Understanding the MENA VC Landscape

As part of the DMCC Impact Scale-Up Programme – powered by C3, DMCC and C3 are hosting a series of informative webinars to share insights on how to accelerate business growth in the UAE and the wider region.

On Thursday, 11th October 2022, we hosted a panel of investment professionals from leading VC firms in the region and emerging markets.

Expert panel

• Ankit Sarwahi, Managing Director at MEVP

• Lola Fernandez, Senior Investment Associate at VentureSouq

• Ludmilla Figueiredo, Managing Partner at Global Markets Capital Partners

• Simon Sharp, Partner at Global Ventures

In the context of a global economic downtown, the MENA VC market is showing resilience. 

• As the region feels the shockwaves from the wider global downturn, panellists have seen a drop in the number of deals and valuations over the past few months; however, investors are generally positive about the state of funding in the MENA region. 

• Ankit Sarwahi, Managing Director at MEVP, stated that a lot of international appetites is coming into regional funds and emerging markets. 

• Lola Fernandez, a Senior Investment Associate at VentureSouq, highlighted the potential for the MENA region to bring innovative new products to market.  This will further attract investors to the region. 

Companies seeking investment must be open to feedback and flexible.

• When asked what the most important elements of an investor-founder relationship are, trust and transparency came at the top of the list. 

• Simon Sharp, Partner at Global Ventures, emphasized that “transparency can be a dealmaker or a dealbreaker.” This does not only reflect on the founding team but also the culture and integrity of the entire business. 

• Fernandez’s tip to the founders is to “be honest and transparent throughout the journey. Everyone knows how hard it is to be an entrepreneur”. 

• The panel advised founders to conduct equal due diligence on potential VCs:  ask all the necessary questions and consider the non-financial value VCs can bring to a deal. 

Trust and transparency are central to successful investor-founder relationships. 

• While no founder gets everything right the first time, those who are agile and open to feedback reach greater success.  

• Founders can be pushed in various directions but must “stay grounded and centred around your mission”, said Ludmilla Figueiredo, Managing Partner at Global Markets Capital Partners.

• A trusted board of advisors, including investors and independent experts, helps founders navigate tough situations and go to the next level.

ESG means different things to different VCs 

• The focus on Impact and ESG varies from firm to firm and from one fund to another. 

• Some VCs look at ESG from a risk mitigation perspective: Adding an Environmental, Social, and Governance assessment to due diligence ensures that investments do not negatively impact the environment and the community and that the business has the necessary policies and procedures to mitigate ESG risks. 

• Capital allocators are raising dedicated Impact or Sustainability funds that invest in startups actively creating a positive impact, like VentureSouq, or implementing ESG standards into their existing investment process, such as Global Ventures. These funds focus on healthtech, edtech, fintech, and the environment.

• In such instances, a founder cannot see impact as a cherry on top of the cake, it must be baked into the business. 

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