In the third webinar of the StartSmart Webinar Series, Amira Yahyaoui founder of MOS, a Silicon Valley based startup, and Tarek Chelifah, Flat6Labs Tunis Senior Program Manager, discussed what it is like to build up a startup in Silicon Valley and how it compares to building one in MENA. Here is the quick recap.
“You don’t need to be in silicon valley to do something great”
To Amira, an entrepreneur should first and foremost be building for the experience, the journey, and changing people’s lives. Entrepreneurs need to realise that wherever they are in the world there are problems that require innovative solutions, which will ultimately change people’s lives, hence, “you don’t need to be in silicon valley to do something great,” Amira said. She added” “the only interesting thing about silicon valley is the technology and the people,” and if you can read books, watch webinars, and listen to podcasts coming from the silicon valley, you can start anywhere.
“Don’t think of just your country, think regionally”
Entrepreneurs are always caught up in building startups with a focus on the local market, but if we try to look for differences between the Egyptian and Bahraini market, we won’t find many. At the very core, our cultures, markets, and purchasing powers are very similar. So “don’t think of just your country, think regionally.”
“Failure is loved cherished, and accepted in Silicon Valley”
One of the things that Amira highlighted was that people in Silicon Valley seem to be very resilient, hardworking, unshaken by fear of failure, and are risk-takers. ‘“Failure is loved, cherished, and accepted in Silicon Valley” because you learn from it, and investors look for people who are hardworking, passionate, and experienced. we won’t find many.
“I believe so much in hunger & scarcity to build”
Amira believes that being an entrepreneur means that you can do lots of things with limited resources. Get creative with the resources you have, and utilise everything you have to its maximum potential. “You cannot build anything in silicon valley if you are not willing to work hard,” Amira said.
“To get to Series A you need to show a considerable spike in the number of users/clients”
After getting your seed fund, don’t expect investors to be encouraged to invest in your startup if you haven’t had a considerable spike in the number of clients/users/customers. This is what investors in Silicon Valley look for, they want to see that your solution is in demand because if it is not, they will not invest. A product/solution is only great if people need it.
“Find people who fit your company culture”
“Find people who fit your company culture,” Amira advised. No matter how much you believe in hiring people with different backgrounds and personalities, working with people who are naturally aligned with your company values, ethics, and goals will get you the best results and it will help your startup grow tremendously. Hire people you want to work with!
If you have any questions, you can reach Amira on any of her social media accounts using @mira404.
Make sure to join our upcoming Webinar on April 28th with Mike Preuss, Co-founder & CEO of Visible.vc along with Marie Therese Fam, Managing Partner of Flat6Labs Cairo. For more information and to register,click here.
During this pandemic, some industries will grow exponentially, while others will struggle to stay afloat. We set out on surveying a sample of 80 active startups to observe how our founders are maneuvering the pandemic, what is needed for survival and for continued growth and scalability, and how should the founders capitalise on the current situation to maximise their revenues, raise their brand awareness, and develop new products and services.
Our startups are in the edtech, agritech, healthtech, logistics, fintech, IT, transportation & travel, and SaaS industries, and it has been noticed that those whose business models depended heavily on legwork (the physical presence of someone on the job), have either shifted their operations completely online, halted their operations for the time being, or continued operating normally due to the nature of the business model that allows them to do so (for example: the delivery of essential products such as medicine, food, water, & sanitary).
52.6% of the startups surveyed required legwork, and as previously mentioned, were the startups majorly affected by the outbreak, whereas the 46.2% percent that didn’t depend on legwork at all, seem to be either operating normally or their businesses are booming.
With around 61% (49 startups) of the startups sampled not operating normally, approximately 81% (40 startups of the 49 startups) have already devised plans, strategies, and even new business models that allow them to adapt to pandemic, which will be discussed shortly. These startups are in the transportation, travel, agritech, logistics.
Legwork: The startups that required the physical presence of someone to complete the service/product delivery/installation.
The rest of the startups are either operating normally or beyond normal capacity because of the pandemic, and they are in the Edtech, SaaS,
The rest of the startups are either operating normally or beyond normal capacity because of the pandemic, and they are in the Edtech, SaaS, Fintech, E-Commerce, and IT industries.
Industry Breakdown
Agritech Around 62% of the startups in agritech require legwork, this is because the nature of the job itself demands the installation and maintenance of tech equipment that aid and makes their processes more efficient. Hence their ability to work at normal capacity is affected.
LifeLab Biodesign (Flat6Labs Beirut): They are delaying the legwork farther into the process until the lockdown is lifted. LifeLab designs and deploys fully-automated, climate-controlled vertical indoor farming technologies.
IoTree (Flat6Labs Beirut): They are currently pushing out new features into their already installed products/services to be capable of retaining clients after the outbreak. IoTree is a wireless sensory network of smart traps that are developed using a deep learning algorithm for the early detection of harmful pests and insects in farms.
Conative Labs (Flat6Labs Cairo): They are rescheduling deliveries and dividing the teams so that the workplace isn’t congested. An IoT-enabled water quality monitoring and alarming system for aquaculture.
The plans that they both have devised seem to be common across many of the agritech startups at the moment, and are helping them mitigate the situation.
Healthtech
The results of the healthtech industry were inconclusive, as our startups have very different business models, and most of them require legwork (60%).
Chefaa & Pharmaklik (Flat6Labs Cairo & Beirut): It is important to note that although legwork was required, some businesses weren’t incapcitated by it as they use delivery services to bring medicine to homes. Chefaa, a Flat6Labs Cairo startup, and Pharmaklik, a Flat6Labs Beirut startup, are examples of startups doing well because of the service they provide. Chefaa have also added a new application feature that allows customers to know all about the latest updates of the COVID-19.
MedMisr (Flat6Labs Cairo): They are offering their services at discounted rates. MedMisr is a digital third party administrator providing medical insurance companies an innovative online paper-free solution with fraud controls.
