VentureSouq co-founder and General Partner, Tammer Qaddumi, highlights key elements that foster credibility with investors and sustained prosperity.

In the dynamic world of startups, securing funding is a crucial step towards success. [Our brand name] Middle East's latest series, "Startup Funding - Investor Insights Every [our brand name] Needs," delves into this topic, offering valuable advice from the region's leading venture capitalists.

When it comes to attracting investors, being prepared is key. This means being on top of your own numbers, being clear and direct about what you're asking for, and understanding what the investor on the other side of the table cares about. However, it's important to remember that an investor's decision often depends on solving a specific problem, not a referendum on the company.

Investors are also influenced by the perception of scarcity in a funding round. This highlights the importance of having a broad funnel approach when approaching funding, focusing on broadening the top of the funnel.

The three most exciting sectors for founders currently are short-form video content, artificial intelligence in robotics and cybersecurity, and defense technology startups. Short-form video content's high impact and relevance in social media marketing make it a hot trend. AI in robotics and cybersecurity offers opportunities to optimize tasks and enhance security workflows. Defense technology startups, particularly those focusing on software-driven drones and warfare tech, have gained importance due to geopolitical events and technological innovation.

The intersection of AI with FinTech and Climate, including Energy, is another sector that excites investors. The application of AI in emerging markets, particularly in financial services, is expected to lead to a significant leap in solutions.

When it comes to assessing a startup, investors look at more than just the team's capabilities. They evaluate if the team has the right mix of technical, commercial, and connectivity skills. They also consider whether the founding team can obtain necessary capabilities and shows coherence and persistence.

Traction is another important factor. This can include user growth, pilots with big partners, or a strong community forming around the product. Clarity is also crucial. Founders should explain the problem and solution in a way that is clear and understandable to anyone.

Basil Moftah, Managing Partner of Key Capital, shares an interesting anecdote. He made his first investment based on a founder's claim of no room for participation. Unfortunately, the investment did not return. This underscores the importance of a strong team and a large, well-timed market at the seed stage.

Founders should expect numerous "nos" during their journey and not take them personally. Following up after a "no" with updates every few months can be a good strategy. As Tammer Qaddumi, co-founder and General Partner of VentureSouq, shares, founders should focus on clarity, traction, and being prepared to build investor trust and sustainable success.

Lastly, the tighter global trade restrictions become, the greater the opportunities for the private sector to serve as bridges and connectors in cross-border commerce. The series continues to provide valuable insights, helping founders navigate building and scaling a startup in the MENA region.

VentureSouq co-founder and General Partner, Tammer Qaddumi, highlights key elements that foster credibility with investors and sustained prosperity.