Innovative Startups and SMEs Fund Invests USD 1 Million in Access Bridge Ventures

Amman, August 2021: Underscoring its ongoing mission to support innovative early-stage startups and SMEs in the Kingdom, the Innovative Startups and SMEs Fund (ISSF) – the largest investment fund of its kind in Jordan – has made a USD one million investment during August in Access Bridge Ventures (ABV); a UAE-based early-stage venture capital fund focused on the Middle East, North Africa and Pakistan.

With a prominent regional and international standing – attained through its management network, partner support and affiliation with leading private equity firm CedarBridge Capital Partners – ABV serves as a first institutional investor, empowering entrepreneurs on their journeys from the early stages by extending end-to-end investment and operational expertise. By doing so, ABV nurtures distinguished leaders across various sectors, including healthtech, edtech, fintech, enterprise-tech and Software as a Service (SaaS).

ABV – led by Issa Aghabi and Rakan AlRashed, who bring 25 years of experience investing in and exiting tech companies across the MENA region and beyond – announced the first close of its USD 25 million fund in January 2021.

“We are pleased with our decision to invest in ABV, which is renowned for its strong network of partners. The regional fund will effectively outreach and support Jordanian early-stage startups to become leaders within their respective fields, thereby actively contributing towards the national economy and supplying talents, solutions and innovations that keep pace with today’s tech-driven era,” commented ISSF CEO, Laith Al Qasem.

In turn, ABV Managing Partner, Issa Aghabi, stated, “The MENA landscape has transformed over the past few years, with entrepreneurs and startups acting as powerful catalysts for economic growth and development. ABV boasts the unique ability to identify and cultivate this new breed of tech companies, many of which are extraordinary in their own right, and help them realize their full potentials. Our partnership with the ISSF will further enhance ABV’s capacity to invest in and work with promising home-grown Jordanian entrepreneurs to ultimately make them regional successes.”

The ISSF is registered as a Jordanian private shareholding company. The objective of the ISSF is to support and elevate Jordan’s entrepreneurial and innovation landscape by facilitating the establishment of new investment funds that serve the ecosystem; making direct investments in innovative, export-oriented and scalable local startups; as well as implementing initiatives that improve the capabilities of Jordanian entrepreneurs and startup teams through training, capacity building and targeted incubation and acceleration programs.

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Being a Successful Entrepreneur Isn’t Only About Having the Best Idea

Being a Successful Entrepreneur Isn’t Only About Having the Best Idea

Successful companies are built on ideas, structure and effort. When a business kicks off, the entrepreneur and the idea are both equally important. During the startup phase, many sleepless nights are spent, ideas are pondered, prototypes are tested, target markets are identified and clients are sought. After initial sales commence and input is received on the product or service provided, the entrepreneur modifies their offering to better meet client needs and expectations, while garnering a deeper understanding of available market opportunities.

As startups grow, markets expand and revenues increase, the obstacles entrepreneurs face change form. The single, creative, hardworking entrepreneur must now be supported by a competent team capable of grasping the details and nuances of the products and services at hand, as well as the requirements and challenges of the marketplace.

The more the company succeeds and the more markets it serves, the greater the need for institutionalization. To advance sustainably, the company must morph into a robust and well-staffed institution – one with a defined organizational structure; specialized departments (i.e. business development, product development, marketing, finance, etc.); specified duties, responsibilities and authorities; set policies and procedures; extended relationships with banks; and so much more.

In summary, the more successful the company, the more critical institution building becomes for not only maintaining, but also for enhancing this success.

As startups begin to seek capital from the market, the entrepreneur must determine what stage of development they fall under. For example, seed stage companies should not seek funding from Series B or Series C funds. Individual funds, on the other hand, seek different things, so if the entrepreneur has not shaped the company characteristics the funds look for, they will either be unsuccessful in attracting investment or the funds will ask for a large discount in order to invest. Agreeing to a large discount means that entrepreneurs are unable to maximize their gains. Over time, if this happens frequently, they will end up owning only a small percentage of the company they are building.

