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Saudi Arabia,United Arab Emirates,United States : FENOX seeks MIDDLE EAST startups

June 26, 2014



With US $25 million, the Silicon Valley venture capital fund, Fenox is scouting for investment targets among Middle East start-ups.

Fenox plans to spend $25 million over the next 10 years.

There is a lot interest around seed start-ups but the challenge in the Gulf region is that there are not a lot of home-grown developers. What is needed to attract them from abroad and keep them for a long term.

After 120 days at the accelerator with a seed funding of $30,000, the 5 tech start-ups from the UAE, Australia, India, Georgia and Egypt pitched for investments between $250,000 and $370,000.

About 18 investors turned up to hear the 15-minute pitches.

The US venture capital fund plans to invest $100 million globally over a decade, invests between $25,000 and $200,000 in each start-up, in the areas of e-commerce, mobile, social and cloud technologies besides those working on business-to-business software and hardware and advertising technology.

Fenox Venture Capital charges a 2% management fee, while 80% of the returns on capital go back to the investors and the rest to the fund.

It has committed $10 million aims to raise the rest of the amount by January, mostly from Asia and also from North America.

The company s exits include the Japanese animation company Dream Link Entertainment when it went public on the Tokyo Stock Exchange s Mothers market for emerging stocks in March. Dream Link makes the Flash animation series Eagle Talon.

Fenox has sourced its investments from the Silicon Valley accelerators YCombinator and 500 Startups, and Japan s Samurai Incubate.

Fenox will have Kamal Hassan, the founder of the i360 accelerator in Dubai, as its Middle East general partner.

Venture capital funds are more common in the region, especially in Dubai.

The area is attracting government players. Riyad Capital would start a 1 billion (Dh979.2m) riyal fund for new technology companies.


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Source: TendersInfo (India)


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