Alexandar Williams,
Director or Strategy & Policy

Output
(economic growth)
Moving Forward - The New Economic Imperative
“Better” path
→ Productivity
Need to move to new growth path
“New” path
→ Innovation
“More” path
→ More labor and capital
Moving Forward: a different economic development path
From “Bigger” to “Better”
Dubai’s current situation in key sectors, e.g.
• Real estate
Reaching optimal scale
• Decreasing returns for each additional unit of labor and capital
• Increasing macroeconomic challenges (demographics, environment, infrastructure)
→ Rising cost of growth
Reaching minimum scale
Inputs
(Labor and capital)
2

Vision, Mission, Roles & Core Initiatives
Incubation,
Idea Lab, Entrepreneur
Capability Development,
YEC
Dubai SME 100,
Gov. Proc. Prog.,
YBL
Vision
Dubai as a Global
Center for
Innovative SMEs
Corporate Governance,
Access to SME Financing,
Ease of Doing Business ,
IP
Mission
Roles
Foster the development of a flourishing entrepreneurial culture and a competitive
SMEs sector to support
Dubai’s economic development
Entrepreneurship
& Entrepreneur
Development
SME Sector and SME
Firm Development
(Groom Dubai’s Top
SMEs)
3

Expansion/scaling
- high growth
- head count
- multiple cycles
- market acceptance
Idea/Concept &
Discovery
-Bright idea
- Experimental
- Research
- Business Plan
-Proof of Concept
Seed
-Legal entity
- Founders=mgt team
- Minimal/Zero revenue
-Slow growth
- evolving market acceptance
- customer tests & acquisition
-Validation of product/services
Start-Up
-Support functions
- Administration
- Marketing
-Revenue growth
-Broadening customer base
Pre-IPO
- viable
- Market interest
- Heading to IPO or M&A
TIME
7

3 Start-Up
-Recruitment
- business development
- Market access
- business model iteration
- IP validation
- customer acquisition system
4 Expansion/Scaling
- international market support & access
- branding
- diversification strategies
- training
- fund raising
- financial governance
- technology licensing
1 Idea/Concept
& Discovery
-Prototyping/POC
- Project Management
- Premises/Incubation
- Mgt training
- IP support
/advisories
2 Seed
-Corporate & secretarial
- financial
-First hires
-PR & networking
-Business development
- Potential IP valuation
- customer acquisition
-Commercialization support
TIME
Varying levels of government enablement (direct & indirect)
8

Stage in
Cycle
Type of
Funding
R & D
Proof of
Concept
Start-up
Seed
Early
Growth
First
Round
Accelerating
Growth
Second
Round
Sustaining
Growth
Maturity Growth
Development
Capital
Replacement
Capital/MBO/MBI/
Development
Capital
Source of
Funding
Public Sector (e.g., matching funds)
Founder, Family, Friends
Business Angels
Corporate Venturing
Venture Capital Funds
Public listing/IPO
(source: WIPO)

Angel market addresses the investment gap between love money and serious money
High
Founder, friends & family
Business Angels
Level of
Investment
Risks
Assumed by
Investo r
Venture Capitalists
Corporate VC
Equity
Markets
Low
Seed Start-up Early Growth
Commercial Banks
Established
(source: WIPO)

Efforts made by financiers
Risk
Cash flow
Innovation
Seed Capital
Funds and
Public
Funding
Idea
Private
Investors and
Business
Angels
Start up
I
Commercial & Savings Banks
Time
Corporate
Fund
& Venture
Capital
Growth Maturity Transfer

Who are business angels?
Individuals who invest their own monies locally into unquoted companies, usually at their seed to start-up phase. Besides cash, they also make available their experience, know-how and
networks of contacts.
It is not cheap money, charity or grant. A return on investment is expected at some future point.
Key role is to bridge idea to a formal business organization.
Define the products and business model.
Well rounded expertise (experienced entrepreneur –turned
BA). Is part of the team.

