VC React Podcast (Episode #37)

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This week on VC React, we break down the UAE’s AI strategy following the launch of OpenAI and G42’s Stargate UAE, examine the collapse of QIA-backed unicorn Builder.ai, explore what it takes for diaspora founders to succeed in Silicon Valley, and discuss why Iraq’s emerging startup scene is gaining momentum.

We start in Abu Dhabi, where OpenAI announced the first pilot of its new “AI for countries” initiative. Stargate, will provide localised LLM infrastructure to governments, beginning with the UAE. It’s the latest sign that AI compute is being treated as strategic infrastructure in the Gulf. But is this a sovereignty play or just another state-backed anchor deal? We explore what it means for local talent, regulatory positioning, and whether regional AI players can stay competitive amid cost-efficient challengers like DeepSeek.

Then it’s Builder.ai, the UK-based unicorn that raised over $450 million, only to file for bankruptcy with $5 million left in the bank. We trace how the company pitched a vision of no-code AI while allegedly relying on offshore developers and inflated revenue claims. We debate where optimism ends and fraud begins, and why due diligence, especially on AI infrastructure, needs to go beyond pitch decks and into the engine room.

From there, we shift to Iraq. The local startup ecosystem is picking up momentum, with new funds deploying capital and companies like Toolmart (a Plus VC-backed procurement startup) proving the case for building locally. With a fund expansion from EQIQ, we ask: is Iraq at an inflection point? And does it make sense to run venture builder models in early-stage markets, or do they risk undermining founder quality?

We then return to Dubai, where PRYPCO has launched a tokenised real estate pilot backed by DLD and VARA. With a blockchain layer but no secondary market and steep fees, we assess the model and ask whether blockchain-based fractionalisation offers genuine liquidity and protection, or just repackages an old idea in new tech.

Finally, we look at Monarch, the US-based personal finance startup founded by Egyptian-born Ozzy Osman, which just raised a $75 million Series B at an $850 million valuation. We reflect on what it takes for diaspora founders to succeed in Silicon Valley, and why many end up skipping MENA-based capital altogether. The discussion circles around brand, sourcing, and how much regional VCs should be doing to attract and support global talent with local roots.

This week, Jamie and Ahmad were joined by:

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