Interactive Technologies secures capital boost

UAE-based Interactive Technologies has received its second major venture capital investment boost in quick succession, from German giants Deutsche Bank

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By  Barnaby Chesterman Published  February 8, 2001

Interactive Technologies, a UAE-based e-commerce application development company, has secured a multi-million pound funding from German giants Deutshe Bank. The US $3 million funding is the second such capital injection that Interactive has received after Armada International, a technology fund backed by Deutsche Bank, also invested heavily in Interactive.

Interactive will be using the new money to develop a portfolio of Internet and technology-related businesses in the region. “We are privileged to have secured this latest stage of financing to underpin the continued organic growth of Interactive,” said Ziad Tassabehji, founder and CEO of Interactive Technologies. “However, the benefits extend beyond the financial, and offer our international partners and ourselves mutual, reciprocal access to each others’ networks and relationships,” he explained.

For Deutsche Bank, investing in the Middle East represents an important element in the bank’s strategic expansion plans. Michael Phillip, a member of Deutsche Bank’s Global Management Board, said, “We have chosen Interactive to extend our network in the Middle East because it is an established company with a proven track record extending back to some of the earliest Internet applications in the region. Equally important, it is led by a managerial team that shares our entrepreneurial vision.”

The deal is a major boost for Interactive at a time when much uncertainty surrounds the global IT markets with signs that the US economy is slowly and wildly fluctuating stock markets. The quest to secure venture capital and large-scale funding is becoming increasingly competitive in the rapidly growing Middle East IT industry. “The local venture capital model didn’t work for us,” said Tassabehji. “We wanted to work with someone who has the same vision.”

Deutsche Bank’s investment in Interactive demonstrates that institutional venture capitalists from Europe and the US are more likely to be interested in latter stage investment opportunities when companies have a proven and viable business model.

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