Tenmou returns surge on start-up exits
Tenmou, Bahrain’s first angel investment company, has achieved record-breaking returns through its exit from five local tech start-ups.
The company earned an exit multiple of six times its initial investment in an average of less than four years, which is significantly higher than the market’s average exit multiple recouping 2.6 times the original investment in 3.5 years.
Tenmou chairman Suhail Algosaibi told a Press conference at The Collective Hub – Yateem Branch yesterday that its exit score surpasses the industry’s overall performance index in start-up exits.
“Profitable exit deals are fundamental to Tenmou’s business operations. This exit aligns with our expansion plans, which aim to capitalise on the evolving needs and potential of today’s tech market, especially with growing AI innovations in providing solutions for human development,” Mr Algosaibi explained.
The exit was accomplished through acquisition by Gro Partners Fund, with complete exit from two start-ups and partial exits from three others.
The complete exit included Malaeb App, as well as Faceki, a platform that provides secure application solutions with AI-powered facial recognition technology.
Tenmou has made partial exits from the Unipal App – which provides financial solutions for students, including offering discounts and promotions for various local and international stores, and Eat App – which offers an online restaurant reservation system.
The partial exit also included The Collective Hub, an incubator and provider of co-working spaces, meeting rooms, and networking events for start-ups, freelancers, and investors.
This will facilitate collaboration with the new fund as a strategic partner to contribute to investing in new branches for company, which already has three branches.
However, Tenmou will continue to play its primary role and maintain ownership of shares in the three existing branches.
Tenmou chief executive Nawaf Alkoheji explained that the company’s business plan for the next phase will include continuing efforts to achieve optimal investment opportunities by supporting the funding of 15 new tech start-ups over the next three years.
“This comes in line with our commitment to enhancing sustainability and growth opportunities at the local and regional levels,” he added.
According to Mr Alkoheji, Tenmou has funded more than 30 start-ups since its establishment in 2011 and has contributed to creating 200 job opportunities in the market to date.
It has also enabled start-ups to raise follow up funding from local and regional investors worth $10 million, the official pointed out.
Started with a capital of $2.6m provided by 16 investors, including local businessmen and companies such as Alba and Bahrain Development Bank, Tenmou invests an average of BD20,000 for a median stake of seven per cent in each project and also provides mentorship, including support services, at no cost to the entrepreneurs.
Source: https://www.gdnonline.com/Details/1254276/Tenmou-returns-surge-on-start-up-exits
