Charles Beyrouthy

The sixth episode of Rally Cap VC's podcast is out 🗣️🎙️🔊 Amir Farha is a prominent figure in MENA VC, managing the largest solo-GP fund in the region [$54m]. He previously co-founded the first and largest early-stage VC firm in the Middle East [BECO Capital, $500m AUM]. Timestamps: (1:49) Building a second VC firm (3:02) What does 'strong founder' even mean? (4:29) Investing in underdogs (6:15) Aren't we all improvising? (7:05) The evolution of Amir 1.0, Amir 2.0, Amir 3.0 (11:18) Aren't VCs just monetizing access? (13:26) Raising $50m as a solo-GP (15:16) KSA/UAE/Egypt, too many startups, beyond the VC model (17:57) Unconventional founder moves in nascent markets (20:34) Unhealthy obsession: psychological cost of succeeding in VC?

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A new flood of fresh funds is reshaping the venture capital landscape! 🚀 Recent highlights include TVM Capital Healthcare’s $250M Afiyah Fund LP, SVC's $30M investment into General Atlantic’s private equity fund, Golden Gate Ventures' $100M MENA-focused fund launch, and Investcorp's $570M fund closure. These announcements signal a broader trend of escalating financial commitments within the industry. MEA funds are heating up! 🌡️ Our data reveals a 74% YoY increase in the number of MEA-based funds being financed as of May 20th, 2024. Since Q4’23, there has been a notable surge in regional funds securing capital, with international investors also establishing localized funds. Stay informed with the latest trends in VC activity: https://lnkd.in/dP6ZkmCd By MAGNiTT Repost by : Salem Bagami Chief Executive Officer Digital Transformation Company & Managing Director 2080 Ventures Email: [email protected] Website: www.2080.ventures #VC #Funds #Investing

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Saudi venture capital sector expanding exponentially Saudi Arabia's venture capital sector is booming, and global venture capital firms are taking notice. Recently, Saudi Venture Capital Co. invested $30 million in a private equity fund managed by General Atlantic, a US-based investment firm with a portfolio of $84 billion in assets under management. This investment is part of SVC's Investment in Funds Program and is aimed at attracting top global fund managers to invest in Saudi-based companies, stimulating investment for later stages. With this move, the Saudi venture capital landscape is set to see significant growth. Post by Nour Edin El Shaeri Repost by Salem Bagami Chief Executive Officer Digital Transformation Company & Managing Director 2080 Ventures Email: [email protected] Website: www.2080.ventures https://lnkd.in/d6YK7Hfp Nabeel Koshak Sun Choi 최성안 Timur Daudpota #SaudiVentureCapital #GlobalInvestment #GeneralAtlantic

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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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Summary: Despite Saudi Arabia's history of human rights abuses, there is a growing interest from U.S.-based investors to invest in startups in the Middle Eastern nation. General Catalyst is planning to invest in a fintech startup, Lean Technology, and other firms such as Coatue Management and Andreessen Horowitz have recently backed Saudi Arabian startups. Key takeaways: Despite concerns about the country's human rights record, some U.S. investors are showing a willingness to invest in Saudi Arabian startups, potentially driven by the country's large and growing market. General Catalyst investment in Lean Technology is a significant step in this trend, as it is the firm's first investment in a Middle Eastern nation. Other U.S. firms, such as Coatue Management and a16z, have also recently backed Saudi Arabian startups or expanded their presence in the country through investments in related industries (such as co-living). Counter arguments: There may be ethical concerns about investing in a country with a record of human rights abuses and suppressing dissent. The motivations behind these investments may also be driven by the goal of gaining access to the huge Saudi Arabian market, rather than solely supporting the growth of the country's startups. #venturecapital #vc #venture #startups

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🌍 Are Foreign Investors Regaining Interest in MENA? 🚨 That's the question we've been exploring at MAGNiTT with our latest piece. Early 2023 saw major Silicon Valley players like Andreessen Horowitz, Sequoia Capital, Tiger Global Management, and IVP visiting regional sovereign wealth funds, signaling potential interest. However, that interest didn’t fully materialize last year in the form of investments. This year tells a different story. In 2024, #MENA has experienced a 32% YoY increase in investor participation in the first half, driven largely by international investors. While late-stage investments remain cautious, these investors are contributing with smaller tickets. 🇦🇪 🇸🇦 Unsurprisingly, the #UAE and #SaudiArabia are the prime destinations for global investors in MENA. The UAE stands out, accounting for about 57% of the country's investors in H1'24. While familiar names like 500 Global and Antler continue to make big waves in the region, we've also seen new players such as India’s Cogitent Ventures, the UK’s Quadri Ventures, and Denmark’s A.P. Moller Capital making their first regional investments. MAGNiTT’s latest article dives into the numbers, explores the evolution, and discusses the main reasons behind this trend and what to expect next. Check it out here: Read More https://lnkd.in/dxqJ9iXR Got any guesses on which big leagues are eyeing their entry into the region? Share your thoughts below! 👇 #MENA #Global #InvestmentTrends #VentureCapital #Funding #UAE #KSA #Investors #Investment #Innovation