Logistics, Travel, & Transport
Transportation (e.g. ride-hailing), automobile and travel booking platforms have been reported as one of the most “at risk” industries — however, should some startups adapt to the current changes in customer preferences and consider instead the delivery of groceries or medical supplies, they may have a more sustainable business while ensuring they take their customers best interest into consideration (quality and price-wise).
Transpooler (Flat6Labs Cairo): They are considering using their transport tech platform to cater to a different sector (previously students) which would utilize their services more, while managing their expectations it will be still be difficult to acquire customers and convince them to use the platform. Transpooler helps schools and nurseries to monitor their fleet service and offer parents and students live tracking, speed monitoring and chatting.
Wantotrip (Flat6Labs Tunis): They have convinced their travel customers to retain the amount they already paid as credit for future trips (rather than refund) in an attempt to keep their customers on their platform and utilize it once they’re able to travel again. Wantotrip is an international travel platform offering authentic and themed travel packages around the world for communities or individuals.
Shabeb Delivery (a Presentail company) & Hommy Cook (Flat6Labs Beirut & Bahrain): Startups in the logistics industry with a focus on food delivery seem to be doing exceptionally because of the rising need for distancing and having a contactless life during this period. Shabeb is a quick last-mile delivery service for your business, they have also collaborated with the lebanese food back to deliver food to unfortunate families’ doorstep. With the press of a button, we’re at your door in minutes. Hommy Cook helps cooks make money by selling their home cooked food to thousands of customers through Hommycook.
Hovo (Flat6Labs Cairo): They are using the current period as an opportunity to raise brand awareness and have an increased community involvement.They are buying essentials for the elderly and vulnerable families and delivering it to their doorstep. HOVO is a tech-enabled logistics partner that provides trucks in 20 mins across Egypt.
SaaS & IT
Since almost everyone is, at the moment, dependent on online management tools and services that make work life seamless, it was imperative to see that SaaS startups are doing well and even exceeding expectations. In regards to IT, startups were mostly doing well without any legwork, however, some startups that dedicated their services to restaurants for example, weren’t doing that great.
Untap (Flat6Labs Cairo): Untap is collaborating with high profile companies to manage competitions such as organizing an online regional hackathon for Dubai Future Foundation. They have also launched One Million Arab Coders initiative to find solutions to the challenges posed by COVID-19. Untap is a submission management system used by organizations to easily launch and manage online prize-based competitions and calls for applications.
Nural Technologies (Flat6Labs Bahrain): This startup built around the idea of online management of teams and tasks seem to be doing exceptionally well during this period without much required adaptation.
E-Robot (Flat6Labs Tunis): Have shifted most of the engineers work online. E-robot Software develops IT automation solutions to create web and mobile applications without code writing.
Fintech
It is normal to see that the Fintech industry is booming during the pandemic, this is largely due to people seeking safer alternatives to banknotes. In fact, some governments are adapting that kind of technology into the national banks. There was one drawback anyhow, which is financial inclusion. Around 25% of the startups that had its primary focus on financial inclusion through their services are operating below normal capacity. It is important to highlight this shift in the industry trend because during these times, it is even more important to find a way to get to those who are unbanked.
Juno (Flat6Labs Beirut): This startup is targeting the unbanked population and has moved most of its operations online, but they are facing difficulties reaching potential customers. Juno digitizes banking focusing on simplicity and personalization to provide financial services.
-Edtech
It’s no surprise that the outbreak will dramatically transform the global higher education sector creating a new normal for how courses will be taught moving forward; in short, it will revolutionize the online learning landscape which can translate to potentially successful ventures for startups in the Edutech industry.
GoMyCode (Flat6Labs Tunis): GoMyCode has already started adapting by selling online via Facebook and decided to kick off their e-learning platform in the coming few days instead of this September as planned. In an effort to popularize their brand and attain their customers, their platform will be temporarily for free and they managed to also create a community of teachers who will be volunteering. GoMyCode is High-end computer Science Education startup with a unique learning experience that leaves lasting impressions and positively impact our students’ lives.
Spica Tech (Flat6Labs Beirut): Spica Tech has started building an online community surrounding their students where they can share their learnings and progress on the online coding and storytelling program available on the platform — which has been since heavily promoted in order to offset offline learning that some of the students were accustomed to. Spica Tech academy teach kids (5+) and teenagers game development as a way to reshape Science, Technology, Engineering, Arts and Math.
On a regional scale, it has been reported that startups which rely more on legwork are facing increased difficulties managing their business, as well as shifting to the digital landscape since they’re not acquiring enough subscriptions or having sufficient equipment essential for creating content.
E-commerce & Shopping
Cleaning supplies, personal hygiene, supplements among others that the everyday consuIt’s no surprise that the startups that are most likely thriving nowadays are e-commerce platforms where they provide and deliver everyday necessities, from products ranging from healthy snacks,mer will find beneficial in order to combat the new “normal” lifestyle they’re leading today.
Mint Basil Market (Flat6Labs Beirut): This startup is focusing on products that their customers will continue to value in the months to come, and they have been lately adding a new immunity boosting collection of products, ensuring that their platform will be able to fulfill the needs of those who are navigating towards a more healthy lifestyle from the comfort of their home since they also include free delivery (while taking the vital safety precautions). Mint Basil Market is an e-commerce platform that offers a wide range of healthy, natural products, from food to cosmetics, and which can be delivered straight to people’s doors.
SeekMake (Flat6Labs Tunis): In order to help the doctors who are facing the COVID-19 pandemic in Tunis, Seekmake has mass produced masks to help protect frontline doctors who are dealing with the pandemic daily. SeekMake is a marketplace linking CNC, laser machines and 3D printer owners with designers and end users.
Dabchy (Flat6Labs Tunis): A Flat6Labs Tunis startup is increasing their marketing efforts to maintain their involvement in communities by pushing out empathetic messages. They are aiming to reach more people by opting for more ads and less organic content in this period of declining sales and unengaged people. Dabchy is a women marketplace that allows women to revamp their wardrobes easily: they can earn money by selling their used clothing online, buy other clothes at discount prices and share their personal style.
Startups that have a B2B business model or B2C but provide non-essential products and services, such as clothing, jewelry and the like, won’t find success since their customers buying power is on an all- time low for luxury products instead shifting their preferences to food, vitamins, everyday home essentials, sanitary products, among other items that will need to constantly purchase for an unpredicted time frame. An additional problem for these startups is that should they decide to promote their businesses, they can come across as tone-deaf to the financial situations of their audience — it’s increasingly challenging for them to keep their business afloat while retaining the praise of their customers simultaneously. However, the silver lining is that some startups can find success should they be able to pivot by changing their business model to selling products that people can benefit from during their home quarantine (such as home gym equipment, books, toys and games).
Our main takeaways
The industries most negatively affected by this phenomenon were:transportation, travel, agritech, & logistics. On the other side of the coin Edtech, SaaS, Fintech, E-Commerce, & IT seem to be doing relatively well.
For all of the startups, it is highly advised that you begin looking for cash & funding, and cutting down costs without affecting the operations of your businesses. It is also important to start working on research and development, perhaps even pivoting to accommodate the current needs of the market.
When it comes to marketing and sales, if you can’t see your startup being of any help to the people, work on raising brand awareness but be sensitive to other people’s pains. It is due time for some good CSR. Also, a good strategy moving forward with your sales is to offer people discounts, giveaways, and free services in return for their loyalty, and sell (mostly) the things that they need the most at the moment.
It is also a good opportunity for startups to start going online, find a way to make their business become mostly cloud-based. If you can do that, you can truly future-proof your startup.
Check our #StartSmart Webinar recaps:
–“How to Take Off Your Startup During COVID-19” here. –“How to Out-Innovate”here.
In the second webinar of the StartSmart Webinar Series, Alexandre (Alex) Lazarow, a global investor and author of “Out-Innovate: How Global Entrepreneurs from Delhi to Detroit Are Rewriting the Rules of Silicon Valley,” and Saleh Abbas, Flat6Labs Bahrain’s Marketing & Outreach Manager, discussed how entrepreneurs in the MENA region are implementing innovative approaches to running a successful startup.
The challenges that startups face in emerging markets are normally comprised of a mix of lack of access to capital, availability of highly skilled talent, and inability to create a structure for the startups, Alex said. Whereas, in Silicon Valley, startups enjoy access to multiple sources for capital growth. This is exactly why Silicon Valley startups scale and grow much faster than their counterparts in MENA, Asia, etc…
“Entrepreneurs around the world have to do more with less”
However, Alex believes, entrepreneurs around the world have more in common than any one would think, but the startup ecosystem, the economy, and the laws and regulations that a startup is bound by is what changes the story.
“Silicon Valley must learn from other centers of innovation”
In the times of the COVID-19, nevertheless, Alex said that Silicon Valley startups who have been privileged with access to growth resources, should take a look at how startups in the MENA are utilising limited resources to grow. Startups in general need to focus on what can be learnt from the pandemic and re-think their business model; focus on what they provide, and focus on sustainability.
“Use the pandemic to hire remote talents”
The pandemic is a great opportunity for startups to realise the potential of hiring remote talents to grow and expand their business operations. As Alex put it, “if you are capable of building your business remotely, you are also building the muscle that will support your local, regional, or global expansion.” Hiring remote talents also gives you access to areas of expertise that might not be available in your ecosystem at a lower cost even.
“Startups in the frontier ecosystems need to think globally”
Alex elaborated that startups in growing economies need to think of how their startup can expand globally or regionally when they are just starting out. It is important to create a solution that could be adapted to different cultures and economies because it will facilitate your growth. He highlighted that most of today’s unicorns had going global at their core from the very beginning. Entrepreneurs need to think about how you can build teams that communicate efficiently across the world, and how they can build that global muscle from day one. Also, the pandemic is enabling entrepreneurs to reach out to global investors without the need to travel. This is a chance for them to raise money and approach remote investors.
We highly recommend Out-Innovate as one of the top reads in the VC/Startup genre , you can get yours… here.
To stay updated and find out more about Alex Lazarow check out his website here.
Don’t miss our upcoming Webinar on April 21st with Amira Yahyaoui founder of MOS, a Silicon Valley based startup. For more information and to register click here.
Two prominent figures in the entrepreneurial industry, Christopher Schroeder, a global investor with 20+ years of experience in entrepreneurship and Hany Al Sonbaty, Flat6Labs & Sawari Ventures Co-founder have hosted our first Webinar on “how to take off your startup during COVID-19 Outbreak. Here is a quick recap.
Harbour Your Cash and Reflect
The first advice we got from Schroeder for startups is to “harbour your cash.” Meaning that you as startup founders need to focus on cutting down costs if you are not generating considerable revenue, so that you will be capable of surviving and prospering after this period ends. Another point of the discussion was that some startups might struggle with raising money, or they will be met with “bad” venture capitalists who will try to take advantage of the situation, and it is imperative that you avoid them. He has also mentioned that it is important for founders to continuously reflect on what they are learning, and use it to develop their business moving forward.
Questions to ask yourself from Chris:
1) What do we believe now that we think might be different in the future?
2) What do we believe now that will be true of all times?
3) What are three things that we now know, we should have done differently?
Transferring Company Culture Virtually Isn’t Easy
Amidst all this, Schroeder has also stressed that transferring company culture, virtually, is not going to be easy. You have to have a very structured and clear plan for your team during this period on what needs to be done, how you are going to do it, and what means of communications are required.
The Pandemic Heightens the Need for Inclusive Services & Products
As we’ve all seen, this pandemic and the move to online communication, transactions, consultation, etc… has deepened the need for our economies to be inclusive of those who don’t have access to such technologies. Entrepreneurs should cease this opportunity to create solutions that bring inclusivity to a new level, Schroeder added.
Investors Are Not Looking for Crystal Ball Answers
On another topic, entrepreneurs should be aware that when approaching investors, those investors are not looking for “crystal ball answers,” they want to see determination, an ability to adapt and process new information that will benefit their business.
The Pandemic Has Opened People Up to The Virtualness of Things
Talking about the industries growing rapidly during this period, he mentioned that online education, fintech, and communications tools are growing massively, which could possibly have implications on how we operate after the pandemic. “The pandemic has opened people up to the virtualness of things, and to make use of them to make things more efficient,” as worded by Chris.
