If you're pitching a VC, think like one. VCs need to "return a fund." Here's what that actually means.
A $100M fund needs to return 3x ($300M) to their investors. Anything less is a failure in the eyes of their LPs.
By the time you exit (sell, M&A, IPO), a VC might only own 7-8% of your company due to dilution from later-stage giants.
The math: if you sell or exit for $200M, the VC gets $15M.
The problem: they still need $285M more just to hit their target.
The moral: VCs need fund-returners. Big exits. If your realistic exit value is anything below $150M, raising from a MENA-based seed fund (average seed fund size is $50-100M) will be tough. The math just doesn't move the needle for them.