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The Wall Street Journal broke news of xAI's massive $5B round of financing, at a $50B valuation. Participating investors include: Qatar Investment Authority, Valor Equity Partners, Sequoia Capital and Andreessen Horowitz. For those keeping track xAI was valued at $40B during their last round about six months ago, and has now closed $11B of new investment in 2024 alone. Investors obviously see something that is keeping them excited about Elon Musk, xAI, #AI, #LLM. What do you think? #management #venturecapital, #privateequity, #capitalmarkets

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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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Steel Atlas Ventures Aims to Link Western Startups with Saudi Investment in $10M Debut Fund Steel Atlas, a New York-based venture firm founded by Cameron Porter and Talal Attieh, has raised its first $10 million fund to connect Western technology startups with Saudi Arabian investment opportunities. The firm, established last year, plans to invest between $750,000 and $1.25 million per startup, focusing on climate-tech, industrial, and AI sectors. Steel Atlas’s portfolio currently includes innovative firms like nuclear energy company TRANSMUTEX, supply chain tech provider GenLogs, and alternative battery tech company Group1.ai, all aiming to align with Saudi Arabia’s Vision 2030 economic diversification program. “Our portfolio investments are less than a year old and we are therefore still actively working with them in the region,” the firm said. “We view this alignment as being driven by two increasingly important factors: global geopolitical realignment and mutual technological interests,” Porter stated, referring to Saudi Arabia’s role as a “counterpoint” to Iran. Backers of the fund include private investment firms such as Christian Angermayer’s Apeiron Investment Group and Magnus Rausing’s Untitled. The Saudi government’s commitment to advancing industrial, climate, and AI technologies aligns with Steel Atlas’s goals, with Saudi funding providing potential capital reliability and scale-up locations for Western startups amid a sluggish U.S. market. Steel Atlas is also planning a Middle Eastern holding company to invest in regional industrial projects tied to its portfolio technologies. While not mandating Saudi deployment, the firm foresees Saudi Arabia’s market as a significant opportunity, anticipating developments in nuclear and supply chain tech soon. ✅ Looking to raise capital for your #VCfund and increase the international pool of your LPs?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments (Series A/Series B)?   ▶ Please use G+QUANT's link for inquiries and fund decks, or send an inquiry to [email protected] #VentureCapital #SaudiInvestment #ClimateTech #AI #IndustrialInnovation #Vision2030 #SteelAtlas #TechFunding

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"Sovereign wealth funds out of the Middle East are emerging as key backers of Silicon Valley’s artificial intelligence darlings. Oil-rich nations like Saudi Arabia, United Arab Emirates, Kuwait and Qatar have been looking to diversify their economies, and are turning to tech investments as a hedge. In the past year, funding for AI companies by Middle-Eastern sovereigns has increased fivefold, according to data from Pitchbook. MGX, a new AI fund out of The United Arab Emirates, was among investors looking to get a slice of OpenAI’s latest fundraise this week, two sources told CNBC. The round is set to value OpenAI at $150 billion, said the people, who asked not to be named because the discussions are confidential. Few venture funds have deep enough pockets to compete with the multibillion-dollar checks coming from the likes of Microsoft and Amazon. But these sovereign funds have no problem coming up with cash for AI deals. They invest on behalf of their governments, which have been helped by rising energy prices in recent years. The Gulf Cooperation Council, or GCC, countries’ total wealth is expected to rise from $2.7 trillion to $3.5 trillion by 2026, according to Goldman Sachs. The Saudi Public Investment Fund, or PIF, has topped $925 billion, and has been on an investing spree as part of Crown Prince Mohammed bin Salman’s “Vision 2030” initiative. The PIF has investments in companies including Uber, while also spending heavily on the LIV golf league and professional soccer. UAE’s Mubadala has $302 billion under management, and the Abu Dhabi Investment Authority has $1 trillion under management. Qatar Investment Authority has $475 billion, while Kuwait’s fund has topped $800 billion. Earlier this week, Abu Dhabi-based MGX joined a partnership on AI infrastructure with BlackRock, Microsoft and Global Infrastructure Partners, aiming to raise as much as $100 billion for data centers and other infrastructure investments. MGX was launched as a dedicated AI fund in March, with Abu Dhabi’s Mubadala and AI firm G42 as founding partners. UAE’s Mubadala has also invested in OpenAI rival Anthropic, and is among the most active venture investors, with eight AI deals in the past four years, according to Pitchbook. Anthropic ruled out taking money from the Saudis in its last funding round, citing national security, sources told CNBC.  Saudi Arabia’s PIF is in talks to create a $40 billion partnership with U.S. venture capital firm Andreessen Horowitz. It also launched a dedicated AI fund called the Saudi Company for Artificial Intelligence, or SCAI."

