What Western VCs get wrong about Gulf capital 🧵 1/ Biggest misconception: Gulf investors are slow and bureaucratic. Reality: first meeting to term sheet in 2 weeks. Try that with a US institutional LP. 2/ Second misconception: its all oil money. 60%+ of new FO allocations go into tech, not hydrocarbons. The diversification happened while most Western GPs werent paying attention. 3/ The relationship dynamic is completely different. West: pitch → diligence → close. Gulf: build trust → share meals → then discuss business. The Iftar dinners arent networking. Theyre diligence. 4/ Spent 4 months embedded in this ecosystem. Decision speed is 3x faster than US institutional LPs. Relationship depth required is 10x deeper. Capital horizon is generational — families investing for 50+ years. Your 5yr fund timeline looks rushed to them. 5/ DIFC alone: 1,300 entities, growing 25% YoY. Abu Dhabi's ADGM is right behind it. If youre a GP ignoring Gulf capital youre leaving the most patient relationship-driven allocators on the table. Start with DIFC. ☕

Most LPs still think of Gulf capital as petrochemical money parking in London real estate. That narrative is 5 years out of date. 78% of GCC family offices now run direct investment programs. Average deal size: $12-45M. Focus areas: AI infrastructure, climate tech, fintech. They're not LPs anymore. They're co-investors. → Decision speed: 3x faster than US institutional LPs → Relationship depth required: 10x deeper → Capital horizon: generational (10-year minimums are normal) I spent 4 months embedded in this ecosystem. The thing Western VCs still don't understand: the Iftar dinners aren't networking. They're diligence. If you're a GP raising from Gulf allocators, the playbook is different. You don't pitch and close. You build trust, share meals, then discuss business. The capital is there. The patience is there. The question is whether you're willing to invest the relationship time. What's been your experience raising from Gulf allocators?

2,847 emerging managers are trying to raise Fund I right now. Less than 15% will close. The conventional wisdom says "build a track record and LPs will come." That advice is 10 years out of date. Here's what actually gets Fund I closed in 2026: → A $5-15M anchor from someone who knows you personally → 3-5 co-investors who trust the anchor's judgment → A thesis so specific that LPs can explain it to their IC in one sentence → Distribution proof before you even start raising The founders who close are the ones who spent 18 months building LP relationships before they ever said the words "we're raising." The ones who fail are the ones who built a great portfolio and assumed capital would follow. Track record is necessary. It's not sufficient. What's the biggest surprise you've encountered raising a first fund?