# Wiki Vc Startups

> Use when a user asks about venture capital ecosystem participants, fund dynamics, MENA-specific VC funds, investment thesis terminology, or the VC-startup relationship from a legal-advisory or deal-structuring perspective. Provides a reference on global and MENA VC landscape, key fund characteristics, deal terms, and investor rights — relevant for startup counsel, transactional lawyers, and founders navigating the VC ecosystem.

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- Updated: 2026-09-10
- Page: https://skillmd.com/skills/sboghossian-mini-claude-for-legal/wiki-vc-startups

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# Venture Capital Ecosystem Reference

## Scope

This pack covers the venture capital ecosystem: fund structures, major global and MENA-specific funds, investment thesis frameworks, deal mechanics, and investor rights. It is relevant to startup counsel, M&A lawyers advising VC-backed companies, and founders navigating the fundraising process.

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## VC Fund Structure

### How a VC Fund Works

A typical VC fund is structured as a limited partnership:
- **General Partners (GPs)**: manage the fund; make investment decisions; carry fiduciary duties to LPs
- **Limited Partners (LPs)**: provide the capital; have limited liability; include pension funds, endowments, sovereign wealth funds, family offices, fund of funds, corporations
- **Management fees**: typically 2% per annum on committed capital during the investment period; covers fund operations
- **Carried interest ("carry")**: typically 20% of profits after LPs receive their capital back (plus hurdle rate if applicable); GP's primary economic incentive
- **Hurdle rate**: minimum return LPs must receive before GP takes carry (typical: 8% IRR)
- **Fund life**: typically 10 years (2-year extension possible); investment period first 5 years

### Fund Types by Stage

| Fund type | Stage | Check size | Key metrics |
|-----------|-------|-----------|------------|
| Pre-seed / angel | Idea to MVP | $25k–$500k | Team quality; market size |
| Seed fund | MVP to early traction | $500k–$3M | PMF signals; early revenue |
| Series A fund | PMF to scaling | $5M–$15M | Unit economics; go-to-market |
| Growth equity | Proven model, scale-up | $20M–$100M+ | Revenue growth rate; NRR |
| Late-stage / pre-IPO | Pre-public, large scale | $50M–$500M+ | Path to profitability; market position |

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## Major Global VC Funds

### Tier 1 (Global Platform Funds)

| Fund | HQ | Notable investments | Style |
|------|-----|---------------------|-------|
| Andreessen Horowitz (a16z) | Menlo Park | Coinbase, Airbnb, GitHub, Lyft | Opinionated thesis; large service platform for portfolio |
| Sequoia Capital | Menlo Park | Apple, Google, Oracle, Stripe, Zoom, WhatsApp | Long-hold, multiple stage; rebranded as permanent capital vehicle |
| Benchmark | Menlo Park | Uber, Twitter, Snap, Dropbox, WeWork | Small team, lean model; no corporate venture arms |
| Founders Fund | San Francisco | SpaceX, Palantir, Airbnb, Stripe | Deep-tech focus; contrarian thesis |
| Accel | Menlo Park / London | Facebook, Spotify, Slack, Dropbox | Strong Europe + India presence |
| Kleiner Perkins | Menlo Park | Amazon, Google, Genentech | Legacy firm; diversified across sectors |
| General Catalyst | Boston | Stripe, Airbnb, Snap | Multi-stage; health + fintech focus |
| Tiger Global | New York | Multi-stage; heavy Asia exposure; known for fast decisions and high valuations |

### Tier 1 — Growth/Multi-Stage with MENA Exposure

| Fund | Notes |
|------|-------|
| SoftBank Vision Fund | Massive scale ($100B+); has invested in MENA (Careem, OYO) |
| DST Global | Yuri Milner; tech-focused; no board seats model |
| Goldman Sachs Asset Management | Growth equity; multi-geography |

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## MENA VC Ecosystem

### Pan-MENA Funds

| Fund | HQ | Focus | Notable investments |
|------|-----|-------|---------------------|
| BECO Capital | Dubai | Broad tech; Series A/B | Vezeeta, Anghami, Telr |
| MEVP (Middle East Venture Partners) | Beirut / Dubai | Early stage; broad tech | Anghami, Wamda, Keeward |
| Shorooq Partners | Abu Dhabi | UAE/KSA/global; seed to Series A | Lean In, Pure Harvest |
| Nuwa Capital | Riyadh / Dubai | GCC-focused; tech | Multiple portfolio companies |
| Wamda Capital | Dubai | Broad MENA; early stage | Bayt.com, Careem (early), Fetchr |
| STV (Saudi Technology Ventures) | Riyadh | KSA-focused; STC anchor LP | Telfaz11, Nana, Foodics |

### Saudi Arabia-Specific

| Fund | Notes |
|------|-------|
| Sanabil Investments | PIF subsidiary; invests in international and domestic VC funds and directly |
| Saudi Aramco Energy Ventures (SAEV) | CVC; energy-tech, industrial tech |
| SVC (Saudi Venture Capital) | Government fund-of-funds; invests in local VC managers |
| Raed Ventures | Early-stage; KSA-focused |
| Impact46 | Riyadh; Series A/B; consumer + fintech |

