Saed Nashef venture capitalist in RamallahPubblicato: 18 luglio 2010
For those who do not have access to the Italian Edition of Wired, I have made a rough translation of the story I wrote about Saed Nashef, who is launching a venture capital fund that will fund Internet and ICT startups in Ramallah, Palestine. Our crew was joined by a TV crew from Current TV that filmed the interview with Saed. Here is a preview.
Saed Nashef. This man
has a dream. Funding a new Silicon Valley, in Palestine.
In Ramallah there is a
vibrant, young and talented community of developers. A venture capitalist,
fourty years old, ex-develope,r has gone back home from the United States to
make it fly. With an Israeli partner. Because there is no peace without
By Gianluca Dettori
A future without conflicts in Palestine, goes through the
Internet and its ability to break barriers. Because investing on young
developers is one of the few forms of economy that can be practiced in a
country in conflict, Saed says.
“I grew up thinking there was some kind of barrier around
me: a wall I would have never been able to penetrate. Whatever I would have
done in my life, I knew I could not build my future with my own hands.” Saed
Nashef, well trimmed beard, firm eyes, talks calm. Born fourty years ago in
East Jerusalem, in a city militarly occupied right after the “six-day” war.
“It was a tough environment, entrenched with violence all around
us, something we kids could not understand. But the biggest oppression I felt
then, was knowing it would be impossibile to dream for a future.” Saed today is
a venture capitalist: brings technology companies to birth, investing on their
founders and helping them grow. The fund he’s launching – Middle East Venture
Capital – aims to invest 50 million dollars in Ramallah and the West Bank.
Because there can be no peace where there is no development, and there is no
development where the possibility to follow our dreams is not given.
With an authorized driver and the crew, we penetrate the 700
chilometers wall that surrounds the Palestinian capital to interview him. With
little sleep from a late night due to difficulties with the local photo
equipment rental shop. We meet Saed in a warm early morning, in a cafè right in
the Middle of Ramallah. The same location where, in March 2002, the Italian
photo reporter Raffaele Ciriello was shot dead.
The Nashefs, have been in Palestine since ever, his father managed
the local pension office since the occupation of Jerusalem in 1967, mother use
to teach in school and watch for the house. Saed is the youngest of three: a
small middle class family for the muslim standards. “For my father, education
has always been crucial. We where not rich, but we all went through University.
I did my elementary and junior high at St. George, one of the many schools created
by Christian missionaries in Jerusalem. Most of teachers are Arabs. Religion is
also part of the program: in those hours each class would divide up and
everyone could follow his own cult. After high school I wanted to travel but I
had no money”.
That’s how Saed starts to work in a West Jerusalem hotel, a
mostly Ebrew area, where he starts interacting with whom until the day before was
the ‘enemy’. It’s a moment of transition, one of those times in life dense with
changes and opportunities. “I grew up with my own idea of how things are, to
later understand the value of dialogue, as a mean to change things around me”.
Saed started to meet with some friends: groups of dialogue with people from
different cultures. Jews, Christians, Arabs, but also many foreigners in town
to study, started to meet in Jerusalem to discuss their own differences. It’s
1984, the first personal computers pop up in the shops and Saed Nashef gets a
book as birthday present from his brother: “Programming
in BASIC for Sinclair”.
“I was blown away! I was fascinated by the idea of
incorporating my knowledge into a machine and writing its commands: something I
could have total control over. I didn’t have the money to buy a computer and
therefore I used to write code on pieces of paper: then I would read and
execute the program in my mind in order to debug it. I use to hang out the
afternoons at the few computer shops in Jerusalem. One day the owner of one of
them was letting customers try its machines: finally I could put my hands on a
real Sinclair ZX Spectrum e I was writing real software code. The guy was
shocked by my ability to make it work and asked me to come back any time I
wanted and stay as long as I wanted. Which I did”.
<PHOTO. “I hope to
be remembered in the future as one of the pioneers that gave his contribution
to develop the technology and economy of Palestine” Saed Nashef, venture capitalist.>
Saed takes a breath and sips slowly its cup of tea. We are
at the cafè Stars&Bucks, a place that mimics ironically the style of
Starbucks: a place where, right after University, students meet for a coffee,
palmito burger and smoke some Narghilè. While the photo crew sets the stage,
Saed’s mind goes back to 1985, when the first University programs in
Information Technology where started to be offered in Jerusalem. “There where
just a few, with very high standards and a very selecting entrance,
particularly if you were arab. I was not admitted.” In the same time the
dialogue evenings had grown a large community of supporters and among them Saed
meets Joyce Klein, a Jewish American, theater producer in Seattle.
The two decide to transform the community into Step, a real theatrical group. The discussion
about differences first happens on the stage and then later among the audience,
with a strong simple idea: interaction is the first step towards understanding
differences. It’s a success.
Joyce goes back to America and after six months calls Saed:
she convinced a producer to finance a US tour. A few weeks later, Step takes
off and lands in JFK for a tour that will cover New York, Boston, Chicago,
Seattle and Vancouver: it’s like landing on Mars. At the end of the trip Saed
decides not to loose what will probably be his only chance in life: he moves to
Huntington Beach, California. To pay for college he used to work at a gas
station, owned by Sam, a Libanese friend. One day his boss is looking to buy
some software for 4.000 dollars, eight times Saed’s monthly salary. He offers
to develop it himself. Promoted on the field: Saed he’s in the back office,
some macro programming for Lotus 123 and in ten days the application works fine.
