Khalifa Fund looks for that individual touch

The chief executive of Khalifa Fund, Dr Ahmed al Mutawa, offers his tips on applying for venture capital.

The chief executive of the Khalifa Fund, Dr Ahmed al Mutawa, says the success of enterprises depends on the individual.

The chief executive of the Khalifa Fund, Dr Ahmed al Mutawa, offers his tips on applying for venture capital.

How much weight do you place on the individual who applies to the fund?

We place around 60 per cent of the emphasis on the person. We don't finance institutions, we finance individuals. If you went back to study small-to-medium-sized enterprises (SMEs) I think you would find that the individual is the main factor in the success of such projects. Even in big organisations, individuals matter. For example, Bill Gates for Microsoft and Steve Jobs for Apple. But entrepreneurs matter more if it's a small business.

So what qualities do you look for?

We look at the person's business capabilities, their ability to handle people and their knowledge of starting a business. Patience is also important.

Do you only finance individuals with a high level of education?

Actually, no. Education is not a big deal for us. We don't put too much emphasis on academic qualifications. The Khalifa Fund will receive people who have a university degree, high school education or lower. It depends on the drive and the passion of the entrepreneur to do business.

But should an applicant have some educational experience in the business they propose?

It depends on how much you know about the market. When we interview an applicant, we usually discuss a feasibility study and try to see whether he understands the ins and outs of the idea and where it can be taken. They must understand what's needed in terms of marketing and pricing and other aspects of their sector.

What are some common mistakes that applicants make?

There are three mistakes that are quite common. Generally, entrepreneurs don't get involved effectively in their ideas early on. They also fail to understand the importance of accounting and auditing of their projects. Finally, they do not stress marketing enough. It is usually these three things that entrepreneurs fail to give enough importance.

Surely great ideas are easy to market?

Yes maybe. But if someone wants to do a normal project that's not innovating, then marketing and relationship-building are very important because they are not bringing something distinguished.

If an applicant is weak in one area, is the project doomed?

We train entrepreneurs who are lacking in certain skills. Through our initial meetings we find out if they are missing attributes and try to teach them. Once we have done this, then we will look to finance the project. The training is free, so it's really a matter of coming to visit us.