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Sadara Ventures
100 Al-Kawthar Street, Third Floor
Al-Bireh/Ramallah
Palestine

For all inquiries, please email:
info@sadaravc.com

Investment Criteria

Investment Criteria

We have learned through experience to adhere to the accepted venture capital maxim that the most important ingredient in the success of these entrepreneurial companies is the excellence of management. We seek to invest in companies that can exploit significant international market opportunities and achieve rapid growth and scale, with limited cash requirements. Beyond that, the following criteria are relevant as well.

Sectors

The Fund expects to invest primarily in companies involved in the development of innovative software applications, Internet technology, online content, mobile content and applications, gaming, and communications fields. The Fund also expects, to a lesser extent, to invest in companies involved in the outsourcing of IT and business process services, and that develop products and services aimed mainly at export markets.

However, the Fund will also consider investments in other export-oriented businesses with the potential for significant growth. The managers have experience in identifying and working with companies capable of very rapid growth, largely through export of their products to international markets.

Stage

The Fund will invest primarily in seed and early-stage companies (in some cases initiating projects and building teams around them), and will participate in follow-on rounds through the complete investment lifecycle.

To a lesser extent, the Fund also expects to invest in certain later-stage companies, where the team’s industry sector insights, network of relationships, expertise, and access to capital can help established companies introduce new technology or business approaches or relationships in the marketplace, to produce rapid growth.

Markets

The Fund will invest in export-oriented companies targeting regional markets in MENA, and/or international markets. In some instances, companies we back may choose to start in the local Palestinian market, in which case we expect them to have clear plans for regional/international expansion.

Required Capital

We expect to invest up to $2-3M in each of the Fund’s portfolio companies, though this amount will typically be invested in multiple stages. The Fund’s first investment in an early-stage company is not likely to exceed $1M, and in some cases will be considerably less.

We invest in companies with modest capital needs (preferably low-single-digit $M, and in any event not more than $15M to cash break-even), and work closely with our companies to facilitate co-investment by other funds in the region and abroad, and to access NGO financing and other means of support.

Valuation & Equity

Most companies in which we invest will have post-money valuations in the range of $1M to $5M, and we generally expect to acquire equity positions that fall into the range of 20%-50% at the time of our first investment. When appropriate, we intend to co-invest with other venture capital funds and corporations, as well as with value-adding individuals.

In any event, the Fund will seek Portfolio Investments that allow the Fund to exercise substantial influence over management and the strategic direction of companies in which it invests.

We strive to maintain rigorous discipline as to valuation, yet we believe it is important to ensure that portfolio company management has significant upside through equity participation.

Geography

The Fund will focus on investments in companies that have a substantial connection to the Palestinian Territories. (Investments in companies with a substantial connection to Gaza will only be considered at a later stage, should political conditions permit.)

To a lesser extent, the Fund may invest in companies elsewhere in the Middle East region, provided that such investments have the potential to positively impact the Palestinian economy; and provided there is a suitable local investor, leading each such investment and able to provide continuous, hands-on support to such companies.