Published on March 8, 2014
THE EGYPTIAN STARTUP ECOSYSTEM Mar 2014
Content The Rise of Entrepreneurship in Egypt An Overview of the Ecosystem Players Is it working? Interactions with External Ecosystems The Role of Women What’s Next?
THE RISE OF ENTREPRENEURSHIP IN EGYPT
A skyrocketing Interest in “Entrepreneurship” Interest over Time “Entrepreneur” Source: Trends.google.com
Triggered in 2011 by a strong adoption of internet usage, digital tools, and a belief in the power of the individual
3 Drivers Cultural Technological Economic • A growing sense of Independence and “Can do it” attitude • Utopic Desire to support local economy • Return of Experienced Egyptian VCs • Huge increase in Internet Penetration • Mass adoption of social networks and digital services • Slowing Economy After the revolution • Lack of new projects/ investments to employ educated youth
AN OVERVIEW OF THE ECOSYSTEM PLAYERS
Eco-System Players Venture Capitalists NGOs and Events Entrepreneurs Government Accelerators & Incubators Universities
NGOs and Events
Accelerators and Incubators 2011 by Sawari Ventures 6 Rounds – 40 Companies Government Backed 30 Companies V-Lab 2013 by AUC 6 Companies in Round 1 2014 by Local Digital Media Company
Venture Capitalists Angels Individual Angels KIAngel NO Growth Focused Funds! Seed and Series A 2010 6 Investments 2011 22 Investments 2011 3 Investments 2011 9 Investments 2012 3 investments
Government & Universities Incubators and Events Regulations Entrepreneur Mind-set The Missing Link
IS IT WORKING?
Replications vs. Innovation
Competition VS. Cooperation
Raising Capital VS. Bootstrapping
Hype VS. Know-How
INTERACTIONS WITH EXTERNAL ECOSYSTEMS?
External Ecosystem Interactions A closely tied MENA Ecosystem o Financing o Cooperation o Product Markets o Same know-how External Ties o The Silicon Valley Question o Global Players focusing on MENA
THE ROLE OF WOMEN
How are women contributing? Women Entrepreneurs Women Investors
The Second Wave of Entrepreneurship in Egypt? Growing Beyond the Hype Filtering out the crowds The Rise of Serial Entrepreneurs Creating the need for growth investors
Share your thoughts • Email: Hanan.email@example.com • Twitter: @hsyousef
Investments Roundup – 2012/2013 Souq.com $40M Jumia* $61M Namshi Digital Publishing & Advertising $6.5M $13M MarkaVIP >$200M Ikoo $3.0M Diwanee $3.5M $10M Easy Taxi $7M Himzatee $1.6M Careem $1.7M Glambox $1.4M Cedar Books Other Ecom.** $1M $2.6M Ecommerce >$130M Yemeksepeti $44M HelloFood Ground Transportation $8.7M Food Ordering $52M $8M ~$0.7M Gate2Play ~$0.7M Wixel Studios ~$0.7M Anghami Other * Across Egypt, Nigeria and Morocco ** Swipe&tap, Shahiya, Epecerie, Jamalon, Mydeal.ma
Notable Funds • STC ventures, managed by Iris Capital $50M • Building Block Equity Fund managed by MEVP $15M • Naspers (South Africa) dedicating investments of $634M into Developing Markets • Millicom ($426M over 3 years for 50% of Rocket-Internet’s Latin American and African Holdings) • Humming Bird Ventures $240 overall with $40M for MENA • Early Bird Ventures $338M globally • IdeaVelopers $50M
Accelerators and Incubators • Flat6Labs • Cairo - 6 cycles with 36 companies graduates • Established a KSA based program • Notable companies include instabug, Integreight, Nafham.. • Oasis 500 • First startup accelerator in MENA (Jordan) • Global partnerships with 500Startups and others • More than 56 graduates • New additions in MENA • JuiceLabs (Egypt) • PITME (Silicon Valley based, focusing on MENA startups) • V-Lab (AUC)
Notable Startups • Instabug: Wins First Place at 6th MIT Arab Startup Competition (April 2013) App Testing • Instabeat: 2014 Best of Innovations Design and Engineering Wearable heart rate monitor for athletes • Integreight: Closed Kickstarter funding goal in 6 hours! • Mubser: Wins “Idea To Product I2P 2013” Global Competition in Sao Paulo • Karm Solar: The first company to install a high-capacity off-grid solar water pumping station in the Middle East and North Africa in April 2013. • Jeraan and Dakwak receive funding from 500Startups. Dakwak moves to SV
Notable Exits • Cobone.com: ~$40M buyout by Tiger Global Managemen • Kammelna: $10M by Peak Games (Saudi cards game) • Zawya: $40M by Thompson Reuters • Dubizzle: 50% Buyout by Naspers (un-disclosed $)
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