Within venture capital (VC), the focus often lies on sourcing deals, scaling startups, and finding the next unicorn. Behind the scenes and beyond the founder-facing investment function lies a powerful engine ensuring robust operations, strong governance, and rigorous compliance. These are not just hidden gears—they are the foundation that ensures VC firms not only meet but exceed the expectations of investors and partners.

The Role of Operations in the growth of VC in MENA

VC in the MENA region is accelerating at a phenomenal pace, with funding across Emerging Venture Markets growing by 26% between 2022 and 2023, reaching $4.5 billion.[1] A core element to complement this growth, is a high-performance and efficient operational system. Operations team at leading VC firms, are not just a support function but the very heart of the firm, keeping everything flowing smoothly, from fund management to investor communications.

One of the key pillars that differentiates successful VC firms is the collaborative effort between operations, compliance, legal, finance, HR and fund administration working in the background. Complementing the efforts of the investment and value creation teams, a successful operations function ensures that capital is not only directed to the right companies but also successfully returned. Together, the investment team, operations, and value creation team create an ecosystem where risk is minimized, opportunities are maximized, and capital is safeguarded.

Governance: A Pillar of Trust and Accountability

Strong operations alone are not enough—it is robust governance that sets VC firms apart. In a world where trust is paramount, governance structures make turn VCs into reliable partners for investors, founders, and stakeholders. Governance refers to the systems, policies, and processes that ensure a firm operates in a transparent, ethical, and accountable manner. Governance is more than a set of policies; it is a commitment to structured decision-making processes, where formal approvals and thorough due diligence are prerequisites for deploying capital. For example, the operations teams at VC firms, ensures that there are formal approval processes for the deals and that thorough due diligence has been conducted before any capital is deployed.

Transparency is another key element of good governance. Investors expect to know how their capital is being utilized, and governance affirms this clarity. For instance, the operations team is responsible to provide quarterly reports to investors, including quarterly updates on fund performance, financials, and key metrics. Proper governance ensures these reports are accurate and timely, keeping investors informed and putting confidence in the firm's decisions. I have seen firsthand how critical it is to create clear accountability, foster transparency, and maintain a culture of responsibility. Today, governance has become a crucial factor for investors when deciding where to deploy their funds.

Compliance: Upholding Integrity in a Rapidly Evolving World

Compliance, too, is much more than a tick-box activity. In fact, it plays an essential role in building and maintaining trust. In today’s rapidly shifting regulatory environment, both locally and internationally, staying ahead on compliance is necessary. Compliance means integrity- It means showing investors your committment to operating at the highest standards. The compliance framework keeps the firm agile, adaptable, and—most importantly—trusted by investors. That trust is the bedrock of long-term partnerships.

The responsibility of the operation team extends to staying continously vigilant and proactive when regulations such as anti-money laundering (AML) policies emerge, and to immediately assess, in coordination with AML partners, current practices and make necessary adjustments to meet these standards. This is crucial in upholding the firm's reputation for transparency and integrity.

Fund Administrators: Guardians of Precision

Fund administrators are the guardians of a VC firm’s precision. Their diligence ensures that the capital deployed accurately, financial reports are flawless, and all legal obligations are met. For investors, globally, and more specifically in the MENA region—an increasingly competitive and sophisticated market—this kind of transparency and accountability is not just appreciated; it is expected.

For instance, when it comes to quarterly fund reports, fund administrators collect and analyze all financial data to generate accurate reports that present a clear picture of the funds’ actual financial standing. These reports are instrumental in maintaining investors’ trust by offering transparency about the management of their investments.

--

In an industry where trust is paramount, delivering consistent results to investors goes beyond making smart investments—it is about having the right team and infrastructure to safeguard and grow capital responsibly. Returning capital to investors isn’t a goal—it is a commitment. And this commitment is upheld by every operation, policy, and person in this ecosystem.

Each day, as part of my role as Operations Director at Global Ventures, I'm reminded that we're not just investing in the future—we're building the foundation that enables innovation to thrive and delivers meaningful returns for our investors.

As the MENA region rises as a global hub for deploying venture capital, firms that prioritize these pillars will stand out and make a lasting impact. We are building more than financial returns—we are building a legacy of trust, excellence, and commitment – and most importantly, a reliable VC ecosystem.

This article was edited by Lana Azhari, Research & Insights Manager at Global Ventures.

‍