to the UAE’s tech ecosystem, part of the country’s broader push to diversify its economy away from oil. For Ajami, 49, the goal is for Mubadala—a term that means “exchange” in Arabic—to one day be mentioned in the same breath as Sand Hill Road’s most vaunted investment firms. “The way founders speak about Sequoia—why not, 20 years from now, won’t they speak that way about Mubadala?” asked Ajami. Ajami has a ways to go before he gets Mubadala there. Mubadala has stumbled badly in Europe as it has tried to employ a strategy similar to the one it used to break into the U.S. The companies it has backed in Europe have performed so poorly that Mubadala has put Jonno Elliott—who joined the firm in 2022 after leading VC investments at Virgin Management Ltd.—in charge of salvaging its portfolio of companies from the region, according to a person who spoke to Elliott. Among some European investors and founders, it has developed a reputation for aggressive tactics that could impact its ability to invest in top European companies in the future. And while plenty of tech investors speak highly of Mubadala, many of them are eager to curry favor with the deep-pocketed firm so it continues to invest in their funds, especially in the current dismal fundraising environment for VC firms. Privately, after singing the praises of Mubadala as a limited partner, many venture capitalists have also said its direct investments in startups don’t carry the weight of other investors’ bets. Sovereign wealth funds just don’t have the track record of picking winners that VC firms do, those critics say. Still, Mubadala has had some notable successes. Ajami and his lieutenants have helped it buy shares in buzzy companies like SpaceX, Waymo, Klarna, Brex, Chime, pharmaceuticals company Recursion and AI infrastructure company Crusoe Energy Systems, among others. Mubadala Capital, the VC and private equity arm of the sovereign wealth fund, oversees a $24 billion pool of capital with 180 employees spread across several offices, including in London, New York and San Francisco, which hosts a tech team they first established in 2017. Mubadala is also continuing to plow money into other VC funds. Its portfolio includes Altimeter Capital Management, Greenoaks Capital, Iconiq Capital, Dragoneer Investment Group, 8VC, Marcelo Claure’s Bicycle Capital, DCVC, Haun Ventures, Arch Venture Partners, Clocktower Group, Radical Ventures and a handful of emerging managers, like a new $30 million seed fund called Nebular, according to several people familiar with these funds." https://lnkd.in/gnyGdbg3

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🎙️ Just released a fascinating conversation with Michael Lints, Partner at Golden Gate Ventures, on The We Are Innovation Podcast. Highlights: • Deep dive into Golden Gate's new $100M MENA fund based in #Qatar • VC landscape in the post-zero interest rate era • Key traits of successful founders Michael's 20+ years of experience across two continents offer invaluable insights for entrepreneurs and investors alike. #VentureCapital #Entrepreneurship #Innovation #Podcast Listen now: https://lnkd.in/d4mgande

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How often do you meet your investors in person? We have become so accustomed to meeting online that we don‘t always get to meet the founders in person before we invest. Online meeting culture has brought so many benefits but how well can you get a feel for an investor or founder, if you have never met in real life? While I absolutely enjoy that I can take more meetings due to not having to travel, there is still this question of whether or not we got the right impression of the founders we have only met online. I am glad about two things: 1) Our process seems to work because… 2) Luke is a top-notch founder with an important mission that we support. Being able to connect apart from work is also important to build the relationship between founders and investors. It‘s much easier in person without it being a 30 min meeting where you have to talk about the business. We as the earliest investors should not forget that we are mostly in the people business since we invest in the founders who then build a company. We‘re really happy that everything worked out so well and that we are invested in Luke Ferris‘ startup OriginAI alongside EWOR, ROI VENTURES and many other great investors. Excited for what the future will bring! Picture: Tobias Burger, me, Luke Ferris and Laura Raggl

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first and foremost clarification for founders raising VC should be to seek understanding of how VC's operate, simplest illustration found is below 👇 courtesy~ Stéphane Nasser #startups #founder #investment #clarity #venturecapital

