BrazilHow FasterCapital helps startups with funding, growth and counsel
An executive, serial entrepreneur and mentor to many (upcoming) leaders, Hesham Zreik is the CEO of FasterCapital, a Dubai-based online incubator for fast-track startups worldwide. We sat down with Hesham to find out more about how FasterCapital helps startups with funding, growth, and consulting.
Could you provide us with a brief introduction about yourself and FasterCapital?
Thanks, appreciate the interview. I am co-founder and CEO of FasterCapital, an online incubator and accelerator. We provide work per equity, meaning we provide either a technical team to build the MVP or a business team for helping the startup grow. These dedicated teams consist of expert and multi-disciplinary professionals who are part of FasterCapital’s team.
We also help startups with raising capital through our network of 155,000 angel investors and 50,000 funding institutions, most of which are venture capital players.
FasterCapital started out as an incubator focused on tech startups and on providing tech development services over time we expanded into an online incubator with a comprehensive set of services that branch from funding, tech development, to sales and marketing.
We are proud to be the largest online incubator worldwide now in terms of startups that we have helped, amount of money raised and the network of partners, investors and venture capital firms / individuals.
What is FasterCapital’s approach to funding startups?
FasterCapital offers a unique approach to funding startups through its Raise Capital and Idea to Product programs. We follow a hands-on approach, meaning we don’t provide one program to all startups but rather we study each startup individually and provide them with help that is tailored to their needs and the challenges they are facing.
We use our proprietary AI system to accurately match startups with angel investors and venture capitalists that have high potential for investing in them. Our team handles the matching, the communication, and the follow up. We also provide many other services, including valuations, financial modeling, and funding preparation.
We provide startups with mentoring, coaching, and guidance throughout their journey. Our experienced mentors come from various industries and provide valuable insights and support to help startups refine their business models, develop their pitching approach, and know how and what investment firms and individuals to approach.
We cover 50% of the costs needed for the team, the resources, and the tools dedicated for financing the project throughout the program.
Additionally, our global network of partners and investors enables us to connect startups with potential not only additional sources of funding but also strategic partners who can help them in growth and expansion.
What unique value does FasterCapital bring to the table for startups seeking funding?
We aim at being a long-term funding partner for the startup. The value of our services extends from helping them connect with investors to helping them in every step of their funding. We help in planning for funding, preparing the business plan, and closing funding deals.
Key aspects of our funding offering include actively contributing to the startup’s funding at the very start by covering 50% of the total costs needed (part of the ‘Co-Founding Program’), funding along the growth lifecycle (stage-agnostic funding along Series A/B/C funding rounds), and more long-term financial support, which is tailored to the demands of every unique startup.
How does FasterCapital help startups beyond just providing funding consultation and services?
We do that by offering comprehensive support and resources through other programs and services. A round-up:
General Business Advisory
We help early stage startups and first time entrepreneurs by providing all the business expertise needed for starting their business; defining their business model, business model canvas, exploring their products, and their business and growth strategies in general to guide them to the best decisions to make moving forward.
Business Documents Preparation
We help startups in all stages and industries in preparing their business plan, pitch deck, and financial model.
Technical Expertise
FasterCapital has a dedicated team of technical experts who assist startups with their technical development needs. Whether it's software development, app development, or any other technical aspect, we provide startups with the necessary support to bring their ideas to life.
Feasibility Studies and SWOT analyses
We help startups, entrepreneurs, and people who are working on projects in conducting detailed and accurate feasibility studies and SWOT analyses.
Defining Market and Sales Strategy
We provide full marketing strategy and market study services for startups and SMEs around the world.
MVP Cost Estimation Services
We help people who have app or website ideas or projects in defining the product costs needed to make their project a reality and we work with them on defining all the resources and skills needed for that.
In your experience, what are the key challenges that startups often face when it comes to securing funding?
I believe there is a large gap in the startup scene when it comes to funding. Entrepreneurs are left on their own in a highly competitive and tough space. Startups frequently encounter several challenges when it comes to securing funding.
Some of the key difficulties they face include:
Lack of access to investors
Not only do startups often struggle to connect with potential investors who are willing to fund their projects but also they struggle in getting feedback from them to move forward and improve their position which gets many startups stuck at this phase. It can also be challenging for them to identify and reach out to the right individuals or organizations.
Limited resources
Especially at their earlier stages, many startups have limited financial resources and flexibility, which makes it difficult for them to invest in marketing efforts or hire business professionals who can help them prepare a compelling pitch and/or business plan.
Inadequate knowledge of the fundraising process
Entrepreneurs may lack the necessary expertise and understanding of the fundraising process, including identifying suitable funding options, valuation techniques, negotiation skills, and legal requirements.
Time-consuming fundraising activities
Securing funding requires significant time and effort from startups. This can divert the team’s attention from core business operations and hinder their overall growth.
Further reading: 5 charts on the Middle East’s startup funding scene.
How do FasterCapital’s funding consultancy services address these challenges?
Our investment readiness program adequately addresses these challenges through different models.
Internal investors feedback: We break the loop and help startups by providing them with our internal investors feedback and comments on their business plan and funding proposal overall.
We make our network and resources accessible to startups joining the program. We have an AI system that helps our team in conducting accurate matching between the investors and the startups. We are also widely connected with investors and experts who are ready to help us in securing funding for our startups.
Our team is always ready to answer any questions posed by the enterprise we are working with. This includes any enquiries about which venture capitalist to approach, how to approach them, how to negotiate specific terms with a specific investor, and so on.
The dedicated team handles all the tasks needed to get the startup funded, from reviewing the materials, matching it with inventors, to following up with these investors, and facilitating meetings with them. This saves a lot of time that the startup’s team can focus on other important operations for growth and development.
What advice do you have for aspiring entrepreneurs who are looking to secure funding for their startup ventures?
Start with developing a really compelling business plan. A well-crafted and comprehensive business plan is crucial when approaching potential investors. It should highlight your unique value proposition, market potential, financial projections, and growth strategy. Make sure to effectively communicate how your product or service solves a problem or meets a demand in the market.
Identify the right investors. Research and target investors who have an interest in your industry or have previously invested in similar startups. Understanding their investment criteria will help you tailor your pitch accordingly.
Build a strong network right from day one. Networking can help you find potential investors who may be interested in supporting your venture. Attend industry events, join relevant communities, and connect with experienced entrepreneurs who can provide guidance and introductions to potential investors.
