Just weeks after announcing the first four startups that had joined Hub71, the Abu Dhabi-based tech hub, seven additional startups will bring a significant part of their operations and presence to Hub71 as well. The announcement underpins the push by Hub71 and Abu Dhabi to attract local and international talent and startups to the capital, as the regional startup ecosystem continues to grow. The startups come from a variety of countries and backgrounds, including two Emirati founders – Basil Al Askari of MidChains and Faisal Al Hammadi of YACOB, as well as other Arab, Asian and American founders. Moreover, the startups span six different industries, including healthcare, travel & tourism, artificial intelligence (AI), blockchain, social impact and FinTech, which has been the top industry by number of deals in both 2018 and 2019 YTD.
The startups that will be joining Hub71 are:
- YACOB: a digital health nutrition management platform that helps children and parents, schools and food vendors; improve their nutrition, health engagement and meal production.
- SafarPass: a travel tech SaaS platform with an all-in-one solution to manage business trips and expenses on-the-go.
- ProTenders: a leading B2B platform for the construction industry to connect, find new deals and manage bidding activities.
- MidChains: a fintech company and a regulated digital asset trading platform uniquely positioned to service institutional and professional investors.
- Humanitas: a US-based company that uses Artificial Intelligence to drive social enterprise and philanthropy using a mobile app, Dandi, that enables organizations and youths to engage and collaborate on community issues.
- Ammbrtech: a US-based blockchain and telecoms infrastructure company that designs and develops decentralized hardware and software products.
- Arabot: an Arabic and English language Artificial Intelligence chatbot platform that understands and analyses conversation and dialogue, for business applications.
These companies will benefit from Hub71’s incentive packages, which include subsidized housing, office space and health insurance plans for founders and their employees. The packages, which will save startups up to AED 3.5 million of non-dilutive capital, are designed to help firms invest their available capital on growing their businesses and attracting highly qualified engineers.These startups are also planning their next phase of growth, and through Hub71 they will gain access to a global network of interconnected business enablers and industry partners.
Mahmoud Adi, CEO of Hub71, commented: “We are proud to welcome seven new startups that are focused on building innovative products and businesses at Hub71. We are seeing more and more Emirati Nationals becoming entrepreneurs, innovating and taking risks to pursue their dreams. Basil Al Askari and Faisal Al Hammadi are great examples of Emirati founders who believed in their product and have now branched out to build tech businesses, with success. Being resilient and focused on achieving a personal goal – one which may change the lives of many people – is what we aim to have more of in Abu Dhabi.”MidChains is an up and coming Abu Dhabi-based institutional digital asset exchange and custodian.
Basil Al Askari, Co-Founder and CEO of MidChains, said: “Having searched the world for a financial center that was fit for our growing business and regulatory requirements, and as an Emirati National, I’m immensely proud to learn that Hub71 truly offers one of the world’s most competitive tech ecosystems. Hub71’s tech community and free office space made our growth plans possible. Having immediate access to a wider ecosystem of enablers was another essential element; especially for MidChains, a fintech company, which needs to operate globally right from the start.”Deployed in over 65 schools and cafeterias, YACOB, a seed-stage startup, is also one of the first startups to receive co-investment from Ghadan Ventures, an AED 535Mn fund that seeks to support the growth of Abu Dhabi’s startup and VC ecosystem.
Faisal Al Hammadi, Founder and CEO of YACOB, said: “Being based at Hub71 was a strategic business decision that would allow us to have better access to funding, among other benefits. Hub71’s generous incentive package means that we’re able to grow faster, attract high-caliber talent, and can expand our operations globally. We look forward to partnering with the Department of Health, Abu Dhabi, to help tackle important issues like child diabetes and obesity using smart nutritional programs. I’m excited to deliver this mission from the Capital and look forward to working with more schools and governments throughout the region.” Hub71, strategically located in Abu Dhabi Global Market Square, aims to foster startup success, innovation and growth; and is uniquely positioned to bring together government entities, investors, corporations, academics and startups.Startups from any sector will be able to apply for Hub71’s Incentive Packages from Q4 of 2019.
Saudi Arabia: Supercharging Startup Opportunities
As the Kingdom amps up its business-friendly credentials and welcomes a new wave of entrepreneurs, Kais Al Essa, Founding Partner and CEO of venture capital firm Vision Ventures, talks opportunity and accessibility
Supercharging opportunities for foreign startups is a high-profile focus for Saudi Arabia. While our nearest neighbours have historically been the go-to hubs, in future a much higher percentage of entrepreneurs are expected to venture into the Kingdom.
Programme to foster cooperation between startups, corporates in Dubai
Dubai Startup Hub, an initiative of Dubai Chamber of Commerce and Industry, has unveiled its revamped Market Access programme which pairs leading companies in the UAE with startups that offer innovative solutions addressing their key challenges.
Details of the new Market Access features were announced at a launch ceremony in Dubai and was attended by members of the business community, including previous corporate and startup participants who shared their experiences and success stories. Among the additional benefits provided to companies participating in the programme are: one-year membership, specialised workshops and access to a wider network of solutions, in addition to the ability to list multiple challenges on the Market Access interactive and smart online portal where they can also communicate and collaborate with startups. Startups that are selected to participate in the programme can benefit from training and pitching workshops, access to lucrative business opportunities, as well as a platform to boost their market exposure and build their brand reputation.
