Zest Equity, a startup based in the United Arab Emirates that specializes in digitizing private market transactions, has successfully secured $3.8 million in seed funding. This funding will be used to develop additional tools that facilitate rapid and transparent transactions among ecosystem participants, all while enhancing liquidity through secondary deals.
Leading the seed round was Middle East Venture Partners (MEVP), with participation from the Dubai Future District Fund (DFDF) and DASH Ventures. This latest round brings the total funding raised by the startup to $5.7 million.
Established in 2021 by Rawan Baddour and Zuhair Shamma, Zest Equity initially operated as a secondary trading marketplace. However, it quickly evolved into a platform that enables ecosystem players, such as founders and venture capitalists, to engage in fast and transparent online transactions. Traditionally, these transactions occurred offline, often proving to be cumbersome, opaque, and costly.
According to Baddour, the decision to pivot towards this approach was driven by the absence of infrastructure that could facilitate efficient and digitized communication, connection, and information sharing among various stakeholders.
“We’re digitizing many manual processes and adopting a tech-first approach to automation while creating a unique and scalable platform,” explained Baddour, a former banking executive.
Founders can utilize Zest Equity’s tools to invite investors to fundraising rounds, share critical information such as pitch decks and cap tables, and monitor the progress of deals. Investors, on the other hand, can express their interest, view other participating venture capitalists, and electronically sign documents.
Zest Equity also offers the legal framework necessary to enable investors, including angels, to form investment syndicates or special purpose vehicles, streamlining the process and reducing administrative costs. This is especially beneficial for angel investors.
Baddour stated, “We have developed a digital platform that allows founders and investors to share and access the data they need and invite their network to participate in deals. On the other side, we provide them with the legal infrastructure to consolidate all these participants into a single entity, maintaining a clean cap table and streamlining the entire process.” The funding will be used to create additional tools to further enhance this process.
Additionally, Zest Equity is in the process of developing tools that will enable startups to establish a standardized process for secondary share trading. With these tools, startups can control liquidity, specify when a liquidity window opens, and manage the sharing of information to facilitate secondary transactions. These tools aim to increase transparency, expedite sale approvals, and make it easier for investors to access liquidity.
Walid Mansour of MEVP expressed his confidence in Zest Equity’s role in digitizing private market transactions in the Middle East, emphasizing the growing need for such a solution as startups and investors seek more avenues for liquidity and opportunity. The startup also has its sights set on other emerging markets, including North Africa, South Asia, and Turkey, which face similar challenges and gaps in their private market ecosystems.
