Neuromarketing & FOMO: How Smart Startups Use Brain Science to Skyrocket Growth

Jun 25, 2025

Ghada Ismail

 

What if you could read a customer’s mind before they even said a word? Not long ago, startups had to rely on slow focus groups and basic surveys to guess what customers liked. Today, they can track eye movements, monitor reactions through smartwatches and other tools to quickly see what grabs attention, whether it’s a webpage, a TikTok video, or a price tag. This instant insight into customer behavior is powering a growing market called the ‘Neuromarketing’ that is now worth $1.56 billion and expected to more than double by 2034. The most successful new companies are using neuroscience-based strategies to trigger automatic customer responses. By understanding how brains make decisions, you can design marketing that converts at much higher rates.

This article reveals how to ethically apply neuromarketing principles and FOMO (Fear of Missing Out) to accelerate your startup's growth.

 

The Neuroscience Behind Impulse Marketing

If neuromarketing provides the brain scan, fear of missing out supplies the adrenaline. Around six in ten consumers admit they have made a “reactive” purchase within 24 hours of feeling FOMO, and the share spikes to 69 percent among millennials. Psychologists trace the phenomenon to the brain’s reward network: when we think other people are seizing an opportunity we might lose, dopamine surges, nudging us toward instant action. Social platforms have weaponized that impulse with endless highlight reels; savvy startups are learning to hard-wire it into product design, price promotions, and even push notifications.

 

From lab coats to laptops: the new neuromarketing stack

The classic toolkit pairs methods that read the body with AI that predicts behavior. Functional MRI offers millimeter-level maps of activity deep inside the brain, while EEG headsets (EEG headsets are wearable devices that measure electrical activity in the brain using a technology called electroencephalography) translate surface waves into real-time attention scores. Eye-tracking cameras pinpoint the exact pixel that attracts or repels a viewer; galvanic-skin sensors detect a micro-bead of sweat signaling arousal. What once required a research hospital now runs in a browser or on a fitness band, putting neuroscience within reach of a five-person SaaS team. 

 

Where neuromarketing meets FOMO

The power comes when these tools are used to calibrate scarcity messages, social-proof counters, and countdown timers with scientific precision. Imagine an e-commerce startup testing two product pages. In version A, the headline reads “Only 3 left in stock”; in version B, it says “In stock”. An AI model trained on thousands of eye-tracking records predicts that the first phrasing holds gaze 1.8 seconds longer.  The founders push version A live and watch conversions climb. They have literally measured FOMO in the brain.

 

FOMO in Action: How Fear of Missing Out Drives Spending Habits
Fear of missing out isn’t just a feeling; it’s reshaping consumer behavior, especially among younger generations. From impulse buys to overspending on experiences, FOMO is a strong psychological trigger that’s influencing the way people make financial decisions. Here are some key statistics that highlight just how widespread and powerful its impact has become:

 

  • 60% of consumers say they’ve made a purchase because of FOMO, often within 24 hours.
  • A OnePoll study found that 69% of Americans have experienced FOMO, with social media as a major driver.
  • According to the American Psychological Association, 56% of U.S. adults felt FOMO during the COVID-19 pandemic—again, fueled by social media.
  • An Experian report showed that 69% of millennials overspend to keep up with peers and avoid FOMO.
  • A TD Ameritrade survey revealed that 73% of millennials had spent money they didn’t have on experiences to avoid feeling left out.

 

Neuromarketing: Your Secret Weapon for Higher Conversions

Neuromarketing gives you an unfair advantage by revealing what actually drives decisions . Here's how to use it:

1. Emotion Beats Reason Every Time

  • People justify purchases with logic but buy based on feelings
  • Use language that triggers excitement, nostalgia or belonging
  • Example: "Join thousands of happy customers" works better than "Our product has these features"

2. The Magic of Storytelling

  • Our brains are wired to remember stories 22x better than facts
  • Frame your product as solving a dramatic problem
  • Show transformation rather than listing benefits

3. Visuals That Work Subconsciously

  • Red = urgency (perfect for "Buy Now" buttons)
  • Blue = trust (ideal for pricing pages)
  • Faces looking at your Call to Action (CTA) button increase clicks by 10-15%

4. Simplify Choices to Boost Sales

  • Too many options paralyze decision-making
  • Offer 3 versions max (good/better/best)
  • Highlight one recommended option

FOMO: The Growth Hack Every Startup Should Use

FOMO taps into our deep fear of social exclusion. When used ethically, it can dramatically improve conversion rates.

