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Kuwait Investment Authority's decision to participate in the deal or not will depend on a "study" of the IPO
DUBAI- Saudi Aramco met investors in Dubai on Sunday to market its initial public offering (IPO), after trying to secure demand from Kuwait's sovereign wealth fund for the deal, worth up to $25.6 billion, which relies heavily on local and regional buyers.
Top executives of the Saudi state-owned oil giant, including Aramco's Chief Executive Amin Nasser, met officials of Kuwait's sovereign wealth fund weeks ago, a source familiar with the matter said, confirming an earlier report on Sunday in the Kuwaiti newspaper Alrai.
Meanwhile, Aramco's management including its finance head and advisers met with institutional investors at an IPO roadshow in Dubai on Sunday, the second outside Riyadh after the company decided to cancel all roadshows in developed markets.
The Kuwaiti newspaper said the Kuwait Investment Authority's (KIA) decision on whether to participate in the deal would depend on a "study" of the IPO.
Aramco said in an email it did not comment on specific investor meetings.
The KIA did not immediately respond to a Reuters request for comment. In late October, the KIA's managing director Farouk Bastaki said Aramco had not approached the fund then, but that the KIA would look at the IPO like any other investment.
Talks have taken place with sovereign investors including the Abu Dhabi Investment Authority, Singapore's GIC and other funds, sources have told Reuters.
DUBAI ROADSHOW
Aramco has struggled to attract a major cornerstone or anchor investor for its IPO, which could be potentially the world's biggest.
An executive at a London-based fund, who attended the roadshow in Dubai, told Reuters he was interested in the IPO, but declined to provide more details.
Some investors asked Aramco about the sustainability of its dividend policy.
Aramco has set a base dividend of $75 billion for five years.
A second executive at an investment firm said Aramco did not say whether that base level might grow.
The meeting was led by Aramco's senior vice president of finance, strategy and development, Khaled al-Dabbagh, and Yasser Mufti, the company's vice president of strategy and market analysis, sources said.
"The only thing left for comfort is the Saudi government, it’s fiscal policy and ability to sustain the dividends," said a fund manager. "If you’re OK with that, you’ll invest."
Over 20 people, wearing suits, walked into the presentation area at a luxury hotel in Dubai's financial district, but hotel security restricted entry for reporters.
Another roadshow is planned in Abu Dhabi on Monday.
"Looks like there's a lot of interest both from retail investors and institutions." K. V. Vijay Raghavan, group finance director at Dubai-based investment firm Arenco told Reuters after attending the roadshow.
"I wish it was more like $1.4 trillion to $1.5 trillion, but this is what it is," he said, referring to the company's aim to achieve a valuation of $1.6-$1.7 trillion.
However, he also said that looking at the investor interest, the IPO could hit the top end of the valuation range.
Aramco plans to sell 1.5% of the company. The deal is the centrepiece of Crown Prince Mohammed bin Salman's plans to diversify the Saudi economy away from its reliance on oil.
Saudi Arabia's central bank governor told Reuters on Sunday in Riyadh that it was monitoring banking indicators on a daily basis and was not seeing any impact on liquidity from the IPO.
source: zawyazawya
The new framework is set to encourage small and medium-sized investments, according to the MOF
With UAE Cabinet’s approval an insolvency law that regulates cases involving individuals facing financial difficulties, the legal framework is now set to better ensure the rights of both creditors and debtors, according to the Ministry of Finance.
“This law creates a safe environment for personal loans to the satisfaction of both the creditor and the debtor, as it provides the balance to ensure the rights of both creditor and debtor,” Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, told reporters in Abu Dhabi.
“The law thereby encourages increased cash flows and attracts small and medium-sized investments to the state,” he added.
These are the key details of the law, based on additional information from the Ministry of Finance:
- The new legislation is expected to make it easier for individuals to obtain loans, as there are clear and easy-to-apply rules for the collection of bad debts and rehabilitation of debtors financially.
