- Culture ID
How not to pitch investor the Middle East? Is it true that Arabs don’t say no and does that mean they are willing to invest? These and many other questions are answered in Part II.
The UAE has one of the highest percentages of expats in the world who come here for business and to live. Many of them come from cultures with low-context or direct communication, which is not typical of Arab culture. In this step-by-step guide, we have compiled scientific theories and practical knowledge to help people from other cultures better understand the Arab mindset and approaching business.
Knowing what kind of communication culture your dialogue partner has can help you avoid getting lost in translation.Anthropologist Edward T. Hall (Columbia university) divided communication cultures into two types: high-context and low-context cultures. In short:
In this article, we will focus more on the latter. If you want to read more about business approaches with low-context cultures, click here.
Cold outreach in email won’t be very effective when pitching Arabic investors.Before reaching out to an Arabic investor with your business proposal by an email, try to connect with them personally at events, via shared network, or at least on LinkedIn, where you can introduce yourself in a personal message, advises Vera Surzhenko, an independent communications coach, based in Dubai.
A zoom call won’t replace a meeting in person for establishing a trusting relationship. No serious decisions can be made if partners only communicate in zoom. It also helps immensely if you’re based in the UAE: arabic investors will be more interested to discuss an investment round if even only a part of your team is based here.
There should be a deadline in the email, said Dr Alzubaidi. It’s better to take into consideration longer deadlines in case you and your Arabic investor are doing a joint project for the first time. There should be enough time for both of you to get to know each other and learn more about the startup product. So don’t rush your first deal.
In a typical situation in the startup world, when a company sends a pitch to the investor in an email, the response can take two or three days, Dr Alzubaidi said. Urgent questions can be discussed in messengers, said Mikhail Tugin, client relations specialist at NSV Consulting.
Email Cheat Sheet
To burn interest: tell your investors if other firms also want to back you
✉️ We are currently negotiating with investors from Saudi Arabia. They want to buy a stake in our project. Since you also wanted to participate in the investment, please tell me how much you intend to invest in the project and in which part? I value our relationship, we met earlier and can communicate better, so I am willing to give you exclusive conditions
To give update: show that your project goes according to the plan
✉️ Good afternoon, (investor’s name)! How are you feeling? I hope everything is great for you and your family. I would like to share the news that we have an update. You can read more detailed data-room of our project, where there are financial and legal documents, marketing plan and product specifics. I also invite you to participate in the beta test of the product.
Mrs Surzhenko recommends sticking to a general guideline:
In the opening phrase in a letter to an Arabic investor it’s respectful to acknowledge the investor’s position and reputation, advises Mrs Surzhenko: “I am writing to you with great respect for your expertise in …and your well-known contributions to…”
Finally, after successful emailing and messaging, you’ve come to discuss your future meeting.
Ask investor if you could meet in one of these places:
If you are the one who has to make a choice, go for a mid-priced place in the city centre, advised Ms Pogodaeva. The best option is a well-known coffee house chain, as these establishments have service standards and will therefore not cause any inconvenience.
Don’t choose an extravagant place:
note: it’s possible that your investor will ask you to join them on a dinner at their home. “It doesn’t happen often, but when it happens, it means that a personal relationship has been established,” said Mr AlMajid. However, as he noticed, it doesn’t guarantee that there’s an agreement on the investments so don’t get over excited.
The free bank account that makes life easy
Not a fan of waiting times, hidden fees, or paperwork? Us neither. Get a free N26 bank account and manage your personal and shared finances the simple way.
Cards for advertising and personal purchases
Banks complicate things, we don’t. All the necessary payment account functions reachable with a tap on your smartphone.
Send, Exchange or Accept fiat and Cryptocurrency on your personal Account or Website.
Local and international payment tools, bank transfers, cards and more
A full-featured EOS wallet for your assets
Move your money globally in 40 different currencies. All you need is an email address and the funds arrive right away.
The all-in-one digital financial platform created to reboot banking for everyone.
Pyypl (pronounced “people”) is a non-bank digital app that gives everyone access to the financial system through a smartphone. With an internationally accepted prepaid Visa, conducting transactions with Pyypl is as simple as sending a message.