Proven FOMO Tactics That Work:

 

Limited Availability

  • "Only 3 spots left in our program"
  • "First 100 customers get lifetime discount"

 Social Proof Triggers

  • "Join 2,500+ founders using our tool"
  • Live counters showing recent signups

 Exclusive Access

  • "Invite-only early access"
  • "VIP members get 24-hour head start"

 Urgency Without Being Pushy

  • "Early bird pricing ends Friday"
  • “Registration closes in 48 hours”

Combining Neuromarketing + FOMO for Maximum Impact

The most effective startups layer these techniques:

 

1. The Story + Scarcity Combo

  • Tell an emotional brand story
  • Add "Limited edition" or "Only available this week"

2. Social Proof + Urgency

  • "500+ customers joined this week"
  • "Next price increase in 3 days"

3. Gamification + Exclusivity

  • Progress bars showing signup milestones
  • "Top 50 users get premium features free"

 

The Playbook for Founders

Start by figuring out where people are dropping off. Are visitors leaving before scrolling? Upload a screenshot of your page into an AI tool like Predict AI to spot areas that people tend to ignore.

Next, create real urgency—but keep it honest. Limited-edition offers, time-based pricing, or exclusive waitlists can trigger FOMO, but fake countdown timers will only hurt your credibility.

Then, test quickly and often. Because brain-based feedback can come in fast, your growth team could test ten headline versions before lunchtime.

Finally, close the loop with social proof. Show how many people have signed up or made a purchase recently—when users see others taking action, they’re more likely to follow through.

 

Staying Ethical: Where Neuromarketing Meets Regulation

Tracking eye movements or physical responses isn’t exactly mind-reading, but neuromarketing comes close and that raises important ethical questions. In places like Europe, the General Data Protection Regulation (GDPR) treats biometric data (like facial expressions or heart rate) as highly sensitive. That means companies must get clear, informed consent and use the data only for a specific, stated purpose. California’s Consumer Privacy Rights Act (CPRA) has similar rules.

But legal compliance is just the starting point. Founders also need to think about ethics: When does smart marketing cross the line into manipulation? For example, pretending a countdown timer is real when it’s not may boost short-term sales, but it damages trust. On the other hand, being honest and offering features like an easy “undo” option after an impulse purchase builds long-term loyalty and customer lifetime value. In short, transparency and respect aren't just good ethics—they're smart business.

 

Implementation Guide for Startups

Step 1: Audit Your Current Marketing

  • Where can you add more emotional triggers?
  • Do you show social proof effectively?
  • Is your pricing structure simple?

Step 2: Run FOMO Experiments

  • Test limited-time offers vs evergreen pricing
  • Try different urgency messages
  • See which message leads to more clicks, sign-ups, or sales

Step 3: Refine Based on Data

  • Track which emotional triggers work best
  • Optimize your most effective FOMO tactics
  • Scale what works, kill what doesn't

 

The bottom line

Great products always solve a problem. Neuromarketing simply lets founders prove—rather than guess—whether their solution hits the brain’s sweet spot. Pair brain-based validation with FOMO, and you’ve got a growth engine that turns curiosity into clicks and clicks into conversions. The opportunity is enormous, but so is the responsibility. Startups that wield these tools with empathy and transparency will gain more than mere clicks; they will earn trust in a market where attention is scarce and FOMO is everywhere.

Your move: Will you keep using old marketing playbooks, or start leveraging how brains actually work?

 

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CEO: Grintafy plays instrumental role in preparing Saudi talents for FIFA World Cup 2034

Noha Gad

 

Saudi Arabia’s sports sector is undergoing a remarkable transformation fueled by ambitious investments and strategic initiatives aligned with Vision 2030. The value of this rapidly expanding market is expected to triple by 2030, driven by major infrastructure projects, hosting global events like the FIFA World Cup 2034, and the growing emphasis on grassroots development and professional leagues. 

 

Sports technology platforms, such as Grintafy, play a pivotal role in advancing this evolving sector. By leveraging innovative tools like AI analytics, blockchain, and fintech solutions, Grintafy empowers amateur players, clubs, and scouts with data-driven insights and seamless connectivity.

 

Guided by a clear mission to democratize talent discovery and build Saudi Arabia’s future football stars, Grintafy envisions the Kingdom as a global beacon of sports excellence. Its vision is realized through strategic collaborations with key stakeholders, including clubs, federations, and cutting-edge Web3 innovators, enabling the platform’s expansion across the MENA region and beyond.