What are business angel networks/clubs
“organizations” who bring business angels in contact with quality deal flow
National federations and associations
Umbrella Organizations at national or regional level for the networks, enabling exchange of good practice and supporting professional standards (e.g., EBAN)
14

 Primary source of risk capital and support for start-ups in a number of countries. It is frequently overlooked as angel investors are often not visible.
 Primary drivers of a flourishing start-up/entrepreneurial ecosystem
 Angel investment is a powerful source of financing for highgrowth potential start-ups.
 Angel investors tend to be less sensitive to market cycles than venture capitalists

What is the Entrepreneur looking for in Angel
Investors?
Money to start, grow idea into a business
Expertise and advice on execution
Experience in a particular domain knowledge (finance, investment,
Industry verticals – Digital Media, F & B, Logistics)
Contacts and networks with other resources such as financiers, consultants, buyers, procurement executives, suppliers, key talents
Time and Commitment to develop the entrepreneur, the team and business
Credibility and trust to see the business develop

 Passion, ambition, industriousness, self-discipline, decisiveness, self-confidence, and tenacity of the entrepreneur and his team
 Domain knowledge, numeracy, understanding of risks (to de-risk the business), sense of urgency, and a belief in Kaizen
(continuous improvement)
 “Chemistry” with the team yet maintaining a “tough love” relationship
 Preference for start-ups with mentors & advisors (culture of openness and listening to external views)
 An executable idea, backed by a sensible & solid business plan

EFL utilizes a proprietary psychometric application process that incorporates an entrepreneur’s attitude and outlook, ability, business acumen and character to identify high-potential, credit worthy entrepreneurs.
Intelligence
Risk
Ethics & Character
Business Skills Attitudes & Beliefs

Lack of good data & information on the activity
Lack of awareness & understanding of BA concept
Still risk – averse culture, but gradually changing
Many wealthy individuals prefer to invest in art, real state etc.
Financial sustainability of BAs (some co-funding/matching funds from government required)
Up-to-date and enforceable company and share ownership laws on transfers, exits, etc.
Lack of a strong university-private sector- government linkage, low R & D commercialization experience
Still Nascent but will evolve gradually
Need to highlight more success stories

Role of Government- Foster a Conducive Environment
SUPPLY
Bringing more investors
DEMAND
Quality deal flow
MARKET
Impact and sustainability
Educating investors about opportunities in the SME space
Investment readiness of start –ups/ SMEs (incl. sector specific)
Support sustainable and professional BANs
Co-investment/matching funds
Investor readiness capability development
Set up mentorship platforms and programmes
Teach entrepreneurship and access to finance very early on in schools
Case studies with relevant
Angel Stakeholders
Operate incubators and
Tech Parks; open R & D labs to entrepreneurs to test products
Co-organize with private sector a platform for deal flow connection
Co-organize Local BA/VC forums
Ensure rules and regulations support the investment and exit process

Demand Side Factors
(disincentives for borrowing)
Supply Side Factors
(Disincentives for lending)
No Tax
Benefit of debts
Psychological factors
Information available about the industries
Quality of financial information
Trading focus need of finance Start Ups &
SMEs
Be Bankable
Banks &
Costs of information verification
Short planning horizon
Speed of getting finance
Asset light businesses
Legal Framework
Underlying Structural Factors
Information Infrastructure Auditing Environment
Skip-Risk Nature of Economy

Sources of Additional Capital in the past Sources of additional capital in future
Family & friends
6%
Did not need
29%
Personal Money
38%
Friends &
Family
8%
Additional
Partners
11%
Bank Finance
14%
Personal
Money
25%
Additional partners or investors
28%
Bank Finance
41%

Launching a website to enable SMEs prepare themselves for accessing bank finance.
Guide SMEs through a step-by-step process to approach banks for finance
An SME using BeBankable.ae will be able to prepare a bank finance application and also self-assess readiness for banking
SMEs can learn more about banking products, services, processes and documentation to confidently negotiate the best suited financing options
Guide SME owners to qualified auditors (Good / Bad Balance Sheet, Auditing
Contract, How to select an Auditor)

Initiatives /pogrammes to be launched (over next few years)
- Undertake Dubai SME Equity Financing Study (started)
- Set up Dubai SME Angel Investor Directory Network/platform
- Dubai SME “Accreditation” programme for Dubai – based Angel
Investors
- Guidelines for angel investors in Dubai/UAE context
- “Build your equity story” programme for entrepreneurs
- Business Valuation and value drivers programme
- Diagnostic tool kit to assess entrepreneur readiness for BA
Investing
- Case studies of BA in the UAE/Region

- Conferences/Seminars/Workshops/Roundtables on Angel
Investing
- Training course on Angel Investing
- Mentorship programme
- Pitching competitions
- Dubai Best Start-Ups 50 List
- Dubai Angel Investor Awards Recognition