The Missing Link in Middle East Startups? Seed-Stage Capital. - Middle East Business News and Information

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7 hours ago

By Roman Ziemian – Entrepreneur, Investor, Philanthropist
The Middle East has emerged as one of the most dynamic hubs for startup innovation globally. Ambitious government-led initiatives like Saudi Arabia's Vision 2030, the UAE's entrepreneur-friendly visa programs, and unprecedented venture capital inflows into fintech, health tech, and climate tech dominate the narrative. Yet beneath this progress lies an overlooked bottleneck: the glaring shortage of early-stage funding.
As Roman Ziemian—an entrepreneur and investor with multinational experience and a focus on high-impact ventures—I've witnessed the Middle East's startup ecosystem mature at breakneck speed. However, a critical gap persists at the seed and pre-seed stages, stifling potential breakthroughs before founders can even validate their ideas. This funding void isn't just a hurdle—it's an invisible barrier preventing the region's next generation of innovators from taking flight. The Hype Is Real—But So Is the Gap
Let's be clear: this is not an issue of enthusiasm. Entrepreneurs across the Gulf and wider MENA region are more active, diverse, and digitally fluent than ever. But too often, they hit a wall right where it matters most—the 'first yes.' That critical early-stage investment that allows them to build an MVP, test a market, or hire their first core team.
Most funding in the region today skews toward later-stage rounds—Series A and beyond—where risks are lower and traction is clearer. But without a robust seed-stage pipeline, the region is missing out on its most fertile ground: the ideas that never got a chance to prove themselves. As Roman Ziemian often emphasizes, the cost of not investing early is missing the unicorns of tomorrow. Why the Gap Exists
There are a few reasons this happens: Risk Aversion: Traditional investors and regional family offices often prefer asset-backed or revenue-positive ventures. This mindset doesn't align with the inherent uncertainty of pre-revenue startups.
Lack of Angel Networks: Compared to ecosystems like Silicon Valley or London, the Middle East still lacks dense, organized networks of angel investors who understand how to mentor and back early ideas.
Talent Without Capital: Universities and accelerators are producing strong entrepreneurial talent, but many founders still lack friends-and-family support to get from concept to seed.
Roman Ziemian believes these structural weaknesses are addressable—but only if the community acts collectively. What Needs to Change
If the region wants to be more than a buyer of proven concepts, it needs to become a builder of bold ideas. That starts with a cultural and structural shift in how we support startups in their most fragile phase: Educate Investors: We need more masterclasses, roundtables, and closed-door VC workshops focused on early-stage investing. The return potential is there—but only if the risk is properly understood. Microfunds and Rolling Syndicates: Encourage the rise of smaller, faster funds—those willing to write $50K–$250K checks with minimal red tape. These microfunds have transformed ecosystems elsewhere. Co-Investment by Governments: Let public funds match private capital at seed stage, not just at Series A. It's a signal that startups matter even when they're only ideas on paper. Better Deal Flow Infrastructure: Platforms like Hub71, AstroLabs, and Flat6Labs are creating structure, but we need more visibility, data sharing, and early-stage demo days across borders—from Riyadh to Muscat to Amman.
These shifts, according to Roman Ziemian, will allow the region to nurture next-gen startups from idea to icon. What Founders Can Do in the Meantime
For founders stuck in the 'pre-seed desert,' my advice is this: Build relationships before you need capital. Investors don't back ideas—they back people.
Learn how to tell your story. A strong pitch, clear traction metrics, and honest humility go a long way.
Be regional, not just local. Don't think in silos—your first investor might be in Doha even if you're building in Jeddah.
As Roman Ziemian often reminds young founders: 'Resilience and reach are your greatest currencies.' Final Thoughts
The Middle East is ready for its next unicorn—but that unicorn is still just a seed in someone's notebook. It's time we bridge the early-stage funding gap with the same energy and ambition we apply to everything else in this region.
If we get this right, we won't just be funding startups. We'll be building the next generation of regional icons, global disruptors, and economic resilience.
And that begins with saying 'yes' sooner.
Roman Ziemian is a business leader, investor, and cultural entrepreneur with a passion for building purposeful ventures across Europe and the Middle East. As Roman Ziemian continues to invest in early-stage potential, he challenges others to do the same—for the future of the region depends on it.