Second article leading up to the upcoming Dune Venture Days in Dubai.

The journey from emerging venture capital firm to institutional-grade investor represents one of the most complex organizational transformations in private markets. It’s not merely about deploying capital—it’s about building a repeatable system for identifying, winning, and supporting exceptional companies while generating top-quartile returns that justify institutional allocation.

A Dubai Story: The Nexus VC Journey

To understand this transition in practice, consider the story of Nexus VC, a Dubai-based early-stage VC firm that made the leap from emerging to institutional over seven years. Founded in 2016 by Chris Al-Mansour, a former corporate VC investor at a regional conglomerate, Nexus’s journey illustrates both the promise and the pitfalls of this transformation.

Chris started with a conviction: the MENA tech ecosystem was reaching an inflection point, with a new generation of founders building scalable businesses that international investors were missing. His thesis—seed and Series A investments in technology companies solving regional challenges with global potential—had worked in his previous role, but he’d always invested someone else’s capital. Building his own firm would be different.

The Capital Structure Evolution

Stage One: Proof of Concept ($500K–$5M)

Nexus’s Genesis (2016-2017)

You only have a few hours, truly, what are you going to focus on?

Chris began where nearly every VC begins: with a small pool of flexible capital. He raised his first $2M fund from a tight network of supporters. The “fund formation” was a simple LP agreement drafted by a regional law firm ($15,000). The “office” was a co-working space membership at AstroLabs in Dubai. The “deal flow” was his personal network and cold LinkedIn outreach.

The earliest capital represents validation, not optimization. At this stage, VC firms are typically operating under sub-optimal structures:

Fund Structure Considerations:

GP commitment usually 1%–2% of fund size (for first fund, often reduced)

Nexus Fund I – The Capital Stack:

• Chris’s personal capital: $50,000 (2.5% GP commit, significant for someone in their early 30s)
• Former boss at the conglomerate: $500,000
• Three family offices: $300K, $250K, $200K
• Five HNW individuals: $100K each ($500K total)
• Two successful entrepreneurs: $150K each ($300K total)

Total: $2.05M fund size

Operational Reality: The GP is typically wearing every hat—deal sourcing, due diligence, portfolio support, fundraising, back office, and investor relations. Technology stack consists of Excel, a basic CRM, and perhaps a simple data room. Legal work is outsourced to the cheapest responsive firm.

Chris was everything. He sourced deals through founder events, conducted due diligence with Excel models and reference calls, negotiated term sheets, sat on boards, supported portfolio companies, managed LP communications, and handled fund accounting. His “tech stack” was Gmail, Excel, a $50/month Airtable subscription for deal tracking, and DocuSign.

The Investment Strategy:

• Check size: $50K–$150K at seed stage
• Ownership target: 5%–10%
• Sector focus: B2B SaaS, fintech, logistics tech
• Geographic focus: UAE, Egypt, Saudi Arabia
• Follow-on reserves: ~30% of fund size

First Investments (2017):

Chris moved quickly. By end of 2017, he’d deployed into four companies:

1. A B2B procurement platform in UAE ($100K)
2. An Egyptian fintech startup ($75K)
3. A Saudi logistics SaaS company ($120K)
4. A Dubai-based HR tech startup ($80K)

Total deployed: $375K across four companies. He’d created a mini-portfolio, but the real work—and uncertainty—was just beginning.

Stage Two: The Inflection Point ($5M–$30M)

Nexus’s Growing Pains (2018-2021)

This is where most emerging VCs fail. The fund is past the friends-and-family stage but hasn’t achieved the scale for institutional attention. This zone represents maximum operational stress per dollar of AUM.

Through 2018-2019, Chris continued deploying Fund I. He made eight more investments, bringing the total to 12 portfolio companies with $1.6M deployed. He reserved $450K for follow-ons and kept $150K for operating expenses (management fees of $41K annually weren’t enough to support operations fully).

Early Portfolio Signals:

• Two companies failed outright
• Three were struggling and likely to fail
• Five were showing decent traction but needed follow-on capital
• Two were showing exceptional growth—the Egyptian fintech and the Saudi logistics company

The problem: Chris needed to raise Fund II to follow on his winners, but institutional investors wanted to see realized returns from Fund I. He was stuck in the classic emerging VC trap.

The Infrastructure Build-Out:

At approximately $10M under management, economics begin to support institutional infrastructure, though painfully:

After legal and compliance ($50K–$75K), fund administration ($25K–$40K), technology ($15K–$25K), and events/travel ($40K–$60K), there’s barely enough for one salary

The First Hire Decision:

In mid-2019, as Chris began raising Fund II, he faced his first critical decision: hire someone or continue solo. He chose to stay lean through Fund II raise but made a promise to himself—first hire once Fund II closed.

Fund II Raise (2019-2020):

Chris’s pitch for Fund II:

• Fund I portfolio showing signs of life (paper markups from the two breakout companies)
• Expanded thesis: earlier stage (more pre-seed/seed), larger fund for follow-on capability
• Target: $10M
• Same terms: 2.5%/20% with 8% preferred return
• GP commit: 2% ($200K, mostly through deferring management fees)

The raise was brutal. Chris pitched 420+ potential investors over 18 months:

• Existing Fund I LPs: $3.5M (70% re-up rate by capital)
• New family offices: $2.8M (through extensive networking)
• Regional institutional investor (sovereign wealth fund’s emerging manager program): $2M (breakthrough allocation after 9-month diligence)
• Small fund-of-funds focused on emerging managers: $1.5M
• New HNW individuals: $1.2M

Total: $11M closed by September 2020

The sovereign wealth fund allocation changed everything. Even though $2M was a pilot check for them, it provided institutional validation that Chris could leverage.

Critical Hires and Sequencing:

The hiring sequence matters enormously for VCs. The optimal path is typically:

1. First hire (~$10M AUM): A principal/associate who can source deals, conduct diligence, and support portfolio companies—compensation $100K–$150K plus carry participation
2. Second hire (~$25M AUM): Either a portfolio operations person (platform team) or another investing partner, depending on firm strategy
3. Third hire (~$50M AUM): Whatever role wasn’t filled in step two, or a dedicated CFO/COO

The First Hire (October 2020):

Chris brought on Daniel Kim, a Korean-Canadian investor he’d met through the regional startup ecosystem. Daniel had spent three years at a larger regional VC and had strong networks with founders and co-investors. Compensation: $110,000 base plus 5% of carry on Fund II (vesting over 4 years) plus 8% management company equity.

Daniel became Chris’s investment partner—sourcing deals, conducting diligence, supporting portfolio companies. The two-person investment team could now cover more ground.

Service Provider Maturation:

This stage requires upgrading from startup-friendly vendors to institutionally acceptable ones:

• Fund Administrator: Moving from DIY accounting to a recognized name (Standish, Otter, Carta for smaller funds; SS&C, Citco, Gen II for larger)—cost increases from near-zero to $30K–$60K annually
• Auditor: Moving from a local CPA firm to a Big Four or national firm with PE/VC expertise (BDO, Grant Thornton, RSM, or ideally PwC, KPMG, Deloitte, EY)
• Legal Counsel: Establishing relationships with dedicated VC fund formation attorneys (Debevoise, Ropes & Gray, Goodwin, Latham, but regionally Dechert or DLA Piper)
• Back-office Infrastructure: Portfolio monitoring systems (Carta, Pulley for cap tables; Visible, 4Degrees, or Affinity for CRM)

With Fund II capital, Chris invested in infrastructure:

• Hired Otter as fund administrator ($35K annually)
• Engaged Deloitte for annual fund audit ($50K)
• Retained Dechert LLP for ongoing fund and deal legal work ($100K annually)
• Subscribed to Carta for portfolio tracking and Affinity for CRM ($15K annually combined)
• Moved into a small dedicated office in DIFC (2 desks, $30K annually)

These costs now came from a larger management fee base ($275K annually from Fund II), but margins remained thin.

Performance and Track Record Building:

At this stage, institutional prospects will begin conducting diligence. They expect to see:

• Realized returns (not just paper markups) demonstrating ability to identify and exit winners
• Portfolio construction that shows discipline and strategy adherence
• Value-add capabilities beyond just writing checks
• Network effects and deal flow quality
• Co-investor quality as validation

By mid-2021, Chris had meaningful data points:

• The Egyptian fintech (Fund I) had been acquired by a regional bank—3.8x gross MOIC in 3.5 years
• The Saudi logistics company (Fund I) raised a $15M Series B at a $60M valuation—Chris’s stake marked at 5.2x
• Fund I DPI (distributed to paid-in capital): 0.4x (from the fintech exit)
• Fund I TVPI (total value to paid-in capital): 2.1x on paper
• Fund II was actively deploying with 8 investments made by mid-2021

Stage Three: Institutional Threshold ($30M–$100M)

Nexus’s Institutional Breakthrough (2021-2023)

Crossing $30M AUM represents an invisible but critical line for VCs. Institutional allocators begin to take meetings. The fund has enough AUM to suggest market validation but isn’t so large that the opportunity set is constrained.

In Q4 2021, with Fund II partially deployed and Fund I showing real returns, Chris began exploring Fund III. His target: $30M–$40M, which would push Nexus firmly into institutional territory.

The Consultant Ecosystem:

Access to institutional VC capital increasingly runs through gatekeepers:

• Placement Agents: Third-party fundraisers specializing in emerging managers, typically working for 2%–3% of capital raised with placement fees paid from GP or as an additional LP commitment
• Fund of Funds: Aggregators like Horsley Bridge, Greenspring, Top Tier, HarbourVest who can write $3M–$10M checks and provide institutional validation
• Institutional LPs: Pension plans, endowments, foundations, sovereign wealth funds with emerging manager programs
• Family Offices: Increasingly sophisticated with dedicated alternative investment staff

Chris faced a decision: hire a placement agent or build institutional relationships organically. He chose the latter—partially from conviction that relationship-building was more sustainable, partially because placement agent fees on a $40M fund ($800K–$1.2M) seemed prohibitive.

The Second Hire (January 2022):

Chris brought on Joshua Martinez as VP of Platform & CFO. Joshua had spent five years in VC operations and portfolio support and understood both the investment side and operational requirements. Compensation: $130,000 plus 3% carry on Fund III plus 6% management company equity.

Joshua’s mandate:

• Build portfolio support capabilities (recruiting, customer intros, follow-on fundraising support)
• Professionalize fund operations and reporting
• Support Fund III fundraising with data room preparation and LP reporting

The Third Hire (June 2022):

As Fund III fundraising progressed, Chris hired Malika Khair as Partner focused on Investor Relations and Business Development. Malika had spent eight years at a regional institutional investor evaluating VC funds and had relationships with LPs across the GCC and Europe. Compensation: $150,000 plus 2% carry on Fund III plus 5% management company equity.

Her immediate impact was professionalizing LP communications and opening doors to institutional allocators who wouldn’t have responded to cold outreach.

Due Diligence Intensity:

Institutional VC due diligence is comprehensive and multi-layered:

• Strategy assessment: Is the thesis differentiated? Is it sustainable? What’s the competitive moat?
• Team evaluation: Track record of individuals, team dynamics, reference checks with founders and co-investors
• Performance analysis: Portfolio construction, deal flow quality, value-add capabilities, follow-on discipline
• Operations review: Fund administration, compliance, portfolio tracking, reporting capabilities
• Reference calls: Portfolio company founders, co-investors, service providers, other LPs
• Scenario analysis: How does fund perform across different outcome scenarios? What’s the path to top quartile?

In Q2 2022, Nexus underwent its first institutional operational due diligence. A $3B European pension fund with a dedicated emerging manager allocation sent a two-person team to Dubai for a week. They:

• Interviewed the entire team separately
• Called 10 portfolio company founders for references
• Spoke with 5 co-investors about Nexus’s reputation
• Reviewed all fund documents, side letters, and carried interest calculations
• Analyzed deal flow metrics, pass rates, and investment decision-making
• Examined portfolio monitoring and value-add frameworks
• Assessed fund economics and alignment of interests

The process was exhaustive. Three months later, in August 2022, the pension fund committed €3M (~$3M) to Fund III.

Fund III Fundraising (2022-2023):

Chris’s pitch for Fund III evolved:

• Fund I: 2.8x TVPI with 0.6x DPI (two exits realized, three more in process)
• Fund II: 1.6x TVPI early, but portfolio showing strong signals
• Proven sourcing in underinvested market
• Platform capabilities to support companies through scale
• Target: $40M with potential to upsize to $50M
• Terms: 2%/20% with 8% preferred, improving to institutional standards (quarterly reporting, LPAC formation, key person provisions)

The fundraising took 18 months:

• Existing LPs (Funds I & II): $12M (strong re-up rate)
• European pension fund: $3M (breakthrough institutional LP)
• Two regional sovereign wealth fund programs: $8M combined (both emerging manager allocations)
• Established fund-of-funds (Top Tier Capital): $5M (validation from recognized name)
• US-based endowment: $4M (first North American institutional LP)
• Family offices: $6M (increasingly sophisticated allocators)
• New HNW individuals: $2M

Total: $40M final close in June 2023

The fund-of-funds and US endowment commitments were game-changers. Both required extensive diligence, but their presence in the cap table signaled to other institutions that Nexus had arrived.

Terms Standardization:

To attract institutional capital, fund terms must align with market standards:

• Management fees: 2% on committed capital during investment period, 1.5%–2% on invested capital post-investment period (some funds use NAV basis)
• Carry: 20% remains standard, with 8% preferred return (some institutions push for 10%)
• GP commit: 2%–3% of fund size (increasingly enforced)
• Key person provisions: if Chris or Daniel left, investment period suspended
• LPAC formation: 3–5 seats representing major LPs
• Reporting: quarterly detailed reports with portfolio company updates and fund performance
• No-fault divorce provisions: LPs can remove GP under certain circumstances
• Clawback provisions: ensuring carry is only paid on realized profits

Fund III incorporated all institutional standard terms. Chris and Daniel committed $1.2M combined (3% GP commit), primarily through management fee deferrals and personal capital.

The Destination: Institutional VC Firm ($50M+)

Capital Deployment at Scale

Nexus’s Institutional Operations (2023-Present)

With $40M in Fund III, Nexus operated as an institutional VC firm. The transformation was complete in structure, if not yet in scale.

Deployment Strategy:

• Check sizes increased: $200K–$500K seed, up to $1M+ Series A
• Ownership targets: 7%–15% at initial investment
• Portfolio construction: 20–25 companies in Fund III
• Reserve ratio: 40% for follow-ons (recognizing winners early and supporting them aggressively)
• Geographic expansion: maintaining MENA focus but open to global opportunities for exceptional founders

The Team at Scale:

At institutional scale, VC teams must professionalize across all functions:

Investment Team:

• Managing Partners drive strategy and make final investment decisions
• Partners/Principals source deals, lead diligence, take board seats
• Associates/Analysts support diligence, portfolio monitoring, market research
• Venture Partners/Advisors provide domain expertise and deal flow

By 2024, Nexus’s investment team:

• Chris (Managing Partner) – focused on strategy, key deals, Fund IV planning
• Daniel (Partner) – actively sourcing and leading investments, 4 board seats
• Two Principals hired in 2023 ($140K each plus carry participation) – deal flow and execution
• Two Associates ($90K each) – supporting diligence and portfolio companies

Platform/Operations Team:

• Platform professionals supporting portfolio companies (recruiting, sales, fundraising)
• CFO/COO managing fund operations, compliance, and administration
• IR/capital formation professionals managing LP relationships and fundraising

Joshua’s platform team:

• Portfolio talent specialist ($95K) – recruiting support for portfolio companies
• Platform associate ($75K) – coordinating portfolio events and resources
• Joshua (VP Platform/CFO) – overall operations and portfolio support

Malika’s IR team:

• IR associate ($85K) – managing quarterly reporting and LP communications
• Malika (Partner, IR & Business Development) – institutional relationships and Fund IV preparation

Total team: 11 professionals (6 investment, 5 platform/ops)

Operational Infrastructure at Institutional Scale

Technology Stack:

• Fund administration platforms (Carta, Allocate, Juniper Square)
• Portfolio monitoring systems (Visible, Chronograph, Kushim)
• CRM and deal flow management (Affinity, 4Degrees, Sourcewhale)
• Data rooms and document management (DocSend, Dropbox, DealRoom)
• Communication and collaboration tools (Slack, Notion, Airtable)
• Analytics and benchmarking (Cambridge Associates, PitchBook, Preqin)

Nexus’s tech stack in 2024:

• Carta for fund administration and portfolio cap table management ($60K annually)
• Visible for portfolio monitoring and LP reporting ($25K annually)
• Affinity for CRM and relationship management ($40K annually)
• PitchBook for market intelligence and benchmarking ($35K annually)
• Various other tools ($20K annually)

