How startup founders can succeed according to e& official

Looking for investors for your new business is no simple feat, but there are some things to keep in mind when approaching a venture capitalist, according to a top e& executive.

Group Chief Strategy Officer of e& Harrison Lung stated that what captures investors is an understanding of what the investment fund typically invests in. He was speaking at the inaugural KT+150 Summit on Thursday, which brought different founders and entrepreneurs from various sectors toobtainher.

Lung explained that some funds may have elements like a website or a team, but not actual money to invest. “If you do your pitch, even if they obtain excited, there’s no outcome. Maybe it’s good practice, but you’ll likely not obtain an investment,” he stated.

E&, a global technology and investment group, heavily invests in telecoms, digital startups, IoT (internet of Things), and AI through its investment arm e& capital. It has a total asset under management of just under $500 Mn (Dhs 1.8 Bn). Lung stated that startup founders should be aware if the fund fits their respective business model.

The success of Airalo

An example he shared was that e& invests in Airalo, a telecommunications company that sells eSIMS. The company is now valued at $1 billion, marking its unicorn stage. Airalo also fits in with e&’s business model, he stated, becaapply the UAE has millions upon millions of telecom subscribers.

“For us, it’s actually very simple to funnel many of these services to the customer here today. So really understand the investment thesis of each fund and whatever you’re starting. Your startup may be a fit,” Lung stated. “At the finish of the day, telecom service is not rocket science. It’s not that new. It’s been around for many decades. But there’s a slightly different way of doing things, a slightly different business model, that solves a slightly different challenge,” he concluded.

Elevator pitch

An “elevator pitch”, a very concise but impactful description of an idea or product, is what assists sell a product to investors. Lung explained that if a startup founder only has 30 seconds to explain their product, they should believe about three things: What they are testing to solve, if it is a large enough problem, and if somebody is willing to pay for it (i.e. invest in it). He added that as long as there is a sizeable market, rather than the number of people investing, then it should succeed.