OUSUL VENTURES
US-‐CAT-‐MENA
Life
Science/Health-‐Tech
Fund
CHALLENGES
IN THE
MENA ECONOMIES
Challenges in MENA Economies: Innovation?
Ibn
Sina
(Avicenna)
Abu
Bakr
Al-‐Razi
Jabir
Ibn
Haiyan
Omar
Khayyam
(980-‐1037)
(865-‐925)
(722-‐804)
(1048
–
1131)
Al-‐Khwarizmi
Al-‐Battani
Ibn
Al-‐Haytham
Ibn
Zuhr
(780
–
850)
(858-‐929)
(965-‐1040)
(1091-‐1161)
Challenges in Oil-Producing MENA
2030 Visions (underway…)
But … If You Build It Will “It” Come??
HIDDEN GEM OF MED:
CATALONIA
15 YRS+ LIFE SCIENCE
ECOSYSTEM
15 yrs+ CAT Life Science Ecosystem
512
Life
Science
Companies
(6%+
of
Business
BCN
GDP)-‐
Biotech,
Med
Tech
and
Pharmaceutical
Companies
Pro-‐business
regulatory
Regulatory
120
Life
Science
Institutions
-‐
Science
and
legal
environment
Infrastructure
Framework
&
Tech
Parks,
University
Hospitals,
Research
&
Technology
Centers,…
Gateway
to
Europe
5900
Researchers
in
Hospitals
from
MENA
and
Asia
Location
People
and
Research
Institutes
Expertise
World
renowned
clinical
research;
3%
of
Scienti]ic
Publications
in
Europe
-‐
superior
to
Germany
and
France
(per
capita)
;
3.3%
of
European
Science
Grants
BioRegion of Catalonia
Montserrat
Vendrell,
CEO:
• Since
April
2007,
CEO
of
Biocat,
the
organization
that
coordinates
and
promotes
the
BioRegion
of
Catalonia,
the
biotechnology,
biomedicine
and
innovative
medical
technology
cluster
in
Catalonia.
• From
April
2014,
general
manager
of
the
Barcelona
Science
Park
(PCB).
Ms.
Vendrell
has
been
linked
to
the
PCB,
the
]irst
in
Spain,
since
it
was
created,
acting
as
scientiYic
director
(1997-‐2005)
and
later
deputy
general
manager
(2005-‐2007).
She
will
take
over
management
of
the
PCB
while
remaining
in
her
current
post
as
Biocat’s
director.
• Since
March
2012,
Vendrell
is
the
chair
of
the
Council
of
European
Bioregions(CEBR),
the
]irst
network
of
European
bioregions
created
in
2006
with
nearly
one
hundred
members
including
Biocat.
• Dr.
Vendrell
holds
a
PhD
in
Biology
(Universitat
de
Barcelona)
and
a
long
experience
in
biomedical
research
in
different
international
institutions.
She
holds
a
Science
Communication
Master
degree
(UPF,
1997)
and
an
Executive
Management
Degree
(IESE,
PDG-‐2007).
Goal: Bay Area Life Science Ecosystem
CURRENT
FIGURES:
! 1,377
Bio-‐Tech/Life
Science
companies
! Largest
concentration
of
Bio-‐Tech/Life
Science
companies
in
the
U.S.,
with
total
worldwide
revenues
of
$4.1B,
exports
of
$2.7B
and
NIH
grant
awards
of
$1.2B
! 250,000
employees
in
the
Bio-‐Tech/Life
Science
industry.
! The
largest
aggregation
of
research
universities
and
federal
research
institutions
in
U.S.
! Universities
producing
more
Ph.D.
Scientists
and
Engineers
that
any
other
area
in
U.S.
! California
is
the
leading
state
in
Venture
Capital
funding
in
Health-‐Tech
=
~50%
of
total
Health-‐Tech
investments
in
U.S.
Origins of Bay Area Life Science Ecosystem
INDUSTRY
ORIGINS
:
The
Genentech
Story
2014
Genentech
employs
more
than
13,000
people.
1982
Purchased
by
Roche
in
2009
for
~46B.
Genentech
markets
the
]irst
Human
Insulin.