Total technology spend: $180K annually (up from $15K in Fund I days)

Governance and Oversight:

• LPAC formation with 3–5 institutional LP representatives
• Annual LP meetings (typically in-person at major LP gatherings)
• Quarterly reporting with detailed portfolio updates and fund performance
• Independent valuations for portfolio companies (409A or fairness opinions)
• Comprehensive compliance program with annual testing
• Advisory boards with domain experts and successful entrepreneurs

Fund III LPAC (formed Q4 2023):

• European pension fund representative
• Top Tier Capital representative
• Sovereign wealth fund representative (rotating seat)
• US endowment representative
• Independent member (successful serial entrepreneur and LP)

The LPAC met quarterly to review:

• Fund strategy and any proposed changes
• New investments above certain size thresholds
• Portfolio company challenges or restructurings
• Key person issues or organizational changes
• Follow-on fund planning and terms

Insurance and Risk Management:

• D&O insurance: $10M coverage
• E&O insurance: $5M coverage
• Cybersecurity insurance: $3M coverage
• Fidelity bond: $2M coverage
• Key person insurance on Chris

Fund Lifecycle and Returns Management

Successful institutional VC firms manage multiple vintage years simultaneously:

• Active deployment from newest fund
• Active portfolio management across all funds
• Exit planning and DPI generation for older funds
• Follow-on decisions across fund vintages
• Fund IV fundraising while Fund III deploys

Nexus Fund Portfolio (2024 Snapshot):

Fund I ($2M, 2017 vintage):

• 12 investments, 10 still active (2 failed completely)
• 3 exits realized (fintech acquisition, two acqui-hires)
• 2 strong companies likely to exit at meaningful multiples (logistics unicorn, B2B SaaS)
• Current metrics: 3.2x TVPI, 1.1x DPI (distributions improving as exits materialize)
• Top quartile for vintage and geography

Fund II ($11M, 2020 vintage):

• 18 investments, 16 active (2 failures)
• 1 exit realized (modest return)
• 5 companies showing exceptional growth, raised follow-on rounds at significant markups
• Current metrics: 2.4x TVPI, 0.3x DPI
• Tracking toward top quartile

Fund III ($40M, 2023 vintage):

• 12 investments deployed (~$8M), investment period ongoing
• Early to assess performance, but initial companies showing traction
• Deal flow significantly improved with institutional backing

Exit Strategy and DPI Generation:

Institutional LPs increasingly focus on realized returns (DPI), not just paper markups (TVPI):

• Exit pathways: M&A (most common in emerging markets), secondary sales, IPOs (rare)
• Active management of exit timing—knowing when to sell vs. hold for next round
• Secondary market solutions for liquidity before traditional exits
• Engaging with investment banks and corporate development teams early

Chris and Daniel actively worked exit opportunities:

• The Fund I logistics company had become a unicorn ($1.2B valuation in 2023). Chris faced a decision: sell secondary stake (5x–6x) or hold for potential IPO (10x+ but uncertain timing). After LPAC consultation, he partially exited (50% of position) in a structured secondary, generating meaningful DPI for Fund I while retaining upside.
• Two Fund II companies received acquisition interest from larger strategics. Chris negotiated exits at 4x and 3.5x MOIC respectively.

By 2024, Fund I was approaching final distributions with strong returns. This performance became critical for Fund IV discussions.

The Critical Success Factors for VC Firms

Performance and Track Record

Institutional VC investors evaluate firms on multiple dimensions:

• Gross and net returns: Top quartile benchmarking (need 3x+ net MOIC for top quartile in most vintage years)
• DPI generation: Actual cash returned to LPs, not just paper gains
• Investment discipline: Pass rate, portfolio construction, follow-on management
• Value creation: Evidence of value-add beyond capital
• Deal access: Quality of deal flow and competitive win rate
• Portfolio outcomes distribution: How concentrated are returns? (VC follows power law)

Nexus’s track record (2024):

• Fund I: 3.2x TVPI, 1.1x DPI (top quartile for vintage)
• Fund II: 2.4x TVPI, 0.3x DPI (tracking top quartile)
• Deal flow: 800+ companies reviewed in 2023, 12 investments (1.5% conversion)
• Competitive win rate: 75% of term sheets accepted (high for region)
• Portfolio support: 85% of portfolio companies reported Nexus as helpful or very helpful in annual survey
• Follow-on signaling: 90% of Nexus portfolio companies that raised follow-on rounds received additional Nexus capital

Team Quality and Stability

LPs invest in teams, not just strategies:

• Track record of individuals: What have they built or backed before?
• Team dynamics: How do they work together? Is there alignment?
• Retention: Has there been turnover? Are people locked in with golden handcuffs?
• Succession planning: What happens if the founder leaves?
• Diversity of thought: Different perspectives and backgrounds strengthen decision-making

Nexus’s team stability:

• Zero turnover in core team (Chris, Daniel, Joshua, Malika) over 6 years
• Management company equity: Chris 65%, Daniel 12%, Joshua 8%, Malika 7%, option pool 8%
• Carry allocation clearly defined across funds with vesting structures
• Decision-making process documented: Chris and Daniel both had veto rights on investments, but decisions made by consensus
• Succession: Daniel capable of leading firm if Chris unavailable

Deal Flow and Market Position

Sustainable deal flow is the lifeblood of VC:

• Founder networks: Do great founders come to you first?
• Co-investor relationships: Do top firms want to co-invest with you?
• Brand in market: Are you known for specific expertise or value-add?
• Geographic or sector moats: Do you have differentiated access?
• Platform capabilities: Can you help companies beyond just capital?

Nexus’s market position (2024):

• Recognized brand in MENA tech ecosystem—founders sought Nexus out
• Strong co-investor relationships with international tier-1 VCs (Sequoia, Accel, Index, others) who valued regional presence
• Domain expertise in fintech, logistics tech, B2B SaaS recognized by founders
• Platform capabilities (recruiting, sales intros, fundraising support) differentiated from pure-play capital providers
• Chris and Daniel both regular speakers at regional startup events, active on social media, published thought leadership

Alignment and Economics

LPs scrutinize fund economics rigorously:

• GP commit: Is GP capital at risk alongside LPs?
• Management fee structure: Are fees appropriate for fund size and strategy?
• Carry structure: Is carry aligned with LP returns (hurdles, catch-up provisions)?
• Conflicts of interest: Side vehicles, SPVs, management company conflicts?
• Transparency: Are fund economics clearly communicated?

Nexus’s alignment:

• GP commit: 3% across all funds (Chris and Daniel’s personal capital at risk)
• Management fees: 2% committed capital during investment period, reducing to 1.75% on invested capital (lower than many peers)
• Carry: 20% with 8% preferred return, subject to clawback
• No side vehicles or management company conflicts
• Full transparency on fees and expenses in quarterly reports

The Institutional Mindset Shift

The transition from emerging to institutional VC isn’t just operational—it’s philosophical. Emerging VCs optimize for access and survival. Institutional VCs optimize for repeatable process, portfolio construction, and sustainable returns.

Chris’s Reflection (2026):

In a conversation with a prospective emerging VC seeking advice, Chris reflected on the journey:

“The hardest lesson was learning that being a good investor doesn’t make you a good fund manager. They’re different skills. In the early days, I thought if I just picked good companies, everything else would work out. But institutional investors don’t just want good picks—they want evidence of a repeatable process, proof that you can do it again and again.

That meant formalizing everything. Our investment memos went from 3-page Word docs to 25-page structured analyses. Our portfolio monitoring went from ‘check in with founders’ to quarterly board meetings with KPI tracking. Our fundraising went from begging for meetings to LPs calling us.

The other big shift was time horizon. Emerging VCs think fund-to-fund—’I need returns from Fund I to raise Fund II.’ Institutional VCs think in decades—’How do we build a multi-generational firm?’ That changes how you think about team building, portfolio construction, and market positioning.

And honestly? The economics compress. Fund I, when it was just me, I probably cleared 70% margins on management fees after minimal costs. Fund III, with a team of 11 and real infrastructure, we’re running at 35%–40% margins. But it’s a bigger base, the business is sustainable, and we’re not dependent on me not getting hit by a bus.

The valley between $5M and $30M under management is where most VCs die. You’re too big to run lean, too small to afford infrastructure. You need returns from your early funds, but those take 7–10 years to materialize. It’s brutal. We survived because we stayed disciplined, hired intentionally, and always thought about what institutional LPs would require—even when we didn’t have institutional LPs yet.”

This means:

• Building repeatable processes over gut-feel investing
• Accepting that team building and operational excellence matter as much as deal picking
• Recognizing that LP management is a continuous relationship, not transactional fundraising
• Understanding that reputation in VC compounds exponentially—one ethical lapse or major failure can close doors permanently

Conclusion: Building for Permanence

The emerging VCs who successfully transition to institutional status share common traits: they treat venture capital as a business, not just a series of bets. They invest in team and infrastructure before they absolutely need it. They build relationships with LPs as true partnerships, not just capital sources. And they recognize that institutional VC capital is patient and sticky—once earned, it provides a foundation for building a multi-decade franchise.

Nexus’s Future (2026 Outlook)

As of January 2026, Nexus VC manages $53M across three active funds (Fund I largely distributed, Fund II partially realized, Fund III actively deploying). The firm is preparing to launch Fund IV with a target of $75M–$100M, which would firmly establish Nexus as a institutional-scale regional VC.

Chris, Daniel, Joshua, and Malika have built something that transcends any individual. The firm has institutional LPs who view Nexus as a core emerging markets allocation. The team has depth and succession planning. The deal flow is sustainable and differentiated. The portfolio is generating real returns, not just paper markups.

The journey from Chris’s co-working desk to a $100M institutional VC took nine years (including Fund IV raise), three key hires, hundreds of rejected pitches, and a willingness to professionalize every aspect of the business. It’s a journey hundreds of emerging VCs attempt every year. But as Chris learned, getting from $2M to institutional scale isn’t primarily about picking winners—every VC believes they can do that. It’s about building an organization that institutional fiduciaries trust with their capital.

The hard part, Chris often reflects, wasn’t raising the first fund—friends and family believed in him personally. And it wasn’t deploying capital—there were always companies to invest in. The hard part was the years between Fund I and Fund III, when he had to build real returns, hire a team, professionalize operations, and convince skeptical institutional LPs that a regional, emerging VC deserved their attention.

But for those who survive the valley, who build the track record, who invest in team and process, who treat LPs as true partners—there’s a path from emerging to institutional. It’s not easy, it’s not quick, but it’s possible.

And on quiet mornings, when Chris arrives at the Nexus office before the team, he sometimes thinks back to those early days in the co-working space, cold-emailing founders and begging for investor meetings, wondering if he could really build a firm. The answer, it turned out, was yes—but only by building something bigger than himself, something that could endure beyond any single fund or investment cycle.

The emerging VCs who make it don’t just pick good companies. They build great firms. And in venture capital, the firm is the ultimate product.

The story of Nexus VC is fictional, but based on 100’s of conversations with emerging managers across accelerators, masterclasses and GP coaching sessions.

About Dune Venture Days: Welcome to the first edition of DUNE Venture Days: a complimentary, invite-only venture capital gathering designed for a curated group of VCs, startup investors, and ecosystem leaders.

DUNE will take place in partnership with Dubai CommerCity and alongside the WORLDEF Dubai 2026 Conference.

DUNE is 100% complimentary. It is simply about giving back to the VC ecosystem — a moment to strengthen existing relationships, build new ones, and bring together people we genuinely enjoy exchanging ideas with. Apply to join at Dune Venture Days.

Want to learn more? Explore Strategy Tools Fund Manager Masterclasses and GP programs.

Note, in this article we focus on Scale Up!, but the structure is equally valid for Fund Manager!, Transform! or any of the other Strategy Sims.

Scale Up! fact box Scale Up! comes in multiple editions: – Scale Up! (Global) – Scale Up Angel! – Scale Up X! – Scale Up MENA! – Scale Up Africa Rising! – with more editions due out 2026

1.      Who are your participants?

What’s their level? What’s their expectations? How well do you know the participants you will be working with? Make sure you have a deep understanding of your audience, and truly design a program with their level and expectations in mind.

Not sure who you will be meeting? That’s okay; run two webinars in advance to get to know them.

2.      What’s your framing?

How do you position this? Short, fun session? Learning opportunity for beginners? Advanced-level “I will teach you…” vs. “I expect you to handle everything we throw at you…”?

Personally, I like to frame Scale Up MENA! with “Can you outperform Careem? $3,2BN exit in 7 years. Can you beat it? Good luck” For Africa Rising!, we use Moove. “Can you outperform Moove? From Africa to the world. From pre-seed to $100M with Uber. Can you top it?” For early-stage founders, maybe the framing is ‘can you avoid bankruptcy’?` Think about the framing, the narrative you want to go for.

3.      What’s the core content you want to focus on?

You only have a few hours, truly, what are you going to focus on?

Pre-seed fundraising? Global market expansion? Cap table management? Growth stage fundraising? Long-term capital strategies? Partial liquidity? Investor outcomes? IPO process? Once you know your audience, decide on your core content. This is particularly important for choice of canvases you will be using.

4.      What’s the outcome you seek?

When participants finish, what should they be able to do or know, that they did not going into the program? What do you want them to walk away with? What are the learning outcomes? The knowledge outcomes you expect to see? Make sure to spend time on this. Get this right. Upon completion of the participants should know: – – – and they should be able to do: – – –

5. What does ‘winning’ look like?

In Scale Up!, ‘winning’ can take many forms. It is 100% up to you to decide. Got super-early-stage founders? Make it ‘first team to raise three rounds – and make it over the goal line’. Or, ‘first team to hit 10M ARR – without going bankrupt – and make it over the goal line’.

More advanced, intermediate founders? ‘Raise six rounds of financing, complete at least one syndicate and hit 10M ARR – and make it over the goal line’. Or, ‘secure the best possible exit, simply’. Late-stage, advanced founders? ‘Best exit wins’, or ‘Lead the company through, seven rounds of financing, one syndicate, 10M ARR and a successful IPO transacttion’.

Before you start, always know – and communicate – what ‘winning’ looks like.

6. Program structure – or stand alone session?

Is this part of a larger program, likely an investor readiness program or an entirely stand-alone Masterclass? Are you running pre-session Webinars – or not? Our recommendation is generally to run one or two pre-session webinars in advance, to help participants tune in, set expectations and prepare.

Webinar 1: Introduction to Scale Up! Why we are doing this Background Three types of companies (SME, local tech, global tech, what are you building?) The Founder’ Journey – and the funding from idea to IPO Next steps (+ access to pre-read)

Webinar 2: Recap on introduction Financing the Founder’s journey Investment instruments overview Term sheets (real-life) and Investor cards Recommendations for how to best prepare (pre-read, pre-work, pre-videos)

7. Pre-read package

What are you providing the participants to read in advance? For Scale Up Africa Rising!, we are now developing the following pre-read package:

i.            Case Study: Scaling Payzhub (50+ pages)

ii.            Angel E-mail (core instructions)

iii.            Team & Roles (team setup)

iv.            Founder Handbook (explaining)

v.            Real-life SAFE note (Example)

You, of course, select your own package.

8.      Pre-work package

What are you putting together for the pre-work package? What are the pre-session training exercises you want people to do? Are you holding people accountable for completing it? Are you reviewing and giving people feedback before the session? Or, are you just saying ‘complete it, good luck’?

We know from experience that only 20% – 50% will complete the pre-work package, but the ones that do, will have a massive advantage and be key people on their respective teams. For Scale Up Africa Rising! Pre-work package we are doing:

I.            Founder Handbook: 10 Building blocks (exercises) (40-60 pages)

II.            Founder Workbook: Edustream (exercises) (27 pages)

9. Pre-session videos

Are you using pre-session videos? If so, who’s shooting them? What’ the key content we focus on?

The videos we would recommend are.

I. Intro & welcome video. Introducing Scale Up! Miro board overview. Walkthrough of the Miro board and how to navigate it  (15. – 35. Min). (see example)

II. Pre-session exercises. Hands on training materials (15. min). (See example)

III.            Founders Journey video (can be replaced by Webinar I)

IV.            Investment Instruments, Video (with linkage to the pre-work package) (can be replaced by Webinar 2)

10.  Is your detailed program design truly ready?

Have you mapped out every 15. Min block yet? Have you pre-selected all Founder Tasks and Strategic Dilemma you want to run? Have you clearly defined ‘milestones’ for end of each day? Running a Scale Up! without a detailed program design is…. Unwise.

• Offsites (for the roles, like CEO, CRO, CFO, etc)
• Breakouts (for the teams)
• Breaks (coffee breaks) (step away from the computer, for real)
• Plenary sessions (rolling dice, moving)
• Plenary sessions (for content, canvases, teaching)
• Everything need to be pre-arranged, clearly mapped out.

