RIYADH: InFlavour Expo’s first masterclass, titled “Where to Find Money: Fundraising for Start-Up Companies,” kicked off with Bina Khan advising attendees to “be a laser, not a lighthouse.”
Khan is an advisor and investor at Nutrifresh Farms with extensive knowledge of startups and the venture capital industry.
The masterclass discussed a crucial aspect of obtaining capital for entrepreneurial endeavors — how to specifically target investors and approach the startup finance process.
Khan explained that there are four types of finance available in the early stages of a business: angel investors, grants, crowdfunding, and bootstrapping.
Finding funding for angel investments typically involves identifying and connecting with angel investors.
“I always say start with LinkedIn. You want to look for local and industry-specific networking events as well, such as startup meetups, entrepreneur conferences, and pitch competitions,” Khan said.
She added that conferences like Leap and InFlavour are great networking spaces to meet investors.
Crowdfunding — via websites like Kickstarter, Indiegogo, GoFundMe, and CrowdFunder — is another option.
Khan advised the audience to look for grants from commercial organizations or government agencies based on the startup’s location: “Now, here in the Kingdom, there are actually sizable grants being offered for startups to relocate their headquarters to the Kingdom. And if you do so, you can receive sizable grants that will cover your (research and development) costs, salaries, rent, etc.”
Khan also recommended hiring a professional fundraiser with connections to investors and keeping potential competition near.
“Instead of just being a lighthouse scanning everywhere, you can truly be laser-focused on targeting the right investors or the ideal funding approach to you by adopting a concentrated approach. Therefore, maintain focus at all times,” Khan emphasized before the masterclass concluded.
Last year, food tech startups raised $540 million across the Middle East and North Africa region. So far this year, the sector has managed to attract over $200 million.
