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Zest Your Equity | 10-July-2024

Zest Your Equity | 10-July-2024

Private market investment performance - key considerations and it's impact on investors

Ghalia from Zest
July 10, 2024

This week’s agenda 📜

Our blog ✍️
What we’re reading 📖
Zest updates 🔔

Let’s dive in 👇

Our Blog ✍️

Liquidity in the public markets allows investors to buy into securities that are already at work - ie, stocks of large, operating companies.

But in the private markets, investors don’t receive the same immediate gratification. Instead, investors in private market funds commit capital to a private company or fund manager, which is usually locked up for several years.

It’s not until years 4, 5, or 6+ that an underlying company’s performance may show a positive upward trend, a liquidity event, or a substantial valuation markup.

This down-and-up movement of private market investment performance is referred to as the “J curve” and has meaningful implications for investors.

In our latest blog, we discuss how the J curve works and its potential implications. Read more about this here.

What We’re Reading 📖

Seed VCs are turning to new ‘pro rata’ funds that help them compete with the big firms

Three companies with new funds deploy capital to support seed and Series A VCs looking to exercise their pro rata rights.

AI and cloud service registrations in Saudi Arabia surging

Riyadh led AI registrations, recording 5,492.

The rise of the 20-something VC

Inspired by ‘Shark Tank’ and Hacker News, Gen Zers and younger Millennials are flocking to venture capital—and they’re taking untraditional routes.

Dubai Chambers to support sustainable business growth

Dubai Chambers recently organised four legal workshops to enhance the local business community’s compliance with laws governing a range of key sectors.

New business grows for first time in Egypt in three years

Egyptian non-oil companies saw an increase in sales volumes in June for the first time since August 2021, according to the latest S&P Global Egypt PMI survey.

MENA startups raise $116 million in June 2024, bringing H1 total to $882 million

Investment activity in MENA’s startup space slowed down in June 2024, as 38 tech startups raised $116 million.

Commercial Bank of Dubai, Visa ink agreement to accelerate digital payments in UAE

The Commercial Bank of Dubai (CBD) recently announced signing an exclusive multi-year strategic partnership agreement with Visa.

UAE corporate tax: Natural persons and threshold for taxable turnover

If a natural person's turnover does not exceed AED1 million, they are not required to register for UAE corporate tax

The Rich Investor Club Is Getting Crowded

More US households than ever qualify as accredited investors. Asset managers are thrilled, but democratization has downsides.

CoinDCX acquires BitOasis in international expansion push

CoinDCX, India's leading cryptocurrency exchange, is expanding internationally through the acquisition of BitOasis, a digital asset platform in the Middle CoinDCX, India's leading cryptocurrency exchange, is expanding internationally through the acquisition of BitOasis.

Maalexi raises $1 million investment from Stride Ventures

UAE-based Maalexi agriculture-focused fintech Maalexi has raised a $1 million venture debt from Stride Ventures.

Zest Updates

"Exploring Alternative Investment Avenues in a Tech-Driven World"

Last month, we hosted an event with our friends at Nuwa Capital to discuss the future of direct investments, co-investments, and secondaries.

Thank you to our guest panelists, Musaab Hakami and Faisal Al-Abdulsalam, who joined Khaled Talhouni and our co-founder, Zuhair Shamma’ for a great conversation featuring strategies and insights from angel investors, fund managers, and entrepreneurs.

Want to learn more? Schedule a time with our team below!