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NYC-Based Liquidity Capital Launches $100M Venture Debt Fund for MENA

Teaming up with UAE’s Yas Investments, Liquidity Capital is looking to offer alternative forms of funding for tech startups in MENA.

A new $100 million venture debt fund focusing on tech-based startups across MENA has been announced as the result of a newly established partnership between Dubai-based Yas Investments and US-based global fintech and fund manager, Liquidity Capital.

Looking to capitalise on the MENA ecosystem's recent exploration of venture debt investment, the Yas Liquidity Fund will be sector-agnostic and will also look to offer startups minimal-dilutive growth financing, a popular approach adopted by venture debt and revenue-based financing lenders that gives the lender the right, but not the obligation, to buy stock from the lendee at a particular price in the future.

For Liquidity Capital, which launched in 2017, the region is now ripe for the taking, as it looks to plug what it sees a gap in an otherwise blooming ecosystem.

“The Middle East is a real hotbed for innovation right now, but venture finance has historically not been open to technology businesses in the region,” said Ron Daniel, founder and CEO of Liquidity Capital. “This means startups always had to trade equity to fund growth, which is a very expensive form of capital,” he continued. “We’re excited to be partnering with YAS Investments, together we can lead the charge to build a financial ecosystem for the region that will support tech innovation, attract highly skilled workers and help these promising companies expand globally – all while remaining compliant with Islamic finance laws.”