Strategy
Strategy
Operating history
Prioritise target companies that have an operating history of at least two years in their respective business as this provides an indicator of capability of the company to grow as well as improving visibility on the milestones achieved and consistency of results.
Size
Target companies that achieve at least USD 5 million of revenue over a 12 month lookback period as this provides a minimum threshold in consideration of the minimum investment size and the potential scale achievable over the financing tenor.
Financial performance
Target companies that achieve profitability at gross margin level as this represents a materially relevant feature as it supports the underlying business proposition.
Growth
Target companies that demonstrate substantial month-on-month growth of revenue and other operating drivers to evidence growing market share and effective customer acquisition with a clear path to scale-up.
Minimum equity commitments
Target companies which have raised a minimum of USD 20 million in equity commitments from institutional investors.
Stage
Target companies which have undergone previous round of fundraising, in particular those which have completed a Series A funding, as this will be supportive of the capability of the company to raise funds externally, which will potentially become a fundamental element relating to of the repayment of the debt facility issued.
Geographic
The majority of investments should be in companies operating and servicing KSA and UAE and with at least 70% of revenue being generated from these economies.
Technology
Target companies that demonstrate a proprietary technology stack with a minimum of 500,000 data points collected and evidenced feedback loop improving deliverability, cost and efficiency of operations.
Case Study – Pure Harvest
Company Overview
Pure harvest is a pioneer in controlled environment agriculture (CEA) and has developed a proprietary high-tech, hybrid growing system that makes possible sustainable, economic, year-round production of high-quality fresh fruits and vegetables anywhere.
Transaction Overview
Pure Harvest was seeking an investment of up to USD 50 million to expand their existing operations across the UAE and enter KSA as a new market. As a capital intensive business, traditional equity to fund 100% of the expansion was not an attractive solution for the Founders. SHUAA structured a financing solution which met the requirements of both the Company and institutional co-investors.
The transaction was a USD 50 million 3-year structured as non-amortising sukuk with embedded warrants. The transaction was the first in the Middle East where an early-stage business was able to secure venture debt funding from capital markets.
2016
founded
$171
raised
3
operating facilities
40+
variety of crops grown
Series A
funding stage
SKY KURTZ
Pure Harvest Co-founder & CEO
“We were delighted to secure this innovative, bespoke venture debt financing solution with SHUAA supporting our aggressive growth campaign within the GCC region. SHUAA has embraced our mission to make local-for-local production of high-quality fresh produce possible anywhere, including within the harsh climate of the Arabian Gulf. This type of financing underscores the innovation occurring within the region’s venture capital markets. We thank SHUAA for believing in us and for delivering this first-of-its-kind growth capital solution.”