UNLOCKING MENA'S CAPITAL CONTINUUM: PART II. LOCAL MARKET DYNAMICS & GLOBAL VALUATION ALIGNMENT, POWERED BY INSEAD & JADA FUND OF FUNDS

The discussion centers around the complexities of venture capital valuation, emphasizing its subjective nature and the challenges of balancing it with objectivity. Claudia Zeisberger, a professor at INSEAD, highlights the importance of understanding market willingness to pay for future cash flows. The conversation delves into the art of selecting key factors for evaluation and the use of comps valuation, which requires careful consideration and normalization. The panelists discuss the differences in valuation methods between early and later-stage investments, noting the reliance on subjectivity in early stages due to limited data. They also address the impact of policy and regulation on valuations, particularly in emerging markets like MENA. The role of transparency and standardized methodologies in improving valuation practices is emphasized. The discussion also touches on the importance of cross-border expansion and the challenges it presents. The panelists share insights on the significance of having a diverse investor base and the role of LPs in shaping valuation strategies. Finally, the conversation highlights the need for collaboration among stakeholders to ensure successful exits and the importance of aligning expectations.