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During the ArabNet Digital Summit 2013 in Dubai, Parshant (P.K) Gulati, CEO of Optimistix Ventures and Faris AlRashid, CEO of Oqal, led an exciting discussion about angel investing. Both executives introduced and discussed in depth this new approach of investing for startups in the Middle East. 

Angel Investors are known to be a group of investors who provide capital for a business startup while supporting and mentoring the entrepreneurs in their project in return of ownership equity. Although Gulati does mention the difference between Angel investors and regular investors; the mind share and commitment that comes to investing, Angel investing requires interest and knowledge about specific domains related to the startups the investors are interested in. “It’s not about money, but more about supporting and helping the entrepreneurs in their startup” said AlRashid.

AlRashid talks about how Oqal is a great achiever in Angel investing, the company combines mind and money together to work in coherency. Certain entrepreneurs don’t know where to go after being funded and governments don’t invest in their projects, they rather give them loans of few amounts (100-500 thousand Riyals). Therefore Oqal breaks this gap and offers funds between 300 to 5 million Riyals, in order for entrepreneurs to have successful business plans and convince banks to give them loans.

Gulati supports AlRashid’s statement regarding this gap in today’s investing society and considers it as a major problem. Depending on research, Gulati defines the risk-taking achievement of entrepreneurship by saying:  "Entrepreneurship is that step you take from being an employee to doing something on your own.” He also states that the first money these entrepreneurs have to spend is their own and Angel investing is here to support them.

Oqal helps entrepreneurs create concepts for their ideas so they can work, since some people feel disappointed when their ideas are not well appreciated. The company involves wealthy business people and experts who give this kind of support to these projects through Angel investing.

There’s a lot of money in the region just not enough for entrepreneurs, which leads to risk investing says Gulati. Investors have to be led by entrepreneurs to take risks, P.K states:” there’s a hunger in the market where people are looking for innovative thing and so they go through risk investing.”

The process of finding a potential entrepreneurship statrup is easily explained by AlRashid; he insists though that, in order for the entrepreneur’s project to be successful, the investor must like the candidate’s ambitions, energy and passion for the startup. He says “ the idea, if you keep it to yourself it will fly.” The company offers chances for entrepreneurs to apply their projects online, they will be selected and have a chance to impress a panel of judges with their startups in a screening.

Gulati insists that this process of investing is not just about the money but it takes personal commitment from investors which builds a great value and makes those investors leaders. “Most Angel Groups that are successful are those who enforce this kind of commitment besides just the cash.” Said the speaker.

When asked about people’s feedback concerning Gulati’s Angel group company, he gladly answered the company has value, since it involved teams dedicating their time, effort and mindshare into the invested projects. He finally clarifies that if an entrepreneur has a good idea and works with a good team, money will come eventually. Plus, entrepreneurs have to find the right investors who are interested in the concept of the startup and visualize its succession in the near future.

For viewing the full panel, click here.