Rinchi
TechInAfrica – Startup ecosystem in Egypt is said to be the fastest growth in the Middle East and North Africa (MENA) region, as stated by a report from Magnitt published last year. Moreover, it shows a significant increase in terms of venture capital companies, international investments, incubators, and accelerators for the last few years. These increase numbers are also followed by government initiatives which have made Egypt an interesting hub for startups in the region.
“Egypt is seeing a second wave of entrepreneurs and investors that are more mature and experienced. The population is also starting to embrace technology for everyday activities and we see that large but young tech firms are a great source of talent and inspiration,” said Ziad Mokhtar, Managing Partner at Algebra Ventures as quoted by the Magnitt report.
Speaking of the startup ecosystem in Egypt, here are five things you need to know about it as cited from entrepreneur.com:
- Promising startups
In the MENA region, Egypt is still relatively a new hub for startups, thus, hasn’t produced any unicorns yet. Despite the fact, Egypt has several promising companies on the way to achieve $1 billion.
One of Egypt’s startup specializes in a bus-hailing app, Swvl, is being on the top list generating a total of $80.5 million raised over four funding rounds since its inception. It is followed by Vezetta, a HealthTech startup which has raised $23.5 million over five funding rounds. Not to mention Instabug, Yaoota, Basharsoft, Halan, and other promising startups on the list.
- Increase number of incubators
Incubators in Egypt are currently on the rise with Flat6Labs as the most prominent accelerator in the country until a few years ago. Meanwhile, EdVentures, is one of the main players in the education startup sector followed by other VCs, including Sawari, Algebra, and Endure Capital.
- Government initiative programs
The startup ecosystem in Egypt gets great support from the Government. The Egyptian Ministry of Investment and International Cooperation has initiated different startup programs and network to help entrepreneurs develop their skills as well as navigate their regulations.
- Tech startups dominate the ecosystem
Tech startups are the hottest in Egypt, leading the country for tech innovation in the Middle East and Africa, as quoted by a Business Insider report earlier this year. Despite the growing number of tech startups in the country, due to the struggling in the Arab Spring crises, several tech startups have to relocate to other places, including Dubai, China, Germany, and the Cayman Islands in order to free themselves from the pressing situation.
- Network and connect through bootcamps and events
Bootcamps and events are platforms for Egyptian startups to network, connect, and learn from experts and investors from around the globe. There are several annual events held in the country, helping regional startups put on the global summit. The biggest annual events in Egypt are RiseUp Summit, Vested Summit, and the Techne Summit, among other must-attend gatherings.
Source: entrepreneur.com