For example, if you want teams to make any decisions, they need to be in the same breakout room together. No offsites, expect to decisions. For every 60. Min (hour), plan for minimum two, maybe even three team breakouts.

Running a true Masterclass? Plan your program in 15. Minute blocks. Seriously.

(Did you know, In our experience, if there is no detailed design in place, we tend to cover only 60% of the plan we hoped to cover for the day. With a detailed design in place, we are pretty much at 95% – 100%.)

11. Have you clearly assigned roles on the facilitator team?

Who is leading the plenary and sharing screen? Who is handling cards? Who is leading the offsites? Who is jumping from room to room, to support the teams? Who is running the Investor Map, Long-term Funding Roadmap and Outcome Canvas? Who is helping teams with cap tables?

All this need to be pre-set in advance.

12. Is your logic flow in place

Scale Up! is structured around what we call the Founder’s Journey. Over a few days, we typically cover 6-10 years of ‘startup life’. Make sure your plan, your design capture this in a logical manner.

• Every roll with the dice represent a few weeks of ‘real life founder life’.
• Every square on the board represent ca. 9 days.
• Every length of the board represent 3 months or 90 days.
• Every round around the full board represent a full year.

This means, the entire first round around the board is year 1. Think about, what happens, really, in year 1. Team coming together, early customer discovery, a grant. Maybe an angel investor. Possibly an accelerator. Maybe a friends and family round. Maybe first revenue, often wrapped in a pilot structure. Possibly an advisor or two. Maybe a few new team members. That’s often it. Some companies will hit $100M ARR and level five product, go-to-market and expand into six markets, but that’s extremely unlikely. Plan for a ‘normal’ growth phase, where pre-seed, seed, seed+ and Series A takes 2-4 years, not 3-4 rolls with the dice.

With an advanced group, in a three-day structure, here is how we think about the logic flow. Note, this is not suitable for early-stage or beginners, as you’ll need to move much slower on day one.

13. How much time do you allow for debrief?

Want to good ending? Always allow time for a structured debrief.

Use Miro and sticky notes or structured canvases, but do not skip the debrief.

14. What happens post-program?

Ok, you just wrapped up another great Masterclass. Now what?

How clear is your plan for next steps? Participant survey? Client debrief? Participant debrief? Project work? Real-life slide decks to review?

Be clear, always, on what happens next.

Your turn

ok, so if you are planning to run Scale Up! sessions, this guide can help you better structure and plan the entire workflow.

Good luck!

First article leading up to the upcoming Dune Venture Days in Dubai.

The Exit Gap in Most VC Markets

Across MENA, Africa, and Europe, venture capital ecosystems share a common challenge: the path to liquidity remains uncertain, unpredictable, and often an afterthought. In MENA, startups have raised over $11 billion since 2021, yet fewer than 7.5% have achieved exits. Africa recorded only 26 venture-backed exits in 2024, returning just $0.13 per invested dollar. European secondary markets, while more developed, still leave many GPs scrambling when fund lifecycles demand returns.

The numbers tell a challenging story. The VC markets across MENA, Africa and Europe are all maturing, evolving, even booming in the case of MENA. Deals are happening, new funds are being set up, but…….. everyone is also waiting on liquidity and DPI.

This raises a fundamental question: Should exit thinking be embedded directly into the term sheet itself?, or more precisely, how should liquidity strategy be presented in your term sheet?

The GP Exit Canvas: A Framework for Strategic Exit Planning

The GP Exit Canvas, developed through extensive work with fund managers across global VC markets, provides a structured visual framework for integrating exit strategy thinking from day one of the investment process. It consists of nine interconnected building blocks:

Building Block

1. Pre-Deal Assessment

How do we work on exits in our pre-deal assessment?

2. Key Documents

What exit items do we use in term sheets, shareholder agreements, and exit memos?

3. Exit Strategy BOD Day

How do we design and deliver an annual board exit strategy day?

4. Mapped Out Exit Paths

How well do we map out exit paths for each portfolio company?

5. Exit Committee

How do we setup and run an exit committee years ahead of a transaction?

6. GP Exit Team

Do we have team members dedicated to exits?

7. Exit Advisors

Who are the right exit advisors for our portfolio companies?

8. Exit Network

How large is our relevant exit network and how can we grow it?

9. Exit Dealmaking

Are we successful in completing exit transactions?

Notice that “Key Documents” sits prominently in this framework. The canvas explicitly asks: What are the key exit items we use for the company’s legal and strategic documents? Do we use a tiered exit model at various company stages? This is where the term sheet becomes a critical tool for exit planning.

The VC Debate: Should Term Sheets Include Exit Provisions?

The question of whether to include explicit liquidity and exit provisions in term sheets divides opinion among fund managers. Let’s examine both sides.

The Case Against

Premature constraints on founder optionality. Critics argue that embedding exit timelines into term sheets creates rigid structures that may not serve the company’s best interests. Markets shift, opportunities emerge unexpectedly, and what looks like the right exit path at Series A may be completely wrong by Series C. Founders need flexibility to pursue the best outcomes, not contractual obligations that force premature decisions.

Potential misalignment with founder vision. Some founders view explicit exit provisions as a signal that investors are more focused on their own returns than building a truly transformative company. This can create tension from day one and may deter founders who are building for the long term.

Negotiation complexity. Adding detailed exit provisions increases the complexity of term sheet negotiations, potentially slowing deal velocity and adding legal costs at a stage where founders often have limited resources.

The Case For

Alignment from day one. Proponents argue that discussing exit paths early actually creates better alignment between founders and investors. When both parties understand and agree on potential liquidity scenarios, there are fewer surprises later. As the GP Exit Canvas emphasizes, exit planning isn’t separate from investment strategy—it is investment strategy.

LP pressure demands clarity. Limited Partners are increasingly demanding DPI (distributions to paid-in capital) rather than just paper returns. In markets like MENA and Africa, where exits are scarce, LPs want to see evidence that GPs have thought through liquidity paths before committing capital. Having exit provisions in term sheets signals sophistication and planning.

Structuring for market realities. In regions with underdeveloped IPO markets and fewer strategic acquirers, secondary sales and tiered liquidity models often represent the most realistic path to returns. Building these mechanisms into deal structures from the start ensures they can be executed when opportunities arise.

Creating exit-ready documentation. When exit opportunities emerge, deals often fail because documentation isn’t ready for institutional buyer due diligence. Term sheets that anticipate exit requirements—drag-along rights, tag-along protections, information rights—create companies that can move quickly when windows open.

The Verdict: Yes, With Nuance

The evidence is clear: paths and timelines to liquidity are key for VCs and should be covered in term sheets. However, this doesn’t mean imposing rigid exit schedules or forcing founders into narrow outcomes. Instead, it means creating flexible frameworks that acknowledge the importance of liquidity while preserving optionality.

The most successful VCs think backward from liquidity events when making investment decisions. As the GP Exit Canvas demonstrates, this backward-thinking approach should be embedded in every aspect of the investment process, including the foundational document that governs the investor-founder relationship.

For emerging market funds, where smaller pools of potential acquirers and less developed exit markets create additional challenges, the discipline of incorporating exit thinking into term sheets can mean the difference between a successful fund and one that struggles to return capital to LPs.

Three Liquidity Mechanisms: Sample Term Sheet Language

Below are three examples of different liquidity mechanisms that can be incorporated into term sheets, each suited to different investment contexts and portfolio company stages.

1. Strategic Acquisition Facilitation Clause

Context: Appropriate for early-stage investments where strategic M&A is the most likely exit path, particularly in sectors with active corporate acquirers (fintech, healthtech, agritech).

SAMPLE TERM SHEET LANGUAGE

Exit Strategy Facilitation

Strategic Exit Support: Upon the Company achieving annual recurring revenue of [USD 2,000,000] or cumulative revenue of [USD 5,000,000], the Investors shall actively facilitate introductions to potential strategic acquirers identified in the pre-investment Exit Path Assessment. The Company shall maintain an updated list of no fewer than fifty (50) potential strategic acquirers, reviewed and updated at each Board Exit Strategy Day.

Exit Readiness Milestones: The Company agrees to achieve “exit-ready” status within thirty-six (36) months of closing, including: (a) completion of SOC 2 Type II certification or equivalent, (b) audited financial statements prepared in accordance with IFRS, (c) documented regulatory approvals and compliance records, and (d) clean cap table with all option grants properly documented.

Drag-Along Rights: In the event of a bona fide acquisition offer valued at or above [3x] the post-money valuation of this round, approved by (i) a majority of the Board of Directors and (ii) holders of a majority of the Preferred Stock, all shareholders shall be required to participate in such transaction on the same terms and conditions.

Information Rights for Exit: The Company shall provide Investors with monthly operating metrics in a format suitable for potential acquirer due diligence, and shall grant Investors reasonable access to management for the purpose of facilitating strategic discussions with potential acquirers, subject to appropriate confidentiality protections.

2. Tiered Liquidity Model (1/3, 1/3, 1/3 Structure)

Context: Designed for growth-stage investments where the investor seeks to manage risk and generate early DPI while maintaining upside exposure. Particularly relevant in MENA and Africa where full exits are rare but secondary markets are developing.

SAMPLE TERM SHEET LANGUAGE

Tiered Liquidity Structure

Liquidity Schedule: The Investors’ shareholding shall be subject to the following tiered liquidity framework, designed to balance early returns with continued participation in Company growth:

Tranche 1 – Series B Secondary (One-Third of Position): Upon completion of the Company’s Series B financing round at a pre-money valuation of at least [3x] the post-money valuation of this round, the Investors shall have the right (but not the obligation) to sell up to one-third (33.33%) of their shareholding to incoming investors or approved secondary buyers. The Company shall use commercially reasonable efforts to facilitate such secondary sale as part of the Series B transaction, including allocating reasonable capacity in the round for secondary purchases and providing necessary documentation and representations.

Tranche 2 – Pre-IPO/Series D Secondary (One-Third of Position): Upon completion of a Series D financing round or a pre-IPO financing round at a pre-money valuation of at least [8x] the post-money valuation of this round, the Investors shall have the right to sell an additional one-third (33.33%) of their original shareholding (or 50% of remaining position) through secondary sale mechanisms. The Company agrees to include standard secondary sale provisions in its Series D or pre-IPO documentation, and shall not unreasonably withhold consent to transfers to qualified institutional buyers.

Tranche 3 – Ultimate Exit/IPO (Remaining Position): The Investors’ remaining shareholding (one-third of original position) shall be held until the Company’s ultimate liquidity event, whether through IPO, strategic acquisition, or other qualifying exit transaction. In the event of an IPO, the Investors agree to customary lock-up provisions not exceeding one hundred eighty (180) days, following which they may dispose of shares at their discretion.

Valuation Floor Protection: The secondary sale rights described in Tranches 1 and 2 above shall only be exercisable if the applicable round valuation represents at least a [2.5x] multiple on the Investor’s cost basis for Tranche 1, and a [5x] multiple for Tranche 2. If such thresholds are not met, the secondary rights shall roll forward to the next qualifying financing round.

Company Facilitation Obligation: The Company shall designate a member of senior management responsible for coordinating secondary sale processes and maintaining relationships with secondary market platforms and qualified buyers. The Company shall not impose transfer restrictions or exercise rights of first refusal in a manner designed to frustrate the Investors’ exercise of the rights described herein.

3. Redemption and Put Option Mechanism

Context: Appropriate for later-stage investments or situations where market exit uncertainty is high, providing investors with a guaranteed liquidity path while giving the Company flexibility on timing.

SAMPLE TERM SHEET LANGUAGE

Redemption and Put Option Rights

Redemption Right: Commencing on the sixth (6th) anniversary of the closing date (“Redemption Date”), and upon written request from holders of at least a majority of the then-outstanding Preferred Stock, the Company shall redeem the Preferred Stock in three (3) equal annual installments at a price per share equal to the greater of: (a) the original purchase price plus any accrued but unpaid dividends, or (b) the fair market value as determined by an independent valuation conducted by a mutually agreed third-party valuation firm.

Put Option: In the event that no qualifying liquidity event (defined as an IPO, strategic acquisition, or secondary sale opportunity at or above [2x] the original purchase price) has occurred by the fifth (5th) anniversary of closing, the Investors shall have the right to require the Company to facilitate a sale of the Investors’ shares to (i) existing shareholders, (ii) the Company (subject to legal restrictions), or (iii) third-party buyers identified by the Company, at a price equal to the higher of (a) [1.5x] the original purchase price or (b) fair market value as determined by independent valuation.

Company Call Option: The Company shall have the right, but not the obligation, to call and repurchase the Investors’ shares at any time after the fourth (4th) anniversary at a price equal to the higher of (a) [2.5x] the original purchase price or (b) fair market value. This call option shall expire upon the occurrence of a qualifying liquidity event.

Exit Window Coordination: The Company agrees to engage an investment bank or M&A advisor to conduct a formal market assessment of exit opportunities no later than the fourth (4th) anniversary of closing, with the results of such assessment to be shared with the Board of Directors and used to inform liquidity planning discussions.

Implementing Exit Thinking: Practical Steps for GPs

The GP Exit Canvas provides a comprehensive framework for making exit planning systematic rather than sporadic. When implementing exit provisions in term sheets, consider these principles:

Start the conversation early. Use the pre-deal assessment phase to discuss exit scenarios openly with founders. This conversation will inform which term sheet provisions are most appropriate and help identify potential misalignment before it becomes a problem.

Match provisions to context. A fintech startup with clear strategic acquirer interest needs different provisions than a B2B SaaS company targeting eventual IPO. The three examples above illustrate this range—use them as starting points, not templates.

Build in flexibility. The best exit provisions create optionality rather than obligation. Rights to sell don’t mean requirements to sell. Valuation floors protect against fire sales while preserving upside.

Integrate with governance. Exit provisions in term sheets should connect to ongoing governance mechanisms—annual Exit Strategy Board Days, exit committees, and regular exit readiness assessments as outlined in the GP Exit Canvas.

Communicate with LPs. When raising your next fund, point to these term sheet provisions as evidence of your systematic approach to liquidity. LPs increasingly want to see DPI, and demonstrating that you’ve built exit thinking into your investment process from day one differentiates you from GPs who treat exits as an afterthought.

Conclusion

In venture capital, capabilities compound over time into competitive advantages. Funds that embed exit thinking into their term sheets—and across all nine elements of the GP Exit Canvas—build a systematic capability that serves portfolio companies, LPs, and their own track records.

For fund managers operating in MENA, Africa, and Europe, where exit markets remain challenging but opportunities are growing, this systematic approach isn’t optional—it’s essential. The term sheet is where that discipline starts.

The most successful venture capital firms don’t just pick winners; they systematically create the conditions for winning exits. Make your term sheet part of that system.

_______________

About Dune Venture Days: Welcome to the first edition of DUNE Venture Days: a complimentary, invite-only venture capital gathering designed for a curated group of VCs, startup investors, and ecosystem leaders.

DUNE will take place in partnership with Dubai CommerCity and alongside the WORLDEF Dubai 2026 Conference.

DUNE is 100% complimentary. It is simply about giving back to the VC ecosystem — a moment to strengthen existing relationships, build new ones, and bring together people we genuinely enjoy exchanging ideas with. Apply to join at Dune Venture Days.

About the GP Exit Canvas: The GP Exit Canvas is part of the Venture Capital Series developed by Strategy Tools. Download the canvas and explore additional resources at www.strategytools.io.

About the Author: Christian Rangen is a strategy advisor and business school faculty member who works with VC/PE firms, fund-of-funds, DFIs, and governments on venture capital ecosystem development. He delivers VC Masterclasses and mentors fund managers globally.

Accelerating entreprenurship with Scale Up!

Globally, 1000’s of founders, investors and ecosystem developers have built their ‘scale up skills’ with Scale  Up! From introduction to cap table math, accelerating seed-stage founders or training investors on deal structures, partial liquidity mechanisms and IPO readiness, over the years we have seen a broad range of use cases of Scale Up!

Expert Expert facilitators like Scott B. Newton, Rick Rasmussen, Rumbi Makanga, Enrico Maset, Sanjana Raheja and many, others are pushing to create new best practices in Scale Up! delivery.

African accelerators, European family offices, Middle Eastern fund-of-funds, Nordic innovation clusters, US business schools, global impact accelerators and global entrepreneurship organizations are just some of the 100’s and 100’s of users who have picked up Scale Up! in recent years; but how can you run Scale Up!?

Well, in our work, we have identified nine different ways you can run Scale Up!

Before we start

Before getting into the details, the first question is always, “are you running this online or in-person”.

Scale Up! has been delivered 100’s of times in both formats. But what are you planning?

Some people strongly prefer the online version, noting the flexibility of adding new content, combined with nobody needing to travel. For many, the online format can be perfect. Others prefer the in-person setup. Being in the same room together. More energy, more collaboration, more engagement, more teamwork.

