Promoting innovation through early stage financing Nicolas Rouhana GM IM Capital November 2016 ESCWA EGM
THANK YOU & Welcome to 4Bs!! 2
EGM, Amman, June 2015 We came a long way Politically correct BDL Circular 331
Invention v/s Innovation
Startup Funding in Lebanon: The LeapFrog! Pre- Acceleration Acceleration Seed Stage Series A, B,..(VC) Internationalization Programs Additional Funds Idea Stage MVP & Seed Stages Seed Stage Investment Stage Growth Stage Matching YOUTHinc. TheemarTrablos
Business Plan Competitions Resulting Innovation Funnel Prepare & Motivate Facilitate Seed & Grow & Expand Support Monetize Incubation Mentorship Business Angels Seed Funds Grants Venture Capital Funds Industry Clusters Exit Strategy
I feel like I am on a life boat surrounded by water & not a drop to drink!
A Backgrounder $15M obligated over 5 years Berytech Foundation to set up & capitalize new fully owned subsidiary IM Capital to support qualified early-stage businesses and investors in Lebanon
Innovative Tool for early-stage support Matching Capital Equity Guarantee Support Programs Matching new private sector investments with selected Investment Partners and/or qualified angel investors to support Early-Stage Businesses and Investments Providing Qualified Investors with a partial guarantee on investments in Early-Stage Businesses and on Venture Capital Providing a range of assistance to investors and entrepreneurs, including trainings, angel coordination and assistance, and mentorship programs
A Sector & Stage - Diverse Portfolio
Type of funding received by MENA startups: crucial role of Angels where to find them (locally)?! Source: http://research.wamda.com 11
Seeders MBA 2016-2017 A One Year-long Program for Novice Angel Investors Class of 26 Individuals Every 6 weeks (from September 8, 2016 to July 6, 2017): - GBI Workshops on Investment Topic - Meet MSMEs via Investment Meetings / Pitching Sessions; - Moderated Group Debrief Voting on Investment (Majority Decides) In Between: - Conduct Due Diligence & Negotiation (Deal-leader) - Attend Videos & Webinars on Investment Topic - Commitment $15K Each in a Common Pool for Investing in an SPV, 50% Capital Guaranteed $2.5K Tuition 50% Sponsored for First Batch
Seeders MBA 2016-2017 Preliminary Results 2 investment workshops /sessions 15 pre-pitches 6 pitches Due diligence with 3 startups Starting a batch for Women Business Angels Q1 17 with LLWB
Mentors: Where to find them (locally)?! Mentoring continues with less frequent contact Venture deemed ready for full-team mentoring Venture Launched Enroll venture Initial Meeting(s) (2 mentors) Intro at Monthly Mentor Meeting Ongoing Sessions Keep venture moving forward Adjust mentor team as needs evolve
Long Term Commitment Mentors-mentee relationship can start at any stage of the venture life-cycle Idea/business concept ready for mentoring, or growth, Probability of success is not a factor Conception/Brainstorming Business Planning Launched/Executing Idea Idea Expansion Team Evidence Validation Launchable Full-time Growth Building Building As the idea matures, mentor group and dynamics can change and evolve Relationship can stop if venture: fails to launch, dormant, disengage, etc.
Some Parting Thoughts Private-sector led initiatives Innovation & Entrepreneurship in the DNA Role of Government Leave us alone attitude, but one hand cannot clap alone! UTAH Economic Miracle!! Success (and failure) stories ok to fail & exit! Democratize Incubation (like education)
Entrepreneurship prevails against all odds: New start for Syria refugee in Lebanon after online campaign Abdul Halim al-attar (left) watches one of his employees, at his restaurant in Beirut, Lebanon. Abdul Halim al- Attar, a refugee from Syria is now running three businesses in the city after an online crowdfunding campaign in his name collected $191,000. The 33-year-old, father of two, opened a bakery in October 2015 and has since added a kebab shop and a small restaurant to his business venture. He employs 16 Syrian refugees. (AP) http://bigstory.ap.org/article/7d7fb92d396241c5813445010cbe4ecb/new-start-syria-refugee-lebanon-after-online-campaign 17
nrouhana@im-capital.com @nrouhana 18