Hasan Haider, Managing Partner of Plus VC shares his insights on early-stage investment, the importance of execution-focused founders, and the challenges of navigating MENA’s venture capital landscape while aiming for impactful growth and innovation.
Can you tell us about your background and how Plus VC started?
Since 2010, I’ve been investing in the MENA region, initially founding one of Bahrain’s first angel groups. I later joined 500 Startups to establish their MENA operations, becoming the region’s most active investor. In 2020, I launched Plus VC, a venture capital firm dedicated to early-stage startups across MENA, with a focus on supporting founders and driving innovation throughout the region.
Why focus on early-stage investments?
I concentrate on early-stage investments because that’s where I can provide the most value. I thrive on discovering exceptional founders, investing in their potential, and supporting them during the initial stages of their journey. My expertise is in identifying promising teams and helping them develop, rather than getting involved in later-stage operational tasks.
How do you help founders beyond just funding?
Beyond providing funding, we support founders by leveraging our extensive network to connect them with our extensive network of potential partners, customers, and investors to facilitate growth. Drawing on over 14 years of experience, we provide valuable insights and guidance on effective strategies specific to the region. We also actively help them secure additional funding from other investors when necessary. While we don’t engage in daily operations, we remain available to offer support whenever founders require it.
What key sectors does Plus VC focus on?
We are sector-agnostic and prioritize investing in startups throughout the MENA region that incorporate a technological component. Our investment thesis revolves around identifying strong founding teams rather than attempting to predict future industry trends. The focus is on recognizing talented, execution-driven founders, regardless of the specific sector.
What has been the biggest challenge since you started Plus VC?
The biggest challenge we’ve faced since launching Plus VC is the misconception that there’s an abundance of venture capital in the MENA region. Although interest in the area is increasing, the actual pool of active investors remains relatively small compared to other regions. This limited investment landscape can make it difficult for startups to secure the funding they need.
Why do you think that misconception exists?
This misconception exists partly because venture capital appears risky to many investors in the region. Additionally, numerous family offices believe they can invest part-time. However, they often lack the scale and expertise of dedicated venture capital firms, which limits their ability to effectively support startups and contribute to the growth of the venture ecosystem.
What qualities in founders inspire you to invest in their ventures?
When evaluating founders, we prioritize those with a strong “bias towards execution.” These are individuals who don’t just have great ideas but actively take steps to turn those ideas into reality. We look for proactive founders who demonstrate initiative, consistently make progress, and possess the drive to overcome challenges. Execution is key, and we seek those who are committed to delivering tangible results in building their businesses.
What is your exit strategy, and how long do you typically hold investments?
We have the flexibility to exit investments earlier than later-stage investors by selling our secondary stakes once a company reaches a specific valuation. This approach allows us to realize returns sooner, providing liquidity and enabling us to reinvest in new opportunities while maintaining a strategic presence in promising companies as they continue to grow.
How do you assess the ratio of success to failure in your portfolio?
We anticipate that roughly 60% of our investments will be almost zero, while 20% will return 1x, 10-13% will generate 5x returns, and 5-7% will deliver 20x returns. Overall, our performance has been slightly better than the industry average, reflecting a solid approach to identifying promising opportunities and managing risk in the early-stage investment space.
How do you view the entrance of foreign investors into the MENA region?
We welcome foreign investment, provided that these investors are genuinely committed to actively supporting the region, rather than merely leveraging MENA capital for investments outside the region. Active engagement in the local ecosystem is key to meaningful growth.
What are your plans for growing Plus VC?
Our goal is to establish ourselves as the top early-stage venture capital firm in the MENA region, driving innovation by supporting promising founders and startups, and creating a lasting impact on the entrepreneurial ecosystem across the region.
Do you have plans for geographical expansion?
We’re currently focused on consolidating our presence in the MENA region, but we’re also open to exploring selective opportunities for expansion into sub-Saharan Africa as we continue to grow and assess strategic fits in those markets.
How would you describe the current state of the ecosystem?
There was a period of “madness” with unrealistic valuations, but things have now stabilized. We expect the MENA region to follow the growth path of other emerging ecosystems like China and India.
What is your vision for the size of the portfolio in the next 3-5 years?
We estimate growing to around 150-200 investments within the next three years as we continue to invest from our first fund and possibly a second fund.
