The Abu Dhabi Investment Office (ADIO) announced today that it has launched the AED 535M Ghadan Ventures Fund. Recently announced at the launch of Abu Dhabi’s Hub71, the fund will support Abu Dhabi’s growing Venture Capital (VC) and start-up ecosystem. Managed by ADIO, the newly established fund is part of the government’s Ghadan 21 programme that is working to accelerate Abu Dhabi’s economy and build a dynamic and thriving entrepreneurial culture.
The newly named Ghadan Ventures Fund has two key programmes that have been designed to increase the availability of capital for Abu Dhabi based start-ups, as well as serve as a catalyst for new fund managers seeking to establish themselves in the capital. These include the ‘Start-up Matching Fund’ and ‘New Managers Fund’.
The Start-up Matching Fund will work to stimulate Abu Dhabi’s entrepreneurial landscape by increasing the amount of capital available for seed and early stage companies. As part of the initiative, ADIO will match a start-up’s lead VC investment dirham for dirham, up to AED 10M for seed rounds, and AED 50M for Series ‘A’, per round.
To help grow the number of VC funds operating in the Emirate, ADIO will also commit to new Abu Dhabi VCs under the New Managers Fund. Newly formed Abu Dhabi based VCs can now apply for fund matching, based on the amount they raise in the private market.
Elham Abdulghafoor Mohamed AlQasim, CEO of ADIO and Executive Director of the Ghadan 21 programme, Abu Dhabi Executive Office, said: “Entrepreneurialism will be a key driver of Abu Dhabi’s economy and we are working to further enable local entrepreneurial talent, attract global entrepreneurs and build a thriving integrated start-up ecosystem.”
AlQasim continued: “The objective of the Ghadan Ventures Fund is two-fold, we are helping new VCs establish in Abu Dhabi to ensure local start-ups have access to more investors. Whilst also driving the establishment and growth of start-ups in Abu Dhabi by increasing the amount of investment capital available in the market.”
The fund was recently announced in conjunction with the launch of Abu Dhabi’s Hub71 to help the development of the start-up ecosystem. Commenting on the availability of the fund, the head of Hub71, Mahmoud Adi, said: ““We’re excited to see the launch of ADIO’s co-investment fund as there are great startups to be found right here in Abu Dhabi. There’s never been a better time in this region for both startup and investor, made evident with the 31% increase in total funding and a 13% increase in the number of deals made in 2018, compared with the year before. There is great potential for the fund, and we will be supporting members of Hub71 to apply and make the most of this unique opportunity.”
More information about the Ghadan Venture Fund’s Start-up Matching and New Managers initiatives, including eligibility criteria and the application process can be found on ADIO’s digital platform - https://www.investinabudhabi.ae/.