Six months later Sam gives him an envelope with 1.000 dollars.”You saved me
4.000 dollars”, Sam told me, “these are yours. But I also wanted to ask you one
thing: why in hell do you work at gas stations instead of doing software,
Saed?”. Suddenly I realized for the very first time the unthinkable: I could
make software and earn money for it! I really never realized before, that my
passion could become my job. It might seem absurd but when you grow up without
being able to dream, you don’t see the opportunities, even when they are in
front of you”.
Saed changes gear and things start to happen. From community
college moves to Cal State University Long Beach among palms and surfers:
degree in software engineering. The plan is to study one semester and work the
other to pay for school. “One summer a company from Las Vegas that was in the
slot machine software business offered me a job. I was packing my bags when I
received a call from a guy who read an old post on Compuserve. It was an ironic
geeky resume written with a friend a year before. The guy claimed to be a
Microsoft recruiter and I was about to hang up, since I thought it was a joke.”
It was not. The next day he’s on a flight to Seattle and one
month later joins the Visual Basic team. He has talent and moves to Office,
Excel and Works in order to finally land in the marketing group, his job is to
convince developers migrating to Microsoft technology. On his card “Technical
Evangelist”, ironic destiny for a muslim.
“I could not believe it: the biggest software company in the
world hired me. I never had my own computer until then and still had not
finished my University. In those years at Microsoft I had the opportunity to go
through an incredibile experience and grow, the future was now full of
opportunities”. In 2000 its time to change and Saed joins Checkspace, a startup
in the online payment business, founded by two friends, at the time the only
competitor of Paypal. The team is convincing and raises 12 million dollars in
venture capital. Four years later the company and its 32 employees is sold to a
larger group. Just a few weeks of sabbathical and Saed is already on the move.
This time to found his new startup, Equiom. The idea is to be consultants in
the field of innovation. Equiom wins Microsoft as first customer and in a few
years the company grows from two founders to 75 people. “Things were going
well. I decided it was time to go back home.”
Eighteen years passed since Saed left Jerusalem. In the mean
time, while moving from one job to the other he married Bushra, a Palestinian
girls met in America. “My wife and I wanted our kids to get to know the rest of
their family and their heritage. I had promised her I would not have worked for
a while. But after a few months I was already ‘cheating’, hanging around the
technology seen in the West Bank and discovering how vital and interesting it was.
We decided to open a base for Equiom in Hebron. The first job was a software
application for a startup: we displaced five Indian developers with three of
our guys. They finished the job faster and with a much better quality at competitive
There is a vibrant community of some thousand engineers in
Palestine, thanks to 13 education institutions of great quality. In the
information economy, the developing countries have a competitive advantage:
they can produce highly motivated young professionals that cost a fraction of
their Western peers. The sector generates today in Palestine 9 million dollars
in exports and according to market research will reach 500 million dollars in a
few years. Thousands of jobs and precious cash riserve for a difficult land, in
which any form of physical commerce is practically not feasible.
In the Arab countries the Internet market is expanding fast,
with growing opportunities from all sides: content, online advertising and
mobile. In August 2009 Yahoo! acquired Maktoob, a Giordanian startup. A 100
million dollar deal. Clearly the attitude of investors toward Palestine,
perceived as war zone, is very low.
Things change when Saed meets Yadin Kauffman, Israeli
veteran venture capitalist, co-founder of Veritas Venture Partners in the
nineties. Israel is today one of the most preminent technology hub worldwide.
“I started as associate in the first venture capital fund of
Israel, Athena: 29 million dollars invested in high-tech in 1987. We did around
twenty deals, bringing several startups
from idea to Nasdaq”, tells me Yadin, Harvard graduate in Middle East studies.
A guy who has given birth to companies now public with market capitalizations
above one billion.
“I met several people and immediately realized that the
quality level of the Palestinian scene was high. People of great value: the key
ingredient of venture capital. With Saed there was immediately great chemistry
and sharing of scopes: to create a fund that would invest in the West Bank and
Ramallah. Providing capital, network and knowledge and helping startups to
access the global market while creating an industry. It happened in Israel in
the past 15 years, why shouldn’t it be possible in Palestine?”
Saed is targeting to open before the summer a fund for
Palestine, that would invest 50 million dollars. With that kind of money, you
can fund dozens of startups. He already has gained official support from Salam
Fayad, Prime Minister of the Palestinian National Authority and the European
Investment Bank. He’s back and forth with the US, where President Obama has
invited him officially to represent Palestine in an entrepreneurship summit. He
knows also that upon the success of his iniziative can depend the future of the
“Empowering the intellectual resources of our young
developers is one of the few forms of economy that can be practised in
Ramallah”, tells me Saed: “I realized that I was in the position to impact
greatly the local economy by launching a focused venture capital iniziative”.
And if from Palestine a new Google will be born, that will be greatly because
– 58,3% of people have an email account
– 50,9% use a computer
– 49,9% of computer users goes online
– 50,8% own a fixed line
– 81% a mobile phone
– 32,8% own a computer
– 15,9% has Internet access
150 active companies