The argument in favor of using filler text goes something like this: If you use real content in the Consulting Process, anytime you reach a review point you’ll end up reviewing and negotiating the content itself and not the design.
Raising capital is a core part of being a business/project owner, whether it’s a start up, growing an existing company or project finance. A capital raise is an essential step in taking your business from the initial stage, growing and expansion stages. Capital raise process could be very challenging, it can be broken down into manageable stages and milestones.
There are several ways to raise capital for business either in the UAE or International. However, these fall into two major categories: Equity raising and Debt raising.
Debt raising is accepting a debt obligation in return for capital. Examples of debt raising include loans, credit cards, and bonds.
The information guide we intend to provide covers most ways including other aspect that maybe familiar to you.
Here in the UAE startup funds and support programs have been initiated by Abu Dhabi and Dubai, these two locations have position themselves as a hub for top startups in the Middle East and North African (MENA) regions. Startups and existing companies looking to raise capital with pitching events in the market, having access to finance workshops and mentors providing advice on raising capital. Companies can tap into the connections, networks and have knowledge of potential investors.
Most company founders use short-term sources such as friends and family or bootstrapping (self-funding) to get businesses off the ground in the beginning stages. However, they soon find that these measures are not sustainable in the long term, as they only provide a minimal amount of cash flow. The good thing is that some businesses find themselves with rapid growth rates and in need of large sums of money to continue to scale at high speed while some don’t. In any case they then turn to equity investors such as Grants, Angel Investors, Venture Capitalist, and others. Let’s look into the following options:
Here are some secure ways to raise capital in the UAE.
This is an initiative by the His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai aims to support innovators and founders who wants to make a difference.
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Mohammed Bin Rashid Innovation Fund (MBRIF) |
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Dubai SME |
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Intelak Hub |
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DIFC FinTech Hive |
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Dalma Capital |
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TURN8 |
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Techstars Hub71 |
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in5 |
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Krypto Labs |
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Futurism Programme |
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INNOVEST Middle East |
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The Humanitarian Accelerators |
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Plug and Play-ADGM |
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2019 FinTech Accelerator Programme |
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Emirates Angels Investors |
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Angel Investors Abu Dhabi |
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Dubai Angel Investors |
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Emirates Angels |
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MENA Angel Investor |
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FasterCapital |
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Wamda Capital |
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Shorooq Partners |
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Middle East Venture Partners |
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Vy Capital |
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Jabbar Internet Group |
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500 Startups |
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Global Founders Capital |
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Enterprise Ireland |
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Venture Souq |
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Morningstar ventures |
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BECO Capitalust |
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Global Ventures |
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Endure Capital |
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Arzan |
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EQ2 Ventures |
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GE Ventures |
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Y Soft Ventures |
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Iliad Partners |
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Beehive |
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Eureeca |
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SmartCrowd |
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Zoomaal |
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Yomken |
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YallaGive |
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Build Palestine |
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Chriky |
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Ethis |
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Liwwa |
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Raqamiyah |
This is traditional for debt capital raising as secured or unsecured loan through bank or finance company. Startup business loans can help new entrepreneurs cover startup costs — including equipment, inventory, payroll, utilities, and insurance. Although it may be more difficult for startups to qualify for traditional business loans, some online lenders offer capital to borrowers with one year or less in business.
UAE has an enabling business environment for newbies with its business friendly atmosphere and business friendly tax policy. Whenever a new business opportunity or situation requires the injection of additional business funding. You can borrow up to AED 2 million business loan with no collateral or security requirement once your company is having good financials and set your fixed term repayment period anywhere between 12 and 48 months.
Banks do make loans to startups – provided they demonstrate the ability to repay them and have strong collateral. While on the other hand, finance companies give out loans with higher interest rates than those of banks. Hence, loan interest is how finance companies generate revenue. People with poor credit history often turn to finance companies for loans.
The following banks provide loans to startup businesses:
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Abu Dhabi Commercial Bank (ADCB) |
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Commercial Bank of Dubai (CBD) |
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FAB Business |
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Abu Dhabi Islamic Bank (ADIB) |
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HSBC |
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Citi Bank |
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ICICI Bank |
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Finance House |
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Reem Finance |
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SME Finance |
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Amnacapital |
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Gulf Finance |
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Al Ain Finance |
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Aafaq Islamic Finance |
(if you need more investors list and professional service connect with us)
Business capital raising both in the UAE and international market follows the same principles is either equity raising (loans) and debt raising (shares). Your business plan or proposal must undergo evaluation to determine viability and risk involved including other factors. Global Commercial Banks all over provide loans in the foreign currency to the companies mostly for international trade finance and very crucial in financing the non-trade international operations.
Equity raising either from angel investors or VC investors is a great way, but these investors will want to see evidence of domestic success. VC investors will push for a detailed plan, they also expect an ability to see, test and reiterate quickly to changing market conditions. Startups that are pre-revenue find it much difficult in the international capital markets.
Here are ways companies can raise the financial capital they need to pay for such projects in four main ways: (1) from early-stage investors; (2) by reinvesting profits; (3) by borrowing through banks or bonds; and (4) by selling stock.
There is a useful list of investment firms, family offices and individual investors here.
