BUILDING STARTUP ECOSYSTEMS AHMED EL ALFI PRE-2011 EGYPTIAN - - PowerPoint PPT Presentation

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Sep 11, 2022 777 likes •955 views

BUILDING STARTUP ECOSYSTEMS AHMED EL ALFI PRE-2011 EGYPTIAN ECOSYSTEM AT A GLANCE Tech had a Different Financing Limited to 1 2 3 Seed Stage Funding Definition Traditional Industries Initiatives and policies were Limited to

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BUILDING STARTUP ECOSYSTEMS

AHMED EL ALFI

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PRE-2011 EGYPTIAN ECOSYSTEM AT A GLANCE

“Tech” had a Different Definition Seed Stage Funding Financing Limited to Traditional Industries

Initiatives and policies were focused on outsourcing activities Value creation was limited to client countries Local talent was head hunted to join multinationals abroad Limited to individuals backed by personal wealth Lack of funding for a high growth innovative companies Frustration increased the brain drain Minimal VC funding 2006 - 2011 Private equity focus on traditional industries, larger investments Startups are viewed as “un- bankable” for debt financing

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SLIDE 3 Enabling the Ecosystem Growth Concept Go-to-Market Seed

BUILDING A BALANCED ECOSYSTEM

START UP AT THE ACCELERATOR

The GrEEK Campus, Flat6Labs and Sawari Ventures pioneered the development of the Egyptian entrepreneurial ecosystem, launching the first tech hub, seed stage investment vehicle and one of the first venture capital firms

GET INSPIRED AT THE HUB SCALE UP WITH VENTURE CAPITAL

Scaling An early and growth stage investment pioneer targeting knowledge-driven and scalable companies An accelerator to help turn innovative ideas to market ready companies Ecosystem foundation for like minded innovators to collaborate, innovate, and grow 3

SLIDE 4 4 Launched in 2013 Location in Downtown Cairo 5 buildings covering 25,000 m2 Co-working spaces, and offices 130+ companies and 1,000+ employees Center for technology and entrepreneurship events Access to resources with domain, functional and market expertise, to collaborate and grow. Promotes interaction, openness and educational development. Created a viral effect on society

TECHNOLOGY PARK IN THE HEART OF CAIRO

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GrEEK CAMPUS EXPANSION

First expansion, is in Assiut in collaboration with Silicon Waha & TIEC/ITIDA Created a consortium of 9 ecosystem companies to collaborate and create a functioning hub in Upper Egypt The GrEEK Campus currently working on other locations in Egypt, as well as in KSA and other MENA countries What we look for: Central location Ease of access to public transportation Buildings with gardens and courtyards To be able to separate from outside world to manage collaborative and business focused environment THE GrEEK CAMPUS IS EXPANDING IN EGYPT & REGION

SLIDE 6 6 6 Locations, 1 more within a year 200+ companies seeded Local strategic partners First Accelerator globally to receive funding from IFC and UK FCO General and themed verticals First Arab member of the Global Accelerator Network (“GAN”) 350+ Mentors & Coaches $12m+ follow-on funding secured by graduates 1K+ High-impact Jobs

THE LEADING SEED INVESTOR AND ACCELERATOR MENA

Funding Office Space Coaching Legal Support Weekly Pitches Training Network Mentors Startup Events Demo Day Media & PR Perks NOTABLE PORTFOLIO COMPANIES ACCELERATOR OFFERING

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Started in Cairo Now in 6 Locations

+ 1 MORE IN PROGRESS

Casablanc a Bahrain Jeddah

7 WWW.FLAT6LABS.COM

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A GLOBAL NETWORK

JED TU N GA N GA N GA N GA N GA N GA N GA N GA N GA N GA N GA N FRIEN DS GA N JE D CAI AU H BE Y TU N BA H GLOBAL ACCELERATOR NETWORK PARTNERS FLAT6LABS PROGRAMS FRIENDS CAI FRIEN DS FRIEN DS AU H BEY BA H FRIEN DS APPLICANTS

SLIDE 9 9 Founded in 2010, Sawari Ventures is a leading venture capital firm based in Cairo

EGP. 1 Billion fund, investing in technology

36% IRR for current portfolio Exits to Global Conglomerates Realizing the capital to talent imbalance in North Africa, Sawari is expanding its investments to include Tunisia & Morocco

