Almost all startups need initial capital. If you are looking for ways to fund your business set up in Dubai, many platforms and avenues exist to help you get your company off the ground. From traditional bank financing to modern alternatives like crowdsourcing, there are multiple options to explore.
Venture Capital and Equity
One option is getting funding for your startup through venture capital and equity. Simply put, venture capital is private equity financing where firms offer capital to startups with a high chance of success. Some venture capital investors you can partner with in the UAE include Shorooq Partners, VentureSouq (for tech startups), BECO Capital, Middle East Venture Partners (MEVP), and Arzan Venture Capital. Investors are particularly helpful if your startup is in its early stages.
Angel Investors
Another way you can fund your business set up in Dubai is by using angel investors. Angel investors are firms or individuals that give startups financing in return for ownership equity or convertible debt. Due to the recent massive success of entrepreneurs in Dubai, there is an increase in available angel investors. If you are looking for an angel investor, there are several groups, individuals, and even large companies to choose from. For example, if you're a woman-led startup, you can opt for angel investors like WOMENA and Women's Angel Investor Network (WAIN). Explore the Dubai Angel Investors website for other viable options.
Business Loans
Most banks in the UAE offer business loans to startups at advantageous interest rates. If you already have a running account in the UAE, you can look at the loan options available and choose one that suits you best. It's best to go for loans that have a flexible payment plan. Some banks that offer such loans include First Gulf Bank, HSBC, and Emirates NBD, and you can opt for local bank-operated startup funds. For instance, the Emirates Development Bank, in conjunction with the Ministry of Finance in UAE, offers loans to select recipients. You can apply for the fund here.
Business Incubators
These are institutions that offer support to startups. This support includes market positioning, launching, marketing, and, most importantly, financing. There are several business incubators in the UAE to consider, including In5, the Dubai Technology Entrepreneur Centre (DTEC), Astrolabs, Turn8, TechStars Dubai, and Hive.
Crowdsourcing Platforms
You can get funding for your business setup in Dubai through crowdsourcing platforms, also known as peer-to-peer financing or crowdfunding. This is a viable option for those who prefer to receive funding without involving financial institutions. Dubai has several crowdsourcing platforms. Here are a few that you can consider:
Eureeca
Eureeca is a popular crowdfunding platform in the UAE. Although it is a global platform, its office is in the Emirate of Dubai. Eureeca members buy shares in growth-oriented businesses. Additionally, Eureeca gives its members key access to capital.
Beehive
Beehive is an online marketplace that allows members to crowdfund. It connects investors with entrepreneurs that are looking for funding. All you have to do is register your business, and Beehive will do the rest.
Zoomal
Zoomal is a crowdfunding platform that is a good option for scientists, creatives, video producers, engineers, web developers, event organizers, and community activists. If your startup falls in these categories, you can sign up to start the process.
Dubai has quickly become an international innovation hub, expanding its business landscape to entice startups from all corners of the world. Today, startups of all sizes can get funding. It's simply a matter of knowing which solutions work best for your financial goals. For offices, business licenses, and other support services, Sentinel Business Centres is ready to help. Contact a member of our team to learn more.