What the new crowdfunding initiative means for entrepreneurs

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Over the years, the startup space in the UAE has seen its own evolution. The United Arab Emirates is one of the countries that has always been at the forefront of fintech, technology and entrepreneurship. In 2018, the country dominated the Middle East and North Africa region in terms of seed funding, which stood at $ 893 million, according to a report on Statista. While the coronavirus pandemic has had a ripple effect that has been felt in the entrepreneurial landscape of the UAE, there are initiatives being taken to help entrepreneurs and startups find the financing they need to grow their businesses. business, attracting new markets and acquiring talent.

So it made perfect sense that the Crown Prince of Dubai and Chairman of the Dubai Executive Council, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, announced a new digital crowdfunding platform called “Dubai Next”.

According to reports, this recently launched digital crowdfunding platform aims to provide much-needed support for startups and entrepreneurs looking to start a business in Dubai. The idea is to stimulate positive competition and encourage young people to gain community support through crowdfunding for their ideas. Before this amazing initiative, there were only a few ways that entrepreneurs and startups could get the funding they needed in the region.

First steps to obtain financing in this region

Funding can be a great way to get the funding startups need in the early stages, but finding those funds can be easier said than done. With many entrepreneurs unsure of how to approach investors or use crowdfunding platforms and the competition reigning in the UAE’s entrepreneurial landscape, it can be difficult to find funds.

Fortunately, there are ways in which UAE entrepreneurs and startups can get funds through crowdfunding platforms, angel investors, and venture capitalists. But for now, let’s stick with how you can raise funds from one of the most attractive methods of fundraising – crowdfunding platforms.

To get started, entrepreneurs and startups will need to mention their product specifications, business goals, and profit plans, as well as how much funding they need. The more transparent you are in your presentation, the better your chances of achieving your crowdfunding goals. Other factors that entrepreneurs and startups should consider before obtaining funds include a clear and concise business strategy, market entry strategy, product alignment, and ensuring regulatory compliance. United Arab Emirates.

Crowdfunding platforms allow entrepreneurs or startups to offer investors the option of donating directly to their startup or committing to pre-purchase products before they enter the market.

Benefits of crowdfunding for entrepreneurs

Dubai offers a vibrant economy and access to investors and a global market. Here are some of the other benefits of crowdfunding your startup in Dubai:

Robust regulatory system: We spoke about the need for entrepreneurs and startups to ensure that their initiative complies with the UAE regulatory system. The Dubai DIFC has established CFP rules and regulations for licensing, organization, and protection of the rights and obligations of all interested parties. This regulatory mechanism provides protection for investment avenues at all levels, meaning that entrepreneurs and startups can choose from an assortment of avenues depending on their capital securing needs.

Encourages competition: Another benefit of crowdfunding for entrepreneurs and startups is that it encourages competition. With many startups looking to use crowdfunding platforms to attract investors, there is a growing need to offer the best possible products or services. Thus, crowdfunding platforms help broaden market participation by breaking down traditional institutional barriers and encouraging the active participation of entrepreneurs from all niches.

Improved social engagement: Needless to say, a well-run crowdfunding campaign can dramatically increase social engagement, which is exactly what entrepreneurs and startups can use to build momentum during the early stages of their business. It also shows investors and the market that the company has sufficient market validation from the start. Apart from this, enhanced social engagement allows a business enterprise to receive feedback from a wider audience, including other market players, who can help the business grow and grow.


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