There is no right or wrong, it’s simply up to you, which format you prefer.

1.      “Bits and pieces”

Duration: Varies, from 30. Minutes to days

Format: online or in-person

Example: Hatch Founder Workshop

The “Bits and pieces” format allows you to extract certain pieces from the Scale Up! kit and work with it, without having to run the entire simulation.

This is great if you are running shorter sessions, focused workshops or want  to zoom in one a certain topic, without bringing the full kit. Expert facilitators like Enrico or Javier, regularly use the Scale Up! Strategy cards in founder coaching conversations, while I run multiple exercises for founders on the Investor Map and Long-term funding roadmap, combined with a handful of Scale Up! Investor cards.

There is no one best way to run this, feel free to mix and match the bits and pieces as you see fit.

Or, if you prefer the in-person format.

2.      Discovery

Duration: 2-3 hours

Format: Light, easy, introduction level

Example: Strategy Tools hosted online discovery session

Imagine having friends over for dinner, and all you serve them is an appetizer and that’s it. That’s a Discovery session for you. It is a taster. Nothing more. But for most people, it is great way to get a first taste, a first chance to see Scale Up! in action. Just be clear on format and expectations. This is not a full program. It not even a full introduction. But for a couple of hours, it serves as a great appetizer.

3.      Pilot

Duration: 1 day

Format: Beginner and intermediate, introduction focused

Example: Scale Up MENA! pilot in Dubai

Pilots are a great way to get people introduced to and initially started on Scale Up!

A good pilot session is usually a full-day (5-8 hours), something most founders can carve out time for. A good pilot will have four sections throughout the day. – Welcome & introductions (20. Minutes) – Opening lecture (30. – 90. Minutes) – Hands-on, in teams, running Scale Up! (3-6 hours) – Debrief, next steps and how to move from pilot to full program

We recommend most new facilitators to plan for 5-20 Pilot sessions per year, as it has proven to be a great way to get going with Scale Up! in a new market or ecosystem. Most founders, once they have tried a pilot session, usually want more  – and soon.

4.      Workshop

Duration: 1-3 days

Format: varies from light, entry-level, to advanced, depending on the group

Example: 2-day Scale Up! workshop with the Ocean Startup Project in Canada , or 1-day with EO Dubai.

The workshop format is standard, full-scale delivery. But a workshop tends to be shorter, slower and less advanced in terms of content than a Masterclass. We have done 100’s of workshops. They are great. But think about workshops as the little brother against the Masterclass.

In a workshop format, you would aim to run Scale Up! from start to successful exit (end); but you have more flexibility in terms of content (take things out), pacing (slow things down), and adjust to the topics the group wants to focus on. A workshop is a very flexible format.

Often, the workshop format ties well into ongoing client engagements, where you decide to run Scale Up! as a part of a larger engagement. We frequently do this with angel networks, family offices, incubators, accelerators and ecosystem developers with great effect.

5.      Masterclass

Duration: 2-3 days (3 days recommended)

Format: advanced level, complex, fast-paced, challenging, but also incredibly engaging

Example: Bahrain, DNB, Dubai, Cairo and many, many more

A Masterclass is an advanced, fast-paced, stand-alone delivery of Scale Up! It usually runs over three days, in some cases 2,4 or even 5 days.

What makes a Masterclass stand out is the full-on pace, advanced content and focus on taking all teams through the best possible experience we can.

A Masterclass is planned down to every 15. Min slot, and covers a number of Founder Tasks, Breakout exercises and Strategy Tools canvases.  A robust Masterclass will take participants through every step of the scaling up journey, and focus significant attention on the later-stage issues, such as Outcome Canvas, partial investor liquidity and a full exit transaction. Depending on the level of the participants, an exit transaction can end out in a ‘quick M&A’ (takes around 20. Minutes to complete) or a full-scale IPO process (takes around 3-4 hours to complete).

Personally, the 3-day Masterclass is my favorite format, as participants tend to lean in, work hard and we can see massive progress with just a few days of work.

6.      Program

Duration: 30-90 days, could be more

Format: Usually quite advanced, depending on the group. Covers a broad range of topics, with Scale Up! being very central.

Example: 30-day Investment Readiness program with Katapult Accelerator, Savant Accelerator, Link Capital or GIZ

A program structure means Scale Up! is just a small piece in a larger entreprenurship program. This can be a one week program, a four week program, a 90-day program or longer. With Katapult, we run a 30-day, high-intensity program.

In a program format, we usually plan for Scale Up! as one of the cornerstone activities, but we also plan for a lot more work and content than just Scale Up! Over the years, we’ve run a significant number of the 30-day Investor Readiness Sprint, a 30-day, intense, packed program to get founders truly investor ready, and radically increase their chances of successfully raising their next round of equity investment. In this format, we recommend founders to allocate 100-150 hours per startup team, with Scale Up! taking less than 15 hours.

In your work, you can probably see many program structures where Scale Up! can be a small piece of the bigger picture.

7.      Education

Duration: From one day to a full semester

Format: Depends on learning goals, levels and target outcomes.

Example: FHV, Northwestern, ESCP and many, many more levels: Scale Up! is used in educational programs from High School (Canada), Business School (Europe and the US) and technical universities (Europe)

The first time we brought Scale Up! into a classroom was in Dornbirn, Austria (truly, in the Austrian alps) in October 2021. Since then, 100’s and 100’s of entrepreneurship students have experienced Scale Up! as a part of their educational programs.

In Canada, Stuart and Michael have been running an innovative space tech x Scale Up! high school program, as well as multiple university programs. In Germany, Austria and Italy, Enrico has been teaching with Scale Up! across programs. In Silicon Valley, Rick has been educating future startup founders with Scale Up! In London, Vishal is teaching entreprenurship with Scale Up!

8.      Multi-year programs

Duration: Runs into years

Format: Varies significantly, but usually several Scale Up! sessions over time

Example: Reinventing the Norwegian innovation cluster program

A multi-year program might take the shape of a larger ecosystem development initiative, a national transformation program, a business angel development program or simply upskilling

In Norway, from 2017-2021, we ran a multi-year program on reinventing the national, Norwegian innovation cluster program. Here, Scale Up! was a cornerstone in the project. Over these 4-5 years, we probably ran 30 Scale Up! sessions of different lengths and formats. In Cairo, working with Tiye Angels, we run a multi-year program covering early-stage founders, scaling founders, angel investors and ecosystem coaches.

For anyone who might have a chance to plug Scale Up! into a multi-year development program, expect to see huge improvement in your own expertise and mastery in how you run Scale Up!

Looking ahead, we can see many forms of these multi-year programs:

• Boosting the Nordic tech ecosystem
• Scaling the European startup ecosystem
• Taking the UAE and MENA ecosystem to the next level
• Upskilling a generation of startup founders in Saudi Arabia – Developing stronger financial and fundraising skills in South East Asia
• Boosting accelerators and Business Support Organizations in Latin America
• Building deep skills in entreprenurial finance, cap tables and fundraising in Africa

These are just a handful of the Scale Up! multi-year programs we would love to see coming up, led by you, as the new expert facilitators.

9.      Train-the-trainers

Duration: From a few days to multiple months

Format: Blended, online or in-person (most do blended)

Example: Scale Up MENA! TTT, Strategy Tools Master Trainer, Katapult TTT

One day, hopefully, some of you might want to start training and supporting new Scale Up! expert facilitators in your ecosystem. Go for it! One of the best ways to learn is by teaching others.

We have taught, trained and certified 70+ Scale Up! Facilitators, closer to 300 if we count everyone that has been through the Train-the-trainers, but not necessarily taken up Scale Up! as a professional track.

In your case, if you have an accelerator team, local business school faculty or a network of consultants and investors you work with; go for it. Put together a new, innovative Train-the-trainers program in your ecosystem, or let’s work together with you running our standard TTT program, in your part of the world.

Who knows, maybe you will be the one to unlock 100’s of new Scale Up! facilitators, you just don’t know it yet.

The best way? Just get started

In this blogpost we have outlined ten ways you can run Scale Up! From classrooms to workshops, from multi-year programs to discovery sessions; the choice is yours.

Regardless, the best way to run it is simply getting started. Enrico, one of our most experienced Scale Up! facilitators, once said, that new facilitators (like yourself) should aim to run 20 sessions, minimum, in the first year. With 20 sessions, you build muscle memory, confidence and quickly gain mastery.  Just get started.

On our end, we are excited to see what you will do with Scale Up! in the coming years – ultimately supporting startup founders to build and scale better companies in your part of the world.

So, you are getting ready to embark on the Scale Up! Train-the-Trainer? Exciting! This can be truly life-changing for your professional career!

Before you begin, here’s a couple of points you might like to know.

Part I: Ten fast facts

1.      What is Scale Up? Scale Up! is a methodology to develop entrepreneurs, founders, angel investors, accelerators, incubators, VCs and ecosystem developers. The Scale Up! Methodology is based on 20+ years of experience supporting 1000’s of high-growth startup founders from pre-seed to post-IPO. The methodology is built on ‘working visually’, with a series of visual canvases and the visual Scale Up! kit.

2.      What’s the core idea behind Scale Up!? In Scale Up! participants form teams and compete through the Founder’s Journey, taking a company from idea to successful exit. For most people,  we do around 8-10 years in just three days.

3.      How is Scale Up! delivered? In-person or online (using Miro and Zoom)

4.      How can Scale Up! be run? Your imagination sets the only limitations; we describe seven different ways you can run Scale Up! We prefer the 3-day format, but half-day, one-day, two-day, five day or even 3-month formats are possible. It’s really up to you.

5.      How many people have been through Scale Up!? Globally, ca. 4.500 to date

6.      How many countries have Scale Up! been run so far? 50+

7.      How many expert facilitators are there? ca. 70+

8.      How many Scale Up! version are there? – Scale Up! (1.0) – Scale Up Angel! – Scale Up MENA! – Scale Up Africa Rising! – Scale Up Europe! (launching in 2026). More coming…

9.      Who developed Scale Up!? Chris Rangen and his colleague Jolene Foo-Hodne was working with Innovation Norway, the Norwegian national innovation agency on a national program. This collaboration led to the first Scale Up! back in 20218.

10. Who can run Scale Up!? Globally, anyone can learn to run Scale Up! To date, faculty, VCs, accelerator staff, coaches and consultants have all learned to run Scale Up! With a bit of training and willingness to learn, anyone can.

Part II: Two types of knowledge

The two sets of expertise you will develop For anyone running Scale Up!, there are two skillsets you need. We count these on a one to five level, from beginner to expert.

Domain knowledge Domain knowledge is how much you know about the content, the term sheets, the deal structures, the cap table math and how to bring together a 2M @4M post SAFE, with a 500.000 @3M pre equity round, while also keeping the initial angel investors happy and structuring a 12% post-round ESOP.

Domain knowledge is important. It is what you know. It is the foundation you use to teach, coach and mentor others. Everyone should strive to develop their domain knowledge.

But domain knowledge alone is not enough.

Facilitation knowledge Next, you have faciliation knowledge, or really faciliation skills. How comfortable are you with structuring programs, designing multi-stakeholder workshops and facilitating high-paced masterclasses? Can you manage large groups, in both online and in-person formats?

Can you use your voice well? Can you give instructions clearly? Can you design a workflow to keep people engaged over multiple days?

For most of us, these two sets of skills is something we work on constantly, day in and day out. You never graduate, you just keep getting better and better over time.

Part III: The five core topics you will master

Our train-the-Trainer is designed around five core topic areas. Each represents a critical piece of the puzzle every Scale Up! Expert Facilitator needs to handle with confidence.

1. Founder’s Journey From IPO dreams to the messy realities of taking a company public, you will learn to guide participants through every twist and turn. This is the backbone of Scale Up! – understanding what founders actually go through from idea to exit. Can you tell stories, of success and failure from across the Founder’s journey?

2. Term Sheets 600+ term sheets. SAFE notes. CLAs. Priced rounds. Liquidation preferences. You will learn to read, understand, and explain even the most complex investor term sheets. Did you know there is such a thing as ‘too many term sheets’? You will.

3. Cap Tables From foundational equity to Series K dilution, cap table mastery is non-negotiable. You will learn to help founders understand how their equity evolves – and how to protect it.

4. Ten Steps to Scaling Up This is where strategy meets execution. Scale up mindset. Exit planning. Equity management. ARR velocity. Team development. Market expansion. Customer discovery. Financing. Product development. Scaling with AI. Ten interconnected elements that determine whether a startup stays stuck – or scales.

5. Liquidity & Exits The ultimate question: how do you return value to investors? M&A, IPO, secondary transactions, partial liquidity – you will learn to facilitate conversations most founders have never had. Combined, these five are the core topics you need to study up on to build out your domain expertise.

Part IV: Three levels of development

Here’s the thing about becoming a Scale Up! Expert Facilitator. It’s not about reading a manual. It’s about a progression through three distinct levels.

Knowledge This is where you start. Learning the content. Understanding the frameworks. Reading term sheets. Studying cap table math. Getting fluent in the visual canvases, the Founder’s Journey, the Investor Map, the Rocketship Canvas. You are building the internal library that allows real improvisation later.

Confidence Knowledge is not enough. Confidence comes from running programs. From co-facilitating with masters. From leading a full simulation and experiencing what it feels like when things go sideways – and learning to recover. This is where the nervous system develops. Where you learn to sense what a room needs, moment to moment.

Mastery Master facilitators create unseen structure and invisible support. They make profound learning look effortless. They adapt mid-session to emerging themes without losing coherence. They know when the ‘wrong’ conversation is actually the most important one. Mastery is not perfection – it’s the hard-won ability to orchestrate genuine transformation.

Part V: What a typical Scale Up! session looks like

Here, we use a three-day format. You can of course mix and match this around to best suit your format. You can easily adapt to a one-day format, two-day or even five-day.

Day 1: The Foundations

The Welcome session kicks off with the Founder’s Journey, Investment instruments and Foundational equity. You will dive into Strategy 101, Pre-seed/seed stage dynamics, ESOP structures, Term sheets, Investor mapping, Product development and Pitch deck fundamentals.

By the end of Day 1, teams will have navigated 30+ term sheets across 2-5 rounds, managing raises from 1M – 10M at valuations of 10M – 30M. Boom cards. Bust cards. Burn rates from 10.000 – 100.000. Welcome to the founder’s reality.

Day 2: Scaling Up

Day 2 opens with a Pitch session. Now you take teams into venture territory. Sales organization. Market expansion. Long-term capital strategy. 3x Value uplift. Boards & governance. Rocketship canvases. LinkedIn positioning. Complex term sheets. SAFE conversion mechanics. Product mastery. Investor liquidity & returns. Outcome canvas analysis.

The complexity ramps up. Each team should see term sheets: 30-40. Rounds: 3-5. Raises: 20M – 100M. Valuations: 100M – 500M (and pushing toward 1BN). Boom: 10-30. Burn rate: 500.000 – 5M. This is where scaling founders separate from starting founders.

Day 3: Growth & Exit

The final day opens with an Outcome pitch. You are now in growth stage territory. Global leadership. Market expansion. Margin expansion. Investor questions and power dynamics. M&A strategies. Liquidity transactions. IPO readiness. Exit transactions.

The stakes are highest here. M&A: 0-3 deals. Term sheets: 20-40. Rounds: 1-5. Raises: 50M – 1BN. Valuations: 10M – 30M? Not anymore – we’re talking multiples higher. Boom: 10-15. Burn rate: 10M – 20M. This is where winners are made.

Part VI: Quick reads

Who attends a Scale up Program? Read it.

Who buys Scale Up? Read it.

Evolving Scale Up! Read it.

The Scale Up Angel E-mail Read it.

The four cap tables in Scale Up! Read it.

Scaling Up in MENA: The Most Common Investment Instruments Read it.

Can you run the cap table? Read it.

Scaling up in MENA! Read it.

Ten Books That Will Save You From Costly Cap Table Mistakes: A Reading List for Founders, advisors & expert facilitators Read it.

From student to master: how Enrico Maset become one of the world’s leading Scale Up Experts Read it.

Part VII: Selected case studies

How Katapult Accelerator Gets Its Startups Investor-Ready Read it here.

Scaling up in the rising Egyptian ecosystem Read it here.

Helping Madica’s pre-seed startups bridge the scaling chasm Read it here.

Scaling to exit with Dubai Future District Fund Read it here.

Bridging the Capital Chasm Read it here.

Why This Matters

Globally, over 70 people are now trained and certified to deliver Scale Up! programs. They work in 50+ countries. They’ve taken nearly 4.500 founders, investors and ecosystem builders through the journey.

As an Expert Facilitator, you will join this global community. You will gain the ability to transform how founders think, how investors evaluate, how ecosystems develop.