1980
Genentech
undertook
an
IPO
and
raised
$35M
1976
Venture
Capitalist
invests
in
two
scientists
from
Stanford
and
the
University
of
California
who
discovered
a
breakthrough
for
using
genetic
engineering
to
diagnose
and
combat
disease.
Pioneers of Bay Area Life Science Ecosystem
Guy
Nohra,
Co-‐Founder,
Partner:
• Co-‐founder
of
Alta
Partners,
since
1996,
funding
over
145
companies
in
the
healthcare/life
sciences
sector.
• Among
]irms
with
the
highest
number
of
M&A
or
IPO
exits
in
the
industry,
including
over
30
exits
over
the
past
]ive
years.
• Has
been
involved
in
the
funding
and
development
of
notable
medical
technology
and
life
science
companies
including
AcelRx,
ATS
Medical,
Cutera,
Innerdyne,
R2
Technology,
deCODE
genetics,
and
Vesica.
• Currently,
serves
on
the
board
of
directors
of
several
companies
including
Bioventus,
Carbylan
Biosurgery,
Cerenis
Therapeutics,
PneumRx,
USGI
Medical,
VertiHlex,
and
ZS
Pharma,
and
is
the
Chairman
of
the
Board
of
USGI
Medical
and
ZS
Pharma.
• Also
served
on
the
board
of
directors
of
the
Medical
Device
Manufacturing
Association
(MDMA)
from
2003
to
2013
and
is
now
a
Board
Member
Emeritus.
Origins of Bay Area Life Science Ecosystem
INDUSTRY
DEVELOPMENT
Government/
Venture
Capital
Markets
Institutions
Universities/
Innovation
IPO
Hospitals
Inc.
LIFE SCIENCES VENTURE CAPITAL
OPPORTUNITIES
FOR
ISLAMIC
FINANCE
Islamic Finance in the West
Abdi
Shayesteh,
Esq.,
Co-‐Founder,
Ousul
Ventures:
• Is
a
recognized
legal
expert
in
representing
global
Yinancial
Yirms
in
regard
to
their
regulatory
matters,
and
conventional
and
Shariah-‐compliant
cross-‐border
investments
and
Yinancial
transactions.
• Served
as
Deputy
General
Counsel
for
Mitsubishi
UFJ
Financial
Group,
Inc.,
Japan's
largest
Yinancial
group.
Special
legal
advisor
to
MUFG’s
US
and
Tokyo
senior
management
teams,
and
he
has
been
credited
for
successfully
championing
several
cross-‐border
projects
and
government-‐
related
initiatives.
• Was
a
senior
attorney
and
a
member
of
the
Middle
East
Investments
and
Islamic
Finance
Practice
Groups
at
King
&
Spalding
in
New
York,
where
he
represented
leading
GCC
banks
and
investment
]irms
with
regard
to
their
US-‐bound
Shariah-‐compliant
investment
funds.
Was
the
key
Yirm
spokesmen
for
the
Practice
Group.
• Served
at
the
Federal
Reserve
Bank
of
New
York,
where
he
was
one
of
the
youngest
members
of
the
Federal
Reserve’s
Islamic
Banking
Working
Group-‐
a
high
proYile
team
of
regulators
focused
on
Shari’ah-‐compliant
banking
products
in
the
US.
With
his
leadership,
he
helped
launch
the
Yirst
Islamic
Banking
Interagency
Group
comprised
of
US
and
foreign
regulators.
• His
early
career
was
in
Silicon
Valley,
where
he
became
General
Counsel
at
one
of
the
Yirst,
nationwide
internet-‐based
mortgage
companies.
Islamic Finance in the West
Lessons
learned
from
United
States
…
" Islamophobia:
Focus
on
Offense
vs.
Defense
# Invest
in
Goodwill
Activities
in
the
West
(e.g.,
Job
Creation,
Econ
Dev.)
" Diversify
Asset
Class
away
from
RE
" Investment
in
West
to
Contribute
Back
to
Human
Development
in
MENA/Gulf
" Dont
waste
resources
trying
to
restructure
conventional
products
to
look
like
Shariah-‐compliant
products.
Rather,
focus
on
what
is
naturally
shariah-‐compliant.
Overview and History of Islamic Venture Capital
• Historically,
Venture
Capital
(“VC”)
started
from
the
Islamic
concept
of
“mudharabah”,
a
form
of
partnership
used
even
before
Islam
by
Arab
traders.