Read Books That Enrich You
Schroeder had also few tips on utilising the #StayHome policies that many governments and businesses have adopted by recommending that you read when you can. He said that it requires both discipline and trading off other leisures to make it work, and he outright advised against reading books like “how to survive pandemics.” Instead, entrepreneurs should be focused on reading books about how to navigate a business/startup, how to scale it, and basically anything that could enrich you with a new perspective on managing your business.
Read his full Linkedin article here about the best books to read.
Make sure to join our upcoming Webinar on April 14th with the renowned global investor and author of ‘Out-Innovate’, Alex Lazarow. For more information and to register click here .
The realisation that startups have become a pillar to sustainable economic development has dawned upon many in the past few years in the MENA. Driving an eclectic mix of forces to venture, fund, accelerate, and incubate startups, and to support this ecosystem that breeds innovation. With each passing year, there seems to be a change in the sector trends, and where the fund providers seem to be more attracted towards. Should the focus remain on the most promising sectors or towards those with untapped potential? While both options are being explored by Flat6Labs & StartEgypt and other concerned bodies, the 2019 MENA Venture Investment Summary by Magnitt, highlighted that in 2019, Transport received the most funding; FinTech had the highest number of deals, and IT Solutions had the fastest growing number of deals.
If anything, this Magnitt report highlights a market that is becoming highly saturated with companies who are creating solutions in the aforementioned industries; generating revenue, closing investment rounds, and even closing exit deals in those very industries. It has become a highly competitive market for these companies, and if you don’t have something unique that differentiates your product/service, backed up with a strong knowledge of the market, you are most likely to be stomped by competition. What about other industries with untapped potential? How do they fair in comparison to the most trending sectors?
Gaming & E-Sports Market Share Will Reach $300bn by 2025
Gaming for one is an industry that has a stronger standing than the film and music industries, combined. It is expected that by the year 2025, the gaming and e-sports global market share will reach $300bn annually, according to Market Watch. Also, the MENA mobile gaming market share is growing at a steady rate in comparison to other regions, recording $680m in 2015. Most game developers and game studios are using microtransactions as a business model, and are generating high revenue. However, this strategy comes at a cost. Some game developers tend to abuse this business model to generate more revenue by hindering gamers’ progress unless they buy some of the in-game features they have on offer. It sets off the user, and causes rebellion (a great example of that is BattleFront II). The caveat here is to be capable of adopting such a profitable business model, while keeping the users engaged and without messing with the gameplay.
Other Gaming & E-Sports Flat6Labs startups: Seemba, VRapeutic, The Stories Studio, YAYY Studio, & SpicaTech Academy.
Healthcare Spending Will Reach $144 Billion in MENA by 2022
“According to a report from the Middle East Medical Devices and Diagnostics Trade Association, the annual value of the medical technology market in the region is set to grow to $11 billion by 2021 while overall healthcare spending will reach $144 billion in MENA by 2022 according to Al Masah Capital.” — Wamda.com
Chefaa (an online platform to order prescribed medicine from and a Flat6Labs Cairo Startup) has grown tremendously since they have launched their services to receive a six figure seed round. The startup ecosystem support, along with the high demand for services like Chefaa’s showcases a desire for people to actually use advanced technologies to make life easier. According to another article by Wamda.com, “people are willing to use advanced computer technology or robots with AI that can answer health questions, perform tests, make a diagnosis and recommend treatment.” Also, VRapeutic is combining the knowledge of gaming, VR, and health tech into realising a service that will help autistic children develop a more stable learning path through its VR-enabled learning solution.
Other HealthTech Flat6Labs Startups: Curotrip, AXON Medical, Pharmaklik
E-Commerce & Shopping: Are They Saturated Sectors With No Room For Innovation?
Another promising and highly diverse sector, is the e-commerce and shopping sector, with many problems existing in current platforms and abandoned markets, there are always new solutions to create. Exactly like what three of our startups are doing, while Souq.com is focused on selling any and almost everything, Brimore, Dabchy, & Shiphaly are doing things their own way to help people have a better shopping/selling experience. For one, Brimore (a Flat6Labs Cairo startup) offers end-to-end distribution channels where manufacturers can list their products, then it uses its network of women, housewives, and employees to sell and distribute their products in local circles. Brimore has raised $800k last year alone. Dabchy (a Flat6Labs Tunis startup) is an E-commerce platform with a focus on selling/buying women’s clothing whether new, used, or self-made with an active 400k users and a recent $300k fund. Shiphaly (a Flat6Labs Cairo Startup), on the other hand, is an online platform that helps people buy items from around the world, and helps travelers make money by delivering these items.
While in any of these industries you have a great chance at success, you do not need to be in a specific sector and following a specific trend to succeed. We welcome all kinds of innovative startups, and we invest in teams, passion, and true drive in every industry as long as they are tech-based. You will constantly be challenged, sometimes you will fail, and sometimes you will need to pivot because you’ve just realised a true gap in the market that you can fill. Do your best and luck will be in your favour. If you believe your startup could be MENA’s next unicorn, apply now for one of our programs: Flat6Labs or StartEgypt.
We want to see you make a dent in the industry you are in.
In order to create a more dynamic startup ecosystem that fosters innovation and encourages entrepreneurs to venture into unknown lands, governments, corporations, and policymakers must understand the benefits of employing new policies and passing new laws that supports the geeks behind each innovation.
While governments across the MENA region have been allocating funds and initiating programs to support early-stage startups, there is little to be seen when it comes to enacting standardised laws that maximize the entrepreneurs’ chances to success.
Yehia Houry, Flat6Labs Tunis Managing Director, on the left, lobbying for the Startup Act at the Tunisian Parliament
“New policies and regulations should take into account the challenges faced by entrepreneurs and the needs of the ecosystem. The timing of the Startup Act couldn’t be better as it stimulates and encourages entrepreneurship across the country. Ultimately, it will result in thousands of new jobs created, important advances in technology and national economic growth.” — Yehia Houry, Flat6Labs Tunis’ Managing Director
Tunisia is one of those countries with its eyes set on empowering its startup ecosystem, and allocating the necessary resources for its hungry and passion-driven entrepreneurs.
