The startup and fundraising landscapes continue to rapidly evolve, especially in emerging markets like Saudi Arabia. Anamaria Meshkurti, an expert on fundraising in Saudi Arabia, shares crucial insights for entrepreneurs. Her advice comes from extensive time recently spent diving deep into Saudi’s dynamic startup and fundraising ecosystems.
For those looking to raise capital in Saudi Arabia and the Middle East, Meshkurti outlines three key things every entrepreneur needs to know.
1. The Myth of Easy Fundraising
Meshkurti begins by dispelling a common misconception—that securing startup funding in Saudi Arabia is straightforward because of the prevalence of high net worth individuals. As she explains, “There’s a common misconception that fundraising in Saudi Arabia is easy and that people here are just waiting to pour money over you.”
While the region does have many wealthy potential backers, Meshkurti stresses that, like anywhere in the world, investors here are discerning with calculated investment strategies. “Yes there are a lot of wealthy individuals here but like anywhere else in the world they are cautious and selective about what they invest in and who they invest in,” she notes.
2. The Power of Trust and Relationships
Meshkurti identifies trust and relationship building as the cornerstones for successfully raising capital in Saudi Arabia. The region’s investors place heavy emphasis on deeply understanding founders and leadership teams. “Investors in Saudi Arabia want to understand who you are and most importantly if they can trust you,” Meshkurti explains.
Therefore, authentic relationship building is non-negotiable. She advises, “You have to treat your investors as people and not as an ATM machine.” Fostering genuine connections demonstrates respect for investors’ time and insight. It also builds essential trust.
3. The Role of Due Diligence and Respect
The final crucial insight Meshkurti shares relates to the extensive due diligence conducted by Saudi investors and the importance of respecting this process. As she notes, “Saudi investors conduct thorough due diligence on everything.”
The comprehensive research and analysis understandably requires significant time, though to an outside entrepreneur this may not always be apparent in initial meetings. “They sometimes take a lot of time conducting this due diligence even though when you meet them you might think that the investment decision is just based on a few minutes,” Meshkurti explains.
This contrast between perceived brevity and actual detailed diligence means that showing respect for investors and the decision-making process is paramount. Meshkurti advises entrepreneurs to “treat your investors with respect and establish trustworthiness,” as this mindset is key for ultimately securing funding.
Relationships as the Gateway to Saudi Investment
Meshkurti concludes her insights by circling back to the immense power of genuine relationships in Saudi Arabia’s investment landscape. Purposefully taking time to build connections can seem contrary to the fast-paced funding process many entrepreneurs aim for. However, Meshkurti argues that “building relationships is your shortcut to raising capital and getting where you want to go.” Rather than being an excess step, cultivating trust-based rapport with potential Saudi backers actually streamlines the funding journey.
By dispelling misconceptions about the ease of securing startup capital and providing actionable relationship-building guidance, Meshkurti offers invaluable direction for navigating investment in Saudi Arabia. Her emphasis on trust, due diligence, and human connectivity shines light on what drives this unique funding environment.
Any entrepreneur looking to tap into the region’s vast capital resources would be wise to heed Meshkurti’s insights by visiting her website here: www.anamariameshkurti.com