- This improves creditor banks’ confidence in retail lending and encourages individuals to engage in calculated borrowing.
- The law ensures the protection of the debtor’s dignity as a natural person (that is, an individual, rather than a company or organization) and helps create an opportunity for them to reduce their financial burden.
- The law provides two means to address the insolvency of individuals: first, by possibly settling financial obligations, and second, through insolvency and liquidation of funds.
The debtor can file an application with the court for an opportunity to settle their financial obligations, and the court will appoint one or more experts to assist them during these proceedings.
- When preparations begin on a plan to reorganize and settle financial obligations, the settlement plan shall be voted on by the creditors.
- The debtor may choose the second option (of liquidating their funds to pay their debts) if they have stopped paying any of their debts on the due dates for more than 50 consecutive working days due to financial inability.
- In the event of liquidation of funds, a trustee shall be appointed to control and facilitate the liquidation of the debtor’s funds.
- Funds excluded from liquidation procedures are pension or social benefits provided to the debtor as well as funds required by the debtor to meet their basic needs and those of their dependents. The latter amount is specified by the court.
- The period for the execution of the financial liability settlement plan may not exceed three years from the date of the ratification of the plan by the court.
source: zawya
From 2013 to 2018, the GCC insurance industry grew at a CAGR of 8.9%
The GCC insurance market is projected to grow at a moderate pace of 4.3 percent compound annual growth rate (CAGR) to reach $36.1 billion in 2024 from $29.2 billion in 2018, Alpen Capital said in a report.
The outlook for the GCC insurance industry remains positive, “primarily led by a sustained economic growth, diversification of the economy, increase of the population as well as the implementation of mandatory insurance,” Krishna Dhanak, Executive Director at Alpen Capital said during a media roundtable.
From 2013 to 2018, the GCC insurance industry grew however at a higher CAGR of 8.9 percent from $18.4 billion to $28.2 billion, the Alpen report showed.
The market share of each GCC country is expected to remain constant through 2024 according to Alpen Capital. The UAE will continue to maintain its position as the largest market in the region.
The gradual slowdown of the insurance industry that was witnessed in the last two years as various players adapted to new regulations such as solvency requirements, minimum capital requirements and pricing policies, is likely to continue until 2024, Dhanak said.
Dhanak said that M&As in the sector remained active over the past two years as companies sought to build stronger balance sheets to sustain the stringent reserve and solvency requirements.
“In addition to interest from foreign players, we expect to see continuing M&A activity as companies develop technological capabilities to broaden their product offering and improve profitability,” he added.
According to the report, insurance penetration (ratio of total insurance premiums to GDP) in the region is expected to remain between 1.8 percent and 1.9 percent from 2019 to 2024, below the global average of 6.1 percent, offering scope for growth in the sector.
Insurance density (ratio of premium underwritten to total population) in the GCC is expected to increase from $502.9 in 2019 to $555.8 in 2024. Life insurance gross written premium (GWP) is projected to grow at a CAGR of 4.9 percent to reach $4.7 billion in 2024.
The non-life segment will continue to comprise 86.9 percent of the total insurance market at $31.4 billion in 2024, the report noted.
In the next 5 years, the UAE’s insurance market is forecasted to grow at a CAGR of 4.2 percent while the Saudi Insurance market will grow at a CAGR of 5 percent and the Kuwaiti insurance market is anticipated to grow at the fastest annualized average pace of 8.2 percent.
In 2018, the UAE recorded the highest insurance penetration and density at 2.9 per cent and $1,194.7 respectively, the report said.
One of the challenges facing the sector is its exposure to risky assets according to Alpen Capital, as insurance firms in the region have a relatively high exposure to capital markets, making them more prone to volatility in equity markets.
Another challenge is weak profitability. With 200 insurers operating in the region, the sector remains highly fragmented, pushing companies to face profitability pressure due to mounting competition, high regulatory costs and strict accounting standards, the report said.
source: zawya
President Ueli Maurer concluded his presidential visit to the United Arab Emirates and Saudi Arabia on Tuesday, 29 October.