• Later
on,
this
concept
was
formalised
and
embodied
in
Islamic
law
by
the
Muslim
jurists,
which
is
now
better
known
as
]iqh
muamalat
(Islamic
transaction).
• As
Islamic
culture
spread
across
the
world,
the
mudharabah
concept
also
developed
and
continued
to
be
used
by
Islamic
businessman
until
the
19th
century.
• In
the
10th
century,
the
concept
of
mudharabah
was
taken
up
by
the
Italian
and
spread
through
Europe.
Overview and History of Islamic Venture Capital
Foundations
of
Shariah-‐compliant
Investing:
" Money
must
be
invested
in
projects
and
ventures
for
the
generation
of
activities
for
the
beneYits
of
mankind
and
in
the
process,
for
proYits.
" This
is
precisely
why
Islamic
Yinance
praises
and
encourages
the
application
of
Yinance
in
the
Yinancing
of
real
economic
activities.
" The
returns
should
be
earned
by
active
involvement
and
participation
in
the
business
risks
in
the
investment
(and
not
returns
on
lending)
" Truer
form
of
Islamic
Yinancing
or
investment
structure
should
have
that
element
of
sharing
of
proYit
and
loss
(COMPARE
TO
MURABAHA).
" Shariah
Screens
still
there
(no
riba,
haram
products,
conventional
insurance,
gambling
etc.)
Common Shariah-based structures for VC
(A)
MUDHARABAH:
• A
contract
made
between
two
parties
to
Yinance
a
business
venture.
The
parties
are
a
rabb
al-‐mal
(investor)
who
solely
provides
the
capital
and
mudharib
(entrepreneur)
who
solely
manages
the
project.
• If
the
venture
is
proYitable,
the
pro]it
will
be
distributed
based
on
a
pre-‐
agreed
ratio.
• In
the
event
of
a
business
loss,
it
should
be
borne
solely
by
the
capital
provider,
to
the
extent
of
the
capital
contribution.
• The
key
to
a
Mudharabah
structure
is
the
fact
that
the
manager
cannot
be
placed
at
risk
to
bear
losses,
unless
proven
negligent.
Common Shariah-based structures for VC
(B)
MUSHARAKAH:
• Musharakah
is
a
partnership
between
two
parties
or
more
to
Yinance
a
business
venture
whereby
all
parties
contribute
capital
either
in
the
form
of
cash
or
in
kind.
• Pro]its
are
shared
at
an
pre-‐agreed
ratio
while
in
the
event
of
a
loss,
the
loss
shall
be
shared
on
the
basis
of
capital
contribution.
(C)
WAKALAH:
• A
contract
where
a
party
(“the
Principal”)
authorizes
the
other
party
or
parties
(“the
Agent”)
to
act
on
his
behalf,
based
on
the
agreed
terms
and
conditions.
• Pursuant
to
the
Wakalah
contract,
it
confers
the
power
and
rights
to
the
Agent
to
act
on
behalf
of
the
Principal
as
long
as
the
Principal
is
alive.
Mudharabah/Musharaka = VC Fund Structure
Manager/Mudharib
Investor/Rabb
al-‐Mal
(€1M)
(€99M)
Wakalah
Musharaka
Inv.
Committee
Venture
Capital
Fund
Co.
(€100MCommitted
Capital)
Shariah
Advisor
Mudarabah
€1m
€2m
€5m
Co.
A
Etc.
Co.
B
Co.
C
Islamic Finance Opportunities In Life Sciences
" MENA
Econ.
Challenges
" Collaboration
w/
CAT
LS
Eco
€€€
" VC
=
Pathway
to
Diversi]ied
US
Economy
in
LS
CAT
" Goodwill
Investments
in
the
West
Knowledge
MENA
" Diversify
away
from
RE
" MENA
Human
Development
" VC=Naturally
Shairah-‐Compliant
Experience
Collaboration Opportunities CAT-MENA
PREFERENCIAL
RIGHTS
TO…
Entrepreneurial
Training
Shared
R&D
Technology
Tranfer
Commercialization
&
Mentorship
Manufacturing
Distribution
Professional
Training
Capital
Markets
END
Abdi
Shayesteh:
ashayesteh@ousulventures.com