So, even though the success of a startup may begin with a great idea, its long-term success depends primarily on the effective institution building of the entrepreneur.

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Innovative Startups and SMEs Fund Invests USD 150,000 in Silkroad Images

Amman, August 2021: The Innovative Startups and SMEs Fund (ISSF) – the largest investment fund of its kind in Jordan – has announced a direct investment of USD 150,000 in Silkroad Images; a Middle East provider of exclusive stock photography images and digital content such as vectors, footage and editorials. Divided into multiple unique categories, the materials are sourced from professional photographers and content developers from across the region.

“In the wake of the coronavirus pandemic, we have been placing added emphasis on direct investments in order to allow pioneering companies to not only survive, but also thrive. Through this investment, the ISSF is accelerating the growth of “Silkroad Images” and actively empowering the company to reach its full technical and operational potentials, thus positively impacting the local economy, achieving national progress and positioning Jordan as a prime tech and entrepreneurial hub,” commented ISSF CEO, Laith Al Qasem.

In turn, Founder and CEO of Silkroad Images, Riham Mahafza, elaborated, “The COVID-19 pandemic has taken a massive toll on numerous industries, forcing companies – especially startups and SMEs – to downsize drastically or shutdown altogether, and our industry was no exception. Securing investment from the ISSF, combined with an internal funding round, will enable us to expand our digital library with authentic and intuitive content, grow our team, outreach new audiences and develop our operations, consequently bridging our expansion into untapped high-potential markets in the near future.”

The ISSF is registered as a Jordanian private shareholding company. The objective of the ISSF is to support and elevate Jordan’s entrepreneurial and innovation landscape by facilitating the establishment of new investment funds that serve the ecosystem; making direct investments in innovative, export-oriented and scalable local startups; as well as implementing initiatives that improve the capabilities of Jordanian entrepreneurs and startup teams through training, capacity building and targeted incubation and acceleration programs.

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Innovative Startups and SMEs Fund CEO Kickstarts Series of Sessions With Aspiring Entrepreneurs

Amman: Innovative Startups and SMEs Fund (ISSF) Chief Executive Officer, Laith Al Qasem, has conducted a session with a group of entrepreneurs and startup owners to discuss their ideas and potentials for growth and development within the Jordanian market. The entrepreneurial projects were focused on tech and marketing solutions, as well as business intelligence.

During the session, Eng. Rashed Al Dweik addressed the topic of media startups and their relevance to business development and innovation, commenting, “We extend professional media services and have worked with several companies and clients, achieving effective results. Over the course of the session, we learned more about the phases startups undergo and the different requirements of each, which will enable us to merge business development with the existing media services we provide so as to accelerate our growth.”

Meanwhile, the entrepreneurial concept of Eng. Majdi Mabrouk tackled the regulation of the car industry and the facilitation of related services within the local and regional markets, stating, “Our idea stemmed from the need to streamline the supply of cars to Jordan and coordinate after-sales services, on par with global car manufacturer standards. Exploring my concept with a leading entity that specializes in supporting innovative ideas has been of great value and has given me several viable options for consideration.”

Furthermore, entrepreneur Ezz Al Din discussed his augmented reality project, elaborating, “We aim to deliver an inventive solution that enables establishments to boost interactivity between their customers and their surroundings in order to enhance user experiences and integration. This technology will allow us to become part of the upcoming tech revolution anticipated for 2030, which will be kicking off within the next few years. Our idea comes with various challenges and finding an entity that is knowledgeable within this field has not been easy. However, we now have the ability to devise a clear work plan that empowers us to overcome these obstacles and transform our concept into reality when the time is right.”

Throughout the session, Al Qasem shared valuable advice and guidance, whilst highlighting the key role of the ISSF in supporting entrepreneurial ideas and SMEs through investment, training or funding.

