COTU Ventures, a Dubai-based early-stage venture capital firm, has announced the successful closure of its inaugural fund, securing a substantial $54 million. This fund aims to provide vital support to startups across the Middle East, particularly in the pre-seed to seed stages, fostering innovation and entrepreneurship in the region.
Having achieved its final close last year, COTU Ventures is poised to make significant contributions to the startup ecosystem, focusing on identifying and nurturing promising founders from inception to post-product launch. The firm’s investment strategy involves deploying between $500,000 and $2 million per startup, with provisions for follow-on investments to fuel further growth.
Over the past two and a half years, COTU Ventures has actively invested in over 20 early-stage startups, primarily in the UAE, Saudi Arabia, Egypt, and Pakistan. While the firm maintains a keen interest in fintech and B2B software, it remains open to opportunities across various sectors.
Amir Farha, Founder and General Partner at COTU Ventures, underscored the firm’s commitment to supporting businesses in high-margin industries where technology can drive substantial value. Notable investments by COTU Ventures include Huspy, a UAE-based mortgage platform, and MoneyHash, an Egyptian fintech startup.
Reflecting on the evolving investment landscape, Farha highlighted the shift in focus from larger later-stage investments to early-stage funding, driven by a recognition of the market gap and the need for comprehensive support for startups in their formative stages.
At COTU Ventures, Farha emphasised the importance of fostering candid and meaningful relationships with founders, delving into their personal and professional journeys to gain valuable insights. This approach enables the firm to provide strategic guidance and support across various facets of startup development, including fundraising, organizational growth, and market strategy.
The firm’s limited partners include esteemed entities such as Lunate, Mubadala, Dubai Future District Fund, Arab Bank, Bupa KSA, as well as renowned venture capital firms and family offices.
Commenting on the fund’s success, Sharif El-Badawi, CEO of Dubai Future District Fund, lauded Amir Farha’s leadership and track record, expressing confidence in COTU Ventures’ ability to identify and nurture exceptional investment opportunities.
COTU Ventures’ inaugural fund represents a significant milestone in the MENA startup ecosystem, promising to fuel innovation, drive economic growth, and support the region’s aspiring entrepreneurs on their journey to success.