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We’re pleased to announce our newest investment from our pre-seed, Tributary Fund, AI-Ops. Based in Mobile, Alabama, AI-Ops uses deep reinforcement learning to optimize autonomous control models for various heavy industries (e.g., petroleum refineries, water treatment facilities, pharmaceutical manufacturing, etc.). The company’s AI models seamlessly integrate into existing control systems, adding various capabilities, including anomaly detection, time series forecasting, soft transmitters, and deep reinforcement learning for autonomous control actions. Users are empowered to develop and integrate their own AI models or opt for more customized models tailored to their process data. These models can then either directly control processes or offer actionable suggestions to operators and provide substantial ROI via (among other things) reduced process disruptions/increased uptime, as well as labor, energy, and other cost reductions. AI-Ops’ technology is truly impressive in its ability to quickly and comprehensively evaluate highly complex control systems (across a wide variety of industries and vendors), identify process bottlenecks and other areas of inefficiency at a granular level, and generate the detailed process adjustments needed to address them. We believe this will not only be a material driver of sales efficiency (even with very large enterprise customers) but also a significant barrier to entry for potential competitors down the road. While it’s still relatively early days for AI-Ops, we’re encouraged by the rate of customer adoption and the caliber of those customers (multiple Fortune 1,000 companies are already using the product). https://ai-op.com/

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Episode 8 of Rally Cap VC's podcast is dropping next week, featuring Wael Nafee, General Partner at RAED Ventures. Raed Ventures is the leading Saudi early-stage VC firm, with ~$450m in AUM. Their portfolio includes Tabby [$1.5b val], Foodics [$170 Series C], Salla E-Commerce Platform [$130m pre-IPO], Unifonic [$125m Series B], Sary [$75m Series C], Lean Technologies [$67m Series B], Noon - The Social Learning Platform [$41m Series B], and so many more. While the kingdom 🇸🇦 is sometimes mistaken as an 'easy-to-fundraise' destination, this misconception cannot be further from the truth. This conversation with Wael [whom many founders refer to as their 'favorite investor'] offers a glimpse into the sophistication of institutional investors in the region.

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📍Here's the MENA VC and tech news you missed out on this week... 👇 💸 SVC has committed funding to Global Ventures’ $150 million Fund III, targeting early-stage companies across the Middle East and Africa. The fund focuses on supply chain technology, energy technology, and agri-tech. Notable Saudi-based startups backed by Global Ventures include Tabby, Lean Technologies, Classera, Immensa, Zid, and Iyris. 🇪🇬 Egypt’s MSMEDA جهاز تنمية المشروعات has signed a $3 million investment agreement with Foundation Ventures to support early-stage Egyptian startups. Founded in 2019 by Mazen Nadim, Omar Barakat, and Ziyad H., the firm has backed prominent startups such as Trella, Abwaab, Rabbit, and Swypex. 🇦🇪 Abu Dhabi’s Mubadala Investment Company outspent Saudi Arabia’s Public Investment Fund (PIF) in 2024, investing $29.2 billion, up from $17.5 billion in 2023, according to Global SWF data. This accounted for nearly 20% of the $136.1 billion spent globally by sovereign wealth funds. 👋PIF’s investments dropped 37% to $20 billion in 2024, down from $31.6 billion the previous year. 👋PIF Governor Yasir Al Rumayyan stated the fund is aiming to reduce foreign investments to 18–20% of its AUM, as it focuses more on domestic funding and AI. 💰 SVC has committed funding to Jadwa Investment’s GCC Private Equity Fund I, a $400 million blind-pool fund targeting high-potential private equity opportunities across Saudi Arabia and the GCC. 🇸🇦 Value Makers Studio (VMS), the Economic Development Center, and the Madinah Chamber of Commerce have launched Al Madinah Ventures - المدينة فينشرز, a $10M fund aimed at attracting 30+ investors annually and launching five startups each year in Saudi Arabia. Value Makers Studio has already invested $180M in startups, creating 800 jobs. ❄️ US-based cloud data storage company Snowflake has established a regional headquarters in Riyadh, strengthening its presence in the Middle East. Founded in 2012, Snowflake enables enterprises to manage cloud infrastructure seamlessly across multiple providers. Get the full 5-minute briefing 👉 https://lnkd.in/dc5t4een 🐢 And while you're here, sign up to get the next edition delivered straight to your inbox: https://lnkd.in/dszhXGGP #menatech #VC #expansion #fintech

