COTU Ventures launches $54M fund to back pre-seed and seed startups in MENA

🇦🇪 Say hello to COTU Ventures! They’re a Dubai-based early-stage VC firm that have just raised $54 million for its inaugural fund to support startups in the Middle East from pre-seed to seed stages.

• Founded in 2020 by Amir Farha, COTU Ventures completed its final close last year, supporting founders from inception to post-product launch.
• It invests $500,000 to $2 million and reserves capital for follow-on investments.

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🎯 Target areas 

Over the last 2.5 years, COTU Ventures has invested in over 20 early-stage startups across the GCC, with a focus on the UAE, Saudi Arabia, Egypt, and Pakistan.

Founder and general partner Amir Farha revealed in an interview with TechCrunch that COTU Ventures is inclined slightly toward fintech and B2B software, but the firm is open to opportunities across other sectors.

• Noteworthy investments by the fund include UAE mortgage platform Huspy, and Egyptian fintech startup MoneyHash.

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🌱 Doubling-down on early stage

According to Farha, COTU Ventures prioritises deep engagement with founders, valuing their background and journey over just financial support, aiming to build trust and provide comprehensive guidance and connections for startup growth beyond initial funding.

“The region is still early and nobody’s owning early-stage with conviction. You have the bigger firms investing smaller checks in the pre-seed stages but don’t spend enough time helping them until they reach product market fit. So, I think there’s that space to be the go-to company that founders want to have on their cap table”

Amir Farha, founder and general partner, COTU Ventures

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📖 Background

Amir Farha co-founded BECO Capital with his cousin, Dany Farha in 2012, and spearheaded its first fund ($50 million) and second fund ($100 million), which invested in companies like Careem, Property Finder, Kitopi, and Fresha, at their early stages.

As BECO Capital shifted its focus toward later-stage investments with larger funds, Farha decided to depart in 2020 and launch COTU Ventures.

• FYI, the acronym stands for Champions of the Underdog, just in case you were wondering!

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🙌 The believers

LPs include Lunate, Mubadala, Dubai Future District Fund, Arab Bank, Bupa KSA, and GPs from VCs, including Foundry Group, Tribe Capital, Stride, and several family offices.