Venom Ventures Fund Aims to Nurture Real-World Blockchain Use Cases, says Mustafa Kheriba

Welcome to our series "Behind the Startup." Today, we are joined by Mustafa Kheriba, Executive Chairman of Iceberg Capital Limited and Member of the Board of Directors of several family offices and investment firms. With over 20 years of experience in the venture capital industry, Mustafa has been instrumental in the launch of the Venom Ventures Fund (VVF) in partnership with the Venom Foundation. In this interview, we will dive into Mustafa's background, the investment philosophy and strategy of VVF, the role of ADGM in the venture capital industry, and the future of blockchain technology. Join us as we go behind the scenes with Mustafa Kheriba.

Executive Chairman of Iceberg Capital Mustafa Kheriba Shares the Background Behind his Success in Venture Capital Industry

Ishan Pandey: Hi, Mustafa Kheriba. Welcome to our series “Behind the Startup.” Can you tell us about your background and how you became involved in the venture capital industry?

Mustafa Kheriba: Hi Ishan. Thank you for having me. I’m the Executive Chairman of Iceberg Capital Limited, an asset manager that launched the Venom Ventures Fund (VVF) in partnership with Venom Foundation.

I am also a Member of the Board of Directors of several family offices and investment firms. Prior to that, I was the Deputy CEO and Group Head of Asset & Wealth Management at Shuaa Capital, the largest privately owned asset manager in MENA with over $14bn of assets under management, where I oversaw all deal origination, structuring, fund raising, portfolio management and special purpose investments.

So, venture capital has been a natural part of my professional evolution. I respect and admire the spirit of entrepreneurs building something new to solve real-world problems and take humanity forward. I see vast potential and huge demand for products based on virtual assets and blockchain over the next 5-10 years.

Ishan Pandey: Can you discuss Venom Ventures investment philosophy and strategy, as well as the typical industries and companies in which it invests?

Mustafa Kheriba: Our goal with VVF is to help nurture blockchain projects focused on real-world use cases. VVF is a blockchain-agnostic fund. So, whether they are building on Venom or another blockchain, we invest in innovative protocols and dApps in the payments, DeFi, asset management, banking services, Metaverse, and GameFi spaces.

Ishan Pandey: How does Venom Ventures evaluate and select investment opportunities, and how does it evaluate the performance of its investments?

Mustafa Kheriba: As a fund committed to supporting the next generation of entrepreneurs and technologies, VVF invests in projects from pre-seed to Series A rounds. We look at each project on its own merits.

In the pre-seed stage, we evaluate the team’s background, the problem they are solving, and the potential market of their solutions. When writing bigger checks, we look for strategic synergies with Venom blockchain, the community, and team, and the potential market.

For instance, our investment in Nümi Metaverse reflects our focus on the use cases. Nümi Metaverse is building a platform for innovators, creators, and followers. Later this year, it plans to launch a ‘Visual Novel’ that offers a mini-game experience with a range of special prizes for players. The Visual Novel will be followed by a VR metaverse, and a PC and mobile version in 2024. As for the performance, we have just started the fund and I believe if we work with the right projects, the performance takes care of itself.

Ishan Pandey: Can you discuss the role that ADGM plays in the venture capital industry in the MENA region?

Mustafa Kheriba: The Abu Dhabi Global Market (ADGM) is a boon for the VC industry in the MENA region. It’s a global financial center that offers a world-class legal system and regulatory regime. The ADGM is an oasis for investors and financial services firms, affording them the freedom to build, collaborate, and innovate and is the capital of capital.

Abu Dhabi has been the preferred jurisdiction for cryptocurrencies players and virtual asset firms, leveraging ADGM’s virtual assets framework and its well-established financial ecosystem will help them achieve their business ambitions. We at Iceberg pride ourselves for being born in Abu Dhabi and serving the global community of investors and entrepreneurs from Abu Dhabi to the world.

Ishan Pandey: How do you see the future of Blockchain Technology in the coming 5 years?

Mustafa Kheriba: As someone who has seen both TradFi and DeFi up close, and is talking to people across diverse industries, I’m optimistic about the future of blockchain technology. It’s here to stay.

In the next five years, I see more and more traditional institutions and corporations using blockchain to streamline their processes, improve transparency, and carry out cross-border transactions.

The base case for Venom is solving the transfer and settlement of value through a robust, proven system. The next layer to build on top will be a rich vein of countless applications across every industry sector and government requirement. Markets are driven by retail and consumers. Venom's goal is to attract and offer incentives so that innovation and progressive ideas integrate and achieve success.

Ishan Pandey: How does Venom Ventures work with portfolio companies post-investment to support their growth and success?

Mustafa Kheriba: We don’t merely invest money in the projects. Instead, monetary investment is just the beginning of our support to the teams we back. VVF provides support through its vast network of Web3 startups and specialists. We also assist the investee projects with marketing, exchange listing, technical, legal, and regulatory support.

Ishan Pandey: How does Venom Ventures approach risk management when making investment decisions?

Mustafa Kheriba: No matter how prudent you are, you can never fully eliminate risk from the VC industry. Our investment decisions are based on whether the team is capable of executing on their mission and whether they are building solutions for real-world use cases. Of course, some investments will turn sour, and leave lessons for us, for reasons we can’t foresee, these are however calculated risks.

Ishan Pandey: According to you, how should entrepreneurs approach venture capital funds for investments?

Mustafa Kheriba: A VC is not merely a source of money. Entrepreneurs should look for VCs that have the relevant expertise, that understand what they are building and the infrastructure needed, that will line them up for future success.

And more importantly, entrepreneurs should go with the VCs that possess close relationships with all relevant parties such as regulatory authorities and other well needed partners. Before reaching out, do some background research to understand which social platforms the VC is active on, and whether you can find a mutual connection to recommend you to them. Recommendations from the people VCs know always help. Another effective approach is to apply for incubation programs.

Ishan Pandey: According to you, what new trends are we going to see in the blockchain industry in 2023?

Mustafa Kheriba: I believe new paradigms of liquidity management will evolve, aligned with the development of a new blockchain of which I believe it to be Venom. Additionally, digital currencies and the transformation of traditional asset classes into token format will create a higher velocity of value transfer and deeper liquidity pools requiring blockchain technology from Venom.

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