 

Sharikat Mubasher held an interview with Founder and CEO, Majdi Allulu, to discover more about Grintafy’s business model, regional and global expansions, as well as its strategy to position Saudi Arabia as a global sports hub. 

 

What was the driving force behind launching Grintafy, and what is its core mission in Saudi Arabia?

Grintafy was founded and driven by the ambition to “level the playing field” for amateur footballers by enabling them to build their football CVs, rate performances, organize games, and connect with scouts and clubs. 

The core mission in Saudi Arabia is to democratize talent discovery, support Vision 2030’s goals, and serve as a launchpad for the national team’s next generation.

 

How does Grintafy set itself apart from other talent-scouting platforms regionally and globally?

  • Scale: With nearly 2.5 million registered users across the Middle East, Grintafy stands as the region’s largest talent discovery platform. 
  • Comprehensive features: It offers a full ecosystem—organizing games, performance ratings, CV building (“Grinta Card”), messaging, live streaming, and fintech payments like in-app “G-coins” 
  • Web3 capabilities: Strategic investment by Chiliz and Adaverse positions Grintafy at the forefront of using blockchain for transparent player ratings, performance certification, and engagement.

 

How do you utilize emerging technologies like AI or data analytics to enhance talent discovery?

The platform already harnesses AI and machine learning to support live-streaming features and performance analysis. We have the plans to use AI-driven analytics to elevate scouting accuracy, refine player rankings, and extract deeper insights from performance data.

 

With Saudi Arabia set to host the FIFA World Cup 2034, how will Grintafy contribute to preparing local talent for this global stage?

Grintafy aims to be instrumental in preparing Saudi talent for the global stage by:

  • Continuously identifying emerging local players through its platform and scouting network.
  • Aligning with Vision 2030, with investors like Wa’ed emphasizing the goal of discovering the “future Saudi National Team” on Grintafy.
  • Expanding development initiatives, grassroots tryouts, and performance tracking programs designed to elevate player readiness by 2034.

 

How will your recent partnership with Resal empower Saudi sports talents? And are there other strategic partnerships in the pipeline to further Grintafy’s mission? 

The recent Resal partnership integrates loyalty rewards with Grintafy: athletes earn digital incentives through performance and engagement, driving motivation and sustained development.

We have several regional and global partnerships in the final stages of completion. This includes international clubs and leagues. 

 

What are Grintafy’s strategies to expand within and beyond Saudi Arabia? 

  • Regional expansion: Active in Egypt since 2021—with partnerships with West Ham United, the Egyptian Ministry of Youth & Sports, Cádiz CF—and planning to expand further across MENA.
  • International push: Supported by investors like Chiliz and Adaverse, aiming to connect Saudi talent with European and South American football ecosystems.

 

How do you assess the current state of Saudi Arabia’s sports ecosystem? And how did government initiatives support the sector?

The Saudi sports ecosystem is rapidly evolving, heavily fueled by Vision 2030 initiatives focused on national sports development, infrastructure, and private sector engagement. Government support is substantial—from funding early-stage sportstech ventures (like Wa’ed backing Grintafy), to incentivizing Web3 innovation and international talent initiatives, strongly supportive of platforms like Grintafy.

 

What is Grintafy’s long-term vision for shaping Saudi Arabia as a global sports hub?

Grintafy envisions Saudi Arabia emerging as a globally competitive sport—and especially football—hub by:

  • Empowering grassroots development and bridging amateur players to professional opportunities.
  • Integrating advanced Web3 and AI tools to set global standards for talent discovery.
  • Fostering global partnerships that ensure Saudi players are scouted and play internationally.
  • Feeding homegrown talent into national teams, championships, and global leagues, thereby reinforcing the Kingdom as a center of sports excellence.

 

In preparation for the 2034 FIFA World Cup, Grintafy focuses on identifying and developing local talent through performance tracking, trials, and organized matches, aiming to build a strong generation of Saudi players ready to compete internationally.

The platform utilizes advanced technologies such as AI analytics, live streaming, fintech payments, and blockchain credentials to enhance talent discovery and ensure transparent, secure player data management.

Finally, innovations in sports tech and infrastructure are backed by Vision 2030 and the government's support to accelerate technology adoption, empowering platforms like Grintafy to elevate Saudi Arabia as a global sports hub.

