Complete Venture Capital Investment Guide

Venture capital investment is the courage to enter high-risk businesses, expecting high returns, unlike traditional projects based on stable and familiar business models.

• If it's innovative (unprecedented and provides added value).
• If it has potential for rapid growth (unlike traditional projects).

The concept of venture capital began in 1946 by Georges Doriot who founded a company to support startups created by World War II veterans.

In the early 1950s and 1960s, major companies emerged in Silicon Valley, California, such as:

The funding gap in 2023 alone reached 350 billion Saudi Riyals.

The number of projects continues to increase, which is natural, as everyone has the right to dream, try, experiment, and establish new businesses.

The five stages of project financing:

Investors repeat the famous saying: The success of one or two projects is enough to compensate for the loss of 10 or 20 others, but the reality in our region is different; many investors think that any project they enter must succeed, forgetting that the essence of venture capital is based on risk-taking and accepting the failure of the majority.

In America, individual investors and venture capital funds annually support thousands of startups in their early stages (pre-seed - seed stage) knowing in advance that more than 95% of them will fail.

But they don't consider this a disaster due to the massive success achieved by the small successful percentage (5%) that will cover losses and generate huge profits.

We have local examples of these successful experiences:

The real influential factor is the founder's personality:

• Does he/she have passion?
• Does he/she believe in the idea?
• Is he/she ready to sacrifice and struggle?

Of course, there are cases of fraud in the VC world, and this is a global reality, but the local challenge is the difficulty of distinguishing between the fraudster and the hardworker:

A hardworker who makes strategic mistakes may be treated as a criminal, while failure in its essence is a natural part of VC projects.

• Old mentality where investors demand guarantees, guarantor, promissory notes, and property mortgages as conditions for partnership.
• Culture of fear of failure and not accepting loss.
• Weak readiness to bear risks.
• Suspicion and skepticism towards project founders.

• Because it respected the culture of failure and considered it an essential step towards success.
• Because it has investors ready to lose a hundred times, if attempt number (101) will create great success.
• Because it provided a supportive environment that believes in and supports risk-takers.

Vibes Holding was launched in summer 2022 as a startup with a clear vision: owning the largest number of stakes in various companies over the next ten years, inspired by the path of global Y-Combinator, which started in 2005 with modest steps, and today owns stakes in more than 5000 companies, including Airbnb, with a market value exceeding $800 billion.

After Vibes Holding's three years of practical experience, it became clear that copying the American model exactly doesn't work for our Arab communities for multiple reasons!!

It developed its own Ecosystem based on two main pillars:

• Investors Club: with its members and growing virtual balance.
• Success Partners Program: representing the main source of projects.

This system combines the popular style (as in Haraj website) and the sophisticated pattern (as in Y-Combinator) to be a unique model suitable for our local business environment.

• Vibes Holding will not enter very early stages (pre-seed and seed); these are the specialty of governments, companies, banks, and large investment funds.
• It will focus on entering as a silent partner in existing projects.
• It will invest in projects that have started generating returns, with priority for those that have achieved profits.

If you're thinking about diversifying your investments, entering two or three projects alone might be good, but joining Vibes Holding means participating in an entity planning to own stakes in the largest number of companies, which minimizes risks to the lowest level.

1. The global project failure rate reaches 70% during the first 5 years, and later rises to 90%. At Vibes Holding, we expect and accept this.
2. Our goal is to build a strategic entity that lasts for future generations, like major global companies that have exceeded 100 years.
3. If you're looking for quick profits, we don't believe Vibes Holding is the right place for you.

• We plan by the end of 2027 to acquire stakes in more than 50 companies.
• Major returns will come from exit and acquisition operations (partial or complete), along with flowing profits.

• Vibes Holding launched with an initial valuation of 100 million SAR and offered 10% of its shares to attract partners.
• The company became officially mixed according to Ministry of Investment regulations (after a foreign investor entered with 1%), opening the door for foreign investors.
• 9% of the company's shares remain, and its first round will be closed.
• After reaching ownership of 50 stakes in 50 companies, the offering will be restructured with an additional 5-10% increase at a new valuation.
• God willing, we expect Vibes Holding to reach billion-dollar value within less than 5 years.

Vibes Holding is not just a company, but an integrated investment system that combines practical experience and future vision.

Your choice today to join is a step to build an investment legacy that lasts for you and those after you.