Doha, Qatar: Qatar’s startup ecosystems have emerged as key contributors toward heavily scaling to attract founders and talented minds in the market. An official remarked that the country amplifies its position in the regional ecosystem, with the Qatar Investment Authority (QIA) announcing over QR3bn of funding.
Speaking to The Peninsula in an interview, Khaled Talhouni (pictured), Managing Partner at Nuwa Capital said: “QIA’s $1bn (QR3.69bn) commitment marks a new milestone for Qatar with the money to be deployed in regional funds. Capital availability like this can be extremely transformative for ecosystems as we have seen this play out elsewhere in the region and also around the world.”
Experts note that this high degree of dedication is certain to play a paramount role in drawing founders and skilled talent to the country.
He said, “Regional founders need to start thinking of building cross-border businesses and Qatar provides the right springboard with its geographic location, access to global destinations, and commitment to investments.”
The recently held events in the country such as the Web Summit and the upcoming Qatar Economic Forum are expected to further develop the ecosystem, nurturing young talent, connecting experts, and providing a platform that allows global leaders to connect with the region.
Nuwa Capital, the investment platform domiciled in Dubai, supports companies by offering $100m early-stage funding (from pre-seed to Series A) as they progress to later stages.
For many startups, last year was quite challenging with liquidity tightening up and a closer focus on building capital-efficient businesses. However, according to market data, if it wasn’t for $1.77bn (QR6.44bn) in debt financing across 10 deals, the total MENA funding in 2023 would have dropped by 35 percent, the expert said.
The present year, on the other hand, is anticipated to witness a “reversion to the mean” with modifications in valuations and better realistic funding expectations or round sizes.
“We are already witnessing a cautious but definite return to a more robust cadence of funding, especially for startups that have adjusted well to the challenges of the funding winter and have focused early on healthy unit economics. Founders have already become much more mindful about how capital raised is spent, opting for a much more cautious approach to opex and cash burn, Talhouni said.
In the meantime, investors could prioritise industries that demonstrated resilience and long-term growth potential. The acceleration of digital transformation among various sectors also paves the way to explore new opportunities for startups, especially those providing better solutions in digital payments, retail, and wider SaaS. This is further accelerated by artificial intelligence application adoption which is expected to likely decrease the expense of starting and operating a digital business.
The platform seeks to invest “aggressively” in 2024, having nearly $60m (QR218m) of its first fund remaining. Some of that capital has already been deployed, with more rounds to be announced by drawing the attention of a stronger pipeline of startups due to its reputation in the market, of being extremely hands-on investors.
