Funder perspectives on early-stage entrepreneurial investments

Abstract

Purpose This study aims to examine the evaluation criteria employed by funders in early-stage entrepreneurial investments in the United Arab Emirates (UAE). Design/methodology/approach A qualitative methodology was used, based on 20 interviews with private and public investors, with the data analyzed through NVivo software. Findings Internal factors – such as entrepreneurial commitment, team quality, scalability and revenue potential – emerge as the dominant drivers. External considerations, including market dynamics, regulatory conditions and macroeconomic factors, also play a significant role. Findings reveal distinct approaches across investor types. Angel investors emphasize founder commitment and mentorship, and venture capitalists prioritize scalability and innovation, while government agencies align investments with strategic national priorities through grants and incubation programs. Practical implications This study underscores the importance of improved investor-startup alignment through digital platforms, structured due diligence and clear exit strategies. Recommendations include streamlining regulatory frameworks, enhancing public-private partnerships and expanding networking channels to strengthen the UAE's entrepreneurial ecosystem and similar emerging markets. Originality/value By integrating structural and behavioral investment factors, this research contributes to the understanding of funder decision-making and offers actionable insights for investors, entrepreneurs and policymakers seeking to foster innovation-led startup growth.