EP2 Investor Circle - Mohammed Al Rasbi
Mohammed Al Rasbi of R&D Ventures and Labs / Oman Technology Fund joins host Stewart Noakes for Episode 2 of Investor Circle. Subscribe to stay up to date with future episodes
Investor Circle is our new podcast series brought to life to capture insights from investors across the globe. In each short interview we get under the skin of how the investors think and make decisions as well as what kind of people they are. Our goal is to build empathy within the community of the what, when, who, how and why behind raising funding for your startup.
This series is primarily for Founders of early stage startups who are looking to raise their first funding, but itβs also helpful for investors looking to raise their first funds and for anyone in the ecosystem who is interested in how this all work.
Summary of this episode thanks to eightify
The key idea of the video is that investing in founders rather than specific ideas, focusing on coachability and long-term support, can lead to successful startup ventures.
00:00 π Muhammad Al Rasbi of R&D Ventures and Labs focuses on investing in founders rather than specific ideas, with a long-term approach and a goal of increasing the number of potential investments, aiming to guide and support startup founders in Oman for future ventures.
Muhammad Al Rasbi is the founder and CEO of R&D Ventures and Labs, and he discusses his work and the thesis behind it.
The speaker discusses their experience in investing in startups and their focus on investing in founders rather than specific ideas, with a long-term approach and a goal of increasing the number of potential investments.
The speaker aims to guide and support startup founders in Oman and considers long-term partnerships with them, regardless of investment, based on their potential for future ventures.
03:11 π The speaker, with a background in mechanical engineering and coding, discusses his experience working with founders and the importance of coachability in entrepreneurship.
The speaker, who has a background in chemical engineering and coding for 37 years, discusses his experience working with founders in various sectors, including his own online services firm, and how mentors have helped him support and assess founders quickly.
The fund has invested in almost 160 startups, with some of them being DoubleDown investments, totaling to almost 250 investments across various sectors, and the speaker values coachability in the selection process.
There is no one clear way to run a startup and there are many different paths and pivots that need to be taken, often relying on gut feelings.
Coachability is important in entrepreneurship as it involves being open to different perspectives and making informed decisions, while also being willing to listen and try new things.
07:29 π Encouraging entrepreneurs to start startups through tools like Lean Stock, assessing commitment, and providing support; investment decisions based on evaluating red flags; achieving product-market fit by identifying customer problems, presenting solutions, and iterating.
Encouraging entrepreneurs to start startups by using tools like Ashmore's Lean Stock and assessing their commitment through follow-up calls and applications.
The bootcamp helps founders understand how to pitch their ideas and size the market, and if they pass the assessment, they proceed to one-on-one sessions with the speaker and other mentors.
Investment decisions are based on evaluating red flags such as issues with the cap table or the founder's readiness, and if there are no red flags, the next steps involve providing support to help the startup progress.
Identifying a large customer base with a specific problem, presenting potential solutions to them, and iterating until a solution is accepted and paid for is the process of achieving product-market fit.
10:52 π It is crucial to validate ideas before investing in their development, and founders should be open to advice and engage in discussions when selecting startups; community and interaction with other founders are beneficial for solo founders, and open research programs provide long-term support and accelerate growth more effectively than time-bound extension programs.
The traditional method of building and selling products contradicts the idea of demonstrating and selling, so it is important to validate and not waste money on developing solutions that may not be successful.
The speaker looks for coachability in founders and teams when selecting startups, as they need to be open to advice and willing to engage in discussions.
Having a community and interaction with other founders is beneficial for solo founders, and time-bound extension programs may not be as effective as open research programs in providing long-term support and accelerating growth.
14:06 π It's important to focus on helping those who are open to change, rather than wasting time on those who are resistant.
If someone is not open to change, it is not worth spending time trying to help them.
When raising money for the first time, it is important to do your homework and research the type of startups that investors are interested in, rather than bombarding them with pitches.
Understanding the stage of investment and matching it with the appropriate investor is crucial to avoid burning bridges and increase the likelihood of success.
16:18 π Use online resources like TechCrunch and Crunchbase to gather information about potential investors, and utilize AI tools to uncover difficult-to-find data, in order to understand their requirements and investments.
Use online resources like TechCrunch and Crunchbase to gather information about the requirements and investments of potential investors, utilizing AI tools to uncover difficult-to-find data.
Understand the decision-making process of investment committees and be prepared to answer questions confidently when applying for programs or deals.
18:05 π‘ It is crucial to sell the potential success, understand competition, and have a clear exit strategy when seeking investment from VCs, while regularly updating investors can build positive relationships and increase funding chances.
When seeking investment from VCs, it is important to sell the idea of potential success, understand the competition, and have a clear exit strategy in order to convince investors to provide funding.
Regularly updating potential investors, even before running out of money, can help build a positive relationship and increase the likelihood of receiving substantial investments.
20:16 π Thorough research and informed decisions are crucial for successful investments, and it is important to determine if venture capital is the right fit and be prepared for the journey.
Doing thorough research and making informed decisions is crucial for successful investments, and with the abundance of available tools, gathering information has become easier and faster.
Taking capital from venture capitalists marks the beginning of the end, so it is important to determine if you are the right fit for it and be prepared for the journey, as well as do some homework to understand the process and make informed decisions.
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