Interview with Ahmed Nasser Al Nowais, founder & CEO of Annex Investments

Today we're interviewing Ahmed Nasser Al Nowais, founder & CEO of Annex Investments - a privately-owned investment management company that owns and controls a diverse array of subsidiaries as well as represents various multinational companies.

We've sent him a set of questions, and here's what he had to say:

Can you tell us a bit more about yourself? What's your background?

I am the second-generation family office founder and a serial entrepreneur, having founded numerous startups in the past. I also serve as an Attorney at Law, playing a role in the growth and support of UAE start-ups through strategic engagements with High Net Worth Individuals and Government Entities — thus contributing to a tech ecosystem.

Even from my youth, I was drawn to entrepreneurship and the thrill of risk-taking, and today - I'd like to think that Annex Investments embodies my devotion to innovation and creativity.

Through Annex, we are nurturing growth within the country’s SME sector, the backbone of its economy. And I hope that the UAE tech sector is going to thrive, spurring innovation, commercializing ideas, and transforming the lifestyles of the consumer base through valued-added solutions.

How do you see the digital health market in MENA?

The digital health market in the MENA region holds immense potential and is poised for significant growth. Rapid technological advancements, a burgeoning youth population, and the increasing burden of chronic diseases are key factors driving the demand for digital health solutions in the region.

At the heart of it is the fact that the digital health market is driven by a commitment to enhance healthcare delivery and accessibility. We see the adoption of telemedicine and virtual care platforms, particularly during the COVID-19 pandemic, as a clear example of the region's readiness to embrace digital health solutions.

Furthermore, government initiatives are also encouraging the digital transformation in healthcare. Countries like the UAE and Saudi Arabia are leading initiatives such as the digitization of health records and the promotion of e-health services.

However, despite such progress, challenges remain — including the need for improved data privacy measures, digital health literacy, and regulatory frameworks. Therefore, while the digital health market has promising potential in the region, it also calls for concerted efforts from both private and public sectors to overcome these obstacles.

All in all, the future of the digital health market in the MENA region looks promising, with a clear trend towards adopting more innovative, efficient, and accessible healthcare solutions. Indeed, the region is primed to become a prominent player in the global digital health arena.

Do you have some advice for other entrepreneurs in the digital health space in MENA?

Sure, here are some principles digital health entrepreneurs should abide to:

1. Understand the market: A clear understanding of the local healthcare systems, regulations, and cultural nuances is crucial. Each country within the MENA region has unique health challenges that require specific solutions.
2. Build relationships: Form partnerships with local healthcare providers and institutions. They can offer valuable feedback and support in navigating regulatory complexities. Collaboration with traditional healthcare systems also ensures your digital health solution complements the existing infrastructure and optimizes patient care.
3. Prioritize data security: User privacy and data security are paramount in the digital health space. Compliance with regulations and demonstrating a profound respect for patient confidentiality is not just a legal requirement, but can be a valuable Unique Selling Proposition.
4. User-centric approach: Your product must solve real problems and improve health outcomes. Listen to your target audience and involve them in your design process to ensure your solution meets their needs.
5. Innovate: Stay updated with the latest technology innovations in AI, machine learning, wearable technology, etc. This can help you stay competitive and offer the best solutions to your patients.
6. Embrace telemedicine: If it fits within your business model, embrace telemedicine. The use of telehealth services has skyrocketed due to the COVID-19 pandemic which presents an opportunity.
7. Secure investments: The digital health space is buzzing with investor interest. Pitch your idea effectively, highlighting the problem-solution fit, scalability, and profitability of your venture to secure the funds you need.

What do you look for in a startup you want to invest in?

As an investor, I look for several key factors in a startup that I want to invest in. While being founder-focused is indeed important, there are a few other aspects that I consider as well. Here are the main things I look for:

• Promising founders: I seek founders who are not only passionate and driven but also possess a deep understanding of their industry. Their expertise, proven track record, and ability to lead and adapt are crucial factors in my evaluation.
• Innovative and scalable product/service: I am particularly interested in startups that offer innovative solutions to existing problems or disruptive technologies. It is important for the product or service to have a clear value proposition and a scalable business model that can potentially attract widespread adoption.
• Market potential: I analyze the market size and potential growth opportunities within the industry. A startup with a large and expanding target market has greater potential for success. I also consider the competitive landscape and assess whether the startup can differentiate itself effectively.
• Traction and validation: I look for startups that have achieved some level of traction, such as customer acquisition, revenue generation, or partnerships. This demonstrates that there is a market need for their product or service and reduces the level of risk associated with investing.
• Clear vision and strategy: A startup that has a clear and well-defined vision, along with a strategic plan to achieve its goals, has a higher chance of success. I assess the startup's ability to execute its plans and navigate challenges effectively.
• Strong financials: While early-stage startups may not have extensive financial data, I look for sound financial projections, realistic assumptions, and a well-structured plan for capital allocation. I also pay attention to the startup's ability to generate revenue and manage expenses effectively.
• Compatibility and alignment: As an investor, I prefer to work with founders who share similar values and have a collaborative mindset. Building a strong partnership is crucial for long-term success.

Overall, I prioritize startups with a strong founding team, innovative products/services, significant market opportunities, early traction, and a clear plan for growth. Being founder-focused is certainly an important aspect, but it is just one part of the overall evaluation process.

How should startups approach you to be more successful in raising money from Annex Investments?

1. Do your research: Familiarize yourself with Annex Investments, our investment focus, and our portfolio companies. Understand the types of startups we typically invest in, the industries we have expertise in, and the stage of companies we prefer to support. This will help you tailor your approach and demonstrate a clear alignment with our investment goals.
2. Craft a compelling pitch: Develop a concise and impactful pitch that highlights the unique value proposition of your startup. Clearly articulate the problem you are solving, the market opportunity, and how your solution is differentiated. Showcase your team's expertise, traction, and any validation you have received.
3. Personalize your outreach: Take the time to personalize your communication when reaching out to Annex Investments. Generic emails or mass mailings are less likely to grab our attention. Show that you have done your homework and explain why you believe Annex Investments is a suitable partner for your startup.
4. Prepare a strong investor deck: Create a comprehensive investor deck that clearly presents your business plan, market analysis, competitive landscape, financial projections, and any key milestones achieved. Ensure your deck is visually appealing, well-structured, and easy to understand. Investors appreciate well-crafted and data-driven presentations.
5. Seek warm introductions: Whenever possible, try to secure warm introductions to Annex Investments. Leveraging your network or reaching out to mutual connections can significantly increase your chances of getting noticed. Trusted referrals help establish immediate credibility and build trust.
6. Be transparent and open to feedback: During the due diligence process, be transparent and provide the necessary information promptly. Be open to feedback and be willing to address any potential concerns or gaps. Demonstrating a willingness to collaborate and adapt can enhance your credibility as a founder.
7. Highlight your growth strategy: Emphasize your plans for scaling the business, including how you intend to utilize the investment. Showcase your understanding of the market dynamics, potential challenges, and a clear roadmap for growth. Present a compelling vision to capture our interest in your startup's future potential.

Remember, raising money from any investor requires persistence, resilience, and the ability to effectively communicate your startup's value proposition. While these tips can increase your chances of success, it's important to consider that each investor has their own specific criteria and preferences.