Zest Your Equity | 08-January-2024

This week’s agenda 📜

• A look back at 2024 🗓

• Our newest resource ✍️

• Who’s raising? 💰

• What we’re reading 📖

Let’s dive in 👇

Our Newest Resource ✍️

When a private market M&A transaction occurs, it may seem that the buyer and seller of the target company easily agree on the business’s valuation. 

After all, we’ve all seen headlines that read, “Company X acquired by [insert buyer name] for $250M.”

However, settling on a valuation is far from simple. Each party typically has their own interpretation of what the business is worth—sellers may be overly optimistic with their valuation, while buyers want to pay the lowest price. To address this challenge, buyers and sellers often use what’s called an “earnout”— a contractual mechanism that can help bridge the gap between what a buyer is willing to pay for a business and what the seller is willing to sell for.

Read our latest resource to learn everything you need to know about an earnout agreement.

Who’s Raising? 💰

• 🇸🇦 Saudi Arabia-based aftersale services provider Zension Technologies has closed a Series A funding round at $30 million, led by Saudi Aramco’s venture capital arm Wa’ed Ventures, with Japanese giant Sumitomo Corporation and regional investors Global Ventures participating.

• Saudi Arabia-HQ foodtech Calo has raised $25 million in its Series B funding round, led by Nuwa Capital, with participation from STV and Khwarizmi Ventures, along with regional family offices.

• Saudi Arabia-based edtech YNMO has raised $5 million in investment, led by Wa’ed Ventures, with participation from Qatar Development Bank (QDB) and Nour Nouf Ventures.

• 🇦🇪 UAE-HQ AI startup MilkStraw AI has raised $600,000 in pre-seed funding, led by Flat6Labs, with participation from Angel Spark, Beyond Capital, and other angel investors. 

• Egypt-based agritech ReNile has raised $450,000 in investment from undisclosed investors. 

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