VC Fund Formation in the UAE - A guide on terms and structures
Nevertheless, the region has seen an uptick in the number of deals that are being closed across the spectrum, and many players are now entering the smaller end of the market – the sub-US$ 5 million deals.
Taking note of this increased activity, the two financial free zones of the United Arab Emirates – the DIFC and the ADGM, have made carve-outs in their existing regulations to accommodate smaller VC players and give them access to a well-regulated ecosystem, at a lower entry price point.
And we have been at the forefront. The DIFC announced their VC Fund Manager regime in December, and we ended up assisting the first, second and third successful applicants, who went on to make their funds and are now in the process of raising capital.
Keeping the above in mind, we saw the need of coming out with a series of informative articles on the VC space in the region – how VC funds are structured, the economics of such funds, marketing and distribution, and the principal documents involved. The annexure also lists our podcast specials like “Terms every Venture Capital Fund Manager should know” and “A Guide to Venture Capital Financings”, besides links to detailed articles, podcasts and videos on setting up in the DIFC, ADGM and Luxembourg.
Rohit Ghai - Founder - 10 Leaves
Bishr Shiblaq - Partner - 10 Leaves
PS: This report and it’s contents are not meant to be construed as legal advice. What we have attempted here, is to provide information, and while we have tried our best to add details that we believe are correct, we encourage you to get in touch with us for more updated, and relevant information.
The Venture Capital Series:
1. VC Funds – An Introduction.
A Guide to Venture Capital Financings (Podcast)
Rohit’s background in business consultancy was key in his founding of 10 Leaves Limited, a niche consultancy with a focus on regulatory authorisations in the DIFC and the ADGM. He spun off three verticals from this business, including 10 Zone, a business consultancy that provides turnkey solutions to individuals and businesses seeking to setup a base in the UAE, tenl.io, a venture that bridges startups from the UAE to Luxembourg, Berlin, Riyadh and Bengaluru and Legability, a legal consultancy that specialises in corporate commercial work in the UAE and Luxembourg, including investment fund structuring and documentation.
Rohit has consulted on market entry strategies, management and fund structures in multiple jurisdictions worldwide, including onshore in the United Arab Emirates, free zones and offshore centres like the Cayman Islands and Mauritius. He has also consulted on establishing onshore regulated structures in the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM), including credit provider, asset management, private banking, fund management, brokerage and investment advisor licenses. He also has extensive capabilities in Fintech, and currently also advises and project manages crowdfunding, robo-advisory and money service businesses that seek regulatory authorisations in the UAE.
Being an entrepreneur and investor himself, Rohit consults startups in the technology sector and acts as a director and mentor for early-stage entities.
His areas of professional expertise include:
- Fund structuring.
- Venture Capital.
- Business consultancy.
- Business Operations & Management .
- Market Entry Strategies .
- Digital Transformation.
Bishr has been recognised by MENA Fund Manager Magazine for six consecutive years as amongst the thirty most influential individuals providing services to the MENA funds industry and by Islamica500 for three consecutive time as amongst the fifty leading individuals in the Islamic economy.
He is a regular author on finance in various journals and other specialised publications and is regularly invited to speak on fund-related topics at conferences in Europe, the MENA region and Asia.
Before joining Arendt & Medernach in Luxembourg and establishing its Dubai Office in 2008, he worked for several years within the legal department of a leading research institution funded by the Federal Government of Germany.
Bishr holds a master’s degree in law from the University of Cologne (Germany), as well as a Master of Laws (LL.M.) in International Economic Law from the University of Warwick (UK).
He speaks English, German, French, Arabic, and Spanish.
Get in touch: