How to raise capital in the UAE?
Are you looking to raise funds for your startup in the UAE or finding Investors in UAE? Well, it might be a bit difficult if you don’t have enough guidance to do so. The sources are numerous, but knowing the exact process and ways to do things is important in order to ensure that you don’t waste your time and efforts.
So, how do you raise capital for your startup in the UAE? Keep reading the blog below to get your answers.
Proven Ways to Raise Capital in the UAE
The importance of networking when it comes to raising capital for startup cannot be stressed enough. No matter if it is UAE or any other part of the world, you simply cannot ignore networking in the entire process at all.
Connect with people, interact with them, share business ideas, pitch, and see the results. It won’t only help you get funds, but also give you some amazing ideas to thrive your business.
You can use a professional platform like LinkedIn to connect with people, get your startup idea recognized, and interest people to be a part of the same. Networking can help you out with things like Angel Investment or help you in finding Investment Companies in UAE.
If you don’t have a major requirement in terms of the investment amount, crowdfunding is a reliable way to go with. Crowdfunding has been extremely popular for a while.
You can use various crowdfunding platforms to place your business idea, and let people know it. If they find it interesting enough, they will invest some amount in the same. Most of the time, the investment is anonymous.
However, please note that you can’t expect a huge amount from crowdfunding. As mentioned, if you don’t have heavy requirements in terms of the investment amount, you can go with this way to raise capital for your startup in the UAE.
Getting a Loan
Most potential startup owners avoid going with the loan. Be it those hurdles of proving their business idea, or the stress of interest rates, they often consider the loan as a burden and hence avoid going with the same.
However, if you have that confidence in your business idea, you should consider going with a loan. As they say, it’s all about confidence. Yes, there’s a risk, but you can negotiate interest rates with the banks and get the best deals for yourself. Ultimately, it’s all on your business idea and concept. If it’s good enough, banks would happily offer you a loan with less interest rate, maybe even less than that of personal investment.
Also termed Venture Capital, this method incorporates giving a portion of your business equity to the investor in return for the investment. There are several restrictions in the UAE when it comes to VC. Hence, make sure that you know each of them.
You can buy your equity back after a specific time period. However, it entirely depends on the agreement you make with the investor. This method demands you to be a bit careful with the agreement and alert about the restrictions in the UAE.
Raising capital for your startup in the UAE must be easy for you now. If you desire to get more information or any assistance regarding the same, connect with our experts now and make things easy for yourself.