Iliad Partners Launches US$50 Million MENA VC Fund

Iliad Partners, a UAE-based venture capital firm, has announced the launch and first close of its US$50 million Iliad Partners Tech Ventures Fund I.  

The Iliad Fund is set to fuel early-stage business-to-business (B2B) software startups, with a focus on fintech, logistics, and proptech. Targeting pre-Series A and Series A ventures, the fund focuses on driving digital transformation and innovation across the Middle East and North Africa (MENA), with a spotlight on Saudi Arabia and the UAE. Additionally, 10 percent of the fund is earmarked for Europe, particularly Greece, to empower startups aiming to expand into the dynamic MENA market. 

The round is supported by a roster of regional and global investors, including Jada Fund of Funds (a Public Investment Fund subsidiary), the Olayan Family, Masarrah Investment Company, MLM Investments, the renowned Constantakopoulos Family of Greece, and a host of influential family groups and offices across the GCC and Europe. 

The fund has already made investments in trailblazing startups in the region, including OTO, a Saudi logistics platform streamlining shipping for e-commerce stores and retailers; Penny, a Saudi Software-as-a-Service (SaaS) platform revolutionizing procurement for medium to large enterprises; and Qashio, a UAE fintech delivering a seamless spend management solution for businesses. 

In an exclusive interview with Inc. Arabia, Christos Mastoras, founder of lliad Partners, spoke about the funds' investments to-date, saying, “All three are great companies with a lot of potential. The common themes are characteristics that we want to see in all our investments – (a) strong, experienced founders, (b) operating in large markets and sectors that require digitization or disruption, (c) highly scalable, asset light models, (d) strong products, defensible businesses, (e) validated by clear revenue trajectory. However, at the end of the day, there is no substitute for strong founders, and this is at the very core of all three investments.”

He continued, “OTO, Penny and Qashio are well-positioned to digitize key functions of large corporates (logistics, procurement, finance). We are confident that they will do very well in the region and beyond.” 

lliad Partners Team, Epic Journey. Courtesy of lliad Partners.

Founded in 2016 and headquartered in Abu Dhabi Global Market (ADGM), Iliad Partners is deeply rooted in the UAE and leverages its expansive network across Saudi Arabia, the broader MENA region, and beyond. Co-founded by Christos Mastoras, a veteran tech entrepreneur with four successful exits and former Yahoo Maktoob executive based in the UAE since 2007, and Omar Al-Madhi, a leading Saudi investment expert, who united their expertise to support regional innovation, Iliad Partners became an early champion of the startup scene and invested in MENA success story Trukker -- a leading digital freight network and logistics platform in the region. 

“Iliad Partners has been an early contributor to the rapid development of the MENA ecosystem since its inception and is committed to driving digitization and innovation in the region. With the launch of our new fund, we aim to accelerate our impact and help drive digital transformation in region, in Saudi Arabia and the UAE, by working closely with both startups and limited partners, while being closely aligned with the economic visions of the Saudi and UAE governments for the future.” 

With deep expertise as investors, entrepreneurs, and operators, the Iliad team boasts a proven track record of building, scaling, and successfully exiting companies in MENA. Iliad Partners takes a proactive, hands-on approach to empower founders, offering strategic support in business development, forging partnerships through its limited partners (LP) network, navigating Saudi market entry, driving regional expansion, and strengthening governance and financial operations. 

Mastoras commented, “We use our Iliad Playbook and an active, hands-on approach to support startups and add value in tangible ways – by supporting businesses development (including via commercial partnerships with our LP base), supporting Saudi and UAE market entry (by leveraging our in-depth knowledge and extensive networks in these markets), and enabling regional expansion across MENA and expansion outside the region, serving as a bridge between MENA and Europe. In addition, we help founders build their corporate infrastructure – their governance and finance function, and their readiness for later stage funding. This helps them achieve accelerated growth that is sustainable in the long-term.” 

On how the fund aim to contribute to the broader digital transformation agenda in Saudi Arabia and the UAE, Mastoras explained, “A key part of the Iliad model is to systematically enable commercial partnerships between our portfolio companies and our LP base which includes some of the largest GCC family groups and conglomerates. This drives clients, revenues and real value creation for our startups, while also advancing the tech-enablement of our LPs who have prioritized the digitization of their operating companies, beyond just aiming to generate strong returns from the VC asset class.” He continued, “This way, Iliad Partners not only invests in the startups that are digitizing key sectors of the economy, but we also work closely with LPs to integrate these new technologies into their traditional businesses and operationalize partnerships that advance their digital transformation agenda.” 

Mastoras believes in the potential of lliad Partners in supporting the development of the MENA startup ecosystem within the region. “Honestly, I believe the deployment of capital is the least we can do to support the overall development of the MENA ecosystem. Our real work starts after we make an investment, not before. In this context, I see three keyways we can contribute to the long-term growth of the ecosystem.”  

The three main keyways that Mastoras identified were: human capital, through working closely with founders, providing mentorship, and offering trusted guidance are key to equipping them for success. Secondly, sustainable companies, where growing startups at unsustainable valuations often lead to failure, especially in tough fundraising climates. He stressed that a disciplined approach that focuses on sound unit economics and a clear path to profitability drives long-term success, economic digitization, and job creation. And lastly, for Mastoras, realizing exists, by enabling founders to become angel investors and LPs to reinvest in venture capital. Iliad Partners focuses on building companies that attract acquisitions, are IPO-ready, or draw interest from later-stage investors for large secondary rounds. 

Focusing on the UAE and Saudi Arabia, Mastoras recognized the rising potential of technology and entrepreneurship in the region. “We are witnessing rapid digitization and innovation in key areas of the economy, and we see major opportunities in the verticals we target such as fintech, logistics and proptech. Saudi Arabia and the UAE are driving forces in the regional startup ecosystem and have emerged as global hubs of entrepreneurship. This dynamic offers once-in-a-lifetime opportunities for tech founders – we work closely with them to support their journey and help them succeed. As investors and former entrepreneurs and operators, we have a track record of building and exiting companies in MENA. We understand the challenges of growing early-stage ventures in the region,” Mastors told us.