5 November 2024, Tue |
9:35 AM
Hub71, Abu Dhabi’s global tech ecosystem, has announced a significant enhancement to its Incentive Program. This revamped program now offers startups the opportunity to receive up to AED 750,000 in combined cash and in-kind incentives, thereby increasing the value proposition for disruptive tech companies that become part of its rapidly expanding community.
Under the newly introduced Company Building Program, startups that choose to join Hub71 will receive up to AED 250,000 in in-kind incentives, comprising support services, along with an additional AED 250,000 in cash for equity. This dual-pronged approach is aimed at assisting founders in securing accessible capital to fuel their ventures. Notably, for the first time, Hub71 will acquire an ownership stake in selected startups that become part of the Company Building Program. This is part of the comprehensive support packages designed to nurture high-growth companies and empower founders with the resources needed to make a lasting impact.
Hub71’s transition to this innovative incentive model underscores its unwavering commitment to enhancing the support offered to founders and high-performing tech companies based in Abu Dhabi. Upon successful completion of the one-year Company Building Program, top-performing startups chosen by Hub71 may qualify for an additional AED 250,000 cash incentive in exchange for additional equity.
The AED 250,000 cash incentive will be facilitated through a Simple Agreement for Future Equity (SAFE) structured with founder-friendly terms specifically tailored for the Abu Dhabi Global Market (ADGM) jurisdiction. This revamped offering is geared towards enhancing the growth journey for startups in Abu Dhabi, which is currently the fastest-growing startup ecosystem in terms of value in the Middle East and North Africa region, and the sixth fastest globally. Founders will have the ability to access capital at the outset, streamlining the process of funding their business expansion without the need for a formal funding round. In the event that a startup does proceed with a formal funding round, Hub71 will exercise its rights under the SAFE to secure an equity interest in the startup. This new approach has been designed with founders in mind, providing a simplified and investor-friendly means for startups looking to expand globally from Abu Dhabi to raise capital.
Ahmad Ali Alwan, Deputy CEO of Hub71, emphasized, “Building upon our established track record of supporting early-stage tech companies, our reimagined Company Building Program signifies a natural evolution for Hub71. This program has been a launching pad for over 200 startups within the Hub71 ecosystem, which have collectively raised almost AED 5 billion. Our ongoing commitment to founders, as demonstrated by this shift to offer greater value to our startup community, solidifies our dedication to their success. We aim to enhance the growth trajectory of innovative companies, providing them with the simplicity and flexibility required for their success. Our commitment extends beyond financial support; we are deeply invested in the sustainable growth and development of startups within our community, both in Abu Dhabi and on a global scale.”
Startups that choose to participate in Hub71’s Company Building Program become part of a dynamic community that offers access to an extensive network of corporations, investment partners, and government entities. This, in turn, unlocks the advantages of Abu Dhabi’s marketplace. To further expedite their growth, startups also enroll in a three-month course as part of the program, receiving expert mentorship, personalized guidance, and essential support. Founders gain access to the expertise and guidance provided by Hub71, facilitating introductions to its partners and significantly enhancing the potential for securing commercial deals and successful fundraising.