The focus in both countries was on bilateral relations and issues relating to sustainability. The president was accompanied on his visit to Abu Dhabi, Dubai and Riyadh by a delegation from the financial sector.
On Sunday, in the United Arab Emirates, Mr Maurer met with Crown Prince Mohammed bin Zayed Al Nahyan, Prime Minister Mohammed bin Rashid Al Maktoum and Reem Al Hashimy, Minister for International Cooperation and Director General of Expo 2020.
Together with the Minister of State for Financial Affairs, Obaid bin Humaid Al Tayer, and State Secretary Daniela Stoffel from the State Secretariat for International Financial Matters (SIF), he chaired the second round of dialogue on financial policy with the UAE.
He also attended events with experts on fintech and sustainable finance. At an official ground breaking ceremony Mr Maurer was presented with a plot which will be the site of the Swiss pavilion at Expo 2020.
Construction work is set to commence at the beginning of November.
In the UAE, talks primarily served to foster bilateral relations between Switzerland and the United Arab Emirates in a broad range of areas.
Discussions in the field of economic and financial affairs covered the implementation of the free trade agreement between the European Free Trade Association (EFTA) and the Gulf Cooperation Council (GCC), the automatic exchange of information, and the bilateral double taxation agreement.
Questions concerning the rule of law, democracy, human rights, the political situation, and Switzerland’s good offices were raised during talks in both the United Arab Emirates and Saudi Arabia.
In Riyadh Mr Maurer stressed the opportunities for bilateral exchanges and cooperation presented by the ‘Vision 2030’ reform programme, particularly in terms of innovation, education and sustainable finance.
He had audiences with King Salman bin Abd al-Aziz Al Saud, Crown Prince Mohammed bin Salman Al Saud and Prince Badr bin Farhan Al Saud, the Minister of Culture.
The Swiss delegation held a number of bilateral discussions with the Minister of Commerce and Investment, Majid bin Abdullah Al Qasabi, the Minister of Economy and Planning, Mohammed bin Maziad Al-Tuwaijri and the Minister of Finance, Mohammed Al Jadaan, on the further development of mutual relations and specific projects in financial relations and the areas of education, tourism, dual-track vocational education and training, digital transformation and sustainability.
Mr Maurer gave one of the opening addresses at the Future Investment Initiative (FII) conference in Riyadh. In his speech he cited Switzerland’s ambitious system of direct democracy as a political early warning system and highlighted Switzerland’s approach to new technological developments and innovation.
He also spoke about sustainability in society, governance and in the environment, and emphasised the importance of the Swiss education system and its higher education institutions.
Shortly before leaving, Mr Maurer attended a training session of a women’s basketball team accompanied by Lina Almaeena, a pioneer of Saudi women’s basketball. Under the reforms envisaged as part of ‘Vision 2030’, Saudi Arabia is seeking to encourage opportunities for women through culture and sport and to improve their place in society.
In that context, and as a token of thanks for Saudi Arabia’s hospitality, Mr Maurer invited a Saudi women’s basketball team to Switzerland’s National Sports Centre in Magglingen for a week’s training.THE FEDRAL CONUNCIL
تحت رعاية سمو شيخ محمد بن راشد آل مكتوم، نائب رئيس الدولة رئيس مجلس الوزراء حاكم دوبي، ستنطلق فعاليات ملتقى الاستثمار السنوي لعام 2020 في نسخته العاشرة، خلال الفترة ما بين 24 الى 26 مارس المقبل في مركز دبي التجاري العالمي، الذي تنظمه وزارة الاقتصاد، تحت شعار "الاستثمار من اجل المستقبل: استشراف سياسات الاستثمار العالمية".