The best part? The journey from Learn to Run to Apply to Fly is one of the most rewarding professional development paths you can take. Each program you deliver, you get better. Each challenging term sheet negotiation you facilitate, you grow. Each breakthrough moment you witness – a founder finally understanding their cap table, an investor seeing the power dynamics differently – reminds you why this work matters.

Ready?

The Scale Up! Train-the-Trainer is not a certification you collect. It’s a capability you develop. A community you join. A journey you commit to.

From Knowledge to Confidence to Mastery. From Day 1’s foundations through Day 3’s exits. From your first nervous co-facilitation to the flow state of mastery.

Are you ready to help more founders scale?

Let’s go.

Looking forward to working with you!

This year’s top 10 ranking takes us to places like Switzerland, Nigeria, Fiji, Canada (twice), the United Arab Emirates, Egypt, the United Kingdom, Mauritius and Saudi Arabia; here are our top 2025 Masterclasses – all built around the Strategy sims.

1. Fund Manager!, IMD (Switzerland)

WHO: IMD (Business School)

WHERE: Lausanne, Switzerland

DURATION: 2 days (Twice, one in May, one in September)

WHY THE SIM?

Now in its third year, the collaboration with IMD is perfectly mission-aligned with our goal of taking venture asset education in Europe to the next level. We are honored and privileged to be working with faculty lead Jim Pulcrano, pouring all his energy and connections into building this program into a force for good in the European VC landscape.

The reason IMD’s Fund Manager! Tops this ranking for the second year in a row is simple. The quality of the participants and the quality of work we witness in the program easily exceed any other group, anywhere (sorry, everyone else). This outlier performance is likely due to a couple of reasons. Number one, the top-notch quality of participants can really be felt from the moment we step into the classroom. These are high-processing power participants, ready to work. For this year, we had multiple high-caliber investment professionals, including Germany, Switzerland, Italy, Oman and Saudi Arabia. The pure quality of participants make this program stand out in every aspect.

Second, people lean in, work hard, prepare well. It is clear that people take the time, focus, concentrate and show up truly prepared and ready to work.

Third, participants truly engage with the content, exercises, challenges and presentations. They put in the work, overnight, from day one to day two. People are competitive and that truly helps team shift gears going into day two.

OUTCOME:

Clearly positioned as an educational experience, the four day Venture Asset Management Program has two core elements. Days 1 & 2; classroom learning through guest speakers, lectures and case studies. Days 3 & 4, hands-on experiential learning, where participants form teams to lead their own investments firms over a 15-year journey, for most teams culminating in running not one, but two investment funds.

What teams truly take away; navigating the full 15-year fund journey, from start to net DPI.

“The best learning experience—budding unicorns all over! An actual magic learning process.” — Anna Ziajka

“Just wow… So much of what I’ve been picking up mostly piecemeal over the years really began to crystallize. My VC excitement is validated.” — Ashton Songer Ferguson

“In just 48 hours, we went from barely knowing what pre-money meant to negotiating term sheets and syndicating deals. It’s one thing to read about VC in books, but you only ‘get it’ under pressure.” — John Nicholas

WHY IT MADE THE #1 SPOT ON THE TOP 10 LIST:

Our shared passion with IMD runs deep. We are in this together, to educate venture capital leaders across the ecosystem. From emerging limited partners, family offices, future fund managers, pension funds, sovereign wealth funds, newly formed CVC teams; we have met them all at IMD’s Venture Asset Management Programme. With 55+ Fund Manager! Programs completed globally, the IMD experience stands in a category of its own – for the second year in a row. Want to learn more? Join an upcoming Venture Asset Management Program in May or September. Read more about VAM here.

FULL CASE STUDY: Taking Venture Asset Education in Europe to the Next Level

DELIVERY TEAM: Chris Rangen, Scott B. Newton

2. Pacific Island Fund Manager (Fiji)

WHO: Matanataki (General partner)

WHERE: Fiji

DURATION: 3 days (9 months, really)

WHY THE SIM?

“Chris, we want to make an impact version of Fund Manager!, for Fiji” “Of course”, I said, the first time Jodi, GP and founder of Matanataki brought this up in Singapore in November 2023. “No problem”

Little, of course, I knew that this easy-going conversion would turn into the hardest, most complex project of all of 2025 – and ultimately culminate in a powerful ecosystem engagement workshop on Fiji in August the same year.

Working with Jodi Smith, Andrew Irvin and the design team to bring the Pacific Islands Fund Manager! from  early idea to live delivery was a genuine highlight of the year – and stands as one of our most complex projects – possibly ever.

OUTCOME:

The research took 5-6 months. Deep diving into the shifting world of impact investing. Not just the label of impact investing. The real world where most of the traditional instruments are not available. Where follow-on financing rounds do not exist. Where the traditional metrics for VC and PE are not just skewed but completely altered. Where the traditional PE playbook does not apply. Where impact frameworks have moved from complicated to outright impossible for most of us to follow (Shoutout to Aunnie Patton Power for being a grounded voice of solid research in this space, and Jen Braswell for lending a life-time of experience to our emergent research). As winter turned to spring, our work turned into content development and writing.

We stopped counting at 2.400 new, unique content cards. We piloted. We iterated. Slowly, the content was starting to click. The fund financial model got built out; our most complex yet. (imagine you are running a full investment portfolio with both equity investments, cash flow and earnings and impact investment data. If you know, you know). Spring turned to summer, and the Fiji ecosystem engagement program was drawing closer. Internal tests and retests. Internal Train-the-trainers for the project team.

We landed in Nandi, Fiji around 6 am. Ready to support Jodi and the full GP Team at Matanataki on their ecosystem engagement. LPs were flying in. Key people and partners, politicians, portfolio CEOs, former EIB and IFC fund-of-fund executives flew in. The actual Pacific Islands Fund Manager! Workshop took place in Suva, overlooking the bay.

Five teams, five to eight people per team. Each team setting up their own $50M ocean impact fund, aiming to deploy capital and scale 10-25 impact investments across the Pacific. Perfectly modelled out to reflect the real-life challenges of leading a multi-decade investment platform in Fiji. Futaspak Pacific investment fund (Future Spark), Mana Pasifika, Wan Solwara, Pacific Ocean Resilience Fund and Loloma; all competed and collaborating, making a total of 50 investments, deploying $233.565.000, while returning back $475.239.939 to LPs. Mana Pasifika outperformed its peers with a 163,5 Impact Score, easily beating the average of 131,8 impact score. Financial top performance went to Pacific Ocean Resilience Fund, who turned a $16M equity investment in BlueSeaScape into a $230M cash-on-cash exit, ultimately returning 7.1X net DPI back to its LPs

More importantly, the ecosystem engagement brought together 30+ key ecosystem participants across the Pacific. From General Partners at Matanataki, Limited partners with a clear ocean impact focus, Fiji-based pipeline and portfolio CEOs, political connections, ecosystem supporters, village chiefs, island elders and investment professionals supporting Matanataki. The experience left a deep, lasting impression of both the complexities of running a Pacific island ocean impact fund and the importance of working with the ecosystem to make it happen.

WHY IT MADE THE TOP 10 LIST:

We probably spent north of 900 hours to develop Pacific Islands Fund Manager! Bringing it to Fiji to run with a truly eclectic group of participants from across the Pacific islands investment landscape was a unique experience. At the same time, even the most experienced team co-facilitators came back, “this is too hard to run”, reflecting the genuine challenges of running a multi-strategy, impact-first investment fund in the Pacific.

That’s how we designed it. To be hard. Because it is. Pacific Islands Fund Manager! Aims to truly showcase the details, the complexities, the technical requirements to run a 20-company investment portfolio with a mix of equity investment (but without any traditional follow-on rounds for equity valuation mark-ups), debt investment (but also requiring the investors to be deeply familiar with cash flows and ability to service debt), and recognizing that no traditional exit paths exists, to revenue-based earn-out models, community-based buyouts and self-liquidating exit routes need to become the default across the portfolio; while also balancing this with the PhD-technical-skill level of truly tracking impact metrics in line with(overly complicated) LP reporting requirements. We’ve looked globally. Nothing quite like this exists anywhere. This is why Fiji’s Pacific Islands Fund Manager! Made the top 10 list of 2025. But, it’s hard.

DELIVERY TEAM: Chris Rangen, Jen Braswell

3. Scale Up MENA X DFDF (UAE)

WHO: Dubai Future District Fund (Fund-of-funds)

WHERE: Dubai,UAE

DURATION: 2 days

WHY THE SIM?

Our partnership with DFDF runs back several years. When we started the development of Scale Up MENA!, DFDF was an obvious partner to work with to launch Scale Up MENA! In Dubai.

Our thesis: Scale Up MENA! Will perfectly support founders as they raise their Series A and need to grow into venture- and growth stage territory. Working with Tiffany Bain, Nader AlBastaki and Mahmoud Ward and 20+ late-stage DFDF portfolio founders, we got the thesis proven. In November 2025 we hosted the first ever Scale Up MENA! Masterclass, aimed exclusively at a small, hand-picked group of portfolio founders and a few investment professionals from across the MENA ecosystem.

OUTCOME:

“Just wrapped up an incredible two-day workshop on Scaling and Exiting for Founders, hosted by Dubai Future District Fund who I’m deeply thankful for the invitation. If only I had attended something like this 20 years ago during my first venture… In just 16 hours, we covered what felt like a year’s worth of founder lessons thanks to Christian Rangen of Strategy Tools and the team”, said, Fahmi Al-Shawwa, Founder & CEO of Immensa upon completing the program.

“In just two days we take people through a full 8-10 year journey to exit, the founder’s journey”, said Scott B. Newton, aptly summarizing the program.

So, what are people equipped with upon completing Sclae Up MENA! ? – Think long-term growth strategy – Study term sheets, work hard to get five+ term sheets for each round – Understand investor outcomes, understand the VC business model and how you fit in – Work strategically on exits, start earlier than you think – Keep your cap table clean and updated. A messy cap table makes secondaries and exits impossible – And maybe most importantly, scaling up starts with a mindset shifts and expands form there

FULL CASE STUDY: Scaling to exit

WHY IT MADE THE TOP 10 LIST:

“We are picking our very best founders”, said the team at DFDF. And they did. The founder participants we met were deeply experienced. Successfully built and exited in the region already. Negotiating the $160M term sheet with Blackrock. Raising Series A’s across markets. Deep experience in capital markets, having work for many of the leading investment banks in the region. They were, if you will, ‘supercharged founders’.

Taking this advanced group of founders and investors through Scale Up MENA!, going from idea to exit in just two days was a sprint – but they truly aced it. It proves that Scale Up MENA! Is well suited, to not only support early-stage founders (seed) but also push and support venture- and growth stage founders as they scale.

“Possibly the most unique training I have taken part in. The highs and lows of being a start up founder squeezed into two days.” – Michael Hunter, CEO & Co-founder, Holo

“The best program so far I have attended and at what speed. Precisely designed, immaculately delivered” – Avneesh Prakash, CEO, CAMB.AI

DELIVERY TEAM: Chris Rangen, Scott B. Newton, Sanjana Raheja, Alain Traboulsy

4. Transform! Hult Ashridge (UK)

WHO: Hult Ashridge Business School, in partnership with a leading European industrials company

WHERE: Ashridge campus, London

DURATION: 2 days

WHY THE SIM?

Transform! Has been a backbone of many executive education programs for the past six years. One of the most active business schools, with a long track record of experiential learning, has been Hult Ashridge and notably their global corporate and executive education teams.

When one of Europe’s leading industrial companies partnered with Ashridge to design a high-impact, future leader program, Transform! Was a strong addition to bring into the teaching format.

OUTCOME:

Transform! Is centered around four key domains; Team performance, Strategy & transformation, Capital markets & governance and performance. Within each of these, numerous topics are explored in depth. “How well did we gather, share, process information, allowing us to solve complex problems?”, “How well did we use different capital and finance options to gain an advantage on our peers?”, “How well did we interact, communicate, and respond to capital markets and various shareholder and stakeholder groups?” and “How well did we develop a winning culture, game plan, and mindset, to both overperform, outperform,and outcompete the other teams”

For the future leaders at the Industrial company, working at the incredible Ashridge campus, Transform! Served as a strong reminder that leadership is far more than just managing your team and hitting your P&L’s. To truly lead a transformational company, a very different playbook is needed.

WHY IT MADE THE TOP 10 LIST:

“Over a year we might run 25-30 Transform! Sessions globally, but this group was spectacular. Hungry, ambitious and clearly pushing themselves to transform faster – both individually and as teams”.

DELIVERY TEAM:  Chris Rangen

5. Scale Up MENA! Falak Startups (Egypt)

WHO: Falak Startups, in partnership with EBRD

WHERE: Cairo, Egypt

DURATION: 3 days

WHY THE SIM?

It all started in Cairo. A bit more than a year ago. We saw the effects of having more localized content. Of having more local market realities. Of having content and cases people could relate to. This insight, in November 2024, led us to develop Scale Up MENA! Now, a year later, we were back in Cairo, back with our friends at Falak Startups. In collaboration with EBRD Star Venture, Falak hosted nearly 30 scale up founders, investors and ecosystem builders.

Scale Up MENA!, if you were, was coming home. Over three days we had five teams compete – and collaborate – to build breakout winner companies coming out of MENA ecosystem.

OUTCOME:

The scale Up MENA! Masterclass equips founders and investors with five key things.

1. A chance to experience the Founder’s Journey, from idea to exit

2. Navigate 500+ term sheets and financing instruments

3. Crack the code of revenue velocity and market expansion

4. Learn a series of visual strategy canvases

5. Handle a cap table from first founders’ shares through an exit transaction

WHY IT MADE THE TOP 10 LIST:

What made this session unique was two-fold. One, being back in Cairo with the team that helped kick-start Scale Up MENA! to begin with. Two, seeing founders really engage – and compete – with the ultra-localized content, deal terms, investor term sheets, investment bankers and Superinvestors from across the region. But, most importantly, this was yet another fast-paced, high-energy, Scale Up! Masterclass, proving to us as facilitators just how much content, learning and advanced level materials we can pack into just three days.

Full case study: Scaling up in the rising Egyptian ecosystem

DELIVERY TEAM:  Chris Rangen, Rumbi Makanga, Mohammed al Rasbi

6. Fund Manager! BKR Capital (Canada)

WHO: BKR Capital

WHERE: Toronto, Canada

DURATION: 3 days

WHY THE SIM?

BKR Capital’s mission is to bridge the funding gap for Black-led companies in the technology sector, fostering an inclusive ecosystem by making capital accessible to visionary founders, driving wealth creation for the Black community, and training the next generation of Black investment professionals. They provide early, transformational investments in disruptive tech startups, aiming to create systemic change and normalize diversity in venture capital. BKR Capital has partnered with Strategy tools to work directly with their talented investment professionals including the Fund Manager simulation which was held in person in Toronto Canada in 2025 (and again in 2026)

OUTCOME:

The GPs and ecosystem partners that participated in the simulation were highly positive in their feedback, and noted both how realistic the simulation was, and how practical the tools are to diagnose and start improving performance from today forward.

The talented GPs demonstrated how they can improve their Strategy, their pitch, their approach, and importantly teamwork to deliver at even higher levels of impact in the future.

WHY IT MADE THE TOP 10 LIST:

While we delivered Fund Manager to global groups in 2025, this particular SIM session stood out for the advanced levels of discussion, the intense preparation by the participants, and their application immediately in to their funds and teams.

DELIVERY TEAM: Scott B. Newton

7. Scale Up! Madica Ventures (Nigeria)

WHO: Madica Ventures

WHERE: Lagos, Nigeria

DURATION: 2 days (with 2 preparatory webinars the week before)

WHY THE SIM?

Madica wanted to move beyond investor theory and slide decks to give pre-seed founders a realistic, hands-on understanding of fundraising, investor dynamics, and long-term capital strategy. While most founders had already raised using SAFEs or CLAs, many lacked clarity on how these instruments convert, how dilution compounds over time, and how to plan multiple rounds ahead while balancing growth, cash flow, and investor expectations.

The goal was to build real decision-making muscle by letting founders experience the consequences of their choices in a simulated but high-pressure environment.

“Madica wanted practical, hands-on training where the founders could immediately apply the learnings in their own startups.” – Vishal Shah

OUTCOME:

Fifteen founders experienced the full founder journey—from idea through multiple funding rounds to exit—inside the Scale Up! simulation. Working in teams as CEO, CFO, and CRO, participants structured and closed funding rounds, selected and traded investors, responded to board demands, explored acquisitions, and executed high-stakes exits—learning firsthand how early decisions compound over time.

By the end of the program, founders could confidently map long-term capital strategies, rebalance cap tables, understand SAFE and CLA conversions, and align growth plans with investor expectations.

