Venture capitalists based in the US are increasingly passing up the chance to invest in young startups, and choosing to invest into mature companies, preferably with proven business models.
According to a report by research firm PitchBook Data, Q1 2016 saw the fewest number of seed-stage venture deals since 2013, with over half of all venture capital funding going to late-stage funding rounds. However, this trend of US venture capitalists focusing on more mature opportunities is offset by the willingness of investors from the GCC to invest in early-stage tech companies.
GCC investors – i.e., those based in Saudi Arabia, the United Arab Emirates, Qatar, Oman, Bahrain and Kuwait – are familiar with the lucrative opportunities available in the US, which offers both high and stable returns. And for many of these investors, the decision of whether or not to invest in a certain opportunity rests heavily on how the opportunity is introduced to them.
In cases where trusted advisors or facilitators introduce early-stage tech opportunities to GCC investors, the investors are more likely to be interested. The credibility of a facilitator can often offset the absence of a track record, or the untested nature of a young startup.
Naseba is a deal facilitator that has spent over a decade building a network of contacts with investors based around the world – including the GCC. This network includes family offices, sovereign wealth funds, investment firms, high net worth individuals and members of royalty. Our investor analyst team conducts daily calls with these investors in order to fully understand their needs and mandates.
Based on the results of these research calls, the team is currently sourcing US-based technology investment opportunities to help our investors access the thriving US tech sphere.
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