Building a Local Entrepreneurship Ecosystem – Challenges and Opportunities

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Information about Building a Local Entrepreneurship Ecosystem – Challenges and Opportunities

Published on March 8, 2014

Author: dkosaraju



Building a Local Entrepreneurship Ecosystem – Challenges and Opportunities

Hanan Youssef, OTVentures


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?


A skyrocketing Interest in “Entrepreneurship” Interest over Time “Entrepreneur” Source:

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


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


Replications vs. Innovation

Competition VS. Cooperation

Raising Capital VS. Bootstrapping

Hype VS. Know-How


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


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: • Twitter: @hsyousef


Investments Roundup – 2012/2013 $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,

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 • ~$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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