“…I learned a great deal about the fundraising process and the connection between financial metrics and company valuation.” — Ahmed Chaari

“This simulation was an amazing opportunity to learn from realistic scenarios… and live through it up until the exit scenario”.- Yousef Elsamaa, Co-Founder & CEO, Daleela

WHY IT MADE THE TOP 10 LIST:

• Tackled one of the hardest challenges for African startups: scaling beyond pre-seed with capital discipline
• Transformed complex VC mechanics into hands-on, high-pressure decision-making
• Compressed years of fundraising, investor alignment, and exit planning into two intense days
• Delivered immediately transferable skills in capital planning, dilution management, and investor strategy

“I was strategizing how to build revenue and growth against how we fund that growth. It was really fun, but it was also very thought-provoking.” — Chidalu Onyeso, Founder & CEO, Earthbond

FULL CASE STUDY: Helping Madica’s pre-seed startups bridge the scaling chasm

DELIVERY TEAM:  Vishal Shah, Rumbi Makanga

8. Transform! IE Business School (Saudi Arabia)

WHO: IE Business School, partnering with one of the largest food companies in MENA

WHERE: Riyadh, Saudi Arabia

DURATION: 3 days

WHY THE SIM?

Transform! Has served us well in global business schools including US, Spain, UK, Norway; but would it also hold up as well immersed in the cultural leadership nuances of Saudi Arabia? Would one of Saudi Arabia’s largest companies find Transform! And leading transformation at scale to be both relevant, applicable and suitable? The short answer: yes, absolutely.

The session had clear cultural and content differences, based on conversations and executive leadership challenges that came up. It was not the same as running a five-day Executive Program in the United States, but nor did we expect it.

Anchored in the realities and cultural distinctions of leading transformation in the Kingdom, Transform! Overshot its expectations and formed the backbone of “the best session of our entire leadership program”, according to one of our senior executive participants.

OUTCOME:

The number one outcome was a substantially increased clarity on ‘strategic leadership’. Recognizing that leadership goes far, far beyond ‘managing people’, and in this day and age, covers core skills like strategy, finance, M&A, innovation, hostile take-over, senior level negotiation, financial engineering, a balanced portfolio of core, growth and explore business models providing stable cash flow today and strong business opportunities for tomorrow.

“This was the most insightful leadership development I’ve ever been a part of”, said one senior executive, echoing the group’s take-away; this was strategic leadership development, with profound impact on both team and individual learning.

WHY IT MADE THE TOP 10 LIST:

This was Transform!’s first appearance in Saudi Arabia – and went exceptionally well. This year we have run a record number of corporate education programs, all using Transform!, all seeing customization of content to capture the nuances of each individual client. From food and dairy in MENA, financial technology in Europe, manufacturing in the Americas and Europe to global tech; Transform! Proves an excellent fit for developing strategic leaders at all levels – and that’s why we see Transform! KSA on the list for 2025.

DELIVERY TEAM: Chris Rangen

9. Supercluster! ISED – Innovation, Science and Economic Development Canada (Canada)

WHO: ISED

WHERE: Ottawa, Canada

DURATION: 0,5 day

WHY THE SIM?

Supercluster! was first developed to provide a fun, engaging and competitive way to learn about innovation superclusters around the world. Today, it is regularly used by global cluster experts, ecosystem builders, national cluster programs and cluster managers to build better clusters around the world. Working with the ISED Global Innovation Cluster team in 2025, this was a unique and exciting opportunity to bring together key ISED staff, global cluster expertise and run a fast-paced, expert-level Supercluster! Session.

OUTCOME:

Highly competitive teams quickly formed up global supercluster management teams, stepping into the roles of cluster strategists, cluster boards and cluster leaders. Choosing from a series of ‘case’ clusters, we had Canadian, Norwegian, Chinese and Swiss clusters competing to build out their cluster strategy, secure members, lock in funding and deliver cluster innovation projects. In just a few hours, participants got a chance to not just strategize about cluster development and economic competitiveness, but truly experience the nuances and challenges of building a global innovation Supercluster.

WHY IT MADE THE TOP 10 LIST:

The Global Innovation Cluster team at ISED is one of the world’s most experienced ministry-level teams supporting a national cluster program anywhere. To sit down and race through the Supercluster! Simulation with them in a collaborative, yet ultra-competitive format was somewhere between hyper-competitive and ultra-delightful.

In the global innovation cluster landscape, Canada has truly carved out a leading position, a global position over the past few years. Now, spending several days in Ottawa with the cluster team and their ecosystem development peer teams was highly insightful. Finding time to work through the Supercluster! Simulation allowed everyone to yet again, be reminded of the powerful effects of successfully building and expanding innovation superclusters. Just like with our IMD case study (above), having truly experienced people completing one of the sims in record pace, shows how high-value, high-impact, even a 4 hour session can be. That’s why we include ISED’s Supercluster! Sim in the 2025 ranking.

DELIVERY TEAM: Chris Rangen

10. Fund Manager! Masterclass (Mauritius)

WHO: Equitable Ventures, in partnership with Simera

WHERE: Mauritius

DURATION: 3 days

WHY THE SIM?

Most parts of the world are still in their early steps of developing a rich, robust venture capital ecosystem. From VC education, emerging GP acceleration, depth of knowledge of the VC asset class and building out national fund-of-fund strategies; most parts are still learning.

Zoom in on Africa the this picture just expands. With a massive youth population, rising middle class and a steep economic development path, the African venture capital ecosystem is expected to undergo a massive transformation in the coming decades.

But to get there, we need to work at an ecosystem level to upskill and support all the key building blocks.

This was the path that led us to partner with Equitable Ventures and Simera, to bring the Fund Manager! Masterclass to Mauritius for the very first time in 2025.

OUTCOME:

Over three intense days, four teams set up four GP companies, raising eight funds This could have been in New York, Frankfurt, or Abu Dhabi, but it was in Mauritius. The program was not for Silicon Valley VCs. It was for developing a new generation of LPs, GPs, and ecosystem backers—for Africa, in Africa.

“It’s really impressive how the Fund Manager! simulation closely mimics the real life experiences of fund managers in Africa so this session makes up for a great learning experience. The facilitator’s experience, particularly their global insights, are a very rich addition to the whole experience. I would highly recommend this training to anyone working in Africa’s venture capital ecosystem.”

– Cikü Mugambi, Investment Director, DOB

WHY IT MADE THE TOP 10 LIST:

We absolutely love running Fund Manager!, covering the full fund journey, nearly 15 years, in just three days. It’s intense, it’s complex, it’s packed with learning that can save both GPs and LPs years of pain. Getting a chance to partner with EV and Simera to run this Masterclass in Mauritius was a superb start. Looking ahead, we already have multiple conversations going on how we can best support the maturing VC ecosystem on Mauritius, in turn supporting the ongoing growth of the entire African VC ecosystem. Fund Manager! Mauritius was one of the absolutely best Fund Manager! Sessions in 2025 and we could not be more grateful to the GPs, family offices and LPs that invested three days together with us on Fund Manager! Mauritius.

FULL CASE STUDY: From early strategy to billions in DPI

DELIVERY TEAM:  Chris Rangen, Scott B. Newton

Delivered by a global community

Congratulations to our key partners and expert facilitators for making these 87 Strategy Sims sessions happen. Representing a true, global expert community, this would not have been possible without a massive effort from Scott (Italy), Ljubisa (Serbia), Sanjana (UAE), Vishal (UK), Rumbi (UK/South Africa), Jen (UK), Alain (UAE), Mohammed (Oman) and Stuart (Canada), Michael (Canada), Rick (US), Wan Fadzil (Malaysia), Suhail (Bahrain), Javier (Mexico), and many more.

Kickstart 2026 by learning more about Strategy Sims in action

Since inception, Strategy Sims have grown into a global phenomena, with 10.000 people, 400+ sessions, 70+ facilitators and ten unique Strategy Sims. Now you can read how global practitioners use Strategy Simulations to drive learning, mastery and change. In August 2025, the global community came together to co-author the first ever report, Strategy Sims in Action. Read it today.

What you get in the report

●     An overview of the ten Strategy Sims

●     Case studies from leading business schools and companies

●     Expert insights from leading strategy experts

●     How Global Partners Use Strategy Sims in Action

●     The Strategy Sims Methodology

●     How to get started

●     …and much more

Get the Strategy Sims in Action report today.

Read the full story, The Fund Journey: An Emerging Manager’s Story from Kuala Lumpur to South-East Asia, Part I (years T-2 -1), Part II (years 2-5) and Part III (years 6-7).

Fund: Meridian Ventures Fund III Fund Strategy: Early-stage B2B software, AI and fintech across South-East Asia (Malaysia, Indonesia, Vietnam, Philippines) Recommendation: Invest Date: October 5th

Commitment: $5,000,000 In % of total fund size: 10% Our role with the fund: Limited Partner with Advisory Committee seat

Investment Context

Employees Pension Fund (EPF/KWSP) is evaluating a $5M commitment to Meridian Ventures Fund III as part of our emerging manager allocation within the alternative investments portfolio. This represents our first commitment to Meridian, though we have tracked the firm since Fund II.

Why Meridian Fund III:

• Malaysian-based GP aligns with our mandate to support domestic asset managers
• Strong Fund I performance (2.8x TVPI, 0.6x DPI at Year 5)
• IFC co-investment provides institutional validation
• Proven team stability through challenging early years
• Clear thesis in B2B/fintech aligned with Malaysia’s digital economy priorities

Our Due Diligence Findings:

• GP team demonstrates resilience and discipline (DataSync write-off handled well)
• Differentiated GTM value-add through Venture Partner
• Conservative fund sizing relative to opportunity
• Strong LP re-up rates from Fund I/II (>80%)
• Institutional-grade reporting and governance already in place

Analyzing Fund III with the LP Outcome Canvas

Outcome Models

1. Terrible

Scenario Description: Multiple portfolio failures due to regional economic downturn or systemic startup ecosystem collapse. Fund deploys capital but majority of companies fail to reach Series A. No meaningful exits. GP team potentially breaks up under pressure.

What would cause this:

• Severe regional recession impacting startup funding environment
• Key GP departure (key person event)
• Systematic misjudgment in investment selection
• Follow-on funding market collapse preventing portfolio companies from scaling

Metric Value

Years to 1x DPI Never

Years to Full Distribution 12+ (wind-down)

Fund Multiple 0.4x

Our Net TVPI0.4x

Our Net DPI 0.3x

Probability 5%

Our outcome: $5M invested → ~$1.5M returned over 12 years. Significant loss but limited to committed capital.

2. Disappointing

Scenario Description: Fund performs below expectations. Some exits occur but at modest valuations. Winners don’t scale as hoped. J-curve extends longer than projected. Returns below hurdle rate, no carried interest paid.

What would cause this:

• Mediocre portfolio company performance across the board
• Regional exit market remains challenging (limited strategic acquirer appetite)
• Fund I outperformance was partially luck, not fully repeatable
• Competition from larger funds compresses Meridian’s deal access

Metric Value

Years to 1x DPI Year 9

Years to Full Distribution 12

Fund Multiple 1.5x

Our Net TVPI 1.5x

Our Net DPI 1.4x

Probability 15%

Our outcome: $5M invested → ~$7M returned over 12 years. Positive but below our target returns for venture allocation. Opportunity cost versus other alternatives.

3. Performing

Scenario Description: Fund delivers solid, median-quartile returns. Portfolio construction works as planned with expected winner/loser distribution. 2-3 strong exits, several modest outcomes, typical write-off rate. GPs execute their strategy competently.

What would cause this:

• Normal portfolio distribution: 20% winners, 50% modest outcomes, 30% failures
• Regional exit environment functions adequately
• Fund I success was real but Fund III faces more competition at larger size
• Team executes well but without breakout positions

Metric Value

Years to 1x DPI Year 7

Years to Full Distribution 11

Fund Multiple 2.2x

Our Net TVPI 2.2x

Our Net DPI 2.0x

Probability 35%

Our outcome: $5M invested → ~$10M returned over 11 years. Meets our baseline expectations for emerging manager venture allocation. Acceptable risk-adjusted return.

4. Overperforming

Scenario Description: Fund outperforms expectations with strong portfolio company development. Multiple successful Series A/B raises, 3-4 meaningful exits including at least one at 10x+. DPI generation ahead of schedule. Clear Fund IV momentum.

What would cause this:

• GTM value-add genuinely accelerates portfolio company growth
• 1-2 portfolio companies achieve regional leadership positions
• Favorable exit environment with active strategic acquirers
• Strong follow-on investor interest validates portfolio quality
• Team cohesion and capability continues to strengthen

Metric Value

Years to 1x DPI Year 5

Years to Full Distribution 10

Fund Multiple 3.0x

Our Net TVPI 3.0x

Our Net DPI 2.8x

Probability 30%

Our outcome: $5M invested → ~$14M returned over 10 years. Strong performance justifying emerging manager risk. Would support increased allocation to Fund IV.

5. Market Leader

Scenario Description: Fund establishes Meridian as the definitive early-stage firm in ASEAN ex-Singapore. Multiple breakout portfolio companies. At least one potential unicorn. Strong DPI from strategic acquisitions by global tech companies. Fund III becomes a reference point for regional emerging manager success.

What would cause this:

• 1-2 portfolio companies scale to $100M+ valuations
• Major strategic exits (Google, Microsoft, Grab, Sea acquiring portfolio companies)
• Meridian brand becomes synonymous with quality SEA early-stage deals
• Fund I fully distributed at 3.5x+, validating long-term track record
• Strong global LP interest in Fund IV at $100M+

Metric Value

Years to 1x DPI Year 4

Years to Full Distribution 9

Fund Multiple 4.0x

Our Net TVPI 4.0x

Our Net DPI 3.8x

Probability 12%

Our outcome: $5M invested → ~$19M returned over 9 years. Exceptional returns. Strong relationship for preferred access to future funds. Case study for our emerging manager program.

6. Outlier

Scenario Description: Extraordinary outcome driven by a generational company in the portfolio. One investment becomes a regional or global category leader with $1B+ outcome. Fund returns driven primarily by single massive winner, similar to early Sequoia or a]16z funds with breakout companies.

What would cause this:

• Portfolio company becomes the “Grab” or “Sea” of its category
• IPO or $500M+ acquisition of lead position
• Timing alignment with massive market expansion (e.g., regional fintech infrastructure buildout)
• Everything goes right for one extraordinary founder

Metric Value

Years to 1x DPI Year 3

Years to Full Distribution 8

Fund Multiple 6.0x+

Our Net TVPI 6.0x+

Our Net DPI 5.5x+

Probability 3%

Our outcome: $5M invested → ~$27.5M+ returned over 8 years. Transformational return. Would significantly impact our alternatives portfolio performance. Extremely rare but possible given early-stage venture dynamics.

Summary Analysis

Probability-Weighted Expected Outcome

Scenario Probability Fund Multiple Weighted Multiple

Terrible 5% 0.4x 0.02x

Disappointing 15% 1.5x 0.23x

Performing 35% 2.2x 0.77x

Overperforming 30% 3.0x 0.90x

Market Leader 12% 4.0x 0.48x

Outlier 3% 6.0x 0.18x

Expected Value 100% — 2.58x

Probability-weighted expected return: 2.58x net multiple on our $5M commitment

Expected dollar return: ~$12.9M over 10-year average holding period

Risk Assessment

Downside Risk (Terrible + Disappointing scenarios): 20% probability of returns below 1.5x

Base Case (Performing): 35% probability of solid 2.2x returns meeting our venture allocation targets

Upside Potential (Overperforming + Market Leader + Outlier): 45% probability of 3.0x+ returns

Risk/Reward Assessment: Asymmetric return profile typical of venture capital. Limited downside (maximum loss = committed capital), significant upside potential. 45% probability of strong outperformance justifies the allocation.

Recommendation

INVEST $5,000,000 in Meridian Ventures Fund III

Rationale:

1. Expected returns justify risk: 2.58x probability-weighted return exceeds our 2.0x threshold for emerging manager venture allocations.

2. Downside is bounded: Even in terrible scenario, loss limited to committed capital. 80% probability of returning at least 1.5x.

3. Strategic alignment: Malaysian-domiciled GP supports our mandate. B2B/fintech thesis aligns with national digital economy priorities.

4. Institutional validation: IFC’s $8M commitment provides comfort on GP quality and governance standards.

5. Relationship value: Establishing relationship now provides access to Fund IV at larger scale if Fund III performs.

6. Portfolio fit: $5M commitment represents appropriate sizing for emerging manager allocation—meaningful enough to matter, small enough to absorb potential loss.