Misk Innovation & 500 Startups Reveal Joining Accelerator Program
The Misk 500 Accelerator program – a collaboration between early-stage venture fund and seed accelerator 500 Startups and Misk Innovation, the Saudi non-profit foundation devoted to developing Saudi youths – have recently revealed the 20 participating companies in the program’s second cohort.
Currently underway in Riyadh, the program’s ‘Batch 2’ comprises a diverse group of startups that span the MENA region, including Saudi Arabia, Egypt, United Arab Emirates, Bahrain, and Jordan. Those startups are building technologies and products that impact B2B, B2C, E-Commerce, FinTech, EdTech, HealthTech, IoT, robotics, artificial intelligence, SaaS, and messaging services.
A Lebanese Student Came Up with the Solution to the Apple Crisis in Lebanon
Have you ever thought about preventing the oxidation of fruits by extending their shelf life? Biology student Richardos Lebbos found a solution for the apples’ problem in Lebanon, seeing the extent of the damage done to the apple produce in 2017, where tons of Lebanese apples were thrown on the ground after being banned in several countries.
“I remember hearing about the crisis of apples being thrown because of the high price of cold storage and other problems. I was in a taxi at the time, and I had an idea to do something that would preserve the shelf life of the apples,” Lebbos told Berytech, a dynamic environment for Lebanese startups, fostering innovation, technology and entrepreneurship.
It all began in the university lab in USEK, which Lebbos had full access to as an employed student. He started working on creating a starch-based liquid that acts as a bio-coating for fruits and vegetables and extends their shelf life. Starch, in scientific literature, is known to be a natural polymer that is used in many industries.
What Lebbos wanted to do was create a liquid that could turn starch into an invisible layer that is transparent on fruits, and that would consequently act as a barrier to oxygen and bacteria, and hence a barrier to the oxidation of fruits.
“Fruits that are not exposed to oxygen, and therefore do not have oxidation taking place, have more than twice the shelf life without cold storage,” Lebbos explained.
The liquid was invented for businesses such as big farmers and retailers that import and export fruits. These retailers usually have a wax line where they polish the fruit with a chemical to make it shiny. “I plan to replace this chemical with the Startchy liquid” said Lebbos. “Once you spray the fruit with the liquid and dry it, it will be ready for shipping without cold storage.”
While working at the lab, Lebbos met pharmacologist Kayssar Eid and agricultural engineer Tony Barcha, both USEK students. They came together on that one vision and aim and founded Startchy.
With the support of Berytech, Startchy was registered in the US, which allowed the team to test their product with Stemilt, the biggest exporter of apples in the US and one of the biggest in the world.
“We did a test with Stemilt on their apples, where we coated them with our Startchy liquid, and it worked! We saw an extent of the shelf life twice and more. They gave us a letter of intent, and now we are working together,” boasts Lebbos and for a good reason.
And that wasn’t all. The creation of this product has come to be of benefits to other countries as well.
Döhler, the German producer of technology-based natural ingredients, invested in Startchy a total of $600,000. Maersk, the Danish growth (incubation) program for international startups worldwide selected Startchy among 30 other shortlisted global startups.
After 30 grueling days with Maersk in Copenhagen, Startchy was selected along with one other startup for a cash investment of $500,000!
The Startchy team is now finalizing the industrialization of their product by partnering with Dohler, and they’re working on getting the certification to enter different markets, beginning with the US market.
In addition, Lebbos and his two partners have started this month (September) running pilot trials with big suppliers and customers. “Hopefully, we will hit the market soon, beginning of 2020,” commented Lebbos.
WEEK IN REVIEW : MENA startups under scrutiny – WeWork’s IPOs failure: $3 billion in cash needed to get through 2019 despite $12 billion in investments!!!
WeWork needed $3 billion in cash to get through 2019. Despite $12 billion in investments, i
Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy news pertaining to startups and venture capital.
Three main headlines last week but my favourite is still the completion of Amazon mega merger with SOUQ.com – In a press release it says it has completed its acquisition of e-commerce firm Souq.com, which was first announced at the end of March and sees the U.S. retail giant enter the Middle Eastern market.
Amazon paid $580 million in cash for Souq, according to filings. Bloomberg previously reported that Amazon was in discussions over an investment at a valuation in excess of $1 billion but, amid rivalry from Emaar’s ambitious Noon.com project and others, an acquisition agreement was reached. The two companies said today that they have completed an initial integration that allows customers to log into Souq.com using their Amazon account credentials.
Next is our headline on Middle East StartUps and Silicon Valley Guru look for common synergies http://www.startups.news/?p=7761
In 2018, a record number of investments – 366 of them – were made in the Middle East and North Africa region, Magnitt 2018 MENA Venture Investment Report found. More widely, it detailed that more than 155 institutions invested in the region’s startups in 2018, 30% of which were from outside the region.
