Israel-based Liquidity Capital, Dubai-based YAS Investments launch a $100 million joint venture fund to invest in Middle East tech startups

One of the great things about technology is inclusivity and diversity and the ability to unite us together regardless of our religious and ideological differences. Last month, we wrote about Watergen, an Israeli tech startup that makes safe drinking water from the air and also strengthening ties between the Jewish state and the Arab world.

Watergen is a Tel Aviv, Israel-based tech that makes safe drinking water out of the air while building bridges in the Middle East across nations with different cultures, religions, and ideologies.

Today, we have another great news from Israel and The United Arab Emirates. Liquidity Capital is an Israel-based fintech platform that offers startups financing against future revenues and YAS Investments is a Dubai-based venture firm.

The two companies announced Thursday they have launched a $100 million joint venture fund to invest in Middle East tech startups. The sector-agnostic fund will focus on providing minimal-dilutive growth financing options to tech companies operating in the MENA region.

This is Liquidity Capital’s second fund launch in 2021, allowing the fintech to now provide flexible financing with local partners and specialist knowledge to start-ups right across North America, Europe, North Africa, Middle East, and Asia-Pacific.

To date, Liquidity has invested in a number of companies including unicorns such as trading giant eToro, cybersecurity company Acronis and manufacturing platform Zetwerk. We also covered  Liquidity Capital early last year after the company invested $12.5M in e-commerce retail-tech startup Resident.

Founded in 2017 by Ron Daniel and Yaron Sela, Liquidity Capital is a global fintech and fund manager providing growth capital through funds focused on the US, Asia, and the Middle East. Liquidity’s subsidiary fund, Singapore-based Mars Growth Capital, and its partner MUFG handle the company’s South East Asia activity. It combines real-time data with proprietary machine learning technology to offer tailored financing that matches a company’s future growth.

Liquidity Capital founder and CEO Ron Daniel said, “We are delighted to be further expanding Liquidity Capital’s influence and reach with the creation of this new fund. By being able to provide increasing amounts of non-dilutive capital to growth companies, I believe we are helping to ensure that more businesses across the globe will reach their goals. The Middle East is a real hotbed for innovation right now, but venture finance has historically not been open to technology businesses in the region.”

Daniel added: “This means start-ups always had to trade equity to fund growth, which is a very expensive form of capital. We’re excited to be partnering with YAS Investments, together we can lead the charge to build a financial ecosystem for the region that will support tech innovation, attract highly skilled workers and help these promising companies expand globally – all while remaining compliant with Islamic finance laws.”

Liquidity Capital’s pioneering technology reimagines the way growth businesses access financing, combining advanced machine learning and data analytics to offer finance based on a start-up’s future growth and tailored to its needs.

“We see fantastic opportunities to invest in cutting-edge businesses throughout the entire MENA region,” said Yagub Yousef Alserkal, Founder and CEO of YAS Investments. “We are delighted to partner with Liquidity Capital – a firm which brings together their incredibly powerful advanced predictive technology and global track record of deploying globally about USD 450m in high-profile start-ups such as E-Toro.”

“This combined with our deep understanding of the region and track record will allow start-ups to access alternative forms of financing,” added Sachhyam Regmi, Partner at YAS Investments.

YAS Investments is a multi-family office providing region-wide investment and transaction advisory services. Founded in 2018, it has already processed over $10 billion in transactions.