Conditions:

• Advisory Committee seat to maintain visibility into fund operations
• Quarterly reporting at institutional standards (already confirmed)
• Co-investment rights on deals above $2M (standard LP terms)
• MFN on any preferential terms granted to other LPs

LP Outcome Canvas by Strategy Tools. Get yours at www.strategytools.io

Read the full story, The Fund Journey: An Emerging Manager’s Story from Kuala Lumpur to South-East Asia, Part I (years T-2 -1), Part II (years 2-5) and Part III (years 6-7).

About the Author:

Christian Rangen is a strategy advisor and business school faculty. He works with ambitious ecosystem developers, innovation agencies, venture funds, national fund-of-funds and governments on building better VC firms and VC ecosystems. He runs GP Accelerators and GP Masterclasses globally.

In this post, we invited key ecosystem builders like David van Dijk and Anthony William Catt to share their invaluable views on exits and liquidity in the market.  Grab the canvas. Join the conversation and good luck on getting more strategic exits and liquidity in your portfolio.

Chris Rangen & Claude.ai, with key contributions from David van Dijk & Anthony William Catt

Preface: How Ecosystem Scales

For the startup ecosystem to thrive, we need to accelerate exits and unlock liquidity. Without visible success stories, confidence falters and capital slows. Liquidity proves that the system works.

Major exits like Paystack’s acquisition by Stripe and Expensya’s sale to Medius demonstrate that startups from Africa and other emerging markets can achieve high-value outcomes. These events not only attract global investor attention but also validate the viability of the ecosystem.

Just as important is what happens after the exit. In Nigeria, members of the “Paystack Mafia”—former employees and early backers—have become active investors and mentors, supporting a wave of new startups. In Tunisia, Expensya’s exit generated over $10 million in employee payouts, instantly creating a new pool of angel investors.

This cycle of capital and talent reinvestment builds momentum. It’s how ecosystems scale—from early wins to sustained growth.

– David van Dijk, Team Lead Boost Africa TA, Co-Lead African Angel Academy.

Why, Exit Journey?

For many VC firms, especially those managing their first or second funds, the transition from “investing in great companies” to “creating liquidity events” represents a fundamental shift in mindset and capability.

Over the past two years, we have worked with investment firms across Europe, MENA, Africa, APAC and North America on creating more exits.

One Of Our ‘Secret Tools’? The Exit Journey Canvas.

What Is The Exit Journey Canvas?

The Exit Journey Canvas provides a structured approach to navigate the shift from investments to generating exits at scale. The canvas is a ten-step, visual workflow for how fund managers, from Senior partners to associates, can bring a structured workflow to exits and liquidity in the existing investment portfolio.

It is a canvas perfectly suited for exit teams, Head of DPI or anyone tasked with creating exits and liquidity in an existing portfolio. Note, the Exit Journey Canvas is not designed for working on exit paths pre-investment. For that purpose we recommend the GP Exit Canvas.

The Exit Journey Canvas:

1. Exit Assessment How do we rank our Portfolio companies on exit readiness and exit maturity? Is there any exit, liquidity or even partial liquidity potential in our companies? Do we have any specific companies we should take on the Exit Journey?
2. Exit alignment Do we have full alignment on liquidity and exit between the other investors, the board, founders and management team?
3. Exit mapping How well do we know the landscape for exits and liquidity?
4. Exit routes Have we mapped out the top routes and most likely candidates?
5. Exit strategy & roadmap Have we created the gameplan and roadmap to succeed?
6. Exit team Who should be on the deal team?
7. Exit process Do we have a timeline and clear, step-by-step process?
8. Exit outreach How do we lead the a successful exit outreach and competitive process?
9. Exit transaction Do we have the experience, skills and team to close a successful transaction?
10. DPI (Distributions to our LPs) Are we ready to start paying out some distributions to our Limited Partners?

The Exit Canvas, in connection with the five other deep dive canvases, helps any team establish a step-by-step process to radically increase the chances of a successful liquidity event, and ultimately LP returns.

Want the Exit Journey Toolkit? Download here.

The Challenge Of Portfolio Exits

Consider the typical mid-fund scenario: you’re seven years into your fund lifecycle, your best investments are showing strong traction, but exits remain elusive. Your LPs are asking about liquidity timelines, founders are focused on growth over exit preparation, and potential acquirers aren’t yet taking serious interest. This is where the Exit Journey Canvas becomes invaluable.

Unlike the GP Exit Canvas (read here) , which embeds exit thinking into investment decisions, the Exit Journey is designed for active portfolio management. It provides a systematic approach to evaluate, prepare, and execute exits for companies already in your portfolio.

Canvas In Action: Kilimanjaro Ventures Fund III

To illustrate the Exit Journey in practice, let’s follow Kilimanjaro Ventures’ evolution. Now managing their third fund—a $100M vehicle launched in 2020—they’ve become one of East Africa’s most successful venture capital firms. Their proven exit track record from Funds I and II has attracted larger LPs and enabled bigger check sizes, typically $3-8M investments in Series A and B rounds across Africa. Across the portfolio, KV III is now regularly updating the portfolio ranking by exit readiness (management and process readiness) and exit maturity (good return potential).

By Fund III, Kilimanjaro has expanded beyond East Africa into West Africa, making their largest investment to date: $6M into Lagos-based RideConnect, a pan-African mobility platform competing with traditional ride-hailing services.

Let’s walk through each step of the Exit Journey using RideConnect and other Fund III portfolio companies as examples.

1. Exit Assessment: Identifying Exit Potential

The Canvas: Systematically evaluate each portfolio company’s exit readiness and potential, creating a pipeline of exit candidates.

Kilimanjaro’s Approach: Five years into Fund III, the team conducts their quarterly exit assessment across 22 portfolio companies using their refined scorecard system. They evaluate companies across six dimensions: financial performance, market position, strategic value, management quality, exit market conditions, and competitive differentiation.

Their Q3 2026 assessment reveals distinct categories:

Immediate Exit Potential: RideConnect (mobility) leads with $12M ARR, operations in 6 African countries, 2.5 million active users, and increasing strategic buyer interest as global mobility companies seek African expansion.

12-Month Exit Window: PayFlow (B2B payments) shows strong unit economics but needs to achieve $5M ARR threshold that strategic buyers typically require for serious consideration.

24+ Month Timeline: AgriLogistics (supply chain) has excellent technology and partnerships but requires scale across 10+ countries before becoming attractive to international buyers.

The assessment prioritizes RideConnect based on multiple factors: proven product-market fit across diverse African markets, strong unit economics in major cities, and a competitive landscape where international players are actively acquiring local champions.

2. Exit Alignment: Building Internal Consensus

The Canvas: Ensure full alignment between investors, board members, and founding teams on exit strategy and timeline.

Kilimanjaro’s Approach: For RideConnect, their highest-priority exit candidate, Kilimanjaro schedules alignment sessions with CEO A. Okafore and the founding team. Initial discussions reveal interesting dynamics: the founders are excited about exit possibilities but want to ensure any acquisition preserves their vision for African mobility innovation.

Through structured workshops, they establish shared priorities:

●       Achieve minimum 8x return for all investors (targeting $100M+ exit value)

●       Maintain operational independence for African markets

●       Preserve employment for RideConnect’s 400+ person team

●       Complete transaction within 18 months to align with fund timeline

The founding team agrees to begin exit preparation while continuing aggressive expansion into Ghana and Senegal. Board consensus emerges around positioning RideConnect as the leading African mobility platform rather than just a Nigerian success story.

For PayFlow, alignment sessions reveal the founding team prefers to raise additional growth capital rather than pursue exit. Kilimanjaro agrees to support a bridge round while keeping exit optionality open for 2027.

3. Exit Mapping: Understanding The Landscape

The Canvas: Comprehensively map potential acquirers, market conditions, and competitive dynamics that will influence exit opportunities. To assist teams here, we also recommend using the Exit Landscape Map and GP Exit Paths to assist the quality of research and market mapping at stage. These tools are a part of the GP’s toolbox and can be brought in to give a more analytical way of working for the GP team.

Using the GP Exit Paths, the KV team may realize the best, or most likely exit paths are going to be strategic M&A, PE, Partial Secondaries and IPO as a far-away, unlikely option.

Kilimanjaro’s Approach: For RideConnect, their mapping process identifies four categories of potential acquirers in a possible M&A deal.

Global Mobility Giants: Uber, Bolt, and DiDi are all expanding African presence. Recent transactions suggest 6-10x revenue multiples for profitable mobility companies with strong market positions.

Regional Tech Champions: Jumia and Interswitch have both signaled interest in mobility investments. These buyers value local market knowledge and regulatory relationships.

Automotive Strategic Buyers: Volkswagen, Toyota, and local partners like Stallion Group seek African mobility data and customer relationships for future automotive strategies.

Financial Services Integration: Banks like Access Bank and fintech companies see mobility platforms as customer acquisition channels for financial services.

The mapping reveals critical timing insights: Uber has recently appointed a new Africa head with aggressive expansion mandates. Bolt raised $700M specifically for emerging market expansion. DiDi is exploring African entry after successful Latin American expansion.

Competitive analysis shows that Uber’s African operations remain subscale compared to their global footprint, creating acquisition motivation. Bolt’s recent Lagos entry validates the market but also creates urgency for consolidation.

Partial secondaries: through this initial mapping exercise, existing co-investors indicate they might be willing to take half of Kilimanjaro’s shares, at a ‘reasonable’ discount.While not a priority at this point, secondaries should never be disregarded and gets stored away as an option for the team at Kilimanjaro Ventures.

4. Exit Routes: Prioritizing Pathways

The Canvas: Identify and prioritize the most promising exit routes based on company readiness, market conditions, and strategic fit. To dig deeper, we frequently suggest using the Exit Routes Canvas at this stage. The Exit Routes canvas is a superb tool to map out strategic groups and start listing specific buyers and what would make this deal relevant to them. Having used the Exit Routes Canvas is 100’s of Masterclasses and Workshops, this is one of the tools people tend to call “extremely useful”.

Kilimanjaro’s Approach: Based on mapping analysis, they prioritize RideConnect’s exit routes:

Primary Route: Strategic acquisition by Uber for African expansion, targeting Q4 2027. This offers highest potential valuation, proven integration playbook, and global scaling opportunities.

Secondary Route: Acquisition by Bolt to defend their African expansion strategy, potentially faster timeline but lower valuation multiples.

Tertiary Route: Sale to regional technology champion (Jumia or Interswitch) for ecosystem integration, good cultural fit but limited international scaling.

They consciously deprioritize automotive strategic buyers due to longer integration timelines and uncertain synergy realization.

For each route, they develop specific preparation requirements. The Uber route requires demonstrating regulatory compliance across all markets, driver/rider retention metrics, and competitive differentiation. The Bolt route needs detailed competitive intelligence and market share documentation. Regional buyers want comprehensive African expansion plans and partnership possibilities.

5. Exit Strategy & Roadmap: Building The Plan

The Canvas: Develop detailed roadmaps for preparing portfolio companies for exit, including milestones, timelines, and resource requirements. Two canvases serve as great digging deeper tools here; the Exit Strategy Canvas (inspired by the  book, Exit Path), and Exit Roadmap. These tools are designed to be used by  the project team, in collaboration with management, board and key stakeholders.

Kilimanjaro’s Approach: For RideConnect’s primary exit route (Uber acquisition), they create a 12-month preparation roadmap:

Months 1-3: Complete comprehensive financial audit across all operating countries, compile regulatory compliance documentation, and standardize reporting across markets. Kilimanjaro connects RideConnect with PwC for multi-country audit coordination.

Months 4-6: Develop detailed competitive analysis showing market leadership positions, compile driver and rider satisfaction data, and document technology infrastructure scalability. Engage with McKinsey for strategic positioning analysis.

Months 7-9: Prepare integration documentation showing operational similarities with Uber’s platform, complete technical due diligence preparation, and develop management presentation materials for buyer meetings.

Months 10-12: Finalize expansion into Ghana and Senegal to demonstrate continued growth momentum, compile customer reference testimonials, and prepare detailed financial projections for combined entity scenarios.

Throughout this period, RideConnect continues aggressive market expansion while building exit readiness. Kilimanjaro provides dedicated project management support and covers all external advisor costs as portfolio support.

6. Exit Team: Assembling The Right Deal Team

The Canvas: Build a dedicated team, combining portfolio company management, VC firm expertise, and external advisors to execute exit processes. Frequently, a financial advisor and legal advisor would be involved here. For smaller deals, or secondary transactions that might not always be the case.

Kilimanjaro’s Approach: For RideConnect, they assemble a seven-person exit team reflecting the complexity and scale of the potential transaction:

From RideConnect: CEO Okafore leads strategic discussions and buyer relationships. CFO T.. Adeleke manages financial documentation and due diligence coordination. CTO D. Okwu handles technical integration discussions.

From Kilimanjaro: Managing Partner K.. Mwangi oversees overall process and leverages relationships with global mobility industry. Principal A. Kiprotich manages day-to-day coordination and timeline execution.

External Advisors: Investment banking team from Frontier Growth Capital Advisors  provides transaction expertise and international buyer access. Legal counsel from Temple Law Partners  handles multi-jurisdictional transaction structuring.

The team meets weekly during preparation phase and daily during active negotiations. Each member has clearly defined responsibilities and escalation authority for rapid decision-making.

For smaller portfolio exits, including secondaries,  Kilimanjaro uses streamlined three-person teams, but RideConnect’s scale and complexity justify the expanded structure.

7. Exit Process: Managing The Transaction

The Canvas: Execute systematic process for managing buyer outreach, due diligence, and negotiations while maintaining business operations.

Kilimanjaro’s Approach: When RideConnect achieves exit readiness in Q2 2027, they plan a structured process:

Weeks 1-3: Initial outreach to six target buyers through warm introductions. Mwangi will leverage her expanding global network to arrange conversations with Uber’s Africa strategy team and Bolt’s expansion executives.

Weeks 4-8: Management presentations to four interested buyers. RideConnect’s strong metrics (40% market share in Nigeria, profitability in Lagos and Abuja, 25% month-over-month growth in new markets) is expected to generate significant buyer interest.

Weeks 9-16: Due diligence process with three serious buyers (Uber, Bolt, and Jumia). The exit team is prepared to manage comprehensive data room setup across six countries, coordinate management interviews in multiple time zones, and respond to detailed technical and regulatory questions while ensuring RideConnect’s operations continue seamless expansion.

Weeks 17-20: Letter of intent negotiations. Discussions expected to cover strategic synergies including driver training programs, technology platform integration, and African market growth potential  that might increase valuation significantly above initial expectations.

Throughout the process, Kilimanjaro is prepared to maintain transparent communication with RideConnect’s management and provide  regular updates to their LPs on transaction progress and portfolio impact. The plan, the timeline and process is now ready to launch.

8. Exit Outreach: Activating Buyer Network

The Canvas: Systematically reach out to potential acquirers through warm introductions, industry connections, and strategic relationships.

Kilimanjaro’s Approach: Drawing on their expanded network from three successful funds, Kilimanjaro leverages multiple relationship paths:

Global VC Network: Their LP relationship with IFC connects them directly to Uber’s corporate development team through mutual portfolio connections.

Industry Conferences: At the Africa Tech Summit in Kigali, Mwangi arranges private meetings between RideConnect’s CEO and executives from three potential acquirers.

Advisory Relationships: Their strategic advisor, former Jumia executive N. Hodara, facilitates warm introductions to both Bolt and current Jumia leadership.

Portfolio Synergies: Their fintech portfolio company PayFlow has existing partnership with Interswitch, creating introduction path to their corporate venture arm.

Investment Banking Network:  Frontier Growth Capital Advisors leverages relationships with international clients to arrange strategic discussions with DiDi and other global mobility companies.

Each outreach approach is carefully customized. Conversations with Uber emphasize African market expertise and regulatory navigation. Bolt discussions focus on competitive differentiation and market share protection. Regional buyers hear about ecosystem integration and cross-selling opportunities.

The key success factor is activating multiple high-quality relationship paths simultaneously while maintaining process confidentiality and buyer competitiveness.

9. Exit Transaction: Closing The Deal

The Canvas: Manage final negotiations, due diligence, and closing process while protecting both investor and founder interests.

Kilimanjaro’s Approach: When Uber emerges as the preferred buyer for RideConnect at a $600M valuation, the transaction process intensifies significantly:

Legal Documentation:  Temple Law Partners leads purchase agreement negotiations across six jurisdictions, drawing on their experience with previous Kilimanjaro cross-border exits to navigate complex regulatory requirements.

Technical Integration Planning: Uber’s technical team conducts extensive API integration testing and driver platform compatibility analysis. RideConnect’s technical documentation prepared during the roadmap phase proves invaluable for accelerating this complex process.

Regulatory Approval Coordination: The transaction requires regulatory approvals in Nigeria, Kenya, Uganda, Ghana, Senegal, and Tanzania. Kilimanjaro coordinates with local legal counsel in each market to manage parallel approval processes.

