June 13, 2024
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Startups told added value beyond funding is key to breakthrough success

Tech investor Rashit Makhat has advised Middle East startups to look beyond initial funding for the extra support and guidance needed to capitalize fully on their growth potential in a highly competitive market.

Makhat, Director and co-founder of UAE tech venture company Scalo Technologies, says founders hoping to make this a breakthrough year should study investment proposals wisely and seek added value in order to achieve sustained expansion.

“Founders need partners who actively contribute to key decisions, from hiring choices to strategic guidance in marketing, financial planning, and legal matters,” he comments.

“They’re also advised to look for offers that connect them with a network of skilled professionals who can contribute to the growth and expansion of their business.

“They should aim for partners who can help them construct a business model geared towards achieving the right metrics, refine their pitch, and link them with other prominent growth-stage investors.”

Established in Singapore four years ago, Scalo Technologies based its operations in Dubai last year in view of the UAE’s buoyant ecosystem. Among its investments are Hexacore, a mobile game developer and publisher, Voctiv, which helps companies build AI-powered contact centres, and Noah, an all-in-one money app.

Total funding of $4 billion raised by MENA region startups in 2023 represented a modest growth of 1.7 per cent, and half of this came from debt financing. Meanwhile, the impact of artificial intelligence on business has given another dimension to the challenge startups face to stand out.

Makhat says that by prioritizing quality, seeking comprehensive support, and maintaining realistic expectations, founders can navigate the VC landscape more effectively.

“Startups should focus on strategic financial management, lean and focused hiring practices, continuous technology evaluation, and a diversification of offerings, while maintaining a customer-centric approach,” he said.

“To attract and retain top talent, they must consider offering attractive equity and incentive packages, and also provide continuous learning opportunities to the team.”

Last Updated on 2 weeks by Middle East News 247

    Middle East News 247

    Middle East News 247 delivers trending business and lifestyle news and essential infotainment for, and from the Middle East region, with key focus on the GCC nations: United Arab Emirates (UAE), Saudi Arabia, Qatar, Bahrain, Kuwait, and Oman.
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