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I haven't been posting for a while, but now I have to. I have been writing my research proposal to research the determinants of limited partners’ capital deployment in emerging regions and International venture capital limited partnerships in the MENA region. A lot of research has been done on social and economic factors that influence how VCs perform and make decisions. However, there's not enough academic literature on what influences the choices and decision-making of LP allocations to VC funds. This lack of knowledge makes it harder for VCs to get the capital they need to fund companies. I have written about this before, and here I am writing it again: to raise capital from VCs, founders have to know how VCs raise capital from their LPs. According to academic literature, LP allocation to VC funds is influenced in four ways: 1) Limited Partnership Agreements lay the foundation for LPs' involvement by defining their relationship with GPs. In the same way, a shareholder agreement influences the relationship between startups and investors. So, founders have to understand the dynamics of this relationship. 2) VCs are primarily driven by generating profits for their LPs. Similarly, founders have to align their proposition with the VC they're pitching to. Pitching a startup generating $1m in ARR to a $20m fund is different from pitching it to a $100m fund. 3) Socio-economic factors play a role in LPs' asset allocation decisions. VCs also consider similar factors before deploying capital. If a founder is raising for a fintech startup in a highly regulated region, then it would be difficult for them to raise because VCs will consider factors relevant to regulations in that region. 4) LP types, such as pension funds and endowments, and fund structures, like limited partnerships and corporate venture capital arms, significantly influence the performance and reputation of VC funds. Similarly, raising a pre-seed or a seed round from an angel investor is different from raising it from a VC fund. I believe that founders have to understand how VCs raise from their investors (LPs) to be able to pitch their startups more effectively. And understanding how a VC raises money will give founders more insight into how VCs operate which will make their conversations with VCs more fruitful. I will be posting more about this in a series of posts with the hashtag #LPVCdeterminants VCs that want to internationalise into the MENA region specifically Egypt, Saudi, and the UAE can check out my #VCinternationalisation post series. #venturecapital #startups #earlystagestartups #startupfunding #startupinvesting #limitedpartners #LP #VC

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🔔 In today's HealthTech of the Week series, I'm presenting something special. Instead of showing you another exciting startup, I will share an insightful interview with Olivia BLANCHARD, Managing Director at Health Venture Lab (HVL), an international accelerator supported by GE HealthCare. 🔥🔥 🔍 Discover how HVL is empowering startups to redefine healthcare through innovation and technology. Highlights from our conversation include: 🔹HVL’s role in accelerating medical innovations without equity participation. 🔹Benefits for startups include access to a robust international network and strategic development opportunities. 💡 Dive into the full interview to see how HVL is shaping the future of healthcare! The article is available in two language versions. 👉 EN: https://lnkd.in/dvvThsBA 👉 PL: https://lnkd.in/dfGTfyuF Olivia BLANCHARD, Thank you very much for sharing your amazing experience with us! 💙 PS. If you are interested in the HealthTech of the Week series, you can find more interesting materials on my blog! #HealthTech #Innovation #HealthVentureLab #HealthTechOfTheWeek #MedTech #HVL

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🚀 Exciting news! I teamed up with Jamie Lane of FWDstart to launch the "VC React Podcast"! 🎙️ Each week, we bring you dynamic insights and reactions from three different VCs, diving into the latest news on MENA startups, VCs, and investment rounds. A huge thanks to Khaled Talhouni, Sara Ebeid, and Waleed A. Alballaa for an incredible first episode! 🌟 I hope you all enjoy the conversation as much as we did. Tune in and join the excitement! 📈✨ We talked about: - Rasan Going Public Summary: Saudi Arabia-based insurtech Rasan has announced its IPO, becoming the first insurtech company in the region to go public. The move aims to capitalize on the growing demand for digital insurance solutions and expand its market reach. - Connect Money Raising $8 Million Seed Round Summary: Egypt-based fintech Connect Money secured $8 million in a seed round led by Disruptech Ventures and Algebra Ventures. The funding will support the launch of five new business verticals in North Africa. Connect Money offers a white-label card issuing platform for businesses to provide debit and credit cards without developing fintech infrastructure or regulatory licensing. - SMPL Holdings Launching A $10 Million Fund Summary: SMPL Holdings has launched a $10 million fund to support tech and AI startups across the MENA region. The fund aims to foster innovation and accelerate the growth of emerging technology companies in the area. Please let me know if you have any comments or suggestions to enhance the format or content. https://lnkd.in/gqydVXMF

