Abu Dhabi's Techstars Hub71 Accelerator programme is confident of raising $15 million from investors for this year's cohort of 10 start-ups despite the market disruptions caused by Covid-19.
"Our first batch of start-ups raised $15m last year … we are aiming to raise in the same range this year," Vijay Tirathrai, managing director of Techstars, told The National.
“Our community has adapted well to the new normal in the post-Covid world … investors and VCs [venture capitalists] are very confident and now more than eager to invest in new innovative ideas and potential teams.”
The accelerator progamme is part of the Colorado, US-headquartered global investment and innovation platform Techstars, which runs 50 similar programmes in nearly 22 countries. It has supported over 2,500 start-ups with a total market capitalisation of $33 billion since 2006 across various industries, according to the company. Techstars operates as a venture capital firm and invests in technology start-ups in the cloud infrastructure, healthcare, cyber security and communication sectors. It has teamed up with the emirate’s sovereign wealth fund Mubadala Investment Company and global tech ecosystem Hub71 to run an annual three-month acceleration programme that brings 10 potential pre-seed stage start-ups to the capital.
“Typically, a pre-seed company raises in the range of $500,000 to $3m in a year. We don’t expect this average to change,” Mr Tirathrai said.
The start-up incubator started its first programme in Abu Dhabi in January last year but its operations were hit by the Covid-19 pandemic, forcing it to send the founders of the selected start-ups home and pivot from a physical to an online set-up.
There was also a “momentary pause” in funding in the second quarter of last year but it picked up in the second half of the year, said Mr Tirathrai, who is also a serial entrepreneur with angel investments in more than 30 start-ups.
“Investors were in shock, trying to assess the situation and helping their existing portfolio of companies that may also have been damaged by the pandemic,” Mr Tirathrai said.
“But we saw a huge surge in investment flow in the last quarter. Investors and VCs were showing more interest as they saw future ideas becoming reality to minimise the impact of the pandemic ... despite Covid-19, we did not see money drying up but on the contrary, it expanded … we predict the same trend to continue in 2021.”
Out of the 10 companies in the accelerator’s first cohort, six have made Abu Dhabi their permanent home, including Aumet, Bonflite, DesignHubz, Educhain, Sensgreen, Workathlon.
Techstars also plans to expand its footprint to Saudi Arabia, the Arab world’s biggest economy, with a similar programme.
“[The] Middle East is a great marketplace, very vibrant, ready for disruptions and there is also no dearth of talent … we are in discussion with several parties in different countries around the region,” Mr Tirathrai said.
“Most likely, the next programme will be rolled out in Saudi Arabia. Opportunity is huge in the kingdom given its large population,” he added, without giving a timeline.
Techstars' partnership with Hub71 is a strong proposition for the accelerator as it facilitates in attracting global start-ups.
“Our programme is largely sector agnostic and we attract companies from all over the world to Hub71. We identify founders who have potential to be local champions with global ambitions,” Mr Tirathrai said.
“Backed by the weight of sovereign institutions such as Mubadala Investment Company, Hub71’s extensive reach in various sectors of the economy makes it a strong partner.
“Initially, I was a bit sceptical why they [start-ups] will pick Abu Dhabi over cities like Singapore, London or Los Angeles. But our numbers speak … response is very strong and we are happy to be where we are today … past one year, response has been tremendously positive.”
Mr Tirathrai said the accelerator had no plans to raise the number of start-ups in its programme.
“We have 200 people, including partners, mentors and investors, servicing 10 companies … the ratio is 20:1 that is an extraordinary amount of resources for a three-month programme.”
“Moreover, it is a proven model that has worked for us in the past. Our growth model is not about increasing the number of companies but increasing the number of programmes,” he added.
Hub71, created with Dh520m ($141.5m) from Abu Dhabi’s Ghadan 21 economic stimulus programme, is home to 102 start-ups and is continuing to attract successful companies from around the world. It has also helped position Abu Dhabi as an innovation hub and attracted start-ups in sectors that are crucial to its growth, such as agricultural technology, health care and renewable energy.
So far, the Abu Dhabi programme has focused on technologies such as artificial intelligence, blockchain, Internet of Things, and augmented and virtual reality that disrupt key sectors in supply chain, logistics, health care, financial services, real estate, petroleum, petrochemical, renewable energy and utilities.
Aside from connecting start-ups to its global network of mentors, investors and VCs, the accelerator and its corporate partners, including Hub71, also invest in potential ideas. In return, they earn collective equity in the companies, Mr Tirathrai said.
Racecard
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Origin
Dan Brown
Doubleday
Fitness problems in men's tennis
Andy Murray - hip
Novak Djokovic - elbow
Roger Federer - back
Stan Wawrinka - knee
Kei Nishikori - wrist
Marin Cilic - adductor
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
HER%20FIRST%20PALESTINIAN
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Day 4, Abu Dhabi Test: At a glance
Moment of the day Not much was expected – on Sunday or ever – of Hasan Ali as a batsman. And yet he lit up the late overs of the Pakistan innings with a happy cameo of 29 from 25 balls. The highlight was when he launched a six right on top of the netting above the Pakistan players’ viewing area. He was out next ball.
Stat of the day – 1,358 There were 1,358 days between Haris Sohail’s previous first-class match and his Test debut for Pakistan. The lack of practice in the multi-day format did not show, though, as the left-hander made an assured half-century to guide his side through a potentially damaging collapse.
The verdict As is the fashion of Test matches in this country, the draw feels like a dead-cert, before a clatter of wickets on the fourth afternoon puts either side on red alert. With Yasir Shah finding prodigious turn now, Pakistan will be confident of bowling Sri Lanka out. Whether they have enough time to do so and chase the runs required remains to be seen.
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
The Pope's itinerary
Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport
Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial
Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport
Countries offering golden visas
UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.
UAE currency: the story behind the money in your pockets
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
JAPANESE GRAND PRIX INFO
Schedule (All times UAE)
First practice: Friday, 5-6.30am
Second practice: Friday, 9-10.30am
Third practice: Saturday, 7-8am
Qualifying: Saturday, 10-11am
Race: Sunday, 9am-midday
Race venue: Suzuka International Racing Course
Circuit Length: 5.807km
Number of Laps: 53
Watch live: beIN Sports HD
Profile of Bitex UAE
Date of launch: November 2018
Founder: Monark Modi
Based: Business Bay, Dubai
Sector: Financial services
Size: Eight employees
Investors: Self-funded to date with $1m of personal savings
