Venture Capital in Lebanon: Pros & Cons

Published in Business Financing

Picture this – you’re a young Lebanese entrepreneur with big ideas and big dreams but one small problem… no cash. You’ve probably heard the term ‘venture capital’ floating around but you’re not really sure how it can help you. Let’s take a look.

Venture: noun. ‘A risky or daring journey or undertaking’. Capital: noun. ‘Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing’ (Google). Put these 2 words together and you have money and/or expertise provided by investors willing to bet that you, as a new Lebanese entrepreneur, will turn their money into profit.

A venture capital firm is created when a group of smart investors pool their knowledge and resources and come together to form a new firm. They get their funds from wealthy individuals who are willing to take a high risk on the premise that they stand to gain much more.

Once the funds have been raised, the new business is expected to make good use of them swiftly to produce spectacular returns. Because of this, venture capitals tend to be more interested in sectors of the economy that yield quick returns, like technology and healthcare.

Sounds too good to be true? Read the following carefully – you’re not just getting a free ride. Venture capital funds can come at a heavy price; the most unattractive being the fact that you will likely have to give a large percentage of equity to the venture capital firm.



Pros

Cons

  • You have access to a much larger amount of money than you could ever hope to secure from other sources.

  • Unlike a bank loan, there’s no fixed repayment schedule.

  • You’ll benefit from expertise as well as cash.

  • You can share some of the risks involved in setting up a business.

  • You will have to surrender a portion of your shares to the investors.

  • Likewise, managerial control over your business will not just be yours alone.

  • Any profits made have to be shared out.

  • The stakes are high and the pressure is on to succeed.

 

The Lebanese market is notoriously difficult to crack and so as a Lebanese entrepreneur, you really need local expertise. In Lebanon, there were 2 main venture capital firms that focus on Lebanese business: The Berytech Fund and the Middle East Venture Partners (MEVP) in 2014. However the market is about to drastically expand with several new funds to be launched in 2015 following Central Bank of Lebanon’s circular # 331 which increased the liquidity available to venture capital funds via the cash rich commercial banks.


If you are looking for venture capital funding, you came to the right place; Bnooki was selected by the Central Bank of lebanon as a main platform through which you can apply online. For more information on venture capital and advice on funding your business, visit http://www.bnooki.com/business-financing/venture-capital.

13 Dec 2014
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Venture Capital in Lebanon: Pros & Cons

Picture this – you’re a young Lebanese entrepreneur with big ideas and big dreams but one small problem… no cash. You’ve probably heard the term ‘venture capital’ floating around but you’re not really sure how it can help you. Let’s take a look.

Venture: noun. ‘A risky or daring journey or undertaking’. Capital: noun. ‘Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing’ (Google). Put these 2 words together and you have money and/or expertise provided by investors willing to bet that you, as a new Lebanese entrepreneur, will turn their money into profit.

A venture capital firm is created when a group of smart investors pool their knowledge and resources and come together to form a new firm. They get their funds from wealthy individuals who are willing to take a high risk on the premise that they stand to gain much more.

Once the funds have been raised, the new business is expected to make good use of them swiftly to produce spectacular returns. Because of this, venture capitals tend to be more interested in sectors of the economy that yield quick returns, like technology and healthcare.

Sounds too good to be true? Read the following carefully – you’re not just getting a free ride. Venture capital funds can come at a heavy price; the most unattractive being the fact that you will likely have to give a large percentage of equity to the venture capital firm.



Pros

Cons

  • You have access to a much larger amount of money than you could ever hope to secure from other sources.

  • Unlike a bank loan, there’s no fixed repayment schedule.

  • You’ll benefit from expertise as well as cash.

  • You can share some of the risks involved in setting up a business.

  • You will have to surrender a portion of your shares to the investors.

  • Likewise, managerial control over your business will not just be yours alone.

  • Any profits made have to be shared out.

  • The stakes are high and the pressure is on to succeed.

 

The Lebanese market is notoriously difficult to crack and so as a Lebanese entrepreneur, you really need local expertise. In Lebanon, there were 2 main venture capital firms that focus on Lebanese business: The Berytech Fund and the Middle East Venture Partners (MEVP) in 2014. However the market is about to drastically expand with several new funds to be launched in 2015 following Central Bank of Lebanon’s circular # 331 which increased the liquidity available to venture capital funds via the cash rich commercial banks.


If you are looking for venture capital funding, you came to the right place; Bnooki was selected by the Central Bank of lebanon as a main platform through which you can apply online. For more information on venture capital and advice on funding your business, visit http://www.bnooki.com/business-financing/venture-capital.

Last modified on Thursday, 15 January 2015 08:25

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