Dubai-based early-stage venture capital firm COTU Ventures has announced the raising of $54 million for its inaugural fund, aimed at supporting startups in the Middle East from pre-seed to seed stages.
Achieving a final close last year, COTU Ventures focuses on identifying and backing founders from inception to post-product launch, investing between $500,000 and $2 million while reserving capital for follow-on investments.
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| COTU Ventures |
Over the past two and a half years, COTU Ventures has actively invested in startups across the GCC (Gulf Cooperation Council), with a primary focus on the UAE, Saudi Arabia, Egypt, and Pakistan. The firm has already supported over 20 early-stage startups across various sectors.
Founder and general partner Amir Farha shared in an interview with TechCrunch that while COTU Ventures leans slightly toward fintech and B2B software, the firm remains open to opportunities in other sectors. Notable investments include UAE mortgage platform Huspy and Egyptian fintech startup MoneyHash.
Farha emphasized the potential for building software to solve business problems, noting the lag in business technology compared to consumer apps like Careem. COTU Ventures is also interested in high-margin industries where technology can enhance efficiency.
Careem, a significant name in the MENA and GCC startup scene, was among Farha’s early investments at his previous firm, BECO Capital. After years of experience in corporate VC across the U.K. and Sweden, and running the first seed fund and angel network in the region backed by the Dubai government, Farha co-founded BECO Capital in 2012. There, he contributed to the firm’s investment strategies for its first and second funds before founding COTU Ventures.
During his time at BECO Capital, Farha and his partner successfully returned the first fund, with notable exits like Uber’s acquisition of Careem. The second fund, featuring startups like Kitopi and MaxAB, has also performed well.
Farha explained that as the investment landscape evolved, with venture capital in the GCC region growing from $20 million in 2012 to over $2 billion by 2020, BECO Capital shifted towards later-stage investments. This shift prompted Farha to leave in 2020 and establish COTU Ventures, focusing on early-stage investments to fill a crucial market gap. He believes there is a significant need for support beyond just funding at the earliest stages of startup development.
COTU Ventures places a strong emphasis on understanding a founder’s background and life experiences, fostering candid conversations to build trust and make informed investment decisions. The firm provides strategic guidance on fundraising, organizational development, and go-to-market strategy, along with introductions to key stakeholders.
Farha enjoys the dynamic environment of early-stage investments, where experimentation and problem-solving are integral. He believes there is a unique space for COTU Ventures to be the preferred partner for founders at the earliest stages.
COTU Ventures’ limited partners include Lunate, Mubadala, Dubai Future District Fund, Arab Bank, Bupa KSA, and GPs from VCs such as Foundry Group, Tribe Capital, and Stride, as well as several family offices.
Sharif El-Badawi, CEO of Dubai Future District Fund, expressed confidence in Farha’s leadership and track record, highlighting his passion for supporting founders and ability to identify remarkable investment opportunities early on.
Published at Dubaitowa.