“We firmly believe that the future of Jordan lies in its youth. That being said, sufficient communication with them remains lacking and their voices and ideas must now be heard. Our goal at the ISSF is to advance the local entrepreneurial ecosystem, which is primarily achieved by directly interacting with youth, and this is the main reason we kickstarted these sessions,” explained Al Qasem.

These sessions are the first in a series of meetings specifically organized by the ISSF to engage with young Jordanian female and male entrepreneurs to ultimately bolster communication with them, offer them guidance, understand their challenges and respond to their questions.

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Spray and Pray No More!

Spray and Pray No More!

During 2020, global venture capital (VC) funding reached USD 326 billion, with the MENA piece of the pie standing at only USD 1 billion*1 – a starkly low figure. Our region can definitely do better!

Using the 0.06%*2 VC to GDP ratio of the USA, there is an up to USD 18 billion*3 growth opportunity in MENA VC funding. To illustrate the spending power of MENA, Arabs annually spend between USD 200 billion and USD 1 trillion*4 on charity, but only USD 1 billion are allocated to the VC asset class – meaning that we are merely scratching the surface of untapped possibilities.

The focus on the VC asset class in MENA is relatively new. Over 80% of current fund managers did not exist 10 years ago. Even most MENA funds of funds (FOF) – the driving force behind VC today – only emerged during the past five years.

Governments across MENA have recognized entrepreneurship as a catalyst for economic growth and job creation. Accordingly, they are diverting their attention towards FOFs, which are responsible for investing and lining up more fund managers across different stages of the entrepreneurial value chain. More importantly, family offices – the main investment force in MENA – are stepping into the game as the region witnesses a significant rise in exits, i.e. sale of shares. With more than 61*5 exits since the beginning of 2018, the VC asset class is even more attractive now.

How do we capture this opportunity and unlock larger funding?

  1. Empower and allocate sustainable funding for FOFs, and create a pull factor in the form of inspiring success stories. Since FOFs enjoy a bird’s eye view, they can better identify and bridge gaps across the VC value chain.
  2. Attract more angel investors and family offices into the VC space by offering blended financing structures, which attract commercial capital towards a VC asset class by presenting higher returns and reducing the risks of private investors.
  3. Build and train the next wave of fund managers and angel investors, and instill a disciplined approach to investing – no spray and pray! Introducing micro pilot funds with simple legal structures allows fund managers to build track records while fundraising.
  4. Articulate a sustainable strategy for entrepreneurship and deal flow as part of a national economic outlook, while entrusting the private sector to manage and lead investments. Creating deal flow must be a national priority.

Source 1: Maginntt

Source 2: USD136b/ USD21.4T= 0.06%

In 2019, the United States deployed USD136.5 billion in US-based companies, surpassing the USD130 billion-mark for the second consecutive year, according to the PitchBook-NVCA Venture Monitor: https://pitchbook.com/media/press-releases/us-venture-capital-investment-surpasses-130-billion-in-2019-for-second-consecutive-year#:~:text=14%2C%202020%20%2D%2D%20By%20the,in%20the%20entrepreneurial%20ecosystem%20jointly

GDP United States 2019: https://tradingeconomics.com/united-states/gdp

Source: 3: USD3T@.06% = USD18b https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=ZQ

Source 4: https://www.investopedia.com/terms/z/zakat.asp

Source 5: https://www.arzanvc.com/61-exits/

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Entrepreneurship in the Face of Change

Entrepreneurship in the Face of Change

 

 

The current rate of global change is greater than ever before, with knowledge creation expanding rapidly due to the increased interaction and communication brought about by the internet and communications technology. At the start of the 1900s, knowledge doubled approximately every 100 years. By 1945, knowledge doubled every 25 years. Today, knowledge is doubling roughly every 18 months – meaning that having a static perspective of knowledge and what takes precedence is enormously flawed.

