As of this year, startups in Lebanon will no longer have to complain over a lack of investors willing to give them cash in exchange for equity stakes. There are several new venture capital (VC) funds on the block, both from existing players and new ones. While this does not guarantee that entrepreneurs will not complain about other fundamental issues that arise from calling on outside investors to capitalize their companies — such as fair valuations and the value of the know how provided by the venture capitalists — these entrepreneurs are, at least in terms of availability of money, rather well served at the end of 2014. With the diversity of funds and ticket sizes, Lebanese venture capital is approaching a more complex phase — one likely riled by more competition among firms, but also one where funds of different sizes are starting to make up an ecosystem in
Scientia vincere tenebrasDecember 18, 2014 - 2:57 PM
Very interesting article.
As positive this can be for the financial sector and VCFunds, the main reason behind the 400 Million USD is still overlooked; job creation and education of technology development to younger generations.
Lebanon is missing the whole technology phase, and so is the region. The proof ? What successful company has exited succesfully ? Maktoob ? With its sale to one of the worst performing company on earth; Yahoo.
Before looking at the hype of money, one should look at the cycle being ridden. Where are we in the technology cycle and overall startup development eco-system ? Why is it no startup is scaling up ? What is the point of having VC’s if there are no incubators ? And most importantly who are those so-called VC ? What experience do they have in startups ( except for LEAP fund)? The nepotism behind MEVP is inadmissible. How can a startup even scale withouth Seed investment ? There is a huge discrepency in the overall financing of startups, and these so called institutions. If the initial aim and objective of this injection was to create of Lebanon a technology hub and innovation hub ? How to steer and create this ? Why not invite the successful Lebanese who made it abroad – and clearly not here for these exact same reasons-?
Instead of hyping the 400 Million USD injection, one should look more carefully at the typical issues this country is facing such as corruption and nepotism. A jury and/or tecch advisors should be formed, for this cash not go up in the air, as we have seen in the history of our country.
Finally, please note that only 5% of the VC’s in the USA are actually profitable, and these are VC’s with a board of advisers with extended experience in startups. Not just scavenger bankers.
Comments are closed.
Forgot Password
Please Login
Please Sign up
✅ Registration successful!
Please check your email to verify your account.
1 comment
Very interesting article.
As positive this can be for the financial sector and VCFunds, the main reason behind the 400 Million USD is still overlooked; job creation and education of technology development to younger generations.
Lebanon is missing the whole technology phase, and so is the region. The proof ? What successful company has exited succesfully ? Maktoob ? With its sale to one of the worst performing company on earth; Yahoo.
Before looking at the hype of money, one should look at the cycle being ridden. Where are we in the technology cycle and overall startup development eco-system ? Why is it no startup is scaling up ? What is the point of having VC’s if there are no incubators ? And most importantly who are those so-called VC ? What experience do they have in startups ( except for LEAP fund)? The nepotism behind MEVP is inadmissible. How can a startup even scale withouth Seed investment ? There is a huge discrepency in the overall financing of startups, and these so called institutions. If the initial aim and objective of this injection was to create of Lebanon a technology hub and innovation hub ? How to steer and create this ? Why not invite the successful Lebanese who made it abroad – and clearly not here for these exact same reasons-?
Instead of hyping the 400 Million USD injection, one should look more carefully at the typical issues this country is facing such as corruption and nepotism. A jury and/or tecch advisors should be formed, for this cash not go up in the air, as we have seen in the history of our country.
Finally, please note that only 5% of the VC’s in the USA are actually profitable, and these are VC’s with a board of advisers with extended experience in startups. Not just scavenger bankers.
Comments are closed.