“The Startup Tunisia initiative is meant to put the country on the map of startup-friendly ecosystems, sustained by three main pillars: the Tunisian Startup Act; the 200m Euro Fund of Funds; and the ecosystem support. With these things in motion, a synergy effect is expected to be produced between three key players: Investors, as the growth engine; incubators/accelerators as the performance lifter; and Startups as the economic and innovative locomotive.” — Haythem Mehouachi, General Manager of Smart Capital, Startup Tunisia operator.
Through Tunisia’s latest Startup Act, it hopes to create a fertile ground for innovation that both encourages competition and propels individuals who seek to utilise their solutions to the benefit of the community in many industries through its pre-set criteria (as quoted from the Tunisian Startup Act).
– Its legal existence does not exceed eight (08) years from the date of its constitution
– Its human resources, its total balance sheet and its annual turnover do not exceed the ceilings set by government decree
– More than two-thirds (2/3) of its capital is held by natural persons, venture capital investment companies, and collective investment funds. investment, seed money and any other investment body according to the legislation in force or by foreign Startups
– Its business model is highly innovative, utilizing cutting-edge technology
– Its activity has strong potential for economic growth.
This criteria set ensures that only the innovative, competitive, and ambitious startups get the Tunisian “Startup” label, and according to Salma Baghdadi, Smart Capital’s Startup Ecosystem Manager, 210 startups have earned it; out of which were 20+ Flat6Labs startups like, Dabchy, Tap4Glam, Sqoin, Junior Robotics Lab, Grabingo, Chantier, Logis, Trust It & many more.
Some of our startups getting the “Startup Label” from the Tunisian Ministry of ICT
Ali Mnif, the Country Manager of Silatech in Tunisia and a member of the ‘Collège des Startups’ and one of the pioneers that worked on the project since the beginning said:
“Clearly, the best thing that could happen is a Startup Act 2.0. All the learnings, the mistakes, the feedback will better shape the second iteration of the key measures to be included.
Startup act 1.0 is a breath of fresh air for many entrepreneurs, startups and investors. It is also a powerful wave that reached many other countries. We keep hearing good news mainly in Africa.
In any iteration, the startup act is capable of breeding more mature startups with solid teams, who are backed up by experienced investors. The challenge would be to quickly incubate, accelerate and support the next regional champions.”
This act should be employed or adapted by other governments because:
1) Promotes Unmatched Innovation of Young & Hungry Entrepreneurs
One of the main criteria of getting the startup label is to be utilising a highly innovative business model, and to use cutting edge technology as part of the solution you are offering, be it a service or a product.
2) Releases Entrepreneurs From The Shackles of Failure
Aspiring entrepreneurs are often burdened with the fear of failure, and it seems to shackle most startup ecosystems around the world, with the first thought being losing the main job that earns them a living, the sustained expenses that come with establishing a startup, and more. Tunisia’s Startup Act allows them to maintain the contract they have with their previous employer without the benefits and grants them a “Startup Leave.” This allows them to focus solely on their startup, and gives them a safety net to fall on if it so happens that the startup fails. It also allows for free local and sometimes international intellectual property registration for startups, and exempts them from corporate taxes.
3) More Innovation Means More Competition
Flat6Labs Tunis Fourth Demo Day Startups
While the day to day consumer or business is often limited by the choices of big corporates, and public services that might be either too outdated or lacks quality, startups pave the road for unmatched innovation at often reasonable prices. More startups usually means more competition, and more competition means better products and services for the community at lower prices.
4) Proves that Innovation Is Often Synonymous With Solving Current Problems
Younger generations think daily of their problems, and many have innovative solutions to the problems at the back of their heads. Utilising this power is instrumental to helping governments resolve the country’s problems. When these entrepreneurs innovate, they solve a problem.
5) More startups means more job opportunities.
Instead of depending on large and medium-sized corporations and governments to do the hiring, startups can offer fresh graduates a new path of learning that is both beneficial and more challenging with often better pay if the startup happens to succeed.
These factors help sustain economic growth and prosperity for the country and the startup ecosystem. They breed a nation driven by sustained innovation in every corner and every industry.
Throughout decades, many entrepreneurs, investors, acclaimed businessmen/women have talked about how perseverance, resilience, passion, and drive will get your company off the ground. While working hard and having a belief in your startup will get you far, working smart will get you further. To work smart, you need to identify the main pillars that help you sustain, grow, and scale your startup from idea stage to seed-ready stage. With that said, here is Flat6Labs 2019’s roundup of the best tips from all over the MENA region on how to get your startup kicking.
Choosing the right team is essential to your business’ success. You could be a brilliant entrepreneur with an awesome business idea destined for success, but if you don’t have the right people on your team, you won’t go far. Based on CB Insights report on the top reasons startups fail, which was conducted on 311 flamed-out startups, 23% of startups fail due to not having the right team — it’s also the third most common reason for startup failure.
Continue Reading: The Five Types of People You Need to Hire for Your Startup.
There are a number of catalysts that could elevate your startup and improve its prospects when it comes to scalability; and standing the test of time and lots of glorious examples, is networking. In a report by Forbes.com, their highlighted research concluded that on the way to entrepreneurial success, networking is crucial for 78% of the startups. So yes, it does act as an undeniably strong force on the way to shaping a well-rounded future for your startup, which will likely entail a network of friends, mentors, investors, professionals for hiring, and advisers.
Continue reading: 5 Tips on How to Use Networking as a Limitless Channel of Possibilities.
With your innovative services or products trying to enter the space of one thriving startup scene, it is crucial to know where your startups’ best interests lie; and what is the best course of action that will revolutionise how people live daily through your tech-based solutions. Identifying what you need early on, and settling on partnering with those who can help you propel your startup comes a long way; especially, if you chose Flat6Labs, and the reasons are many.
Continue Reading: Four Ways A Strategic Partner Can Help Your Startup.
You’ve put in your all to kickstart your startup and now you’re after investors who can share in the vision you have for your business. A great pitch goes a long way in securing investments and the way you present can make or break your chances. If you’ve been to one of Flat6Labs Bahrain’s Demo Days, then you’ve probably seen that we do know a thing or two about giving an exemplary pitch. Here are some of our tips to pitching your way to securing investments for your startup.
According to CBinsights.com, running out of cash and the lack of investor interest in a startup are some of the common hurdles that stand in the way of early-stage startups. With Flat6Labs expertise in the startup ecosystem over the past 8 years, Flat6Labs’ CIO, Dina el-Shenoufy, and our Managing Partners and Directors from our offices: Flat6Labs Beirut, Flat6Labs Bahrain, Flat6Labs Cairo, and Flat6Labs Tunis, discussed how startups can maximize their potential and chances with local, regional, and even international investors. They have thoroughly examined, through both experience and knowledge, the conditions and preferences of investors when they are fishing for innovative, scalable, and all-around amazing startups. And, with the number and magnitude of events we hold each cycle for our startups, we’ve demonstrated our ability to give each of our startups multiple chances to meet with and actually secure deals with investors. Mainly through our networking events, pitch nights; our speed-date investor mixers; and through the Demo Days, which always hosts a number of local, regional and international investors and even mentors and government officials.
Continue Reading:Six Top Tips to Get Investors Invested in Your Startup.
We sat down with Mounira El Halabi, Co-Founder & CEO of Joona, one of Flat6Labs Beirut’s Cycle 4 startup alumni, to get a better insight about their newly launched organic skin care products, the market size for them in the MENA region, challenges they face, and what’s in the pipeline for them.
Can you tell us how you started developing Joona along with your co-founder Farah Khaled, and the inspiration behind the brand?
I’ve had psoriasis since a young age. There was always a love-hate relationship between my skin and I. On one hand, I needed to take care of it and maintain it in good health, and on the other, I was very insecure about myself. I never considered myself fit to the ‘beauty scene’. So one day I had an idea. I wanted to make beauty fun, stress-free and all-inclusive.
It was never intentional to create Joona. I wanted to create a fun beauty lab where everyone can come and mix products together and have a good time. I applied this idea to Tripoli Entrepreneurs Club (TEC), a local pre-seed accelerator in Tripoli, and we fine-tuned it to become a beauty brand in a box — “Khan Beauty Box”. A year later we changed the name, rebranded and took off with a new mission in mind: to build a platform for women to feel beautiful and celebrate themselves.
How has your experience been so far with Flat6Labs Beirut?
Joona went from being a small business started by two women who had no idea what they were doing into a brand with a global view. Flat6labs were very patient and supportive. We were very lost at the beginning due to the difficulty of creating a product-focused company in a country like Lebanon. We flipped through many ideas and our team at Flat6labs Beirut were always there to listen. We’re very proud of what Joona is now and we believe it was a collective effort.
What is Joona currently offering product-wise that differentiates it from its competitors (local and regional)?
So here’s the thing, I was never a big fan of the beauty industry but at the same time I loved to take care of myself and look good. So I asked myself, what is the beauty industry missing that is making people such as myself unenthusiastic about purchasing beauty products? Was it the unsustainability, the dangerous chemical use, or even the branding that seemed to feature only certain types of women and exclude the rest of us? Maybe all of these reasons and more.
We want to take care of our women by focusing on skincare that ultimately enhances the skin’s radiance and glow — making them not only look good but more importantly feel good from the inside out. Our products are playful, natural and infused with stories from our culture. Our rose water face mist is collected from rural women and infused with organic aloe vera and glycerin for an extra boost than the typical rose water that’s available in the market. Our best-seller, the Liquid Moon face cream is formulated with rose water based on an ancient recipe discovered in Tripoli that the apesathcarists used to make. We also added some avant-garde ingredients like the plumping hyaluronic acid, aloe vera, and vitamin E. We’re also currently working on a anti-stress aromatherapy oil combination made by a heritage perfumery in Tripoli. A lot of love, stories, and art goes into every product we make and we’re very proud of that.
What is the current market size of the natural cosmetic beauty industry in the MENA region?
The beauty industry in the MENA region is booming — it’s estimated to top $45 billion in the next five years. It’s one of the hottest topics on social media; most particularly, on YouTube, with a record of more than 88 billion beauty-related video views.
In the MENA region, women are becoming increasingly aware about the unfavorable effects of toxic cosmetic ingredients like parabens that are found in both drugstore and luxury products. As a result, they have shifted towards healthy and all-natural ingredients for their everyday beauty and skincare regimen.
How was your experience with the mentors that you’ve met throughout the program?
The best mentor, and our north star, is always our customers. Our community of early adopters were really able to provide us with genuine and instructive feedback and advice that we valued, since it gave us a deeper understanding of what our customers’ look for in skincare products.
We also enjoyed being at Flat6Labs Beirut, and met a lot of great key people in the startup ecosystem who constantly provided us with informative insights about how we can expand and scale our business in the MENA region.
Did you face any challenges (such as gender discrimination, age-wise, etc.) as a team of two young women who are forging their own path?
To be honest, we did. Our parents were very skeptical of what we do and so is society. We didn’t start off as beauty bloggers, but ever since conceptualizing Joona, we have been learning substantially about all-natural ingredients that we can incorporate into our products and believe that with the right team and qualified mentors, we are able to prove that we’re capable of succeeding with growing business. The hardest part is talking to male investors because most of them have no knowledge of beauty products, why they’re important, and that they do sell. We recently decided to take a step back and build traction rather than just pitch the idea so that investors can have a better understanding of our business and how it has the potential to grow.
What advice would you give aspiring women entrepreneurs who are interested in starting their own business, but are lacking initiative or are discouraged due to a generally low presence of women-led startups?
So what if there’s a low presence of women in the startup world? That’s an even bigger reason to start. Today, it’s easier than ever to start your own business. Just open an instagram shop and start selling! Create a landing page for your app, and see how many people sign up for it. Participate in local and regional competitions since there’s an abundance of them and they can put your startup on the map and give it visibility. The real challenge is not in starting, but rather in scaling and maintaining the growth of your business.