Neuromarketing & FOMO: How Smart Startups Use Brain Science to Skyrocket Growth

Ghada Ismail

 

What if you could read a customer’s mind before they even said a word? Not long ago, startups had to rely on slow focus groups and basic surveys to guess what customers liked. Today, they can track eye movements, monitor reactions through smartwatches and other tools to quickly see what grabs attention, whether it’s a webpage, a TikTok video, or a price tag. This instant insight into customer behavior is powering a growing market called the ‘Neuromarketing’ that is now worth $1.56 billion and expected to more than double by 2034. The most successful new companies are using neuroscience-based strategies to trigger automatic customer responses. By understanding how brains make decisions, you can design marketing that converts at much higher rates.

This article reveals how to ethically apply neuromarketing principles and FOMO (Fear of Missing Out) to accelerate your startup's growth.

 

The Neuroscience Behind Impulse Marketing

If neuromarketing provides the brain scan, fear of missing out supplies the adrenaline. Around six in ten consumers admit they have made a “reactive” purchase within 24 hours of feeling FOMO, and the share spikes to 69 percent among millennials. Psychologists trace the phenomenon to the brain’s reward network: when we think other people are seizing an opportunity we might lose, dopamine surges, nudging us toward instant action. Social platforms have weaponized that impulse with endless highlight reels; savvy startups are learning to hard-wire it into product design, price promotions, and even push notifications.

 

From lab coats to laptops: the new neuromarketing stack

The classic toolkit pairs methods that read the body with AI that predicts behavior. Functional MRI offers millimeter-level maps of activity deep inside the brain, while EEG headsets (EEG headsets are wearable devices that measure electrical activity in the brain using a technology called electroencephalography) translate surface waves into real-time attention scores. Eye-tracking cameras pinpoint the exact pixel that attracts or repels a viewer; galvanic-skin sensors detect a micro-bead of sweat signaling arousal. What once required a research hospital now runs in a browser or on a fitness band, putting neuroscience within reach of a five-person SaaS team. 

 

Where neuromarketing meets FOMO

The power comes when these tools are used to calibrate scarcity messages, social-proof counters, and countdown timers with scientific precision. Imagine an e-commerce startup testing two product pages. In version A, the headline reads “Only 3 left in stock”; in version B, it says “In stock”. An AI model trained on thousands of eye-tracking records predicts that the first phrasing holds gaze 1.8 seconds longer.  The founders push version A live and watch conversions climb. They have literally measured FOMO in the brain.

 

FOMO in Action: How Fear of Missing Out Drives Spending Habits
Fear of missing out isn’t just a feeling; it’s reshaping consumer behavior, especially among younger generations. From impulse buys to overspending on experiences, FOMO is a strong psychological trigger that’s influencing the way people make financial decisions. Here are some key statistics that highlight just how widespread and powerful its impact has become:

 

  • 60% of consumers say they’ve made a purchase because of FOMO, often within 24 hours.
  • A OnePoll study found that 69% of Americans have experienced FOMO, with social media as a major driver.
  • According to the American Psychological Association, 56% of U.S. adults felt FOMO during the COVID-19 pandemic—again, fueled by social media.
  • An Experian report showed that 69% of millennials overspend to keep up with peers and avoid FOMO.
  • A TD Ameritrade survey revealed that 73% of millennials had spent money they didn’t have on experiences to avoid feeling left out.

 

Neuromarketing: Your Secret Weapon for Higher Conversions

Neuromarketing gives you an unfair advantage by revealing what actually drives decisions . Here's how to use it:

1. Emotion Beats Reason Every Time

  • People justify purchases with logic but buy based on feelings
  • Use language that triggers excitement, nostalgia or belonging
  • Example: "Join thousands of happy customers" works better than "Our product has these features"

2. The Magic of Storytelling

  • Our brains are wired to remember stories 22x better than facts
  • Frame your product as solving a dramatic problem
  • Show transformation rather than listing benefits

3. Visuals That Work Subconsciously

  • Red = urgency (perfect for "Buy Now" buttons)
  • Blue = trust (ideal for pricing pages)
  • Faces looking at your Call to Action (CTA) button increase clicks by 10-15%

4. Simplify Choices to Boost Sales

  • Too many options paralyze decision-making
  • Offer 3 versions max (good/better/best)
  • Highlight one recommended option

FOMO: The Growth Hack Every Startup Should Use

FOMO taps into our deep fear of social exclusion. When used ethically, it can dramatically improve conversion rates.

