Venture capital is equity capital provided by professionals who invest alongside management in young, rapidly growing companies that have the potential to develop into significant contributors to the economy. In particular, it provides an important source of equity capital for start-up companies.

Although venture capital financing has long served as an important engine for growth in developed nations in North America and Europe, it has been noticeably absent in the GCC and MENA regions. Despite an abundance of available opportunities, the potential for venture capital has been largely under exploited.

This can be attributed to a number of key factors: the challenges inherent in venture capital investing; the scarcity of the required technical knowledge and expertise in this field; and the inability of many regional financial institutions to adjust their scope of business, strategic objectives, and human and technical resources, to embrace such non-traditional investment activities.

Unique opportunity
VCBank is firmly convinced that there is a unique investment opportunity for venture capital based investment banking in the GCC and MENA regions. Today, there are numerous fundamentally strong, entrepreneurial companies with sound business models, but which are undervalued and lack the necessary resources for growth and expansion.

The venture capital banking concept pioneered by VCBank is the first initiative of its kind that targets such a niche market in the region. The Bank aims to deliver high potential returns, fully managed risks, and significant co-investment opportunities, which are fully compliant with the rules and principles of Islamic Sharia.

Global Partner
VCBank has established a strategic technical partnership with Global Emerging Markets Group (GEM). Established in 1991, GEM is one of North America’s leading deal origination, advisory, mergers and acquisitions, corporate finance, and turnaround firms, focused primarily on emerging markets. Headquartered in New York, and with offices in London and Paris, GEM has completed numerous transactions of private equity and leverages buyouts in over 20 countries.