Fundraising and growth advice from Shane Shin, the Founding Partner at Shorooq, on ways to stand out, draw in investors, and grow appropriately.
In the latest instalment of the VC Voices series by Middle East, we sat down with Shane Shin, Founding Partner at Shorooq, a venture capital firm with a focus on AI infrastructure and applied AI solutions. Shorooq invests at the pre-seed and seed stages, with a keen eye for evaluating founder-market fit.
Shin shared his insights on what founders should keep in mind when preparing to raise their first round.
Build the Narrative, Not Just the Numbers
According to Shin, founders should craft a clear and compelling story that explains why now is the right time, why they are the right team, and why solving this problem matters. The focus is on communicating a vision that goes beyond just financial slides.
Validate with Velocity
Founders should demonstrate momentum by engaging with a large number of users (100+), testing various go-to-market strategies, and collecting real-world proof points even before the product is fully mature. Speed of execution is important, with founders being evaluated for doing more with less.
Research Your Investors
Instead of sending mass emails, founders should tailor their approach by understanding which stage funds focus on, typical investment sizes, and the value investors can add. This shows seriousness and respect for their time.
A personal anecdote from Shin highlights the importance of these points. Lean Technologies, a fintech startup, impressed Shin with a clear product roadmap, small team, and an obsession with solving fintech infrastructure pain points.
The Power of Persistence
Founders should treat every interaction as part of a long game, following up with product updates, customer wins, and proof of progress. A "no" doesn't mean "never," and founders should ask for feedback, not just money.
The Traits of A+ Founders
Clarity, obsession, and resilience are traits that Shin looks for in A+ founders. These traits are evident in founders who can articulate why their company matters and have a clear vision that transcends slides.
MENA's Global AI Potential
Shorooq is excited about the potential of MENA to create globally relevant AI companies. The firm is backing this future with capital and conviction, investing in solutions built from the region for the world.
In conclusion, Shorooq's focus on AI infrastructure and applied AI, coupled with their investment strategy, positions them well to support the next generation of AI companies from the MENA region. Founders who can build a narrative, validate with velocity, and research their investors will find Shorooq a valuable partner in their journey.
- In the pursuit of funding from venture capital firms like Shorooq, founders should craft a compelling story that communicates their vision, beyond just financial slides.
- To impress potential investors like Shane Shin, founders should demonstrate momentum by engaging with a large number of users, testing various strategies, and collecting real-world proof points, even before the product is fully developed.
- Founders should understand the focus and values of their prospective investors, tailoring their approach to show seriousness and respect for their time.
- Shorooq is optimistic about the potential of MENA to create globally relevant AI companies, and they are investing in this future, supporting the next generation of AI companies from the region.
