building a local entrepreneurship ecosystem – challenges and opportunities
DESCRIPTION
Building a Local Entrepreneurship Ecosystem – Challenges and Opportunities Hanan Youssef, OTVenturesTRANSCRIPT
THE EGYPTIAN STARTUP ECOSYSTEMMar 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
• 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
AN OVERVIEW OF THE ECOSYSTEM PLAYERS
Eco-System PlayersVenture
Capitalists
Entrepreneurs
Accelerators & Incubators
Universities
Government
NGOs and Events
Entrepreneurs
NGOs and Events
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
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!
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 InteractionsA closely tied MENA EcosystemoFinancingoCooperationoProduct MarketsoSame know-how
External TiesoThe Silicon Valley QuestionoGlobal Players focusing on MENA
THE ROLE OF WOMEN
How are women contributing?
Women Entrepreneurs
Women Investors
WHAT’S NEXT?
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
EXTRA SLIDES
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
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 $)