ويعد ملتقى الاستثمار السنوي واحد من أضخم الملتقيات للمستثمرين على مستوى العالم، إذ يحضر المؤتمر سنويا وفود ووزراء حكوميين وممثلين عن منظمات إقليمية ودولية وكبريات الشركات العالمية كما يستقطب الملتقى رواد الاعمال من أصحاب الشركاء الناشئة والمشاريع الصغيرة والمتوسطة، حيث وصل عدد زوار الملتقى في دورته الماضية الى اكثر من 20300 شخصاً من 143 بلداً.
ويبحث الملتقى في نسخته العاشرة عن الآليات وسبل التعامل مع مستجدات الأوضاع الاقتصادية على المستوى العالمي، وإيجاد السبل الملائمة للتعامل الاستباقي معها، وذلك عبر استشراف التوجهات الاستثمارية المستقبلية، بهدف تشجيع تدفقات رؤوس الأموال للتوجه نحو المطارح الاستثمارية الآمنة والعائدية المجزية.
يتضمن الملتقى مجموعة متنوعة من الفعالية الاقتصادية، منها تسليط الضوء على مبادرة الحزام والطريق التي أطلقتها الحكومة الصينية في عام 2013 في كازخستان وتأتي أهمية تسلطي الضوء على المبادرة الصينية في ان الدول العربية الشرق أوسطية تعد الممر الرئيسي للطريق الواصل ما بين الصين وأوروبا وما يعنيه ذلك من تدفقات استثمارات مباشرة في البنى التحتية للدول الواقع على طريق المبادرة.
كما يوفر الملتقى عبر فعالياته المختلفة فرصة لرواد الاعمال لعرض وتقديم أعمالهم للمشاركين لاسيما رجال الاعمال والشركات الكبرى حيث يوفر الملتقى فرصة لرواد الاعمال والشركات الناشئة للحصول على التمويل الأولى وتوسيع مشاريعهم، بالمقابل يوفر فرصة للشركات الكبرى الحصول على استثمارات ناجحة والوصول الى أسواق جديدة.
للاستفسار ولمزيد من المعلومات: (اضغط هنا)
في اطار سعي الامارات العربية المتحدة المتواصل لأحداث عملية التحول الرقمي، عقد يومي الـ 14-15 من شهر تشرين الأول/أكتوبر، المؤتمر السادس للموارد البشرية وسوق العمل بدول مجلس التعاون الخليجي تحت عنوان "سوق العمل الخليجي في ظل نمو الاقتصاد الرقمي" في مركز اكسبو الشارقة في امارة الشارقة، تحت رعاية سمو الشيخ سطلان بن محمد بن سلطان القاسي ولي العهد ونائب حاكم الشارقة وبحضور سمو الشيخ عبد لله بن سالم القاسي، نائب حاكم الشارقة ونائب رئيس المجلس التنفيذي.
نقدم في هذا المقال موجزا عن فعاليات المؤتمر والتوصيات التي جاءت في البيان الختامي.
تضمن المؤتمر الى جانب الجلسة الافتتاحية ندوتين حواريتين شارك فيها 8 متحدثين قاموا بعرض نماذج وتجارب تطبيقية ومبادرات خليجية في مجال الموارد البشرية، بالإضافة الى ذلك تم عقد جلستي عمل تضمنتا عرض ومناقشة أوراق عمل.
كما شهدت الجلسة الافتتاحية اعلان سعادة رئيس مجلس إدارة غرفة الشارقة اطلاق الغرفة لمبادرة جديدة تستهدف رواد الاعمال وهي مركز المشاريع الصغيرة والمتوسطة (تجارة 101) كما تم تكريم الفائزين في جائزة الشارقة للتوطين الخليجية وتكريم المتحدثين والرعاة، واقيم خلال المؤتمر معرض شملت اجنحته عروض لخدمات وانشطة للعديد من المشاريع الريادية والمراكز التعليمية والأكاديمية.