Proven FOMO Tactics That Work:

 

Limited Availability

  • "Only 3 spots left in our program"
  • "First 100 customers get lifetime discount"

 Social Proof Triggers

  • "Join 2,500+ founders using our tool"
  • Live counters showing recent signups

 Exclusive Access

  • "Invite-only early access"
  • "VIP members get 24-hour head start"

 Urgency Without Being Pushy

  • "Early bird pricing ends Friday"
  • “Registration closes in 48 hours”

Combining Neuromarketing + FOMO for Maximum Impact

The most effective startups layer these techniques:

 

1. The Story + Scarcity Combo

  • Tell an emotional brand story
  • Add "Limited edition" or "Only available this week"

2. Social Proof + Urgency

  • "500+ customers joined this week"
  • "Next price increase in 3 days"

3. Gamification + Exclusivity

  • Progress bars showing signup milestones
  • "Top 50 users get premium features free"

 

The Playbook for Founders

Start by figuring out where people are dropping off. Are visitors leaving before scrolling? Upload a screenshot of your page into an AI tool like Predict AI to spot areas that people tend to ignore.

Next, create real urgency—but keep it honest. Limited-edition offers, time-based pricing, or exclusive waitlists can trigger FOMO, but fake countdown timers will only hurt your credibility.

Then, test quickly and often. Because brain-based feedback can come in fast, your growth team could test ten headline versions before lunchtime.

Finally, close the loop with social proof. Show how many people have signed up or made a purchase recently—when users see others taking action, they’re more likely to follow through.

 

Staying Ethical: Where Neuromarketing Meets Regulation

Tracking eye movements or physical responses isn’t exactly mind-reading, but neuromarketing comes close and that raises important ethical questions. In places like Europe, the General Data Protection Regulation (GDPR) treats biometric data (like facial expressions or heart rate) as highly sensitive. That means companies must get clear, informed consent and use the data only for a specific, stated purpose. California’s Consumer Privacy Rights Act (CPRA) has similar rules.

But legal compliance is just the starting point. Founders also need to think about ethics: When does smart marketing cross the line into manipulation? For example, pretending a countdown timer is real when it’s not may boost short-term sales, but it damages trust. On the other hand, being honest and offering features like an easy “undo” option after an impulse purchase builds long-term loyalty and customer lifetime value. In short, transparency and respect aren't just good ethics—they're smart business.

 

Implementation Guide for Startups

Step 1: Audit Your Current Marketing

  • Where can you add more emotional triggers?
  • Do you show social proof effectively?
  • Is your pricing structure simple?

Step 2: Run FOMO Experiments

  • Test limited-time offers vs evergreen pricing
  • Try different urgency messages
  • See which message leads to more clicks, sign-ups, or sales

Step 3: Refine Based on Data

  • Track which emotional triggers work best
  • Optimize your most effective FOMO tactics
  • Scale what works, kill what doesn't

 

The bottom line

Great products always solve a problem. Neuromarketing simply lets founders prove—rather than guess—whether their solution hits the brain’s sweet spot. Pair brain-based validation with FOMO, and you’ve got a growth engine that turns curiosity into clicks and clicks into conversions. The opportunity is enormous, but so is the responsibility. Startups that wield these tools with empathy and transparency will gain more than mere clicks; they will earn trust in a market where attention is scarce and FOMO is everywhere.

Your move: Will you keep using old marketing playbooks, or start leveraging how brains actually work?

 

From Apps to Income: How Startups Are Fueling Saudi Arabia’s Gig Economy Boom

Kholoud Hussein 

 

1. Introduction: The Surge of Gig Work in the Kingdom

Over the past decade, Saudi Arabia’s labor market has undergone a rapid transformation. Traditional job structures are increasingly giving way to gig-based employment, facilitated by ride-hailing services, delivery platforms, freelancing networks, and on-demand services. Platforms like Mrsool, Jahez, HungerStation, Careem, Fetchr, and numerous freelancing portals are catalysts for this shift. According to the 2024 Ministry of Human Resources & Social Development, approximately 15.7% of the Saudi workforce now engages in some form of gig or informal work, up from just 8% in 2018.

 

This trend reflects global labor market shifts, but it has unique implications in Saudi Arabia, where Vision 2030 aims to diversify the economy, increase female labor participation, and formalize economic opportunities. The rise of gig work has become a key engine of startup growth and private-sector innovation across delivery, logistics, professional services, and more.

 

2. Gig Work as an Opportunity for Startups

 

2.1. A Flexible, Scalable Labor Model

Startups in KSA are leveraging gig labor to build agile, low-capital models that scale quickly:

  • Jahez operates with a dispersed delivery workforce, reducing fixed costs while handling up to 1.5 million daily deliveries.
  • Mrsool, a peer-to-peer courier platform, enables users to onboard informal couriers (“mushers”) via simple ID verification, costing fractions of conventional logistics.
  • Professional-service startups (marketing, design, tech freelancing) use gig platforms to match entrepreneurs with over 200,000 gig workers in creative fields.