As the illustrious management expert, Peter Drucker, once said, “The best way to predict the future is to create it.”

The most essential trait youth must possess is to remain relevant. To do so, they must not only be able to adapt to change, but also create it. As such, jobs that constantly present young individuals with challenges and learning opportunities help build vital skills that serve them well in an increasingly dynamic and fast-evolving world. The ability to deal proactively and spark change greatly benefits youth in the long term and empowers them – as Peter Drucker said – to create the future. Today, it is not the academics you acquire at school and university that are important, but rather your aptitude to continuously learn and apply.

In addition to becoming a popular career path or life choice, entrepreneurship is now emerging as an indispensable life skill that is not earned through fixed traditional jobs. Although entrepreneurship is built on a set of basic fundamental skills, how these skills are applied and executed is continually evolving given today’s vigorous and competitive landscape. Entrepreneurship provides a dynamic hands-on learning environment, and entrepreneurs or startup employees will face multiple, multidimensional challenges to tackle, particularly during the early stages of a company’s development. That being said, they will be forced to experience, diagnose, apply or, at times, learn new knowledge to address these challenges. As a result, such experiences and skillsets ultimately foster a more resilient and flexible individual – one who is able to evaluate, understand, identify and effectively address the diverse ongoing changes we are experiencing today.

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Innovative Startups and SMEs Fund Invests USD 150,000 in Trteeb

Amman, May 2021: The Innovative Startups and SMEs Fund (ISSF) – the largest investment fund of its kind in Jordan – has announced a direct investment of USD 150,000 in Jordan-based company; Trteeb. The investment, which was made in January 2021, underlines the strategy of the ISSF to support 150-200 local innovation companies through direct and indirect investments (the latter in investment funds) and build the capacities of 825 entrepreneurs and SMEs through specialized training to qualify them for prospective investments.

Trteeb leverages advanced technologies to provide an online platform specializing in tailoring traditional Arab garments by connecting customers to tailors, consequently stimulating market performance and positively impacting all involved parties. The platform presents customers with the option to either choose from a selection of available fabrics and designs or customize their thobes to suit their diverse preferences, alongside easy and convenient measuring methods to ensure ultimate comfort and satisfaction.

“Since our founding in 2017, we have been placing special focus on promising innovative startups that utilize technology to support different local markets, and Trteeb is a prime example of such a company. Through this investment, we are looking to accelerate the growth of Ttrteeb’s operations and empower its highly talented team in order to ultimately advance the national economy and achieve the development and prosperity we aspire towards,” commented ISSF CEO, Laith Al Qasem.

In turn, Trteeb Co-Founder, Sultan Basyoni, stated, “We have been in contact with the ISSF from the outset and, ever since, their expert team has guided Trteeb and other startups within the ecosystem in tackling and overcoming critical challenges, consequently adding great value and saving us time and effort. This investment, which underscores the ISSF’s steadfast commitment to supporting and enabling Jordanian tech companies to succeed, will be used to sustain the development of our employees and products both inside and outside the Kingdom.”

The ISSF is registered as a Jordanian private shareholding company. The objective of the ISSF is to support and elevate Jordan’s entrepreneurial and innovation landscape by facilitating the establishment of new investment funds that serve the ecosystem; making direct investments in innovative, export-oriented and scalable local startups; as well as implementing initiatives that improve the capabilities of Jordanian entrepreneurs and startup teams through training, capacity building and targeted incubation and acceleration programs.

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Innovative Startups and SMEs Fund Invests USD 150,000 in Solfeh

Amman, March 2021: The Innovative Startups and SMEs Fund (ISSF) – the largest investment fund of its kind in Jordan – has announced a direct investment of USD 150,000 (over JOD 100,000) in Solfeh; a fintech micro-lending online platform that offers emergency cash advancements to salaried employees. The investment, which was made in January 2021, underscores the strategy of the ISSF to support 150-200 local innovation companies through direct and indirect investments (the latter in investment funds) and build the capacities of at least 600 entrepreneurs and SMEs through specialized training to qualify them for prospective investments.

