Executive Summary

This report investigates the economic opportunity presented by science-rooted venture builders in the MENA region, specifically in leveraging uncapitalized intellectual property (IP) derived from research and development (R&D) activities. With R&D expenditure in the region expected to continue growing, a significant portion of the investment remains underutilized due to inefficiencies in commercialization and technological maturity. The analysis estimates an annual opportunity size of USD 6.17 billion in uncapitalized IP, translating into a cumulative opportunity of USD 43.19 billion over the period 2023-2030.

The venture builder model proposed in this report seeks to capture 2% of the uncapitalized IP opportunity by 2030, equating to a target of USD 864.4 million. The optimum fund size to achieve this capture, supported by an average return multiple of 7-10x, is estimated at USD 108.05 million, which increases to USD 132.9 million when adjusted for inflation. By creating a portfolio of 12 seed-stage startups focused on high-IP sectors such as AI, Web3, FinTech, healthtech, and climate tech, the venture builder will pursue diversified exit strategies, including mergers and acquisitions (M&A), spinoffs, and joint ventures (JVs), to generate early returns.

The projected financial model expects the venture builder to generate significant revenues through its diversified exit pathways, with a total estimated revenue of USD 864.4 million and a net profit of USD 853.6 million by 2030. This venture builder approach, underpinned by IP commercialization, offers a robust strategy to unlock the MENA region’s untapped economic potential, driving innovation and accelerating the region’s shift toward a knowledge-based economy.

Release Notes

Version: 1.0
Release Date: February 19th 2024

Purpose:

The Startup Readiness Assessment (SRA) Checklist has been designed to assist investors in evaluating the readiness of generative AI startups for seed funding. This checklist provides a structured framework for assessing key areas of a startup’s operations, including legal structure, intellectual property (IP), technology and AI model evaluation, data privacy, business model, market validation, human capital, and regulatory compliance.

By offering an organized and quantitative approach, the SRA Checklist enables investors to make informed decisions about potential investments in the rapidly evolving generative AI sector.

Key Features:

• Comprehensive Evaluation: Covers critical dimensions, including legal, financial, technological, and human resources, to provide a holistic view of the startup's readiness.


• Automated Scoring: The Excel-based tool automatically calculates a weighted score based on user inputs, streamlining the evaluation process.


• MS Excel Implementation: The checklist is implemented in MS Excel for ease of use, with simple yes/no questions, making it accessible for both experienced and novice investors.

Release Notes

Version 4.7

The DeSci Project Fit Checklist is designed to help researchers, project managers, and venture capitalists assess whether a science project is a good fit for decentralization and Web3 technologies. The checklist evaluates a project's alignment with core principles of Decentralized Science (DeSci), such as transparency, data security, and decentralized governance.

Key Features:

• 15 Yes/No Questions: Each question explores critical aspects of decentralization, from the project's need for open access and community engagement to the relevance of blockchain-based IP management and token incentives.


• Weighted Scoring Model: Each question has a weight that reflects its importance to the decentralization model, ensuring a comprehensive assessment. Weights range from 5% to 12%, depending on the significance of the factor in the success of decentralized projects. The weighted scoring model was developed base don publicly available information about 43+ DeSci projects over the past 5 years. The score interpretation is explained below.


• Scoring: A "yes" equals 1 point, and a "no" equals 0. The weighted score is automatically calculated based on user input, giving an overall score out of 100. This score helps users determine the project's readiness for a decentralized approach.

Score Interpretation for the DeSci Project Fit Checklist

To evaluate the final score from the DeSci Project Fit Checklist, we introduce a novel DeSci fitness scale, with four scoring ranges, each range reflects the project's alignment with decentralized principles. The scale is designed to place more emphasis on higher scores, as a greater fit with DeSci often yields exponentially higher potential benefits.

1. Minimal Fit (0-30%): Projects scoring in this range have limited use for decentralization. These might be projects where transparency, collaboration, and funding can be effectively handled through traditional models. Such projects could face difficulties leveraging blockchain technology or decentralized governance due to issues like scalability, legal uncertainties, or lack of token incentives.


2. Moderate Fit (31-55%): Projects in this range exhibit some potential for decentralization, particularly in areas like funding through DAOs or managing IP via tokenization (e.g., IP-NFTs). While decentralization could offer moderate benefits, the core infrastructure might not be a strong fit for full adoption due to specific requirements for centralized control in peer reviews or governance structures.


3. High Fit (56-75%): Projects in this range are well-suited to decentralized models. Examples include research that benefits from open access, community-driven collaboration, and decentralized funding. These projects can thrive with blockchain for data immutability, tokenized incentives, and decentralized governance. Governance DAOs could manage project decisions efficiently, while community funding mechanisms ensure democratized resource distribution.


4. Exceptional Fit (76-100%): Projects scoring in this range are ideal candidates for full decentralization. These typically involve cross-border research, collaborative innovation, and token-based incentives. DeSci projects such as VitaDAO and CerebrumDAO exemplify the strong alignment between decentralization and scientific research, offering researchers control over their IP, transparent governance, and scalable funding opportunities. Such projects also stand to benefit most from the transparency and immutable data management enabled by blockchain technologies.