Startups Urged to Seek Added Value Beyond Funding for Breakthrough Success
Tech investor Rashit Makhat has advised startups in the Middle East to prioritize support and guidance beyond initial funding to maximize their growth potential in a competitive market.
Makhat, Director and co-founder of UAE-based tech venture company Scalo Technologies, emphasizes that founders should seek investment proposals that offer added value for sustained expansion. “Founders need partners who actively contribute to key decisions, from hiring choices to strategic guidance in marketing, financial planning, and legal matters,” Makhat commented. He also highlighted the importance of connecting with a network of skilled professionals who can aid in business growth.
“Founders should aim for partners who help them construct a business model geared towards achieving the right metrics, refine their pitch, and link them with other prominent growth-stage investors,” he added.
Scalo Technologies, established in Singapore four years ago and now operating in Dubai, invests in companies like Hexacore, a mobile game developer, Voctiv, an AI-powered contact center builder, and Noah, an all-in-one money app.
In 2023, MENA region startups raised $4 billion, marking a modest growth of 1.7%, with half coming from debt financing. The rise of artificial intelligence has added complexity to the challenge of standing out in the market.
Makhat advises that prioritizing quality, seeking comprehensive support, and maintaining realistic expectations are crucial for navigating the venture capital landscape effectively.
“Startups should focus on strategic financial management, lean and focused hiring practices, continuous technology evaluation, and diversifying offerings while maintaining a customer-centric approach,” Makhat said. To attract and retain top talent, he suggests offering attractive equity and incentive packages, along with continuous learning opportunities for the team.
By emphasizing these strategies, Middle East startups can better position themselves for breakthrough success in a rapidly evolving market.