Do you have any collaborations in the pipeline, and what value will they be adding to Joona?
We’re currently working on some collaborations. There are several online shops and offline boutiques who already want to sell our products; however, we want to get acquainted with our customers first and learn more about them via our channels, such as our website, as well as expand our customer base. We’re also building a media platform that will feature intriguing women sharing their stories and experiences surrounding the beauty industry to further build our community. If anyone is interested, we’d love to hear from you.
StartEgypt, the pre-acceleration incubation program, established to inspire and support thousands of Egyptian entrepreneurs in the field of social impact enterprises, held its second annual forum to showcase its 45 graduating startups, from all over Egypt incubated in Cairo, Assiut, and Alexandria during 2019.
StartEgypt Forum is an annual showcasing event that presents the incubated startups culmination of efforts during the previous year. The startups get the opportunity to present their businesses to investors, leading business professionals, government officials, press, and coaches & mentors to expand their business connections in order to take their ideas to an even more advanced stage.
The four-month incubation program, funded by the United Kingdom’s Department for International Development (DFID), supported by the International Finance Corporation (IFC), a member of the World Bank Group, and powered by Flat6Labs, provides training, educational mentorship, and coaching by industry leaders. As well as, technical and business support to social impact startups in the fields of Education, Agriculture, Healthcare, Renewables, Environment, Transportation, Financial Inclusion and Marginalized Communities.
The program had originally launched in Cairo in 2017, with the first cycle starting in June, 2018. After their launch in Cairo, StartEgypt recognised the potential that entrepreneurs in non-centralized cities had. Therefore in 2019, the program has expanded to Assiut and Alexandria, graduating 45 social impact startups over the course of two cycles in Cairo, two cycles in Assiut, and one cycle in Alexandria, with entrepreneurs coming from all over Egypt, and startups working across various industries offering innovative solutions to disrupt the market.
Hassan Mansi, StartEgypt Program Director, said: “I am extremely proud of the efforts exerted in this program, we have undergone an amazing journey with amazing achievements. To date we have executed more than 45 events, reaching out to over 15,000 participants, partnering with caliber community partners in the ecosystem, receiving over 4,000 applications, and finally incubating 72 competitive startups from across Egypt. Moving forward, the whole team is excited and ready to increase the efforts to excel and reach out to more entrepreneurs across Egypt and inspire them into this new promising futuristic market in Egypt.”
The Forum is designed, along with showcasing the incubated startups, to provide an outstanding experience for over 1,000 guests interested in entrepreneurship, starting with a morning Startup Huddle, engaging activities like the Fight Club Competition and Ecosystem Activation Game, exceptional panel discussions about Female Founders and Impact Investment, and different hands-on workshops provided by Google, Dell Technologies, Cleopatra Hospitals, and Shell.
Eleven startups, out of the 45, have been qualified to end the day with a thrilling pitch competition in front of a judging panel for a chance to win EGP 200k in total, awarded to the following top 5 startups:
1st Pyro awarded EGP100K
2nd Biofeedx awarded EGP50K
3rd Mycelium awarded EGP20k
4th Banalistic awarded EGP10K
5th Shalta awarded EGP10k
The eleven social impact startups come from a variety of industries and use different technologies, including:
Mycelium: A biotechnological company that grows eco-friendly biodegradable bio polymer (mycelium) on agriculture waste to make sustainable products that can replace the plastic in the field of packaging, construction, and furniture.
Shetla: A mobile application that assists farmers in agricultural operations, irrigation and fertilization and the detection of diseases.
Smart Farm: Utilises unused roofs across urban areas to make way for a small roof garden that provides food for the tenants.
Hadotopia: Hadotopia offers a plethora of content including stories and information for all ages. Content is offered in traditional arabic, slang arabic, and english. The platform targets parents in an effort to help them educate their children.
Mashro3i: A website platform that connects student’s graduation projects with entities that helps them to commercialize it.
Banlastic: Banlastic introduced the eco-friendly shopping bag(cloth): an alternative to the plastic shopping bag, which will be a strong starting point for people to stop consuming single use plastic bags which has a very adverse impact on the environment as each Banlastic bag is reusable.
Ero: Ero is a waste management startup that was initiated to create innovative solutions for paper leftovers. We collect, recycle and produce paper commodities to substitute environmentally irresponsible materials. Ero is a Finnish word for difference, which is what we plan to create.
Pyro: Pyro offers an on-site customized Pyrolysis system which works on any agricultural waste to generate bio-charcoal. The system takes in the cellulosic agricultural wastes and produces bio-charcoal as briquettes.
Biofeedx: A wearable gadget that accurately measures the muscle’s electrical activity during workout. The measured data is visualized on the user’s mobile app in a gamified visual feedback (mobile phone game). The app sends a report to the coach/doctor about the user’s performance with the ability of the coach/doctor to modify the user’s training parameters. It also allows current physiotherapy access and monitors a larger number of patients, reduces the cost of rehabilitation on patients and offers a more efficient and objective way of remote patient monitor rather than home care which accelerates the healing process.
i-Sew: A mobile app that connects the disabled community with fashion designers who want to make their designs in a professional, cost effective manner in a short time. We help involve people with disabilities in our society while providing a reliable income they could live off. SDS offers a workshop space where disabled people assist designers in creating their products.
Naql Misr: A digital online platform for providing logistics transport services to serve individuals and commercial and industrial institutions through the operation section to management and operate a fleet of different transport trucks.
Over the past years, the startup ecosystem in the MENA has witnessed some major changes; and since Flat6Labs’ launch 8 years ago, it has been taking part in this change through its continuous support for innovative startups in more than just one country: Bahrain, Beirut, Cairo, & Tunis. Through these programs, we have invested in 250+ startups over the past years, and 74 of them were in 2019 alone.