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🌍 Do #MENA startups exhibit a greater diversity of M&A exits? One of the more interesting findings from MAGNiTT revealed that exits in #MENA showed a broader industry focus than its peer markets in SouthEast Asia or Africa. From 2019 to 2023, #Africa and #SEA showed a larger proportion of exits in #FinTech and #Ecommerce. This trend makes sense because of the opportunities in tech and consumer-driven sectors across these emerging ecosystems. 🚨But it’s a different story in MENA: During the same time period, MENA exhibited a more diverse M&A activity spread. Though E-commerce and FinTech were still prominent, other industries occupied a larger share compared to SEA and Africa. This diversity highlights a wider range of investment opportunities and potential acquirers seeking a regional presence. This is a positive development as it reduces reliance on specific sectors. 📢 FYI: Another eye-catching insight was that about 40% of startup exits in MENA occurred within the 3 to 5-year range. This is a higher share than in Southeast Asia and Africa, underscoring the region’s strength in earlier or medium-term exits. Curious to know more about M&A trends from different regions? Speak to us today! https://lnkd.in/dJrCd3fm #Exits #Mergers #MENA #VentureCapital #InvestmentTrends #Funding #Startups 

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Ibtikar Fund closes its second fund securing $25 million Led by managing partners Ambar Amleh and Habib Hazzan, the fund invests in innovative early-stage Palestinian-founded startups across the Middle East and North Africa (MENA) region. Their primary objective is to invest in 25 tech or tech-enabled startups, ranging from seed to Series A rounds. The investment average ticket size is typically $500,000. Check the full story on Forbes Middle East #palestinianstartups #menastartups #funding #investment #forbesmiddleeast

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Ali Raza | Saudi Arabia Holding Co. Thanks for sharing; The Public Investment Fund (PIF) of Saudi Arabia plays a critical role in the kingdom's economic diversification, in line with Vision 2030’s goal of reducing dependence on oil. In 2024, PIF made noteworthy investments, including 40 billion dollars in artificial intelligence and emerging technologies, alongside 319 million dollars in the coffee industry. This year, the fund has also bolstered its presence in key sectors such as infrastructure, tourism, and sports. For 2025, PIF plans to increase its annual spending from 50 billion dollars to 70 billion, further strengthening its position on the global stage. Projections for PIF's growth in 2025, based on advanced financial models like scenario analysis and Monte Carlo simulations, suggest a considerable rise in assets under management (AUM). With an estimated compound annual growth rate (CAGR) between 15% and 20%, PIF’s managed assets are expected to reach 800 billion dollars, with a potential growth range of 780 billion to 830 billion, depending on macroeconomic factors and sector-specific developments. PIF’s portfolio is expected to benefit substantially from its investments in artificial intelligence and other high-growth technologies, which could generate annual returns of 12% to 15%, contributing approximately 6 billion dollars to total returns. National megaprojects like NEOM will serve as a catalyst for economic growth, with an expected impact of 50 billion dollars by 2025. On the global front, investments in infrastructure and strategic partnerships are projected to yield returns of 8% to 10%. PIF is on track to solidify its position as one of the world’s most influential sovereign wealth funds, with assets under management reaching 800 billion dollars by the end of 2025. This growth will be driven by strategic investments in cutting-edge technologies, national projects, and increased international diversification. These efforts will ensure PIF remains a driving force behind Saudi Arabia’s economic diversification and a significant player in the global economy.

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