VENTURE CAPITAL FUND FOR NORTH AFRICA

Sawari Ventures North Africa Fund I is a USD 70 mn fund covering Early & Growth Stage investments in Egypt, Tunisia, & Morocco Sawari adheres to responsible investments targeting positive impact

f I

S V N

Sawari Ventures North Africa Fund I

Egypt Tunisia Morocco

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THE 3 ENTITIES SPURRED THE RISE OF AN ECOSYSTEM

Inspiring Starting Up Early Stage Experience & Support Late stage Networking | Public advocacy Mentoring | Coaching Skills | Trainings Hosting | Working space Enabling the Ecosystem Growth Concept Go-to-Market Seed Product Development Idea Company Scalability

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STILL, EGYPTIAN ECOSYSTEM HAS ROOM FOR MORE

Country VC Investments Made (USD M) Engineering Graduate Investment/Engineering Graduate (USD)

Lebanon $116 4,100 $28,293 Jordan $16 9,126 $1,797 Morocco $6 9,200 $652 Egypt $16 32,000 $513

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EGYPTIAN ECOSYSTEM SUCCESS STORIES

Founded in 1994, ITWorx is the largest and most impactful company in the Egyptian IT ecosystem, expanding to 12 countries and over 1000 employees Exited to Capital Trust, VC Bank and Proparco in 2007 Founded in 2002 Designs baseband and RF/analog circuits for the wireless broadband market Sold to Intel in 2011. Fawry is the biggest e-payment network in Egypt, handling more than 1.5m transactions daily Received investment by TDF in 2007 In 2015, 85% of Fawry was acquired for $100M Founded by Haytham ElFadeel, a self taught computer scientist, creating a natural language search engine In 2011 Kngine approached Sawari Ventures resulting in USD 275k investment Achieved superior performance vs. EVI, SIRI and Wolfram Alpha Acquired by Samsung to build their SIRI equivalent, Bixby Founded in 1992 Egypt’s leading internet service provider - being the first to offer internet services in the country Acquired by Orange Egypt (Mobinil) in July 2010. Joined Flat6Labs Cairo 2012 Cycle receiving USD 10k investment, during the program, Instabug later got admitted in Y- Combinator raising USD 120k and received a USD 1.7M follow on investment from Accel Partners Now on over 1 Billion mobile phones with clients including Paypal, Philips, Yahoo, Hilton, lyft and Xiaomi allowing the company to break-even within 10 months

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THEIR SUCCESS IS BEYOND EXIT VALUE

The case of ITWorx is particularly striking: its influence has not been limited to the economic growth of its expansion and its direct job creation, but it has also acted as a lever for the birth of 100+ tech companies. The more success stories we witness the more youth are inspired to start their own creating a series of ripple effect lasting generations High growth companies also train large numbers of university graduates.

A look at Cairo’s success stories shows that local tech companies have directly and positively impacted the economy through job creation and economic growth, but also directly contributing to the expansion of the sector.

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EXPANDING ACROSS THE MIDDLE EAST AND AFRICA

Establish an Ecosystem Expand on a National Level Create a Global Impact

Establish strong partners Adapt to cultural aspects Create a hub to be the beacon of innovation Seed innovation & creativity Listen to the youth Lead other ecosystem members’ growth Shifting investors from low risk debt to long term equity based funding Lobby with the government and large local institutions to include innovation as part of the mandate Rally nationwide support and spread the entrepreneurship culture Overcome the focus on the capital cities Catalyzing local capital formation Cement local Venture Capital as an asset class Attract FDIs and international investors Capitalize on international network to help local startups global presence Boost export oriented companies across several sectors

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LESSONS TO SHARE

“We always talk about time travelers going to the past and changing something that impacts our world, instead we need to focus on changing something that will have a major impact on the future of the world”

”

1. Young populations, young countries 2. Shift from Extractive to Creative 3. Human talent not minerals, oil, and agriculture 4. Innovation and risk taking incompatible with debt funding 5. Equity investment a must for high growth companies 6. Build a balanced self-sustaining ecosystem 7. Adapt to each location

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Ahmed El Alfi Chairman & Founder, Sawari Ventures/Flat6Labs/The GrEEK Campus

Email: alfi@sawariventures.com @AoAlfi