Fahad Al-Mansour, CEO of a Riyadh-based logistics startup, notes: “We could never create dispatch hubs or fleets at this scale without gig couriers. They give us the speed and reach that a traditional model simply can’t match.”

 

This flexibility allows startups to tackle localized demand spikes—Ramadan services, sporting events, or tourism surges—without major overhead. It brings cost-efficiency and responsiveness rarely seen in earlier business models.

 

2.2. Enabling Innovation with Lower Risk

By reducing fixed expenses, startups channel resources into product development, UX, marketing, and expansion. For example:

  • Fetchr, offering same-day delivery via gig drivers, has expanded into the UAE, Kuwait, and Bahrain since 2022, capitalizing on its asset-light labor model.
  • Health and eldercare startups use gig nurses and therapists to scale with public consent and limited operational costs.

Haya Al-Fahad, co-founder of a telehealth startup, explains: “Gig professionals have allowed us to pilot home-based elderly care without committing to physical clinics or full-time staff. We can test, adapt, and grow faster.”

 

Startups appreciate that gig work helps them launch with minimal risk and pivot quickly based on data-driven insights.

 

3. Challenges of Informal Gig Work for Workers and Startups

 

3.1. For Workers: Lack of Protections and Predictability

Gig workers often experience unstable incomes, lack of social insurance, and absence of benefits:

  • Income volatility: Many couriers can earn between SR 2,000–3,500 per month, but with high variance in demand cycles.
  • Lack of coverage: No access to retirement pensions, health insurance, or unemployment benefits.
  • Legal ambiguity: Contracts are often limited to platform terms, leaving workers without employee rights.

A delivery driver shares: “One week I make SR 4,000, the next SR 1,800. I have no idea how much I’ll make next month… there’s no safety net.”

Such instability creates financial stress and vulnerability, undermining the socio-economic goals of Vision 2030.

 

3.2. For Startups: Quality, Reliability, and Workforce Loyalty

While gig labor offers flexibility, it introduces challenges for startups:

 

  • Inconsistent service: Reliance on part-time workers affects delivery speed and quality.
  • High churn: Gig workers may switch between multiple apps for better pay or perks.
  • Lack of brand ownership: Customers develop affinity with platforms, not individual couriers or service providers.

A logistics startup founder notes: “We spend major effort training gig staff for efficient routes or customer communication, only for them to have low retention and performance inconsistency.”

 

These issues affect reputation, repeat business, and customer satisfaction, hindering long-term growth.

 

4. Digital Platforms and the Private Sector: From Matching to Enablement

 

4.1. Platforms Moving Up the Value Chain

Saudi gig platforms are evolving into holistic ecosystems:

  • HungerStation, originally a food delivery app, now offers logistics services to restaurants, analytics dashboards, and training for kitchen staff.
  • Mrsool has added onboarding, ID verification, and digital wallet solutions with partners like STC Pay.
  • Freight startups such as Fetchr and Trukky provide professional training, insurance, and job scheduling tools to gig drivers.

These platforms transition from mere mediators to platforms delivering workforce support—closing operational, regulatory, and operational gaps faced by gig workers.

 

4.2. FinTech and Financial Services for Gig Labor

A key innovation: embedding financial services into gig ecosystems. FinTechs like Tamara, HalalaH, and sap payment offer:

  • Instant pay solutions—linking with gig apps so workers get paid daily rather than monthly.
  • Microloans and credit based on earnings history, enabling vehicle or equipment purchases.
  • Integrated insurance bundles—offered with every job.

Khalid Al-Ghamdi, CEO of a Saudi FinTech serving gig workers, underscores the impact: “Providing a seamless payroll and microcredit system has empowered thousands of gig workers to access financial tools usually reserved for full-time employees.”

 

This approach benefits both workers (income stability, credit access) and platforms (higher loyalty, service quality).

 

5. Moving Toward a Formalized Gig Economy

5.1. Regulatory Progress

Saudi Arabia has begun formalizing gig work through:

  • “Freelance Residency” visas launched in 2022, allowing gig professionals legal status and tax registration.
  • Labor regulations enabling self-employment licensing and freelance contracts via online government portals.
  • Upcoming minimum income protections and social coverage discussed by HRSD officials in 2024.

Human Resources Minister Ahmed Al-Rajhi commented: “We are determined to integrate gig workers into the formal economy, ensuring they receive basic protections while promoting a flexible labor environment.”