Solfeh presents socioeconomically-sustainable financial and commercial services that benefit employees and business owners alike. This is achieved through the delivery of emergency microloans to salaried staff in coordination with their companies – with amounts ranging from JOD 200 to JOD 1,000 and a flexible tenor of up to 25 months via a fully automated process that takes a maximum of 30 minutes for users to secure their money – in accordance with advanced IT solutions and financial technologies. Solfeh specifically targets low-income companies and facilitates their continuity and sustainability by enabling them to maintain their liquidity, cash reserves and human resources. Meanwhile, employees of these establishments can request a loan without the need for a guarantor and select their suitable payment scheme, after which the business owner either approves or declines the application, with the option of directly overseeing and following up on the installment plan.

“By extending innovative solutions that deploy the latest financial technologies to serve both individuals and organizations, Solfeh has firmly succeeded in meeting our requirements for direct investment. Supporting youth who possess notable entrepreneurial potential and promising creative ideas in the early stages is not just part of our mission, but is also fundamental for driving national socioeconomic advancement and fostering an inclusive local ecosystem that positions Jordan as a regional hub for innovation and entrepreneurship,” commented ISSF CEO, Laith Al Qasem.

On his part, Solfeh CEO, Ali Tabbalat, stated, “Solfeh has been one of the first companies within the entrepreneurial arena to build a fintech platform that finances salaried public and private sector employees through its application, thereby saving them time, effort and cost, and helping them address emergency situations in cooperation with their employers. With the investment of the ISSF, we are now able to further enhance our product offering and expand geographically, therefore providing greater benefit to all involved parties.”

The ISSF is registered as a Jordanian private shareholding company. The objective of the ISSF is to support and elevate Jordan’s entrepreneurial and innovation landscape by facilitating the establishment of new investment funds that serve the ecosystem; making direct investments in innovative, export-oriented and scalable local startups; as well as implementing initiatives that improve the capabilities of Jordanian entrepreneurs and startup teams through training, capacity building and targeted incubation and acceleration programs.

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Propeller launches a new fund to invest in early-stage software and technology startups

Propeller, a Jordan-based early-stage VC, announces the first close of Propeller Ventures II. The new fund will invest in pre-seed and seed-stage startups in Jordan and other MENA countries. The fund is sector agnostic but will favour investments in software and technology startups — such as SaaS and cloud infrastructure startups — over tech-enabled solutions. Propeller aims to reach a final close of $15M within the upcoming year.

Propeller Ventures II’s limited partners include the Innovative Startups and SMEs Fund (ISSF), Capital Bank of Jordan, BeyondCapital, and several individual investors including startup founders and an ex-Careemer.

“The ISSF is extremely excited to have concluded an investment in Propeller Ventures II. Our excitement stems from the fact that Propeller provides the startups they invest in with real-world and practical mentoring, enabling investee companies to better navigate the chaotic waters of starting and growing successful businesses. We see Propeller’s proactive coaching as a great added value, particularly since its principals are themselves successful entrepreneurs who are intimately familiar with the challenges of establishing and expanding thriving businesses,” commented Laith Al Qasem, CEO at the ISSF.

Propeller was founded by Tambi Jalouqa and Zaid Al-Farekh in 2017 with the backing of early-investor and partner AbdulMajeed Shoman and others. They set out to back and support visionary founders during the turmoil early days of product and company building. Since then Propeller has invested in a total of 13 early-stage startups and were the first backers of Arabot, POSRocket and Nestrom.

The firm’s founding is deeply-rooted in the partners’ passion for software and belief in the transformative power of technology. Both Tambi and Zaid come from software engineering backgrounds and have over 30 years of combined experience in building technology products and companies.

