Shane Shin, founding partner of Shorooq Partners: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Shane Shin (LinkedIn), founding partner of Shorooq Partners. Edited excerpts from our conversation:

I'm Shane Shin, a founding partner of Shorooq Partners, a leading early-stage tech-focused venture capital firm based in the Middle East. With a significant presence in Egypt, Saudi Arabia, Abu Dhabi, Dubai, Pakistan, and Korea, we are recognized as one of the largest seed-stage VC firms in the region, with approximately 80 portfolio companies. Originally from Korea, I grew up there and attended high school in Canada. I later pursued my studies at the Wharton School at the University of Pennsylvania in the United States.

In 2017, I co-founded Shorooq Partners, but I have always been in finance. I started as a banker in New York, and later moved to a private equity firm in San Francisco. I also worked in the semiconductor space at Mubadala's GlobalFoundries.

My job at Shorooq is to lead investment operations. My job is to oversee investments across our VC funds, which include credit and private debt funds, and a blockchain fund. My role involves five main areas: Developing and refining investment strategies, sourcing new companies, conducting due diligence on potential investments, actively managing our portfolio post-investment, and facilitating successful exits. I am also responsible for fundraising efforts for both our portfolio companies and our funds.

We began as a venture capital firm focusing on seed and early-stage funding, leading rounds from pre-seed to series A as companies grow. Additionally, we have a private credit team to offer non-dilutive capital, addressing the conservative lending approach of local banks. Our credit funds, which have supported companies like Tamara, offer significant value and extend their services beyond our portfolio companies

The most interesting trend in the VC industry is the emergence of second generation founders. With the industry now having been around for about nine years, the first generation founders are those who worked and studied in the US, returned to the region, and launched their own companies. Second generation founders are startup founders who worked in those companies, gained valuable experience from them, and learned from the best. At Shorooq, we have been very successful in identifying these founders and backing them.

We are soon going to see the third generation of the founders who did not go to the US or Europe, who did not work with startups founded there, but grew their own grassroots and business ideas. We are in favor of this transition and we need all different types of the founders.

Another strategic trend we are seeing is an increase in corporate venture capital, like e& and Bupa Arabia. Banks like Arab Bank from Jordan are also showing a growing interest in startup investments. We need more VCs and investment firms launched by corporations to support the ecosystem as corporates also make ideal customers for many startups, and we value collaborating with them.

We're also seeing more IPOs now than in the past. Exits have historically been challenging for VCs, but things are changing. Startups are increasingly considering IPOs or M&A routes, often involving backing from family offices or other firms.

When considering investments, personally, I look at the founder first. I envision whether they can lead a company worth USD 500 mn. You don't need to have experience as a CEO at a large firm; you can still excel at the SME level. However, if you're seeking a VC like ours, I need to see potential for scaling your business to a USD 500 mn valuation. I ask myself, can I picture this founder leading a company of that scale?

We favor the seed stage at Shorooq because we are not a silent investor. We’re active investors who engage with founders, partners, and company builders. We bring value through proactive involvement. If a founder seeks only financial backing without active engagement, then we are not the right fit. We prioritize active participation because we are deeply committed to both the success of startups and the investments we make.

We meet about 4k to 5k companies a year and invest in about 15 a year. We are uncompromising when it comes to sourcing the right opportunities. We go deep into the data, the market and the dynamics of any investment. We spend 50% of the process on portfolio value creation to assess where we can add value in the companies we invested in.

We care a lot about AI at the moment. We believe the Middle East is going to be a key player in the AI space. However, we are just scratching the surface in exploring the applications of AI.

We are currently in discussions with multiple AI firms and have led investments in AI companies like Mozn and DXWand. We are particularly interested in AI deployment within the healthcare and procurement sectors.

We are currently eyeing four new geographies to add to our core focus: Korea, Turkey, Morocco, and Tunisia. Korea has a wide tech talent pool and very affordable valuation, sometimes even cheaper than our region. We’ve also been actively investing in Saudi companies and are in talks with several more.

I start my day at 6am with a 10-minute meditation session and writing, before the world wakes up and messages start pouring in. This peaceful time allows me to gather my thoughts, whether it is addressing team issues, refining our investment strategy, or supporting our portfolio companies. At 7:30am, I talk to Mahmoud Adi (LinkedIn), my co-founding partner, about everything from minor details to major topics. By 8:30 am, my workday officially starts and I begin going through investment opportunities.

To stay organized, I start my day by setting two goals I'm going to crush, which I note down in my daily schedule template. I rely on this template to stay focused and on track throughout the day. I have sections for what I need to prepare ahead, the meetings I have scheduled, and non-urgent matters. I also have sections for cleaning emails and tracking my hydration.

Balancing work and personal life might be one of my weaknesses. Frankly, I tend to work a lot because I love my job. I try to reserve Saturdays for myself, but I often work on Fridays and Sundays. So, whenever I can, I try to enjoy the small pleasures, like having dinner with my family or friends and going out with my colleagues.

Going for a swim is my go-to to [method to] unwind everyday. I also find clarity in reading, as it allows me to reflect and learn at my own pace, using my imagination to explore new ideas.

I've recently been following Acquired, a podcast covering global tech companies’ M&As and IPOs. On YouTube, I listen to topics ranging from blockchain to the US presidential debates, to the situation in Egypt and Pakistan.

One of my favorite quotes is from Bill Gates. He said: “Most people overestimate what they can do in one year and underestimate what they can do in ten years.” At Shorooq, we had a humble start but have made significant progress over the past seven years. I'm impressed by what we've achieved and am eager for more. Even during moments of frustration or short-sightedness, our focus remains steadfast. Because in the grand scheme of things, I believe that no one can move a mountain in a year, and that achievements need time and unwavering dedication.

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