 

5.2. Startup Initiatives in Workforce Protection

Some startups proactively offer standards for gig workers:

  • RideNow provides ID verification, safety training, and third-party insurance.
  • HealthX, a health staffing app, offers gig professionals online training and certification, paired with indemnity insurance for home visits.
  • SkillX, an on-demand training platform, enables gig workers to gain micro-credentials linked to job apps—improving quality and pay.

These efforts reflect a growing entrepreneurial emphasis on responsible gig models with social safeguards.

 

6. Towards a Balanced Saudi Gig Ecosystem

 

6.1. Strategic Coordination

Building a sustainable gig economy requires a three-way alignment:

StakeholderRole & ContributionDesired Outcome
GovernmentRegulation, protections, standardizationInclusive, flexible labor market
Startups/PlatformsOperational support, training, insurance, FinTechHigh-quality, resilient gig workforce
WorkersParticipation, feedback, upskillingFair earnings & career pathways

6.2. Future Outlook and Recommendations

Key next steps for a thriving Saudi gig ecosystem:

  1. Legislate fair minimum earnings and social coverage (e.g., pension contributions, health insurance for gig workers).
  2. Standardise onboarding and accreditation processes via platforms and technical authorities.
  3. Accelerate tech-enabled solutions (instant pay, microloans, skill certification).
  4. Promote data sharing partnerships to analyze gig labor trends, inform policy, and improve platform accountability.
  5. Foster research collaborations between universities and startups on gig-work impacts, quality, and mental health.

Delivering these will solidify gig work as a reliable, growth-supporting component of Saudi’s economy.

 

From Informality to Strategic Asset

The gig economy is not just a stopgap labor source—it can be a cornerstone of Saudi Arabia’s diversified, innovation-driven economy. Startups are already leveraging gig work to scale efficiently, pilot new services, and enhance service delivery. However, thriving requires elevating this into a sustainable, equitable model that benefits workers, platforms, and the national agenda.

 

By integrating regulatory frameworks, startup-led enablers, FinTech solutions, and worker empowerment, Saudi Arabia can transform gig work into a formalized, quality-assured, and socially responsible sector by 2030.

 

As the Saudi labor market continues to evolve, the challenge—and opportunity—is clear: turn flexibility into sustainability. In doing so, Saudi Arabia can inspire the region and set a standards-based model for gig economies globally.

 

What is a Cap Table (Capitalization Table)?

Ghada Ismail

 

If you're launching a startup or thinking about raising funding, one term you’ll quickly come across is the cap table—short for capitalization table. While it may sound technical, it’s actually a straightforward but critical tool that every founder, investor, and early employee should understand.

 

In Simple Terms

A cap table is a spreadsheet or digital dashboard that shows who owns what in a company. It details the equity ownership, types of shares, and how that ownership changes over time, especially after funding rounds, stock option grants, or exits.

Think of it as the official scorecard of ownership in your startup.

 

What Does a Cap Table Include?

At its core, a cap table typically shows:

  • Founders’ ownership
  • Investor equity stakes
  • Employee stock options
  • Total shares outstanding and fully diluted

The more a company grows and raises capital, the more complex the cap table becomes, especially after multiple funding rounds and equity-based compensation.

 

Why It Matters

A cap table isn’t just for compliance; it’s essential for decision-making. It helps you:

  • Negotiate with investors by clearly showing who’s getting diluted
  • Issue stock options to employees with transparency
  • Plan exits or acquisitions with a clear view of payouts
  • Stay ready for due diligence during fundraising or M&A

Messy or outdated cap tables can delay deals or, worse, it can cost you trust with investors.

 

When to Set It Up

Early. Ideally, the moment your startup incorporates and issues shares to founders. As you bring on co-founders, advisors, or early team members, keeping your cap table clean and updated avoids painful headaches down the line.

There are plenty of tools today—like Carta, Pulley, or Eqvista—that help automate and manage your cap table securely and accurately.

 

Popular Cap Table Tools

Managing a cap table manually in Excel might work for the first few months, but it gets messy fast. That’s where dedicated tools come in. Here are three leading platforms startups use to simplify and professionalize equity management:

 

1. Carta

One of the most widely used platforms globally, Carta offers cap table management, scenario modeling, and investor reporting. It’s trusted by many VC-backed startups and is especially helpful for companies scaling fast or preparing for funding rounds.

2. Pulley

Pulley is built with early-stage startups in mind. It’s clean, intuitive, and affordable, making it great for first-time founders who want clarity on dilution and equity planning. It also offers support for SAFEs, options, and pro-forma modeling.

