promoting innovation through early stage financing · bdl circular 331. invention v/s innovation....
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Promoting innovation through early stage financing
Nicolas Rouhana – GM IM Capital
November 2016ESCWA 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 StageSeries A, B,
..(VC)Internationalization
ProgramsAdditional Funds
Idea Stage Seed Stage Growth StageMVP & Seed Stages MatchingInvestment Stage
TheemarTrablos
YOUTHinc.
Resulting Innovation Funnel
Exit Strategy
IndustryClusters
VentureCapital Funds
• Business Angels
• Seed Funds• Grants
IncubationMentorship
Bu
sin
ess
Pla
n
Co
mp
etit
ion
s
Prepare & Motivate Facilitate Grow & ExpandSeed & Support
Monetize
“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) ?!
11Source: http://research.wamda.com
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)?!
Intro at MonthlyMentor Meeting
Initial Meeting(s)(2 mentors)
OngoingSessions
VentureLaunched
Venture deemed ready for full-team mentoring
Mentoring continueswith less frequent
contact
Keep venture moving forwardAdjust mentor team as needs evolve
Enrollventure
Long Term Commitment
IdeaIdea Expansion
Validation Launchable Full-time Growth
Conception/Brainstorming Business Planning Launched/Executing
Team Building
EvidenceBuilding
• 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
• 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
17
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