في ختام فعاليات المؤتمر قدم المجتمعون مجموعة من التوصيات اكدوا من خلالها على أهمية اعلاء قيمة راس المال البشري الخليجي من خلال استثمار القطاعين العام والخاص فيه كما دعى المؤتمرون اتحاد غرف دول مجلس التعاون الخليجي للاستفادة من مباردة غرفة الشارقة بإنشاء مركز (تجارة 101) من خلال تنظيم ورش عمل متخصصة بالتعاون مع كافة الاتحادات والغرف وأوصوا بدراسة إمكانية تنفيذ مقترح إنشاء جمعية خليجية للموارد البشرية وتنفيذ مقترح تأسيس مجلس شباب اعمال دول مجلس التعاون الخليجي تحت مظلة اتحاد غرف دول مجلس التعاون، وتحفيز العمل المشترك بين القطاعين الخاص والحكومي لمواجهة مفرزات التطورات والمتغيرات في سوق العمل الناجمة عن الثورة الصناعية الرابعة والتي جسدها نمو الاقتصاد الرقمي من خلال الاستفادة من فرص التحول في مجال تسريع خطى التنمية الاقتصادية كما اوصى المؤتمرون القطاع الخاص الخليجي للعمل على تهيئة قدراته لمواكبة التحول نحو الاقتصاد الرقمي من خلال نقل المعرفة وتوفير التسهيلات والبنية التحتية التي تدعم قيام القطاع الخاصة بإدخال التنقيات الرقمية في منتجاته، وختم المجتمعون توصياتهم بدعوة المؤسسات والهيئات التعلمية للعمل على موائمة مخرجات التعليم مع سوق العمل الخليجي والسعي لزيادة الاستثمار في المعرفة.
On 16 October, the second APAC (the International Compliance Association) Conference was held in Singapore, and it is an important platform for the global compliance community, when The conference aims to meet the most important challenges on the compliance schedule and is a unique opportunity to connect with experts from 13 international countries.
So this year's conference included a content-rich program including bribery, corruption, anti-money laundering, technology and regulation.
During the two-day panel discussion and event, the participants reviewed the challenges and opportunities created by technology for the financial crime compliance community.
During the opening speech on the first day, Loo Siew Yee (AMD Policy, Payments & Financial Crime, MAS) invited specialists to commit to new methods and techniques to improve AML, Fighting the financing of terrorism CTF and risk mitigation strategies.
Ms. Lu commended the progress made by the industry in the past two years in the use of automation, data analysis and industrial intelligence to enhance the effectiveness and efficiency of controls.
Nevertheless, Lu cautioned financial institutions about the risks posed by the new patterns and that institutions should remain vigilant and cautioned and focused on continuing to develop a strong government, a strong awareness of risks in all areas of defense and effective controls.
In preparation for the licensing of the new Digital Payment Banana (DPT), Ms. Lo announced that MAS has begun to strengthen its supervisory and control capabilities to facilitate proactive detection of unlicensed DPT activities, and to use all “real-time” data to enhance ML / TF risk assessment of licensed entities
Ms. Lu added “Technological advances offer the promise of a more effective, efficient and inclusive financial sector, but present challenging and complex financial crime risks. This conference is an excellent chance to compare notes and share ideas as we make strides towards combating financial crime.”
Helen Langton (CEO of ICA) noted that the quality of the discussions for this year's APAC was tremendous.
It was driven by knowledge sharing and a great networking opportunity with counterparts from more than a dozen countries.
While we see emerging new technologies that continue to disrupt the global financial situation and regulatory landscapek ICA remains committed to strengthening standards, pushing meaningful conversations and preparing our cadres to meet future determinations - no matter what.
أصدرت شركة MAGNITT تقريرها الخاص عن تمويل المشاريع الناشئة في الشرق الأوسط وشمال افريقيا للربع الثالث من عام 2019، ويتطرق هذا التقرير عبر5 محاور رئيسية الى واقع عمليات التمويل الاستثماري واتجاهاته العامة. نقدم فيما يلي ملخصاً عن تلك المحاور واهم ما جاء فيها.
