Nuwa Capital aims to close its $100m fund by year-end since it taps into Mena's tech boom
16 February, 2021
Nuwa Capital, a capital raising firm located in Dubai and Riyadh, aims to close a $100 million fund by the finish of this year since it looks to invest in the rapidly growing amount of start-ups in the centre East.
The business closed its Nuwa Ventures Fund I (NVFI), after raising 75 per cent of its total target despite pandemic-induced challenges.
“The first close [was] considerably faster than anticipated … our original plan was to close in up to two years nonetheless it was reduced to half,” said Khaled Talhouni, managing partner of Nuwa Capital, who co-founded the firm with Sarah Abu Risheh and Stephanie Nour Prince.
“Things were delayed found in the first three months till May … as marketplaces were closed and we were not able to meet potential start-ups and traders. After that things picked up extremely fast as everybody’s emphasis was on technology and digital during the pandemic,” he added.
Founded in February last year, Nuwa Capital's start coincided with the spread of the pandemic all over the world. However the VC firm is probably the many that are actually looking to spend money on start-ups tapping into a tech boom fuelled by Covid-19.
Start-ups found in the Mena attracted an archive $1bn of funding last year, according to data platform Magnitt.
“We have been operating in this space for about a decade and continue to see fresh models emerge and additional blur the lines between tech and non tech,” said Ms Risheh. “We will be witnessing more pronounced alterations across the regional ecosystem and experiencing more start-ups reaching escape velocity.”
Nuwa is targeting rapidly developing Mena place and neighbouring geographies, including Turkey, Pakistan, and Sub-Saharan Africa.
The business, whose anchor investor is Saudi Arabia-based Al Faisaliah Group, includes a pool of 10 investors.
It has joined forces with large groups and family offices who are leaders in various industries, such as for example healthcare, pharmaceutical and property, said Ms Risheh, somebody at Nuwa Capital.
The fund also launched the Nuwa Network, which connects founders, investors and operational experts, to help start-ups navigate market challenges through scaling and expansion.
Nuwa supports founders and companies it invests in through a network of operating partners. It connects the fund’s buyers and limited partners, specifically corporate investors, with the potential start-ups.
“Although we expected a delay given the challenging economical climate and limited travel, we've been able to build the right partnerships and finalise our earliest close in under a year,” Ms Prince, a partner at Nuwa Capital, said.
“With a distinguished community of LPs [limited partners] … we're able to scale value creation and provide both strategic and operational support," she added.
Nuwa has already committed to four regional corporations, including Dubai-based online eyewear store Eyewa and FinTech start-up Flexxpay, and Cairo-based furniture marketplace Homzmart.
It is set to announce further investments in the coming weeks.
“As a firm, we will be constantly raising money … our immediate focus is on raising the rest of the 25 per cent. We as well co-invest a lot and like to use other shareholders,” Mr Talhouni said.
Source: www.thenationalnews.com
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