Said Murad, Partner Global Ventures, believes MEA region is poised to grow at a significantly fast pace
In a conversation with YourStory, Said Murad, Partner, Global Ventures, talks about the learnings he brings in from being an operator to his role in investing.
When Noor Sweid launched Global Ventures, she was certain there was a gap in the market they could address. With the conviction to set up a global-first firm, it became critical to have a team of entrepreneurs, business builders who could propel this vision forward.
In 2019, it brought in Said Murad—who was given the role of an operating partner. His main task was to effectively implement and launch the firm’s value creation programme, which focused on delivering support to founders after they raise capital.
For Said, this meant his career would come a full circle. He had started out with Abraj Capital, and then Dubai International Capital, the private equity arm of Dubai Holding, where he was on the emerging markets team. Dubai Holding in turn acquired SHUAA Capital, a regional investment bank.
While Said went on to do his MBA, he worked in a few strategic consulting roles. It was around this time that he felt a need to continue working as an operator—eventually landing the job as a director of Groupon at UAE. After two years, he transitioned to a large facilities management business at EFS.
In a conversation with YourStory Gulf Said talks about the learnings he brings in from being an operator to his role in investing.
Edited excerpts from the interview.
YourStory Gulf Edition (YS Gulf): Tell us about your journey from ecommerce to facilities management and operations.
Said Murad (SM): Groupon was a great segue to operational roles, because it treats every market in its own entrepreneurial right. For me, it was a great transitional point to combine the skillsets I already have and complement them with a fast paced agile team where I could hone in on my operational skills.
While I started as an operational head, I moved to be the director of sales and later into the role of CEO. I had joined EFS post Series A after a conversation with one of the lead investors. There, I came in with two key roles–one, to help the business operationally and optimise their business to be more sustainable, and second, to help them raise Series B. I could help the company achieve both.
This meant that since ecommerce is an operationally intensive role, it meant going back to the drawing board and optimising each step, and this helped raise the Series B. So, in a way, I have been on both sides of the table.
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YS Gulf: How does this help you as an investor?
SM: I think it is super helpful to understand the nuances of what startups and early-stage companies are going through. Being on the other side, you understand what founders are going through each stage of their business.
Chance is, you would’ve yourself witnessed some of the challenges they would currently be experiencing. This makes it easier to understand what the founders are trying to articulate, it resonates with you and you respond from experience and expertise. This also resonates well with the founder.
When I was fund raising myself, I knew how hard it was to keep a brave face on and show that everything is fine. It is important to have a continuous high energy in every single meeting in a day or week or months. And that isn’t easy. It is very taxing, especially when you are running the business in the background.
YS Gulf: Why take a step back and join the investor side? How do you look at startups?
SM: I felt I could do so much more here where I could come in and do more across a portfolio of companies rather than just one company. In Global Ventures, there is a portfolio of 56 companies. Different ones have different levels of engagement or support that they need from us. It is great to be in a position where I can help different founders in their journeys and play a small role in their journey.
While looking at companies I view them from two hats, one a purely numerical and financial approach as an investor, and in parallel, I can look into the mechanisms of the business. This also helps me ascertain how these businesses are built operationally and are sustainable.
YS Gulf: What do you look for in startups and the founders?
SM: We like to meet as many founders as we can. As for what we look for in companies in the MEA region, our sweet spot is Series A. We have done earlier and later rounds as well. While we are sector agnostic, we look at certain thematics. We see ourselves as thesis-driven investors—we research the segment, take time understanding it, and eventually invest in companies across the value chain.
In founders, we look at those that are tackling a huge problem with a unique scalable and defensible solution. We like mission-driven founders, as they understand the problem that they are tackling. The TAM also has to be large. There are two ways to be innovative—one, look what has worked in another market and apply it in your market with a localised nuance, or something that is built from scratch.
The idea is can founders from this region build products for the globe. Emerging markets founders have a DNA that is wired to build in markets where capital inflow isn’t that high. So, the businesses need to be sustainable and have positive unit economics.
We have two funds and the AUM is $200 million.
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YS Gulf: How do you see the ecosystem in the MEA region growing?
SM: The startup ecosystem in this region is emerging. You see investors across different stages, and some even the growth side investment is closing. You are also seeing a few successes; for example, the success with Careem turned out to be strong and has helped create other founders and startups as well.
Some of these founders are turning into angel investors, and there is nurturing and development happening. There is lot of growth and momentum of growth in the region that is being created.
Some of the sectors that are growing are agritech, food security, as well as supply chain disruption with the ability to have a strong local supply chain, energy technology that are non-capex heavy are some examples. We are also looking closely at the digital health sector.
However, the region is still in its nascent stages. Currently, of the $81 billion invested globally, MEA region only raised $1.9 billion, but it is fast growing. We are starting to see players emerge across multiple areas and specialised stage investors. The hyper growth will start when these current investments start growing, and each reaches a certain tipping point. Startups are now moving towards that.
YS Gulf: What kind of risk appetite does the region have?
SM: Failure is inevitable in the startup ecosystem.
The statistics and numbers are there, it is something that is bound to happen for multiple different reasons for a company to fail. The important part is to capture the learnings and we are intentional in building around them. The way Global Ventures like to operate is more towards sustainable business model.
The government in Dubai has several initiatives. The startup ecosystem has created opportunity for economic growth, job creation, access to healthcare, financial inclusion, and providing services to all. Governments are realising that and are putting a lot of focus to help companies thrive.
YS Gulf: What does 2023 hold for the MEA startup ecosystem? Advice to entrepreneurs
SM: For 2023, while the region has delayed effects of the markets, there are sectors slowly getting affected. But government support and high oil prices will create forms of liquidity, creating a buffer. Companies should hope for the best but be prepared and braced for adverse market conditions.
The focus should be on building sustainable businesses with the right unit economics so they can navigate economic challenges. The startups that are intentional in allocating their resources are the ones that are positioned to see success.
Edited by Akanksha Sarma