Foreign investors planning to set up a business in Dubai often place the Dubai International Financial Centre (DIFC) at the top of their list. The environment of business setup in DIFC is ideal for businesses with a thrust on innovation. DIFC has always been at the forefront of giving opportunities to innovative startups through its various programs. The latest in this line is the ‘Launchpad’, specifically designed to help startups by attracting venture studios into Dubai.
Business setup consultants in Dubai can help you if you are planning to open a DIFC company. In this blog, we will discuss at length about the new DIFC Launchpad and how startups can leverage it. Read ahead for more insights on the DIFC Launchpad:
What is the Launchpad announced by DIFC?
The Launchpad is a new cluster within the DIFC free zone exclusively dedicated to venture studios. The key objective of this latest move by DIFC is to provide the necessary funding and support for UAE startups. DIFC aims to achieve this objective by attracting the world’s best venture studios into Dubai. Business setup consultants in Dubai can help you set up a venture studio in DIFC Launchpad.
What is a Venture Studio?
Even though the concept of venture studios is popular in the West, it is new in the Middle East region. Venture studios create startups by incubating their own ideas or ideas from their partners. The team within the studio will be responsible for making the minimum viable product. They will then validate the idea by finding product/market fit and early customers.
How do venture studios differ from accelerators/incubators?
An accelerator or incubator funds existing startups but a venture studio does not. A venture studio, on the other hand, is a company that creates several startups in-house and then finds the entrepreneurs who would like to take them or grow them. A typical venture studio may create and launch multiple startups in a year. An article by Harvard Business Review says startups created by venture studios enjoy a greater success rate than those backed by accelerators or traditional funding methods.
New Regulations for Venture Studios in DIFC
The DIFC Venture Studio Regulations released in February 2023 form the legal basis for the formation of the DIFC Launchpad. The regulations support venture builders, entrepreneurs and investors, providing them with a legal framework for scaling businesses and the ability to develop, test and launch new start-ups. The regulations also provide certainty on how venture studios, entrepreneurs and spin-off entities deal with each other and the wider market.
Are any venture studios part of the DIFC Launchpad?
The DIFC plans to attract the world’s best venture studios into the free zone. Interestingly, some of them are already going to be a part of the Launchpad. Some of the big names on the list are Antler, R/GA, BIM Ventures, and Future Labs.
What does DIFC aim to achieve through the Launchpad?
The DIFC financial free zone expects over 200 new ventures through the Launchpad and the venture studios that come with it. Of the anticipated ventures, 100 will likely be ‘scale-ups’ with the potential to generate more than 8,000 jobs and create USD544 million as venture capital. Business setup advisers in Dubai can provide you with further details.
Get more information from Business Setup Consultants in Dubai, UAE
The DIFC Launchpad is a unique opportunity for entrepreneurs, venture studios and corporations to set up a base in an international startup ecosystem like Dubai. Setting up a business in DIFC gives you a wide range of benefits including strategic location, 100% ownership, excellent infrastructure, easy connectivity, independent legislation etc. However, it is advisable to make your first move after consulting with the best business setup consultants in Dubai such as Jitendra Business Consultants (JBC).
We are one of the leading providers of business setup services in Dubai with 21-plus years of experience in the industry. We can advise you on the right free zone, legal structure, business activity and hidden costs before opting for company formation in Dubai. JBC can help you with visa processing, document drafting and bank accounting opening as well. Our highly qualified consultants can also help you comply with regulations related to the UAE Corporate Tax, Economic Substance Regulations (ESR), Anti-Money Laundering (AML) and Ultimate Beneficial Ownership (UBO) etc. Contact us today for a valuable consultation on how to set up a business in Dubai without any hassle or headache.