Dubai: The D33 program for Dubai’s skies aims to build on the strengths the city already has, for example in trade. Then there are the priorities for Dubai to further flesh out its strengths, especially in the startup space.
Startups, innovation, digital smarts, fundraising and access to investors – these will remain constant themes for Dubai and the UAE in the next decade cycle. The funding is there, whether it comes from government-affiliated entities such as the Khalifa Foundation and ADIO, or from private sector entities such as MEVP, GII and CE-Ventures.
Tushar Singhvi is Deputy CEO and Head of Investments at Crescent Enterprises and some of his mandates include overseeing CE-Ventures, the PE arm of the UAE-based company. In recent years, CE-Ventures has navigated and chosen its path through numerous startups and early stage businesses, providing a platform for an entrepreneur’s idea to turn into a profitable reality. Both inside and outside the United Arab Emirates.
In an interview, Singhvi discusses CE Ventures’ strategic roadmap and how the business will profit from the funding commitments it makes.
Isn’t it true that CE-Ventures is more focused on startups in the mid to late funding phase? If yes, is it time for some exits as well?
CE-Ventures focuses on both early stage and growth stage companies depending on region, domain and sector. For example, we are participating in early-stage investments in MENA and India, and are also considering early-stage investments in Southeast Asia.
In the US, the focus is on medium-growth companies.
When it comes to exits, our investment philosophy is long-term and we aim to build value with our partners. We are not a fund that needs to return capital to investors within a pre-defined period of time. We aim to monetize our investments at the right time when we believe the value is maximized.
Last year, you were active in venture exposure. Where are these digital entities? Because when you started, you also had F&B and other categories.
We aim to invest in different sectors, with technology-enabled solutions at our core. Over the last five years, we have invested in the foodtech, fintech and edtech sectors as examples.
Our investment philosophy focuses on companies that solve real problems, scale globally, and use technology as a competitive advantage to solve specific problems.
Over the past 18 months, alongside other sectors we are exploring, we have been particularly interested in deep technology and biotechnology, leveraging technology to address real problems and significantly We have carved out separate capital pools for these growing areas.
How much have you invested so far under the CE Ventures banner? Do you have any plans to launch a specialized fund to broaden your investment horizons?
Founded CE-Ventures in 2017, seeding the strategy with $150 million deployed over nearly two years. In addition, he added a $150 million allocation to Biotech and Deep He created a dedicated pool to foster transformative and innovative technologies in the tech space.
We will continue to capitalize on future forecast trends driven by technology-enabled solutions and the broader market.
People in the industry say ME startup valuations are starting to soften a bit. your thoughts?
There is no doubt that certain sectors such as food delivery, quick commerce and cryptocurrency have gained unsustainable momentum during the COVID-19 pandemic. Breakthroughs in AI, electric vehicles, and transformative technologies are also having a direct impact on nearly every aspect of the typical startup blueprint and ecosystem.
The U.S. venture industry hits a record high in 2021, creating more than $1 billion in companies, more than the last five years combined. According to PitchBook data, investors will put in more than $71 billion in 340 unicorn deals in 2021.
The U.S. market frenzy, to a lesser extent, has helped drive unrealistic valuations around the world, including in the Middle East. These valuations required adjustments. This is a sound and necessary market check that will drive valuations down and Middle East markets into a more volatile phase.
The focus of venture capital now is on building a sustainable model that can achieve profitability, not driving growth at any cost, as we’ve seen in the last few years.
There has been talk of a recession this year, do you think it will delay more investment? And even pay attention to the exit?
We now see the next two to three years as an opportunity to deploy capital. The last 30 years show that recession environments and the years immediately following recessions tend to be the best years.
At CE-Ventures, we have been and will continue to be patient in deploying our capital, but our focus is long-term and we will continue to steadily deploy capital for the right opportunities.
When it comes to exits, we aim to build value with our partners, with our own capital, we return capital without being tied to a pre-defined timeframe, and strategically invest when we believe value is maximized. profitably.
CE-Ventures has built funding exposure in these ventures.
Transcorp is a temperature-controlled logistics and last-mile delivery service provider. The company has set a vision to become the region’s leading cold chain e-commerce enabler.
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Kitopi is a UAE-based cloud kitchen platform with a valuation of over $1 billion.
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Marti is committed to micromobility transport in Turkey and the latest funding is being used to develop and introduce alternative modes of transport such as mopeds and e-bikes in the region.
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Founded in 2016, Nirogstreet is a technology-driven platform for Ayurvedic physicians, providing access to peer-to-peer learning, electronic health records and e-commerce resources for over 50,000 practitioners.
Image Credits: Courtesy
