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Understanding the Dynamics of Investor Relationships in the UAE

Dubai was on the mind of a founder who arrived with aspirations of securing $8 million—equipped with an impressive pitch deck, backing from VCs in Berlin, and a glittering CV showcasing talent from ex-Uber and ex-Spotify. However, the atmosphere quickly turned chilly. The coffee remained untouched, and the cheque never materialised. What led to this downfall? The missteps were numerous.

Obediah Ayton from Dhabi Hold Co shared insights on LinkedIn regarding how a European founder stumbled into a common trap among investors in the Gulf: speaking a venture language in a setting that values legacy.

The founder possessed traction and credibility, as well as a global perspective. Yet, he lacked an understanding of his audience.

From the outset of the meeting, it became evident, as Ayton noted, that “He was speaking venture. They were listening for value.”

Positioned across from him was a prominent UAE family office—discreet yet well-established in the region, grappling with a legacy retail chain facing challenges in online conversion. The founder’s technology could have addressed this issue. Instead, he commenced his presentation with cap tables, projected valuations, and global benchmarks.

At no point did he inquire about their business. Not once did he tailor his pitch to address their specific challenges.

As a result, they listened politely while enjoying their coffee. Ultimately, they chose not to proceed.

For them, it wasn’t a rejection of innovation; it was a dismissal of pride.

Ayton observed, “He highlighted his board’s credentials but failed to discuss the family’s business.” He predicted valuation increases rather than operational improvements.

In the UAE, Ayton elucidates, family offices do not merely invest in startups; they invest in values. Their focus is on long-term vision rather than quick exits. They prioritise legacy over financial metrics. If a founder cannot appreciate what has sustained their empire for six decades, the growth of Annual Recurring Revenue (ARR) becomes irrelevant.

He identifies 11 influential players in the field—firms like Sharaf Group, Albwardy Investments, and MOBH Holding Group—which may not feature prominently in pitch presentations but have clear objectives: alignment, humility, and long-lasting impact.

Ayton states, “The most productive meetings with UAE family offices resemble family dinners rather than investor pitches.” They are free from timers and pressure. Instead, they embody a spirit of quiet observation and intention.

The founder left the meeting believing it was a missed opportunity for the investors. However, what he failed to grasp was the irreplaceable asset that no term sheet can offer: trust.

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