Mashable reports that for Muslim and Muslim-focused startups, venture capital can be extremely hard to come by which is infuriating many would-be entrepreneurs who feel their product has the potential to reach a very deep market (as there are 1.6 billion Muslims in the world). Adding to this, the recent anti-Muslim rhetoric from the current election cycle has definitely not helped convince investors who, according to U.S. Data, are “primarily white men funding other white men.”
Amin Aaser, the co-founded of Noor Kids (a line of children’s books designed to inspire Muslim children) says that “in talking with investors and in the entrepreneurial landscape, it feels like there is a lot of heartburn associated with Islamic-related startups.”
According to Mashable, it’s a two fold problem. “Traditional sources of venture capital might be hesitant to back Islamic-focused startups. Meanwhile, the Islamic private equity sectors are reluctant to shell out the kind of multimillion-dollar funding rounds that have become the norm.”
“These firms understand logically that this space is growing and that there are opportunities here,” says Shahed Amanullah, co-founder of the incubator for business, Affinis Labs. “But they aren’t good at talent acquisition, and they are uncomfortable at making million-dollar seed donations.”
As a result, Mashable reports, many new Muslim startups have to go at it on their own.
