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For Najla Al Midfa, a UAE national and CEO of Sharjah Entrepreneurship Center (Sheraa), as someone who studied at Stanford University and was exposed to Silicon Valley culture, entrepreneurship seemed like a possible career option.
Instead, she chose management consulting and worked in the United States for a few years before returning to the UAE in 2010, ultimately pursuing a career supporting entrepreneurs. But this was not a “planned move”, she told Gulf News in an exclusive interview.
Back in 2010, the regional startup ecosystem was still in its infancy. Entrepreneurship wasn’t even talked about as much as it is today, Midfar recalls. “So when I took a job at Khalifa Funds, I decided to leave a thriving career in management consulting and enter this industry, which baffled many people.
“But for me, this is an opportunity to use my skills to help young Emirati entrepreneurs realize their business ideas. In many ways, it is like my previous consulting job. The only difference is that this time I am supporting small entities , a personal understanding of the fundamentals of starting a business.”
Given that you moved back to the UAE at a time when startup culture as we know it today was taking off, do you think you were in the right place at the right time?
Meade’s method: “I strongly believed in this, not only because of the opportunity to work with Khalifa Fund, but also because there was another similar opportunity to work with Sheraa in my home emirate of Sharjah. Looking back, I feel as if I had a seat on the rocket ship of the startup ecosystem . Not only have I had the opportunity to see the entrepreneurial ecosystem flourish, but I have also played an active role in nurturing and supporting new ventures.”
Not only did I have the opportunity to see the startup ecosystem flourish, but I also played an active role in nurturing and supporting new startups
-Najra Al Midfa
How do you see Sharjah’s startup ecosystem evolving over the past decade?
Meade’s method: “Ten years ago, Sharjah had universities and young talent, but lacked an entrepreneurial platform, until Sheraa was launched in 2016. Its mission was to support young entrepreneurs to start their own businesses. For six years, we have supported entrepreneurs at different stages, during which , our new startup has raised over $125 million (AED 460 million) in capital and generated over $185 million (over AED 680 million) in revenue. And it all started with an idea! “
What are the unique factors that have helped Sharjah develop into an entrepreneurial hub?
Meade’s method: “Sharjah has a large pool of young talent that has helped the emirate rapidly develop into a hub for entrepreneurship and innovation. Over the years, we have had the opportunity to work with high-potential university students, although our goal is not to turn all of them into entrepreneurs. The goal is Equipping these students with the right skills for the future workplace while developing their entrepreneurial mindset. It serves the dual purpose of creating a strong talent pool for new start-ups to tap into while helping graduates build their own businesses. Additionally, Sha Ga’s status as a creative and educational hub, coupled with an increased focus on ‘green’ initiatives, has attracted a number of start-ups focusing on creativity, edtech and sustainability.”
What are the different stages of financing for entrepreneurs?
However, the earliest stages of new company financing occur so early that they are often not included in the funding round at all. This stage is known as “pre-seed” financing, and usually refers to the period when the founders of the company first launch operations.
Has the fundraising landscape changed, too?
Meade’s method: “Despite the gaps, the fundraising landscape has changed significantly compared to a decade ago. In terms of scale, beyond Series B financing, growth capital remains a challenge at the ultra-early stage of ‘pre-seed’ . But there is a sweet spot between “seed” financing and Series A financing.Additionally, investors are interested in specific industries such as fintech [currently]Other industries such as hardware and deep tech remain underfunded. We need diversified investors looking to invest in a variety of sectors. Overall, the financing ecosystem continues to evolve, and these gaps will be filled with the entry of international venture capital (VC) firms such as Sequoia Capital. “
Najla Al Midfa, Sharjah Entrepreneurship Center (Sheraa)
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Even after receiving funding, some notable startups have failed. What financial mistakes are common for startups to make and must they avoid?
Meade’s method: “First of all, I don’t think it’s a good idea to think of fundraising as a vanity metric. In addition to fundraising, it’s important to focus on other success metrics. 2. In a bull market (explained below) When capital is relatively easy to obtain, VCs are comfortable with cash burn (explained below) A narrative of blitz scale or growth at all costs. The problem is that economies are cyclical, and during a downturn the same venture capitalists will talk about conserving cash and considering fundamentals like profitability. This shift in narrative may have negative consequences for new ventures. Therefore, venture capital and ecosystem builders have a shared responsibility to encourage startups to use cash prudently, chart a clear path to profitability, and grow sustainably. “
Explained: Bull markets, cash burn and venture capital – what it all means
The “cash burn” rate is the rate at which a new company uses its risk capital for ongoing expenses before generating positive cash.
Venture capital (VC) are private equity investors who provide capital to companies with high growth potential in exchange for equity.
What financial advice do you often give to entrepreneurs?
Meade’s method: “Cash is king, so be careful with your cash. This is something I learned in college and it applies no matter how the startup ecosystem evolves.”
Do you agree that there are misconceptions about age being a barrier to entrepreneurship?
Meade’s method: “There’s a certain romanticism about college dropouts building unicorns. The reality, however, is that most successful entrepreneurs tend to be in their 30s and 40s. Regardless of age, financial background, and nationality, it’s important to create a platform for those who actually have something. Opportunities are available to those interested in starting a business. Against this backdrop, the UAE government’s decision to allow public sector employees in the UAE to take a year off to start their businesses is a step in the right direction. These initiatives are a timely reminder that in understanding the opportunities and pain It’s never too late to start something new. After all, our goal is to create a diverse and inclusive ecosystem where everyone feels included.”
I don’t think it’s a good idea to think of fundraising as a vanity metric.In addition to fundraising, it’s important to look at other success metrics
-Najra Al Midfa
Fear of failure and a culture of busyness have a detrimental effect on entrepreneurs. Can you share your thoughts on both?
Meade’s method: “The fear of failure has two sides, one prevents a person from starting. This is why ecosystem builders must consciously work to remove the stigma of failure among young people, constantly emphasizing the need to try regardless of the outcome. The other extreme It’s about being completely exhausted trying to make a startup successful, creating a culture of hustle. So in addition to the basics of business and product, as ecosystem builders and supporters, we are also tasked with ensuring founder health A huge responsibility.”
As you look toward the future of entrepreneurship in the region, what excites you most?
Meade’s method: “When I look at the future of entrepreneurship in the region, one of the things I’m proud of is that some of the best ideas are coming from young people who haven’t graduated yet. Because the entrepreneurship ecosystem is no longer in its infancy and we’re in the region There are several success stories, so it should serve as an inspiration for the next generation of change-makers. I am really excited to see more innovative new startups with global ambitions being born in the region. Additionally, as we increase our focus on R&D activities Invest and there will be more innovation in the region.”
A message to the startup community?
Meade’s method: “In addition to tactical advice on finances and fundraising, I highly recommend entrepreneurs become part of a community because starting a business can be a lonely journey.”
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