By Peter Alagos

The Digital Incubation Centre (DIC) is encouraging more investors to join its Angel Investor Network, which is currently being formed at the DIC, the centre’s manager told Gulf Times.

Ahmed Laiali was speaking on the sidelines of the ITU Telecom World 2014, which concludes today at the Qatar National Convention Centre (QNCC). The DIC has seven start-ups at the event, most of which are into information communications technology-related (ICT) businesses.

Laiali said members of the network have already held several meetings to discuss the governance and management of the angel network once it has been formally established.

Angel investment, a fairly new concept in Qatar, aims to provide financial support and encourage the growth for startups. Laiali said there are still no grant schemes for the financial pipeline to support startups; hence, the introduction of the angel investor network concept.

In April this year, the DIC had organised Qatar’s first “Angel Investment Boot Camp.” Laiali said nine of the participants have signified interest to become angel investors after the boot camp.

“After the boot camp, DIC got an initial acceptance from nine of the attendees that they would like to be angel investors and help start-ups,” he said.

He added that most of the nine would-be angel investors were interested on investing on ICT-related projects, which, according to Laiali, is congruent to ictQatar’s thrusts for DIC’s angel investor network.

“DIC promotes and encourages angel investors to venture into ICT-related businesses but any member of the network is still free to choose what type of business to support. Also, one of ictQatar’s responsibilities towards this network is to secure a pipeline of projects related to ICTs,” he said.

He added, “But the network is not restricted only to ictQatar incubation centre companies. It is open to any startup that would like to get investments or one that is eligible for angel investments so they can apply with the network and present their investment fact sheet.”

According to Laiali, negotiations are ongoing for an angel investment deal for two of DIC’s seven exhibitors at ITU Telecom World 2014. He added that formal announcements will be made once the DIC has secured a deal.

Asked if DIC has plans to enlist its incubatees with the junior stock exchange, Laiali said the centre already had initial meetings with the Qatar Stock Exchange early this year.

“It was agreed during the meeting that the start-ups are not yet mature enough to be enlisted in the stock exchange. Once they are mature enough from a business, value, and revenue perspective, then they are in a healthy condition to pursue private or public listing,” he explained.

“But we have this (QSE listing) as a target although you should still consider that you cannot fly unless you learn how to walk. I think ‘walking’ is for angel investments and seed funds while ‘running’ is for VCs (venture capitals), and ‘flying’ is for listing in the stock exchange,” he said.

Laiali explained that angel investments range from as low as QR100,000 to QR3.6mn (1$mn), while venture capitals go from $1mn up to $200mn in investments. Venture capital is different in terms of value and size and investments, he added.

“The main driver for an angel investor is not revenue generation but rather supporting startups. An angel investor doesn’t intervene in the management of the company, which is the opposite of venture capitals. VCs, on the other hand, intervene in the management capital of the company,” he noted.

Laiali added, “An angel investor is not providing the initial capital for the startup, but rather a ‘growth capital’ – something to take your company to the next level.”

 

 

 

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