Building a Local Entrepreneurship Ecosystem – Challenges and Opportunities
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Transcript of Building a Local Entrepreneurship Ecosystem – Challenges and Opportunities
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THE EGYPTIAN STARTUP ECOSYSTEMMar 2014
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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?
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THE RISE OF ENTREPRENEURSHIP IN EGYPT
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A skyrocketing Interest in “Entrepreneurship”
Interest over Time “Entrepreneur”
Source: Trends.google.com
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Triggered in 2011 by a strong adoption of internet usage, digital tools, and a belief in the power of the individual
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3 Drivers
Cultural
• A growing sense of Independence and “Can do it” attitude
• Utopic Desire to support local economy
• Return of Experienced Egyptian VCs
Technological
• Huge increase in Internet Penetration
• Mass adoption of social networks and digital services
Economic
• Slowing Economy After the revolution
• Lack of new projects/ investments to employ educated youth
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AN OVERVIEW OF THE ECOSYSTEM PLAYERS
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Eco-System PlayersVenture
Capitalists
Entrepreneurs
Accelerators & Incubators
Universities
Government
NGOs and Events
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Entrepreneurs
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NGOs and Events
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Accelerators and Incubators
2014 by Local Digital Media Company
2011 by Sawari Ventures 6 Rounds – 40 Companies
Government Backed 30 Companies
V-Lab
2013 by AUC 6 Companies in Round 1
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Venture Capitalists
2010 6 Investments
2011 22 Investments
2011 3 Investments
2011 9 Investments
Seed and Series AAngels
2012 3 investments
Individual Angels KIAngel
NO Growth Focused Funds!
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Government & Universities
Incubators and Events
Regulations
Entrepreneur Mind-set
The Missing Link
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IS IT WORKING?
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Replications vs. Innovation
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Competition VS. Cooperation
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Raising Capital VS. Bootstrapping
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Hype VS. Know-How
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INTERACTIONS WITH EXTERNAL ECOSYSTEMS?
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External Ecosystem InteractionsA closely tied MENA EcosystemoFinancingoCooperationoProduct MarketsoSame know-how
External TiesoThe Silicon Valley QuestionoGlobal Players focusing on MENA
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THE ROLE OF WOMEN
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How are women contributing?
Women Entrepreneurs
Women Investors
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WHAT’S NEXT?
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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
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EXTRA SLIDES
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Investments Roundup – 2012/2013 >$200M
Souq.com $40M
Jumia* $61M
Namshi $13M
MarkaVIP $10M Easy Taxi $7M
Diwanee $3.5M
Ikoo $3.0M
Careem $1.7MHimzatee $1.6M
Glambox $1.4M
Cedar Books $1M
Digital Publishing & Advertising$6.5M
Ground Transportation$8.7M
Ecommerce >$130M
Yemeksepeti $44M
HelloFood $8M
Food Ordering$52M
* Across Egypt, Nigeria and Morocco** Swipe&tap, Shahiya, Epecerie, Jamalon, Mydeal.ma
Other Ecom.** $2.6M
OtherAnghami ~$0.7MGate2Play ~$0.7MWixel Studios ~$0.7M
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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
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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)
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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
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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 $)