Startup investors should define their exit strategy at the beginning of an investment, rather than waiting several years before considering how to recover capital and generate returns, according to Muhammad Morsi, regional director for Egypt and Yemen at Finance in Motion.
Speaking at the “Next Frontier of Funding: Mobilising Private Capital for Startup Innovation” session during Techny Alexandria Summit 2026, Morsi said exit planning should happen alongside efforts to build companies and prepare them for different growth and funding stages.
He also stressed that financing needs change as startups mature. Early-stage companies may rely on angel investors, while venture capital becomes more relevant at later stages. As businesses develop, they can also use tools such as contract financing, guarantees and commercial debt.
Debt financing, however, is not suitable for every startup. Morsi said the companies supported by Finance in Motion’s funds need to reach a more mature and stable stage before they can qualify for this type of funding.
To become bankable, startups need audited financial statements, reliable management accounts, clear governance frameworks and effective risk-management systems. Investors should help companies build these capabilities through their board and operational roles, he added.
Morsi also called for guarantee and risk-sharing mechanisms that would allow banks to support eligible startups without taking on the full risk, while continuing to protect depositors’ funds. He said accelerators and incubators could work with banks to develop financing structures that help startups reach more advanced stages.
Source: Fintech Gate