أولاً: تطور اتجاهات التمويل سنوياً
تكشف البيانات الواردة في هذا المحور عن ارتفاع في حجم التمويل يبلغ حوالي 30% عن العام السابق ولنفس المدة، وهو ما يشير الى الوتيرة العالية التي ترتفع معها معدلات النمو في تمويل الشركات الناشئة، حيث بلغ حجم التمويل التي تلقته الشركات الناشئة حوالي 517 مليون دولار، كما بلغ عدد الصفقات المبرمة ال 354 صفقة منذ بداية العام 2019 وحتى تاريخ اعداد التقرير، بنمو طفيف يبلغ 3% عن عام 2018 ولنفس المدة.
ثانياً: مشهد المستثمرين
يشير التقرير الى نمو غير مسبوق في اعداد المستثمرين في الشركات الناشئة ضمن منطقة الشرق الأوسط وشمال افريقيا منذ بداية العام 2019 وحتى تاريخ اعداد التقارير، إذ وصلت اعداد المستثمرين على فئة أصول المشاريع الى 163 مستثمر وتشمل هذه الاستثمارات شركات راس المال الجريء مثل 500STARTUPS وبرنامج التسريع مثل F1AT6Labs.
ثالثاً: التحليل الجغرافي
يوضح هذا المحور التوزع الجغرافي لأعداد الصفقات والمبالغ المجموعة للاستثمار في الشركات الناشئة، واللافت في هذا المحور هو صعود مصر للمرة الاولى الى المركز الأول في عدد الصفقات المبرمة حيث عقدت في مصر حوالي 95 صفقة من اصل 354 لتتفوق بذلك على الامارات العربية المتحدة التي جاءت في المركز الثاني بـ88 صفقة، بالمقابل حافظت الامارات على المركز الأول في عمليات التمويل حيث بلغت اجمالي مبالغ التمويل في الامارات حوالي 320 مليون دولار من اصل 517 مليون دولار وبنسبة 62%، ويشير التقرير أيضاً الى النمو في اعدد الصفقات المبرمة في كل من السعودية وتونس حيث تشهد كل منهما تحسناً في القدرة على توفير البيئة الاستثمارية الملائة للشركة الناشئة.
رابعاً: تحليل القطاعات
حافظ قطاع التكنولوجيا المالية على أكبر عدد من صفقات الاستثمارات في عام 2019 حيث استحوذ هذا القطاع على ما نسبته 14% من اجمالي عدد الصفقات وبزيادة 3% مقارنةً بالفترة نفسها من العام 2018، يليه قطاع التجارة الالكترونية بنسبة 10% ومن ثم قطاع التوصيل والنقل بنسبة 8%، اما عن التوزع النسبي لحجم التمويل فحل قطاع العقارات في المرتبة الأولى بنسبة 19% وبمعدل نمو يصل الى 19% عن العام السابق ولنفس الفترة، يلي قطاع العقارات قطاع التجارة الالكترونية بنسبة 17% اما في المرتبة الثالثة فجاء قطاع التوصيل والنقل بنسبة 16% يليه قطاع الطاقة المتجددة بنسبة 13% وأخيرا قطاع التكنولوجيا المالية بنسبة 6%.
خامساً: اهم الصفقات وعمليات التخارج
يستعرض هذا المحور أكبر 5 جولات تمويل في منطقة الشرق الأوسط وشمال افريقيا في الربع الثالث من عام 2019.
تظهر البيانات المسجلة انه من بين الشركة الخامسة التي حصلت على اكبر عمليات تمويل هناك أربعة شركات مختصة بالتجارة الالكترونية وهو امر متوقع في ظل النمو المطرد للتجارة الالكترونية في المنطقة العربية.
