On startup investments, trick is not to fall for valuation hype: GII’s Pankaj Gupta

On startup investments, trick is not to fall for valuation hype: GII’s Pankaj Gupta

Dubai: There’s one rule that investors should follow when it comes to taking an interest in startups and such ventures. Don’t pay more than what they are actually worth. So, if any venture looks a bit overvalued, then avoid. “That’s why we didn’t take an active role for 18 months – because the MENA tech venture space looked extremely overvalued,” said Pankaj Gupta, co-CEO and co-founder of Gulf Islamic Investments, based in DIFC and with a portfolio that straddles multiple sectors, multiple geographies. (GII’s investments include luxury projects in London and Europe, digital startups in India, and a dental services firm in Saudi Arabia.) "In that period, we turned down options on a few tech ventures in MENA, because those valuations were blinded by hype. It has cooled down a lot now." Private equity and venture capital sources have in the recent past said that there is a lot more of circumspection going on before funds are placed at the disposal of these ventures. Those entities that show potential – and what it takes to turn that into future profitability – are still getting ample backing. GII on Friday announced the four winners of the ‘Eureka! GCC 2023’ competition, based