Tamer Salah, Managing Director of BeyondCapital, said “At the heart of Propeller is a team of builders and founders themselves. We believe in this dynamic team; fully capable of building and guiding a portfolio of competitive technology startups. A proven synergy lies between Propeller and BeyondCapital’s core values and overall mission in its value add to Jordan. We are eager to watch Propeller’s story unroll and are proud to be a source of support for them.”

“We seek founders who are obsessed about their customers and follow their lead. Our experience in building products and teams gives us the strength to empower them to satisfy those customers,” commented Tambi Jalouqa, Managing Partner at Propeller.

With a focus on software and technology, Propeller is betting hard on the builders of our region and are already leading several initiatives to enrich and advance the software community — that is the software engineers, product managers, designers, and anyone building tech products.

In 2019, Propeller held their first international software development conference, Xpand Conference. The 2-day conference brought together around 500 software professionals eager to learn the latest global practices and advancements in the field of software development from international subject-matter experts. The vibrant atmosphere at Xpand 2019 was a testament to the builder community’s passion and hunger for growth, which is what Propeller is betting on to create the wealth of this region’s future.

Today, Propeller also produces 2 talk shows — one for founders and product people, Let’s Talk Product, and another for software engineers, Xpand Snippets.

With this new fund Propeller will continue working towards their mission of enabling Middle East’s top innovators to build technology companies that deliver value to the world. Tambi Jalouqa commented, “We are confident that there are founders in the region who are itching to build products for global consumers, and we want to be there to back them.”

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Innovative Startups and SMEs Fund Supports Oasis500 with USD 250,000 to Build Thriving and Sustainable Future for Entrepreneurship in Jordan

Amman, March 2021: The Innovative Startups and SMEs Fund (ISSF), the largest investment fund of its kind in Jordan, has extended financial support worth USD 250,000 to Oasis500 – a pre-seed and seed fund manager and accelerator within the MENA region – to promote an innovative entrepreneurial ecosystem in the Kingdom and enable its active players. In doing so, the ISSF is supporting new and existing incubators and accelerators through its Incubation and Acceleration Development Program (IADP), advancing the capabilities of entrepreneurs and management teams to build, grow and sustain startups and early-stage companies, while providing them with the assistance required to achieve their goals.

Through this financial support, Oasis500 will accelerate 16 startups in four cohorts over 28 months via IADP, starting February 2021. Oasis500 will offer services comprising extensive oversight, workshops, training courses and learning groups, among others – as well as introduce startups to a broad investor network that can accelerate their businesses and boost their growth. The ISSF also targets young female and male entrepreneurs to develop their innovative companies and generate direct and indirect job opportunities for Jordanian men and women, thereby giving rise to the Jordanian entrepreneurial ecosystem, which is a major regional hub for innovation and creativity.

“We are delighted with our partnership with Oasis500, which has been contributing to an innovative and sustainable national economy by lending young entrepreneurs the support, training, capacity building and institutional development they need to enhance their skills and potentials. This, in turn, has resulted in technology and creativity-based companies that can expand their business scopes and attract investors in the future,” commented ISSF CEO, Laith Al Qasem. “The ISSF works closely with active national players within the entrepreneurial arena, presenting them with the funding necessary to extend vital services to Jordanian entrepreneurs, ultimately reflecting positively on the local economy and its ability to compete and prosper.”

On her part, Oasis500 CEO, Luma Fawaz, emphasized the importance of offering continuous support to improve the quality of startups, stating, “We are excited to join forces with the ISSF, which will enable us to empower more entrepreneurs and startups and equip them with crucial management and financial skills.”

The ISSF is registered as a Jordanian private shareholding company. The objective of the ISSF is to support and elevate Jordan’s entrepreneurial and innovation landscape by facilitating the establishment of new investment funds that serve the ecosystem; making direct investments in innovative, export-oriented and scalable local startups; as well as implementing initiatives that improve the capabilities of Jordanian entrepreneurs and startup teams through training, capacity building and targeted incubation and acceleration programs.

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