جاءت شركة مكسب المصرية للتجارة الالكترونية في المرتبة الأولى حيث استطاعت جمع مبلغ 6,2 مليون دولار، يليها شركة ecomz اللبنانية التي حصدت مبلغ 4 مليون دولار وهي الشركة المختصة في التجارة الإلكترونية، ثم شركة tem:tem بمبلغ 4 مليون دولار وتختص شركة tem:tem بقطاع النقل (سيارات الاجرة) ، اما في المرتبة الرابعة فجاءت شركة RAIN لتحويل العملات المشفرة والتي حصلت على تمويل بقيمة 2,5 مليون دولار مسجلةً اكبر جولة تمويل اولي تقوم بها أي شركة بحرينية ناشئة، في حين حلت شركة zid السعودية في المرتبة الخامسة مبلغ 2 مليون دولار وتعمل الشركة السعودية بعمليات التجارة الالكترونية المتكاملة.
Even revolutionary ideas need a little help to get rolling. When an entrepreneur has a new business vision, he or she usually needs to raise money for development, marketing, and talent management. Unless the startup founders are high rollers with years of experience, they will look to venture capital and angel investors who will guide them through the first round of funding, the seed stage.
There are a few guidelines that founders should listen to carefully in order to raise seed capital and grow their startup. First and foremost, leaders should be prepared before meeting with prospective investors, and have a list of references who will back the idea.
Founders should get creative with funding, always willing to put themselves out there beyond a comfortable limit.
What Is Seed Capital?
Seed capital rounds differ from proceeding rounds quite significantly. More than a few players are involved, as multiple funds invest an average of $200 to $700K each.
In addition, there are usually a few individual angel investors who invest more than just financially in the company. Angel investors usually get to know the founders and have an interest in the business that transcends the necessary belief in a high return on investment (ROI).
Some distinguished angel investors include serial entrepreneurs and former CEOs who have a track record of bringing businesses public.
The seed stage “plants the seed” for a startup to thrive, in order to launch business operations and show revenue data for the next rounds of funding.
Above All, Be Prepared
Business leaders need to have specified projections and hard numbers ready on demand for venture capitalists before diving head-first into the seed capital round.
A compelling business plan will include strength, weaknesses, opportunities and threats analysis (SWOT). Founders need to have a thorough understanding of how venture capitalists make investment decisions.
Venture capitalists will need to know exactly how much funding a business will need and specific plans for allocating investment resources.
A detailed cost projection will need to be explained and defended. In order to uphold credibility and shield oneself from entering an unfair deal, founders should have a strong idea of how much of the business they are willing to give up.
They should also have a clear concept of the interests and goals of the investors, and an understanding of the capital structure of proposed funding.
Many upside provisions are confusing and if not understood can prevent founders from realizing future profits.
Everything should be based on hard numbers that give best-case and worst-case ROI scenarios to founders.
The numbers will ultimately drive negotiations for the VC's percentage stock ownership.
Rob Go, partner at Next View Ventures, a seed stage investment firm, recommends on the company website that leaders develop a list of supporters prior to meeting with venture capitalists. Founders should identify references and make sure that they are on board, understand the business idea and know what to say when questioned by investors.
Gather Committed Investors
Wait, isn't winning over investors what seed capital rounds are all about? Yes; however, this will be easier if businesses have established themselves prior to seed fundraising. Human psychology has shown time and time again that if someone else already went through the decision process, another will be more comfortable in making the same decision.
No one wants to be the first one to take a risk, even risk-loving venture capitalists. Founders should solidify investor commitments.
This way, when prospective investors make contact, the committed angels can confirm their decision to invest X amount in the startup.
Founders may strategically shoot for relatively small commitments, around $20-$50K.
They should also consider giving reasonable provisions on these promises, such as “provided that the funding round is at least X and reasonable terms are met.” This will make early investors more willing to negotiate, given the downside protection.
Put Yourself Out There
If a founder doesn’t have mentors and angel investors as contacts, they cannot be afraid to get out there and go to the VC community directly.
Networking is the most essential tool and skill that an entrepreneur needs, ahead of business acumen.