3. Eqvista

Eqvista is a robust yet cost-effective alternative, offering full-featured cap table tools, company valuations, and compliance support. It’s especially popular among startups outside the U.S. and provides personalized support for smaller teams.

 

Wrapping things up…

Your cap table tells the story of your startup’s ownership, and over time, that story evolves. Whether you’re raising your first round or preparing for a major exit, a clean and well-maintained cap table is more than a spreadsheet—it’s a strategic asset.

 

What Is Liquid Venture Capital? A Game-Changer for Startup Investment

Kholoud Hussein 

 

In recent years, the world of startup financing has seen tremendous innovation, not just in what is being funded, but in how capital flows. One of the more intriguing trends gaining traction among investors and founders alike is "liquid venture capital" — a model that promises to bring flexibility, speed, and secondary market liquidity into a traditionally illiquid asset class.

 

But what exactly is liquid venture capital, and why is it becoming a hot topic in the venture and startup ecosystem?

 

The Traditional VC Model: Illiquid by Design

To understand what liquid VC is, it helps to contrast it with the traditional venture capital model. In a typical VC deal:

  • Investors fund early-stage companies with equity.
  • The capital is locked in for 5–10 years, often with no early exit.
  • VCs get their returns through IPOs, acquisitions, or secondary buyouts.

While this model has created giants like Uber, Airbnb, and Stripe, it is inherently illiquid. Investors must wait years before seeing any return, and startups, especially in developing ecosystems, often struggle with limited access to follow-on capital or secondaries.

 

This is where liquid venture capital emerges as a disruptive alternative.

 

What Is Liquid Venture Capital?

Liquid venture capital refers to venture investment structures that allow earlier and more flexible exits for investors, typically through tokenized equity, publicly tradable assets, or secondary markets that create liquidity well before a company goes public or is acquired.

 

In simpler terms, liquid VC gives investors the ability to buy or sell startup stakes more easily, without waiting years for a traditional exit.

 

How Does It Work?

There are several models under the liquid VC umbrella:

  1. Tokenization of Equity:
    Startups issue tokenized shares on blockchain platforms, which can be traded on secondary markets. This opens up early liquidity options and attracts global micro-investors.
  2. Secondary Share Markets:
    Platforms like Forge or CartaX allow early investors and employees to sell shares before an IPO. VCs can enter or exit positions faster, diversifying risk.
  3. Publicly Listed Startup Funds:
    Some funds invest in startups but offer publicly traded shares of the fund itself. Investors get exposure to venture portfolios with the ability to cash out anytime.
  4. Hybrid Structures:
    Some VC funds now include liquidity windows or dynamic capital calls that enable limited partners to exit earlier than usual.

 

Why Liquid VC Is Gaining Attention?

1. Faster Access to Capital for Startups

Startups benefit from a more active investor base. With liquidity available, funds may be more willing to invest earlier or with less hesitation.

 

2. More Flexible Risk Management for Investors

VCs and angel investors can manage their portfolios more like public equities — rebalancing, reducing exposure, or locking in gains before an exit event.

 

3. Democratizing Venture Investing

By tokenizing shares or listing venture funds, liquid VC models allow retail investors to participate in startup growth — a space traditionally reserved for high-net-worth individuals and institutions.

 

 4. Fuels Secondary Markets

The rise of secondaries means employees, founders, and early-stage investors aren’t forced to wait a decade for liquidity, reducing pressure and creating healthier growth dynamics.

 

Challenges and Risks

While liquid VC is promising, it comes with caveats:

  • Regulatory hurdles: Tokenized securities must comply with securities laws, which vary by country.
  • Valuation transparency: Trading startup shares publicly or in secondaries can expose valuation volatility.
  • Speculation risk: Increased liquidity can attract speculative trading, distracting from long-term business fundamentals.

Moreover, startups need to decide how much liquidity is healthy — too much can dilute focus, while too little can stifle growth.

 

The Future of Venture Capital?

Liquid venture capital doesn’t aim to replace traditional VC — rather, it’s evolving the model to better suit the fast-paced innovation economy. In ecosystems like Saudi Arabia, where the government is pushing for deeper capital markets, startup exits, and digital finance, liquid VC can act as a bridge between private innovation and public markets.

 

As more infrastructure develops — including regulated platforms, legal frameworks, and institutional participation — we are likely to see liquid VC play a growing role in early-stage finance globally.

 

In summary, liquid venture capital is a step toward a more agile, inclusive, and scalable investment environment — one where startups and investors can both win on their own timelines.