Founder and Team Protection: Negotiations include employment agreements for RideConnect’s leadership team, equity retention in the combined entity, and operational independence guarantees that preserve the company’s African market focus and innovation culture.

Multi-Investor Coordination: Kilimanjaro coordinates with RideConnect’s other investors (including Series A lead TLcom Capital and strategic investor MTN Ventures) to ensure aligned negotiating positions and efficient documentation execution.

The transaction closes in 22 weeks from initial serious discussions, generating a 10.4x return for Kilimanjaro and establishing RideConnect’s founders as key leaders in Uber’s African expansion strategy.

10. DPI (Distributions To Paid-In Capital): Returning Capital To LPs

The Canvas: Efficiently process distributions while managing tax implications, LP communications, and fund performance reporting. Ultimately, your LPs will want their capital back – with proceeds; and on the back of a great exit event, there should be a timeline to pay out to LPs.

Kilimanjaro’s Approach: The RideConnect exit generates $62M in proceeds for Kilimanjaro’s $6M investment. The distribution process involves several strategic considerations:

LP Communication Strategy: Before closing, Kilimanjaro sends comprehensive transaction analysis to LPs explaining the strategic rationale, competitive process, and return implications. They host dedicated LP webinar featuring RideConnect’s CEO discussing the African mobility market opportunity and Uber’s integration plans.

Distribution Timing Optimization: They coordinate with fund administrators across multiple jurisdictions to process distributions within 45 days of closing, providing LPs with detailed tax documentation for US, European, and African tax reporting requirements.

Fund Performance Impact: The exit, the third in Fund III,  moves Fund III’s DPI from 0.2x to 0,8x, demonstrating concrete progress toward the fund’s 3.5x net return target and validating their expansion strategy into larger, pan-African investments.

Strategic LP Engagement: Several institutional LPs express strong interest in increasing commitments to Kilimanjaro’s upcoming Fund IV, with the RideConnect exit serving as a compelling case study for their ability to execute exits at significant scale.

Market Positioning: The successful exit to a global strategic buyer enhances Kilimanjaro’s reputation for executing international transactions, attracting attention from global corporates seeking African market entry partners.

Portfolio-Wide Application

Beyond the RideConnect success, Kilimanjaro applies the Exit Journey Canvas systematically across their Fund III portfolio:

PayFlow leverages their exit preparation to attract a strategic investment from Visa at a $40M valuation, providing partial liquidity for early investors while maintaining growth trajectory. For Kilimanjaro Ventures, a good opportunity to take 35% of their equity value off  the table.

AgriLogistics uses the Canvas to identify key gaps in the exit thinking early, accelerating their multi-country expansion and positioning for acquisition by a global supply chain company in 2028.

HealthTech Ghana completes a secondary sale of  the full equity position to a healthcare-focused growth fund, providing 4.2x returns to the fund. Two additional portfolio companies complete strategic acquisitions using refined processes from the RideConnect experience, with average exit multiples 25% higher than comparable transactions lacking systematic preparation. Three partial secondaries based on the thorough exit preparedness, Kilimanjaro Ventures is able to secure partial sales to new or existing investors in the market, proving a stand-out exit and liquidity skill.

Key Success Factors

The Exit Journey canvas’ effectiveness stems from addressing three critical challenges of portfolio exits at scale:

Systematic Over Opportunistic: Rather than waiting for buyers to discover portfolio companies, working on the canvas creates proactive exit processes that generate multiple options and competitive dynamics.

Preparation Drives Premium Valuations: Companies that systematically prepare for exits consistently achieve higher valuations and faster transaction timelines. RideConnect’s 10.4x return reflects both strong business performance and excellent exit execution.

Portfolio-Level Network Effects: By applying a strong exit discipline across multiple portfolio companies simultaneously, VCs create ecosystem momentum that attracts buyer attention to their entire portfolio and enhances their reputation for exit execution excellence.

Implementation Guidelines For Scale

For VC firms implementing the Exit Journey Canvas across larger portfolios:

Segment Portfolio by Exit Timeline: Apply different levels of exit focus based on company maturity and fund lifecycle requirements. Not every portfolio company needs immediate exit preparation.

Build Specialized Team Capabilities: At Fund III scale, dedicate specific team members to exit process management, international transaction coordination, and strategic buyer relationship development. These team members are Exit Team, Head of DPI or Chief Exit Officer (not familiar with the role of the Chief Exit Officer? Check out our favourite CEO in MENA, Rabih I. Khoury or how VC firms like Speedinvest think differently about paths to liquidity).

Invest in Infrastructure: Budget significantly for external advisors, legal coordination across multiple jurisdictions, and technical due diligence preparation. These investments compound across multiple transactions.

Maintain Operational Excellence: Ensure exit preparation enhances rather than distracts from business performance. The best exits come from companies demonstrating accelerating growth throughout the exit process.

Develop LP Communication Sophistication: Regular updates on exit pipeline development, competitive landscape analysis, and strategic buyer relationship building create LP confidence that supports larger fund sizes and better terms.

The Compound Effect At Scale

The most successful VC firms treat the Exit Journey not as a one-time process but as a core competency that improves with each transaction and compounds across fund generations.

Kilimanjaro Ventures’ success with RideConnect creates multiple strategic advantages: enhanced relationships with global strategic buyers, demonstrated capability for complex international transactions, validated processes for future exits at scale, and compelling case studies for Fund IV fundraising at $300M+ target size.

By systematically applying the Exit Journey Canvas across their portfolio, Kilimanjaro transforms from a regional fund that “hopes for exits” to an international-caliber firm that “engineers exits.” This transformation becomes a sustainable competitive advantage that drives superior returns for LPs, attracts higher-quality deal flow, and enables access to larger, more strategic investment opportunities.

The Exit Journey Canvas recognizes that in venture capital, building great companies is the foundation, but creating valuable exits requires sophisticated thinking, careful preparation, and disciplined execution. For VC firms ready to operate at international scale, the Canvas provides a proven roadmap for generating the liquidity that sophisticated LPs demand and reward with larger commitments and better fund terms.

Ecosystem Expert Opinion: Anthony William Catt

IPO Readiness & Public Market Optionality

The Canvas: Evaluate IPO readiness even if a public listing is not the chosen path to institutionalize governance, signal maturity, and preserve the option for future IPOs or higher-value M&A.

Why it matters: Most venture-backed exits do not end in an IPO. But the process of preparing for public markets forces companies to professionalize their operations in ways that buyers and later-stage investors value deeply. Auditable financials, formalized governance structures, and robust compliance mechanisms are not just IPO requirements – they are indicators of a company that is exit-ready in any scenario.

Strategic Benefits Of IPO-Style Preparation Include:

• Higher multiples during M&A negotiations
• Greater trust from institutional or strategic acquirers
• Reduced diligence friction and deal acceleration
• Optionality to pivot to public listing when markets open up

Kilimanjaro’s Approach:

In 2026, Kilimanjaro introduces a lightweight “IPO-style readiness audit” across its top five Fund III portfolio companies. The process reveals gaps in board independence, inconsistent audit quality across regions, and limited investor communications planning. The exercise prompts several actions:

• RideConnect scores 84% on the readiness benchmark. This audit helps sharpen governance messaging during M&A discussions with Uber, reinforcing credibility.
• HealthTech Ghana uses IPO-readiness work to strengthen board composition and secure a secondary sale to a healthcare-focused growth fund.
• One company, previously overlooked by buyers, receives an unsolicited acquisition offer after its reporting package and compliance protocols were upgraded.

The firm concludes that IPO preparation – even without listing intent – significantly strengthens exit positioning and investor confidence across the board.

IPO Readiness Checklist: Key Elements To Benchmark

Implementation Tool:

IPO Readiness Checklist, use this tool to benchmark your top 3 companies annually. Even partial readiness work strengthens exit strategy and investor engagement.

– Anthony William Catt, Founder, Ventures 54, Building London Africa Network

Looking Ahead: To Liquidity Flows

Looking at maturing ecosystems, like Singapore, Switzerland and increasingly MENA, there is a clear trend of value creation, or rising MOIC and TVPI , across funds and investment vehicles. Yet, this may not automatically translate into DPI, or liquid cash-on-cash return. It requires both market maturity, skills development and dedicated resources building out the market.

For the entire industry to ‘work’, we need to be able to generate repeatable, sustainable cash flows back to the universe of limited partners. One starting point, use the Exit Journey Toolkit to expand your exit track record.

Want the Exit Journey Toolkit? Download here.

So what do you find as you scan the syllabus for this exciting course?

You’ll start with Gillette’s launch of the Sensor razor from 1990, a session that never gets as far as the 2010 founding of Dollar Shave Club and the direct-to-consumer revolution in retail. Then you’ll move on to a famous case from 1992 about airline pricing wars, ignoring the mergers that consolidated the industry and allowed the top 6 airlines to spend 96% of their free cash flow (some $47 billion dollars) on stock buybacks in the decade leading up to 2019. Next up is a 1998 case about Anheuser Busch and the U.S. Brewing industry, which proceeds in blissful ignorance of the later 2008 acquisition by Belgium’s InBev which preceded drastic cost-cutting, and a retreat by the whole beer category in light of more skillful strategic thinking by spirits
companies.

Then, let’s talk pricing, which you will approach by examining the 1990 price war between Maxwell House and Folgers. At the time, Starbucks had just 84 stores, but its growth trajectory was already noticeable. You’ll move on to a year 2000 case about Airbus’ decision to build the world’s largest commercial jet. Then, it’s Minnetonka (the moccasin people?) getting into SoftSoap in 1988 and toothpaste, followed by an in-depth discussion of decisions surrounding innovation in 16-bit video games.

And it goes on, with strategy apparently frozen in time. Lest you think I am exaggerating, these are actual cases taken from this year’s syllabus for an undergraduate strategy class at a top-drawer school.

This is but a symptom of a much larger problem. Strategy as a field has not itself adapted to an interconnected, digitized world in which barriers to entry have changed, capital is abundant and information and knowledge, rather than raw materials, are the inputs in scarcest supply. The use of outdated tools, and the outdated assumptions they rest on, perhaps help explain why there is so much disappointment with the strategy process.

This is one of the reasons I am delighted to be working with the team at Strategy Tools to update the essential tools of strategy into modern use. Let’s understand what these tools help you to do.

Make strategy choices tangible

At the end of the day, the reason one needs a strategy is because we have to make choices under conditions of competition and limited resources – if you had no competition and unlimited resources, just try everything and see what works. For most of us, unfortunately, we’re not in such a benevolent position.

The difficulty is that strategic clarity, in the sense of what we will and will not consider doing, is hard to create. It’s even harder to be clear with others as you widen the circle of people who need to make choices at their own levels. By the time you get to the “edges” of the organization, where big strategic shifts first make themselves felt, it is highly likely that the level of clarity that seemed so obvious in the boardroom has eroded completely. Instead, we see that strategies are still being informed by old assumptions, new strategies are trying to be crammed into old structures, and the incentive system in the organization has not been redesigned to bring people into alignment.

Part of the problem is that strategy can seem like a very intangible thing that few people in the organization actually “touch.” By using the Strategy Tools toolkits, the strategy of any organization can be made very concrete and people can build their confidence in making strategic choices without having to take huge amounts of time or risk.

Creating critical mass quickly

In an organization of any complexity, getting the majority of stakeholders on board with a new strategic direction is a daunting challenge that can, if the transformation is big enough, take years. Well, guess what – we can’t be thinking about years of implementation in a world that is moving at a pace of weeks – or even days. What the toolkit helps to do is bring a critical mass of people, quickly, to an understanding of the situation the organization is in and to a grasp of what needs to be done considering those circumstances.

Linking decisions to outcomes

The real world can be a harsh teacher. It is entirely possible to follow best practices, use good processes and do the right thing and then to find out that an external force beyond your control is decimating your business. That has, in fact, happened with any number of sectors that depend people being in close contact with strangers. Conversely, you can do everything wrong and be in the right place at the right time. There is, in other words, a lot of noise in the system around what actions lead to what results.

With the simulations, on the other hand, people can experiment and see the outcomes of their decisions immediately. They can experiment with multiple decision frameworks and learn quickly, without making the big bets in the real world.

Making an impact

In this report, you’ll be learning from strategy practitioners – people working in or with companies that need to reconsider their strategic directions. They’ll share which tools they used and why, how the experience went and what the results are. Along the way, you’ll see how the old world of strategy has given way to the new. And as we work our way through the aftermath of a global pandemic and economic disaster, these tools will be even more valuable.

The First Contacts

In the beginning, the companies we invited were a bit skeptical about what value they could expect out of it, as some of them were already working with top-consultancy firms, have well-established strategy teams (with years of experience formulating and executing strategy), and well, usually have a pretty loaded agenda.

However, one of the things that intrigued them, was the possibility to be part of a cohort where they would be interacting with the strategy teams of other companies (from different industries). So they could learn and share their view on how each one handles their strategy (without sharing the details of their own strategy).

The Players

Finally, the corporate strategy teams of three leading companies in their own industries joined the cohort, with a total market value of more than $20 BN USD: Alpura, Grupo Bimbo, and Grupo Lamosa.

The strategy teams were represented by personnel from strategy, innovation, M&As, corporate venture capital, investor relations, and digital transformation among others. Stakes were high and we could feel the high expectations of all of them.

The program

One challenge was how we could foster collaboration and maintain high energy in a remote environment. Let’s face it, how many times have you been in a remote session where you end up doing something else in parallel, because the energy was just lost?

The program is structured in four modules, focused on understanding the different approaches to strategy (yes, there are different views about it), roles & influence of strategy teams, dealing with industry shifts, understanding strategy as business transformation, and a roadmap to build our world-class strategy team.

Access to updated tools on strategy, live digital workshops, and 1:1 digital mentoring complement the program.

Key Learnings

During the four sessions, each team had different learnings, based on their own context and current needs. However, we can summarise the key learnings as follows:

• The strategy must be simple and clear. For some teams, it was surprising that even in their own strategy team, there were different views and sometimes many elements on what was their corporate strategy.
• You need to ask the right questions. Methodologies and tools should help you to focus on discussing the right questions. It’s more important to ask the right question than give a lecture on strategy.

Alignment is critical to make strategy happen.

• Strategy teams need to become influencers in their organization, otherwise, they won’t have a seat at the big boys’ table. There are different roles for strategy teams, however, at least we need some members to be able to ask the tough questions with Board Members or the C-Suite.

• Strategy teams play a fundamental job to communicate and execute the strategy. It’s not only important to have a clear strategy, but that everybody in the organization understands it and feels part of it.
• Having a multidisciplinary strategy team is extremely relevant to cover different roles they should play: analyst, scout, big systems thinker, and influencer. Each company needs to find its right balance in those roles, and design its own strategy team roadmap to develop the required capabilities to become influencers and big system thinkers.
• Our strategy must go beyond our CORE business, however, how do we convince our C-Suite and Board that we also need to focus on adjacent and far away growth opportunities? Especially when financial results have been extremely good!

We need different portfolios of initiatives: one to manage our core, and another one for exploration and adjacent opportunities.

• Visual tools, real case examples, and a hands-on approach accelerate learning. Applying the tools to understand the transformation efforts from companies such as Equinor, Tesla, Alphabet, Cisco, VW Group, and Microsoft among others, makes us question what we are doing right now to face our strategic dilemmas.
• Strategy learning and development can be done 100% online, in a fun and interactive way using the right visual tools.

• Being able to link strategy and finance is key to understand how financial markets view and rate our company. We need the right transformation architecture to make it possible, as well as a clear story of our business transformation!

• Having a framework to guide our business transformation, as well as discuss and understand our transformation journey is essential to generate the urgency to change.

• Understanding our current business transformation capabilities can be a great starting point to design our transformation roadmap, and the Transformational Company Index (TCI) can give us this snapshot.
• Having a clear and shared concept of what means strategy or business transformation is a fundamental starting point, otherwise, each one might have different interpretations and expectations.

Having a methodology that challenges us is key to generate significant changes

• We’re not alone, other strategy teams are facing similar dilemmas, and it’s great to be able to exchange points of view with them.

Conclusions

Our first conclusion is that strategy teams need to have a clear internal roadmap to develop their capabilities, in order to balance the different roles they execute, with the aim to become influencers and big system thinkers in their organizations.

Learning and developing your strategy can be done 100% online, in a fun and energizing way, discussing current well-known companies’ dilemmas.

Each company has its own requirements and priorities to develop a roadmap to business transformation. It’s not needed that they try to close the gap, at the same time, on all ten business transformation enablers. In the end, the strategy is about making choices.

Our last conclusion is that teams (formal and informal) that are involved in the development of the company’s business strategy, can accelerate the learning of strategy to create world-class strategy teams.

The world of strategy is changing. Is your team ready for it?