Liquidity Capital, the global fintech and fund manager, announced its newest joint venture with Dubai-based Yas Investments. This new partnership will culminate in a $100M Venture Debt Fund based in Abu Dhabi Global Market (ADGM), focused on financing MENA-based tech startups.
As startups in MENA further explore Venture Debt Investment as a viable financing option, The Yas Liquidity Fund is the latest initiative in this direction. Set to be sector-agnostic, this new Venture Debt fund will offer minimal-dilutive growth financing options to MENA-based Tech startups.
Founded in 2017, Liquidity Capital combines real-time data with proprietary machine learning technology to offer tailored financing solutions. The Yas Liquidity Fund marks their second newly launched fund of the year.
“The Middle East is a real hotbed for innovation right now, but venture finance has historically not been open to technology businesses in the region. This means start-ups always had to trade equity to fund growth, which is a very expensive form of capital,” said Ron Daniel, Founder and CEO of Liquidity Capital.
He continued: “We’re excited to be partnering with YAS Investments. Together we can lead the charge to build a financial ecosystem for the region that will support tech innovation, attract highly skilled workers and help these promising companies expand globally – all while remaining compliant with Islamic finance laws.”
The UAE has been open to debt financing solutions, with startups like Dubai-based Sehteq closing in on Venture Debt Investments.
To mark this launch, Yagub Yousef Alserkal, Founder and CEO of YAS Investments commented: “We are delighted to partner with Liquidity Capital – a firm which brings together their incredibly powerful advanced predictive technology and global track record of deploying globally about $450m in high-profile start-ups such as E-Toro,” Sachhyam Regmi, Partner at YAS Investments concludes. “This combined with our deep understanding of the region and track record will allow start-ups to access alternative forms of financing.”