Obediah Ayton

These 7 UAE Family Offices invest in Camels, not Unicorns. But what is a Camel?👇



ALFAHIM
Al Masaood
Al Ghurair Group
Mazrui International
Chalhoub Group
AW Rostamani Group
Buhaleeba Holding Group

“Consider the camel“

This desert mammal might not be the most attractive creature. But a camel is built to last. Unlike other animals, camels can withstand extreme changes in body temperature and water consumption.

You probably picture camels in the scorching, dry desert — but they can also survive in frigid mountain climates.

Why is it?

Camels evolved to be resilient, so they can adapt to conditions that would kill other animals.

I love to use camels as a metaphor for entrepreneurship in the current economy. In recent years, many of us embraced the “unicorn“ mindset, hustling at all costs to disrupt our respective industries.

But during a financial crisis, rapid growth isn't as realistic as it once was. That growth-at-all costs perspective can only occur in the strongest economies — and right now, it comes with significant risk.

It's time for entrepreneurs to start thinking like camels instead of unicorns: To embrace the resilience and adaptability that come with slow growth. It might not be as exciting — and opting out of risk-taking isn't easy — but we'll only survive with a weather-proof approach.

Here is a simple way to boost your business' resilience so you can ensure your growth and success for the long-haul.

Like a Camel - “Embrace a slow-but-steady trajectory“

Back in college, I had a New York friend whose parents paid for his entire degree. I was a bit envious at first, since I had to rely on my golf scholarships and part-time jobs to carry me through those four years. But in the end, I'm grateful the money wasn't simply handed to me. I developed the work ethic that built my holding company, gaining crucial skills like responsibility, initiative, and long-term planning.

On of the Family Offices above once said to me - a long-term strategy allows time to “build the business model, find a product that resonates with the market, and develop an operation that can scale.“ Sure, the timing might not be ideal. But it's not about who gets to market first, It's about who survives.

Like most people, in 2023 I am struggling to cope with the road ahead with governments arguing, big bank names falling and consumers spending less.

I've found that remembering what you set out to do in the first place makes big problems manageable, because you always have a clear goal in mind: when things get hard, just do what you set out to do.

Comment your Camel below 👇

#entrepreneurs #uae #familyoffice

How to raise Pre Seed and Seed Capital from these UAE Investors with no revenue or customers👇🏼




500 Global
Dubai Angel Investors - DAI
Flat6Labs
Plug and Play Tech Center
Dubai Future District Fund
Shorooq Partners
Khalifa Fund for Enterprise Development
Emirates Angel Investors Association
Further Ventures
Panthera Capital (Investment arm of Fujairah Holding)
Seedstars

Fundraising has few guidelines and you won’t get feedback from most investors who pass.

Raising without Customers
Fundraising without customers is asking an investor to believe in two untested hypotheses: 1) you’re solving a real problem and 2) you can build something people use. However, an investor will rightly question ‘why is nobody willing to use it?’. Here’s how you handle the common cases:

No customers closed — Continue customer development until someone is engaged with your product. If you have cash flow issues, offer consulting work to attract a customer and pay your bills. Ideally, this would be upfront development fees for custom work but you may need to settle for more general contract work.

Almost closed a customer — Discuss their pricing expectations and ask them to sign a “Letter of Intent” (LOI). The LOI should include details on what is being deployed and its rough cost. A few LOIs may convince an early stage investor.

No paying customers — Make sure your live customers are overjoyed with your product and support. Try to get positive references from them ASAP. If they’re on a free trial or pilot, make sure the agreement has a clear timeline for payment.

Highlighting the Average
If you don’t clearly explain why your company is special, you’re hoping investors will figure it out themselves. You must peak an investor’s interest early, as most meet hundreds of companies a year, to only invest in a few.

Team — Good schools aren’t enough to be your differentiator. Emphasize this if you’re a serial entrepreneur with previous exits or if you have international recognition for your expertise.

User Experience — Don’t present your app as a better experience without evidence. A demo and testimonials from key use cases is the minimum needed. If you have 50+ customers you can demonstrate customer satisfaction with engagement metrics like Daily Active Users.

Lower Pricing — Don’t talk about this unless you have unique technology, for example: Whatsapp's voice and messaging technology allowed them to provide completely free international calls. Otherwise, when you’re winning on price, investors get concerned about competition suppressing your margins.

Fundraising is hard enough without you hurting your own chances. Make sure you have satisfied customers and can clearly explain why your company is different. If you present these facts well, investors get excited!!

Have a good weekend!

#founders #UAE