Shorooq Partners has launched a new fund in collaboration with IMM Investment Global, the international arm of the Korean private equity and venture capital firm IMM Investment, which boasts over US$6 billion in assets under management. IMM Investment Global joins the fund as a minority partner.
Shane Shin, founding partner at Shorooq Partners, emphasized the growing significance of non-dilutive financing in the MENA region, where debt financing is becoming increasingly popular among founders.
“It’s imperative to recognize the nuanced advantages of non-dilutive financing, particularly within the MENA region where debt financing among founders is steadily gaining momentum,” Shin stated. “Amidst this landscape, we champion the pivotal role of non-dilutive funding, offering a sophisticated alternative to traditional equity-based approaches.”
Shorooq Partners has developed tailored solutions to support the sustained growth of mature companies and founders who have successfully navigated fundraising complexities and completed their Series A rounds.
“Focusing on recurring revenue, robust cash flow positions, and tangible assets, our targeted approach ensures alignment with our strategic and institutional investors,” Shin added.
As the MENA region continues to emerge as a hub of entrepreneurial activity, the importance of integrating non-dilutive financing into fundraising strategies is becoming clearer.
“Discerning founders recognize the imperative of integrating non-dilutive financing into their fundraising calculus, positioning themselves not just for growth, but for enduring success amidst evolving market dynamics,” Shin explained.
Nathan Kwon, principal at Shorooq Partners, noted a significant increase in deal flow in 2023, with over US$400 million screened for companies that did not qualify for credit.
“This surge in deal flow underscores a robust interest towards the fund’s mission to foster scalable growth in the companies we invest in,” Kwon said.
“With an average ticket size of US$10 million, we are looking for companies in manufacturing, industrials, financing, and software services seeking to secure capital for the next stage in their journey.”
Earlier this year, Shorooq Partners led a US$4 million Series A equity round in the AI startup DXwand. This investment, which also saw participation from the Dubai Future District Fund, aims to support DXwand’s regional expansion and accelerate its research and development efforts in large language models (LLM), knowledge mining, and retrieval augmented generation (RAG).
The funding will help solidify DXwand’s position as a leading force in generative AI and knowledge mining within the region.
This strategic collaboration and investment highlight Shorooq Partners’ commitment to fostering innovation and growth in the MENA region through sophisticated financial solutions and targeted investments.