Gagan Biyani, the co-founder of Udemy, a platform for online courses, told his story of seed funding wherein he was initially rejected by over 30 top investors. He wrote on the Udemy blog: “I went to every conference I could and literally killed myself while there.
I attending tons of networking events and met as many entrepreneurs and investors as I could."
Startup mentorship programs and incubator firms are open for applications. Y Combinator and TechStars are two well-known programs that churn out a mass of successful startups.
Many programs choose applications that receive on-premise coaching and a small investment to get the businesses off the ground, in turn for a percentage of equity ownership.
Ways to Plant Seeds
In the technology age, it's easier than ever to reach angels, who enjoy using social media channels and interacting with enthusiastic entrepreneurs.
Many lesser-known VC firms focus on local entrepreneurship funding, in counties and communities outside big startup hubs like San Francisco and New York.
Additionally, founders may consider the newly popularized crowdfunding method for raising seed capital. Kickstart.com and many others now act as a platform to match investors and startups.
The Jumpstart Our Business Startups Act, or JOBS Act of 2012, lifted restrictions on investing in early-stage companies so that the common person could have the opportunity to invest.
Companies that aim to raise less than $1 million in total capital can do business with aspiring investors.
source: investopedia
Thanks to international clients, flexible work options for employees, increased travel in a global market and the surging gig economy, a digital workspace is now a cornerstone of the modern business office.
One struggle that organizational leaders face in their respective digital-workspace environments is fostering a sense of connectedness.
A recent story from Small Business Trends indicates that 70 percent of remote employees feel left out of the workplace.
Compounding this fundamental issue is the fact that many organizations are working with limited budgets for what is often an ever-expanding feature, according to the 2018 CMS Wire Digital Workplace Survey.
The ongoing battle to fund competing initiatives or departments is one of the highest-ranking obstacles to developing an optimal digital workspace.
As a rapidly increasing number of employees work remotely and organizations begin to scale, the need for collaborative communication solutions beyond the usual Google Hangouts or Zoom is quickly becoming a top priority.
The search for solutions to create a thriving digital workspace that fosters a sense of inclusion with office-based employees and the general atmosphere of the office has led to unified communications (UC) tools that add value for everyone, whether they're in the same office or on the other side of the world.
Top business and technology-advisory firm Gartner has explored trends in the UC universe and found that companies are expanding its range beyond the on-premises models to move to the cloud, opting for UC-as-a-Service (UCaaS). That shift is happening rapidly, since there is little additional investment required to move to a cloud-based solution according to the UC Magic Quadrant for UCaaS via Gartner.
Executive and IT leaders for businesses of all sizes are enthusiastic about the deployment of UCaaS, citing it as the preferred method of adopting budget-friendly communications solutions that enhance employee cohesion.
In fact, nearly all current UCaaS vendors are using microservices and Infrastructure-as-a-Service (IaaS) architecture to a degree while running media in conventional data centers.
Cloud data centers like Google Compute Engine, Deltapath Managed Cloud, Azure and Amazon Web Services (AWS) are largely hosting these platforms.
Four emerging trends provide organizational leaders exploring UCaaS with a good foundation in their search:
- Globalization. Given the need to reach employees and consultants in remote locations around the world, most providers offer global capacities.
- Improved Interfaces for Enhanced User Experience. Improved dashboards, tools and portals make use easier for everyone.
- Workstream Collaboration. A highlight in UCaaS trends involves workstream collaboration, which provides notifications, messaging, bots and tools that allow teams to effortlessly communicate -- in private or via group chats -- throughout the life of a specialized project.
- Video-Focused User Experiences. Key video improvements include high-definition resolution, collaboration-friendly features and the ability to invite large numbers of participants for video conferences, meetings and calls.
UC innovators continue to examine the needs of today’s business clients and work to answer the most pressing challenges.
The latest trends are set to bring UC up to speed to allow executives and IT teams to streamline communications for a better employee experience, which ultimately translates to better client experience and brand reputation.
source: entrepreneur