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New post in https://lnkd.in/dwDE2ZVX This one attempts to address one of the issues that was raised in an earlier essay about the relevance of brands like Apple to startups. A common question, how is learning from Apple relevant to an early-stage company that is resource-constrained and simply can't match the investment a company like Apple can put into their work. I argue that overthinking is one way we can do this: "Most early-stage brands simply haven’t had the time to invest in building depth and substance which is why it’s so important to over-invest in building meaning and depth into early-stage brands, even when the results aren’t immediately visible." Full article is here https://lnkd.in/dWy3GEU2 - as always I would love your thoughts and anything you're seeing that helps

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🔥 Saudi Arabia Trails Only Singapore in Emerging Venture Markets in H1 2024 Off the back of MAGNiTT's latest H1 2024 Emerging Venture Report, I joined Maya Hojeij on Asharq Business اقتصاد الشرق to discuss the latest VC trends! 🌱 Why early stage funding is seeing signs of a pick up in activity in MENA 🇸🇦 What are the drivers of KSA's success in YoY funding 🛢 The impact of oil prices on Venture and how it impacts Sovereign activity 🤝 Drivers of growth in the number of investors dealmaking in the region Also great to see how there is a growing interest benchmarking #MENA to other Emerging Venture Markets including #Africa and #SouthEastAsia. 👀 Did you see the latest report? Get the latest data and regional insights from the MAGNiTT team fresh off the press here: https://lnkd.in/dMYje-Rc #VentureCapital #Investmenttrends #innovation #Funding

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Careem's first pitch deck (acquired by Uber for $3.1 Billion): A look back at Careem's journey from its first funding round to becoming a giant in the ride-hailing industry with a $3.1 billion exit to Uber offers both inspiration and valuable lessons for startups. The company, which began as a corporate chauffeur service in 2012, evolved rapidly, demonstrating the power of vision, adaptability, and strategic funding. Key Insights from Careem’s First Pitch Deck: 1) Early Challenges and Breakthroughs: Despite initial rejections, Careem’s founders, former McKinsey consultants, successfully raised nearly three times their initial target, securing $1.7 million in their first external funding round. This highlights the importance of resilience and persistence in the startup world. 2) Strategic Vision: From the outset, Careem was clear about its high-risk, high-reward strategy, a candid approach that ultimately paid off. Their ability to adapt and scale their vision was crucial as they expanded across the Middle East & North Africa (MENA). 3) Impact on MENA's Ecosystem: The Uber-Careem deal not only marked the largest exit for a startup in MENA but also set a landmark transaction that enhanced the support and funding opportunities for local entrepreneurs, significantly impacting the regional technology ecosystem. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/g2Npet7s

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There are 3 secrets every exited founder knows. Non-exited founders don’t. Want them? Here they are… 👇 Do: Know your numbers. Do not: Ignore financial forecasts. Do. Have a clear picture of exit timing. Do not: Grow without clear exit strategy. Do: Build a successor. Do not: Make yourself indispensable. So, remember… Get some clarity on your final destination and make sure your buyer can scale up your business without you. What else do you want to know? Ask in the comments. ———————— I’m Edin. I completed that journey from the idea to exit. Book a free 1:1 discovery call to help you do the same.

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