4 days ago
VC Voices: Ali A. Abussaud, CEO, Hala VC
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This article is part of VC Voices: Insights to Help Startups Succeed by Entrepreneur Middle East - a series where the MENA region's leading venture capitalists share practical advice to help founders navigate the challenges of building and scaling a startup.
Fundraising lessons from Ali A. Abussaud, CEO, Hala VC.
What are the top 3 things founders should absolutely do when preparing to raise their first round?
Founders should start by clearly articulating the problem they're solving and why now is the right time to solve it. The sense of timing and urgency is often what differentiates a compelling pitch from an average one.
They should also come prepared with a solid understanding of their numbers. You don't need to build out a full-blown financial model, but you do need to know your burn rate, your assumptions around customer acquisition, and how much you're raising relative to the milestones you plan to achieve.
Moreover, it's important to approach fundraising as a relationship-building process. Take the time to research which investors are the right fit for your stage and industry. Reaching out with a tailored message shows professionalism and sets the tone for future interactions. Lastly, founders should listen carefully to the feedback and use it to validate or enhance the business model.
What are you really looking for when evaluating early-stage startups?
We're looking for several things: a strong founding team with a minimum of two co-founders, traction, and an interesting problem to solve with a large addressable market size. It doesn't always have to be massive traction, but we want to see clear signs that the team knows how to execute, learn fast, and move forward. And the problem they're solving should be both relevant and timely, preferably with a unique angle or insight that sets them apart.
Can you share a personal anecdote—either a pitch that truly impressed you, or one that missed the mark and why?
One company that really impressed us is Intella, one of our portfolio companies. They built a high-quality AI product specializing in Arabic Speech technology with advanced automation and analytics, but what stood out even more was how they managed to commercialize it effectively. Rather than staying in R&D mode, they focused early on enterprise adoption, creating tailored solutions and onboarding major clients. Their ability to bridge advanced technology with practical, revenue-generating use cases helped them take the enterprise AI space by storm. It's a great example of strong tech backed by business focus.
How should founders approach a "no"? What's the best way to build long-term investor relationships even if they don't get a cheque right away?
A no is not always permanent. It's often a "not right now." The best founders stay in touch by sharing occasional updates that highlight their progress. It could be product developments, new hires, or traction milestones. When those updates are concise and relevant, they help build trust over time.
Many of our current portfolio companies came back to us months after an initial rejection, and by then, the progress they had achieved made the decision easy. Fundraising is often about timing, and staying on an investor's radar can make all the difference.
What startup sector or trend are you most excited about right now—and why?
We're particularly excited about fintech, including proptech and insuretech, where there's still plenty of room for innovation in the region. AI solutions are of course a key area of focus, especially those with localized applications and strong commercial potential. Logistics is also undergoing massive transformation, with startups using tech to solve infrastructure gaps in a scalable way.
Related: VC Voices: Shane Shin, Founding Partner, Shorooq