### Lebanon / Regional (Pre-crisis Landscape)

| Fund | Notes |
|------|-------|
| MEVP | Lebanon-founded; now Dubai-based; still active |
| Bader Young Entrepreneurs Program | World Bank/Lebanon; micro-grants |
| Cedrus Invest | Lebanese commercial bank VC arm |
| KAFALAT | Lebanese government guarantee scheme for SME loans — not VC but relevant to Lebanon funding landscape |

### Emerging MENA VC Infrastructure

- **VEKTOR** — Abu Dhabi-based; deep-tech focus; connects MENA startups with European VC
- **Dubai Future District Fund** — government of Dubai; ecosystem development mandate
- **Abu Dhabi Investment Office (ADIO)** — not a VC fund but incentive programs for startups to set up in Abu Dhabi

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## VC Investment Terms — Legal Reference

### Key Economic Terms

| Term | Definition | Founder implication |
|------|-----------|-------------------|
| Pre-money valuation | Company value before the investment | $10M pre + $2M investment = $2M/12M = 16.7% dilution |
| Post-money valuation | Pre-money + investment amount | Used to calculate investor ownership |
| Liquidation preference | VCs get X× their investment back before founders see proceeds | 1× non-participating = founder-friendly; 2× or participating = aggressive |
| Participating preferred | VC gets preference AND shares remaining proceeds pro-rata | Double-dips; avoid if possible |
| Anti-dilution | Adjusts VC's ownership if a down round occurs | Full ratchet = very aggressive; broad-based WA = standard |
| Option pool | Reserved equity for future employee grants | "Option pool shuffle" — investors often require pre-money option pool expansion, increasing founder dilution |

### Key Control Terms

| Term | Definition | Founder implication |
|------|-----------|-------------------|
| Board seat | Investor representative on the board | Protect governance; maintain founder majority until Series B |
| Protective provisions | Investor veto rights on specific actions | Standard: new equity, M&A, debt, change of business — watch for overly broad lists |
| Drag-along | Forces minority shareholders to sell if majority approves | Ensure threshold is majority of all shares, not just preferred |
| Information rights | Investor's right to financial reporting | Standard; monthly/quarterly financials, annual audited |
| Pro-rata rights | Right to invest in future rounds to maintain ownership % | Valuable for VCs; fine for founders |
| Right of first refusal (ROFR) | Investor right to buy shares if founder wants to sell | Standard; negotiate carve-outs for estate planning transfers |

### MENA-Specific VC Legal Considerations

- **Sharia-compliant structures**: some MENA investors (particularly GCC sovereign funds) require Sharia-compliant investment structures; standard US-style preferred shares may need adaptation (avoiding riba — fixed guaranteed return)
- **Foreign ownership restrictions**: UAE-mainland companies historically required UAE national ownership (51%); reforms under the Companies Law 2015 amendments (and further liberalization) have reduced restrictions in many sectors — verify current rules for the specific sector
- **Exit routes in MENA**: IPO exits (DFM, ADX, TADAWUL, EGX) are an option but market depth is shallower than NASDAQ; M&A exits to regional or international acquirers more common; secondary sales to growth funds
- **Currency risk**: MENA investments often in USD; if company revenues are in local currency (especially EGP, LBP), this creates FX exposure that investors and founders should address in financial planning

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## VC Fund Legal Documents

For legal professionals advising on VC transactions, the key document set includes:

| Document | Purpose |
|----------|---------|
| Term sheet | Non-binding summary of deal economics and governance | 
| Share Purchase Agreement (SPA) | Definitive agreement for share issuance; reps & warranties |
| Shareholders' Agreement | Governs rights and obligations of all shareholders |
| Articles of Association (amendment) | Bakes preferred share rights into the company's constitution |
| Investors' Rights Agreement | Information rights, registration rights, pro-rata |
| Right of First Refusal & Co-Sale Agreement | Share transfer restrictions |
| Management Rights Letter | Required by some LPs (ERISA-exempt VCs) |
| Legal opinion | Company counsel opinion on due authorization, valid issuance |
| Disclosure schedule | Carve-outs from representations and warranties |

See [[workflow-investment-round-closing-pack]] for the full closing checklist.

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## How to Use This Pack

Reference when:
- Advising a MENA startup on its VC fundraising options
- Reviewing a term sheet or shareholders' agreement in a VC round
- Conducting due diligence on a VC-backed target
- Advising a family office or institutional investor on entering the MENA VC asset class
- Understanding an investor's position and rights in a dispute context

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## Caveats & Currency

Fund activity, AUM, and focus areas change frequently. The MENA VC ecosystem is particularly dynamic — funds launch, close, and pivot regularly. Fund details here reflect public information as of mid-2024; verify current status before advising. Sharia compliance structures for VC investment are an evolving area requiring specialist Sharia advisory.

## Related Skills

- [[wiki-startup]]
- [[wiki-sales]]
- [[wiki-strategy]]
- [[workflow-investment-round-closing-pack]]
- [[draft-term-sheet-vc]]
- [[draft-shareholders-agreement]]