Michel Nehme of Cedrus Ventures, a venture capital and private equity firm, is on the lookout for top start-ups. He has seen a myriad of mistakes come through his door. Here are a few pointers on what ‘treps would do well to remember.Michel Nehme knew the region’s start-up scene was just that – starting up. Fresh off an MBA from Harvard in 2009, he returned to Lebanon and saw opportunity. “My initial idea was to be an entrepreneur myself, but then I decided to take a step back and view it from the VC perspective.” With a stint in consulting at Booz & Company, he had the background necessary to help mentor and coach innovative thinkers from the region.
In 2010, Nehme started with the proto-fund which he now refers to as “Cedrus Zero.” He invested in an artificial intelligence company. The point was to prove the model. “Technologically, the company went very well,” Nehme proudly declares. “But business-wise, not so well,” he says with some disappointment. Nonetheless, the half-success was encouragement enough to raise a fund. After finishing raising $5 million by the end of 2011, Cedrus Ventures had a full-fledged launch. Though Nehme will consider ideas from a range of sectors, his personal preference is for tech start-ups, and mobile apps in particular. But there are two ventures that need not apply: real estate and restaurants. He finds both too speculative. “My idea of speculative? When an entrepreneur thinks he can put money into an idea, sleep for two years, and then wake up rich.” His biggest challenge now is finding suitable ventures to invest in. Start-ups just aren’t coming in the door who’ve ticked all the right boxes necessary to qualify for funding. And in this fact, Cedrus Ventures gives reason for entrepreneurs to be encouraged. There’s money to be had in this economy – but only for those with the gumption to go after it.
In 2010, Nehme started with the proto-fund which he now refers to as “Cedrus Zero.” He invested in an artificial intelligence company. The point was to prove the model. “Technologically, the company went very well,” Nehme proudly declares. “But business-wise, not so well,” he says with some disappointment. Nonetheless, the half-success was encouragement enough to raise a fund. After finishing raising $5 million by the end of 2011, Cedrus Ventures had a full-fledged launch. Though Nehme will consider ideas from a range of sectors, his personal preference is for tech start-ups, and mobile apps in particular. But there are two ventures that need not apply: real estate and restaurants. He finds both too speculative. “My idea of speculative? When an entrepreneur thinks he can put money into an idea, sleep for two years, and then wake up rich.” His biggest challenge now is finding suitable ventures to invest in. Start-ups just aren’t coming in the door who’ve ticked all the right boxes necessary to qualify for funding. And in this fact, Cedrus Ventures gives reason for entrepreneurs to be encouraged. There’s money to be had in this economy – but only for those with the gumption to go after it.
