Zest Your Equity | 26-December-2024

This week’s agenda 📜

• Zest’s terms and concepts ✍️

• Who’s raising? 💰

• What we’re reading 📖

Let’s dive in 👇

Zest terms and concepts ✍️

Bridge Round:

A short-term funding round, typically in between two priced rounds, used to extend the company’s runway until a larger funding round or liquidity event occurs. Bridge rounds can be completed by issuing preferred equity or convertible notes, but due to the company’s weak negotiating positions, most bridge rounds are executed with convertible notes.

Down Round:

A funding round in which a startup’s pre-money valuation is a lower valuation than the post-money valuation of the previous round, indicating a decrease in the company’s perceived value.

Startup financing rounds:

Early-Stage Financing

Early-stage financing focuses on startups building their initial product and establishing market fit—these rounds includes pre-seed, seed, and Series A rounds. Funds are used to develop a minimum viable product (MVP), hire early team members, and conduct market research. Investors at this stage include angel investors, seed funds, and early-stage VCs. Early-stage startups often have limited or no revenue, making this a high-risk stage with relatively low valuations as companies work to prove their concept.

Growth-Stage Financing

Growth-stage financing supports startups scaling operations after achieving product-market fit. It includes Series B and C rounds. Startups use this capital to expand operations, scale sales and marketing, and enter new markets. Growth-stage investors include larger VC firms and strategic partners. Risk is moderate as companies typically have established revenue streams and operational models. Valuations are higher, reflecting traction and growth potential.

Late-Stage Financing

Late-stage funding involves mature startups preparing for significant expansion or an exit like an IPO or acquisition—these rounds include Series D rounds and onwards. Investors include late-stage VCs, private equity firms, and hedge funds. Companies at this stage have strong revenues, proven models, and reduced risk, resulting in high valuations.

Who’s Raising? 💰

• 🇦🇪 UAE-based fintech Quantix Technology Projects LLC, a subsidiary of Astra Tech, has secured $500 million in asset-backed securitization financing from Citi.

• 🇦🇪 UAE-based fintech CredibleX has raised $55 million Seed funding, comprising both equity and debt. 

• 🇱🇧 Lebanon-founded music streaming app Anghami Inc. has secured a $55 million funding round from OSN Group, $12 million of which is an initial investment in a convertible note programme.

• 🇦🇪 UAE-based Web3 banking startup Klickl has closed a $25 million Series A funding round at a valuation of $125 million.

• 🇸🇦 Saudi Arabia-based AI infrastructure technology provider OmniOps has raised an $8 million funding round from GMS Capital Ventures. 

• 🇦🇪 UAE-based refurbished electronics marketplace Revibe has closed its Series A of $7 million in a round co-led by ISAI and Resonance and featuring Kima Ventures and Edouard Mendy.

• 🇦🇪 UAE-based healthtech BioSapien has raised $5.5 million pre-Series A fundraise, led by Global Ventures with participation from Dara Holdings.

• 🇲🇦 Morocco-based B2B marketplace ZSystems has closed a $1.5 million Seed funding round, led by Morocco-based VCs—MNF Ventures, Witamax, Cash Plus Ventures, and Kalys Ventures.

• 🇯🇴 Jordan-headquartered SaaS provider startup InvoiceQ has raised a pre-Series A funding round of $1.2 million, backed by Oasis 500, Orange VC, Flat6Labs, as well as Natej Soft and several angel investors.

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