Modus Capital, a New York-based hybrid venture capital (VC) firm, announced the launch of its first regional fund, Modus MENA Venture Fund I (MMVFI), a $75m fund targeting early and growth stage companies in Qatar and across the Middle East and North Africa. The versatile fund is adaptable for a range of industries and structured to invest across asset stages from early to lower-mid market, serving as a critical de-risking measure for Limited Partners.
The fund will invest in companies that have strong positive social impact as a by-product, including those with a focus on women and financial inclusion, health, education, and unemployment.
The fund has built its portfolio with 8 companies in its first year (2019) deploying their proven operational frameworks via Modus Operations which serves as yet another de-risking measure. The hands-on approach helps companies avoid first timer mistakes, be more capital efficient, and in-turn, mature and exit in a shorter time frame. Notable investments of startups in Qatar include DXwand and Meddy.
DXwand is an AI driven Cognitive CRM software that automatically responds to businesses communications through various social channels. With the support of Modus Operations, DXwand has since seen month-on-month growth of 28 percent, and reached its financial breakeven point in September 2019, Modus Capital said.
Meddy is a web-based platform that allows patients to find doctors (and hospitals) and book appointments. The doctors can be searched using different filters including their specialization/sub-specialization, treatment, nationality/country of education, and the languages they speak. Modus Capital has worked with Meddy to raise $2.5m investment in Series A and will also be joining the board to de-risk the investment and propel the team for continued success.
The ‘Modus MENA Venture Fund I’ will focus on Mena-based early stage/post-accelerator technology companies as well as Small-to-Medium Enterprises (SMEs) where technology can enable them to grow rapidly. The asset allocation by stage serves as a major de-risking measure to Limited Partners as more mature companies carry significantly less risk.
Modus Capital is making investments through an incubation program starting from $50,000 to $250,000, and up to $1m for Seed and Series A rounds. The verticals that the firm has particular interest include FinTech, HealthTech, Direct to Consumer e-commerce, Enterprise & Consumer SaaS products in addition to products leveraging Blockchain Protocols.
Modus Capital is developing the regional ecosystem by investing in startups across the Middle East and North Africa. The firm also has plans to expand the same model to other countries in the region, with plans for establishment in the GCC in Q1 of 2020.
“We actively assist entrepreneurs in building transformational businesses by not only investing in them, but also partnering with them to create the most effective strategies to take their company to the next level. We allow investors to participate in high-value, high-growth opportunities while operationally supporting entrepreneurs and guide them with our seasoned experts, propelling them to realize their goals... ” Kareem Elsirafy, Founder and Managing Partner of Modus Capital said.