One of those 250+ startups is Harmonica, a conservative match-making app that got acquired by the internet giant, Match Group. It is actually the first MENA matchmaking company to be acquired. This acquisition also marked Flat6Labs first major exit, and while we were closing the exit deal in 2019, we’ve also launched the StartEgypt program in two cities: Alexandria and Assiut.
We believe our aspirations are just bigger than one year; however, as 2020 brings in both a new decade and a new year, it is about time that we dug deeper into all that we’ve achieved in 2019.
Flat6Labs growth rates have been exponential thanks to our programs, investors, mentors, and coaches across the region.
Our ability to expand into different countries and cities, has allowed us to reach more of MENA’s hungry entrepreneurial community, one that constantly seeks change, impact, and innovation. This meant that also as we grew, our networks grew and our startups ability to get funded increased significantly.
Our Startups
Flat6Labs has partnered with over 250+ startups across the MENA region in a multitude of industries since its launch in 2011. We truly believe in our startups, their teams, and in what they’re trying to achieve with brilliant products and services. We’re also proud to be their partners, hand-in-hand, throughout their entreprenuerial journey.
Nestled all over the MENA, are our programs that support and invest in startups from the idea, product and market stages alike. The tried and tested Flat6Labs programs cater for a wide array of MENA’s entrepreneurs. In 2019, we launched StartEgypt in two different cities: Alexandria and Assiut. We’ve also powered the Misk Innovation Startup Bootcamps in 5 different cities in Saudi Arabia, supporting a total of 90+ startups.
Our existence in these countries allows our startups to have access to different entreprenuerial and networking events where they can promote their services/products, pitch to investors, or take part in competitions.
The exposure and the network that our startups form at such events help them get funded, in turn allowing them to scale and grow and add new team members as illustrated. This helps the different economies of countries, as it translates into a higher chance at getting employed upon graduation.
Magnitt’s MENA Investment Summary of 2019 has also ranked us as the most active accelerator in the MENA region. With more than 80 startups graduating in one year around the region, and the number of investments we make into our graduating startups, we can’t see that changing anytime soon!
With the support of 20+ institutional investors all over the MENA region, we’re capable of pushing the our limits everyday and supporting more and more startups to grow and scale. We have over $45M in assets under management throughout our funds in the MENA region, from which we provide flexible investment ticket sizes that range between $50k — $300k.
Top 10 Things We’re Proud to Have Achieved in 2019
After being accelerated by Flat6Labs and launching its application two weeks before Flat6Labs Cairo 9th Demo Day, Harmonica grew tremendously in 1.5 years to close an acquisition deal with the internet giant, Match Group. Simultaneously, we made our first major exit with a 16x multiple.
Having graduated from the Flat6Labs Cairo Fall 2018, Brimore has established itself as leading channel of distribution for small local manufacturers who want to sell their products. Them receiving funds of $800k signifies that.
After graduating from Flat6Labs Abu Dhabi’s Spring 2015 cycle, the laundry startup, Washmen, was already on a path to becoming one of the leading laundry services in the UAE. Aimed at revolutionising the laundry industry, the startup has been racking up several funds with their latest being a series B round of $6.2m.
Dabchy has grown to be one of Tunis premier online destinations for shopping after their graduation from Flat6Labs Tunis’ cycle one. This has helped them reach over 400k customers in one year, and secure $300k in a seed round led by 500 Startups and joined by Flat6Labs, Saudi Venture Capital Company (SVC), Khobar-based Vision Ventures and Daal, and a group of angel investors.
Chefaa has graduated from Flat6Labs Cairo Cycle 10 with a purpose of making medication easily available everywhere in the country through an application in a timely manner. The’ve been incubated by StartEgypt, then accelerated by Flat6Labs, and they’ve won several competitions propelling them to raising a six figure number led by Flat6Labs and 500 Startups.
The Flat6Labs Bahrian graduated from cycle 2, SINC, has raised US$250,000 in a pre-seed funding round led by Dubai Angel Investors and other prominent regional angel investors. The funds will be used in the short-term to expand SINC’s development team and build out the job tracking functionalities that small businesses in North America desperately need.
Bekia, an online platform that exchanges waste for services, and a graduate from Flat6Labs Cairo Fall 2018 cycle has raised a six figure number ($) through the Oman Technology Fund after partaking in their Wadi OTF Accelerator programme.
One of Flat6Labs Bahrain’s first batch graduates, Dalooni (formerly, Inagrab) was capable of securing an investment from Faith Capital. The startup specialises in monetising the everyday individual as a channel of sales for other businesses.
After successfully graduating from Flat6Labs Bahrain’s first cycle, the Stories Studio was capable of securing a $70k fund from angel investor Mr. Faris Algosaibi.
With an aim to help those with ADHD and Autism progress through VR learning, VRapeutic, a Flat6Labs Cairo cycle 12 graduate, was capable of securing a $70k fund after winning the SingularityU MENA Competition.
Rumman Enrolled in Ahli Fintech Acceleration Program
Built around the idea of saving money and allowing users to invest their money in either large or very small quantities, Rumman’s novel solution, had them become part of Flat6Labs Beirut’s program. After their graduation from cycle 2, they were also accepted into the Ahli Fintech Acceleration program. Joining this accelerator will allow them to have access to Al Ahli Bank’s customers, they might receive a fund of up to $300k, and they will get mentorship and counseling from Al Ahli Bank’s top executives, all to ensure that their startup is capable of growing and scaling.
Cloudsale, the Flat6Labs Beirut 2nd Cycle graduate, was capable of qualifying for the final Pitch By The Pyramids competition powered by Riseup Summit. Three other startups from Cairo (Makwa), Beirut (Zima Cloud), and Tunis (Seemba) were among the finalists as well.
Reform Studio joined the Flat6Labs Cairo Spring 2014 cycle with an idea that would help Egypt and the world at large recycle waste to form furniture. They have successfully done so by creating a fiber called plastex. They got them to do a collaboration with Ikea on their Överallt collection to help save the environment,
Speetra has joined Flat6Labs Beirut’s third cycle with a dream to make 3D-printed fashion items that are eco-friendly. This year, they have collaborated with one of the world’s most famous designers to create a sustainable 3d printed gown.