These developments, coupled with efforts seen in the past year – such as the establishment of Egypt’s first venture-capital fund focused on investing in fintech, the $100m for startups in the Bahrain-based Al Waha Fund of Funds, and Tunisia’s startup act – are giving the region’s startup scene unprecedented momentum. With record levels of investment, interest from tech watchers and interesting new ventures launching all the time, the region’s startup scene looks like it’s going to get even hotter.
The region itself covers a total of some 50 million consumers across several countries, as well as a relatively untapped market: only about two percent of all retail spend today is made online, according to a report from McKinsey.
Lastly we look at we work our story http://www.startups.news/?p=7770 focuses on the downturn of the company following the failure of its IPO.
As of the most recent funding round’s valuation, WeWork would be the second-largest IPO of 2019, trailing only Uber.
WeWork has copied an old business model, slapped some tech lingo on it, and suckered venture capital investors into valuing the firm at more than 10x its nearest competitor.
The company also burns tons of cash, carries huge risk factors in a recession, and sports some of the worst corporate governance practices we’ve ever seen. WeWork – now rebranded as The We Company (WE) – filed its initial S-1 on Aug. 14, and the company reportedly plans to go public in September. We don’t have official pricing information,Continue with Free Trial
WeWork’s eccentric CEO/founder Adam Neumann stepped down this week amid pressure from board members (SoftBank) to exit the C-suite. Wall Street doesn’t think Neumann is fit to be CEO of a public company and if you don’t know why, read this WSJ piece.
What’s next for Peloton? International growth? Doubling down on original content? New hardware? Tell me what to write.1069:13 PM – Sep 26, 2019Twitter Ads info and privacy62 people are talking about this
I particularly like an opinion piece on Wework by Japan times https://www.japantimes.co.jp/opinion/2019/09/30/editorials/wework-ipo-didnt-work/#.XZHptuJMRPY
nitially, investors were intrigued. Softbank’s Masayoshi Son provided more than $10 billion in funds, calling WeWork “his next Alibaba” — a reference to a $20 million investment that paid back $50 billion when it went public. As WeWork began preparations to go public, initial valuations reached $47 billion.
The prospectus for that offering was eye-opening and deflating. The company was a huge landlord, but that created sobering operating expenses — $50 billion in lease commitments — and no guarantee of revenue from armies of freelancers that could not afford long-term commitments of their own. The figures were not reassuring: WeWork’s revenue increased to $1.8 billion in 2018, but the company lost $1.6 billion that year. According to projections, WeWork needed $3 billion in cash to get through 2019. Despite $12 billion in investments, it had never reported a profit.
In addition to financial issues, there was the problem of Neumann himself. The prospectus noted that he ensured his continued control of the company through a special class of shares and the power to fire the board of directors; he had used some of his WeWork stock to secure a $500 million personal loan; he owned four buildings that WeWork was paying him to lease; and he was paid nearly $6 million for the trademark “We,” which the company had recently adopted. (Those funds were returned after the resulting uproar). In addition, there were tales of adolescent behavior that raised questions about his judgment. Hanging over it all, however, was a board that did not rein him in.
The furor that greeted the prospectus prompted the shelving of the IPO, the slowing of expansion plans, the prospect of layoffs of as much as one-third of the company’s workforce and Neumann’s decision to step down and his replacement by two co-CEOs.
The WeWork failure is not unique. It follows similarly lackluster IPOs by ride-sharing companies Uber and Lyft, and that of Peloton, the stationary bicycle manufacturer that considers itself a technology platform as well. Neumann is another “bad-boy founder” like Travis Kalanick, who was forced to step down as head of Uber after reports surfaced of his abusive behavior. Yet for all the flaws in WeWork’s ambitions, the system worked. Public scrutiny laid bare the gap between WeWork’s aims and its reality. WeWork is, despite the hype, a real estate arbitrage, and should be valued accordingly.
Egypt’s Homemade Food Market Mumm Launches Meal Subscription Service For Companies
Egyptian food-tech startup Mumm has just added a meal subscription service called Mumm Office Club in Cairo to their line of services. Mumm’s kitchen-to-delivery online marketplace has been offering homemade food cooked by partners to users for over three years, but the Mumm Office Club sources a large variety of meals and different cuisines from central kitchens throughout Cairo specifically catered to companies.
Within their operations, Mumm partners with companies from a variety of sizes to offer ‘nutritious meals’ at a discounted rate to its employees, where both companies and employees can save up on costs and receive food on a daily or monthly basis. Once the company partners up with Mumm, their employees are allowed to subscribe to receive food on working day, pick the meals they receive daily or monthly, and have a free deducted from the employee’s salary or pay directly upon receiving.
After piloting last month with several companies varying in sizes, Mumm’s CEO Waleed Abdelrahman watched fellow business owners realise the difference ‘Mumm Office Club’ has made on the overall productivity of their employees in only a few weeks. “Across the board, the employers witnessed a general decrease in wasted office hours and the spread of a positive outlook on company culture,” says Waleed Abdelrahman, CEO and founder of Mumm.
Mumm Office Club is a comprehensive food programme offering over 15,000 unique dishes from a variety of international and Middle Eastern cuisines, giving employees full control over their daily orders by allowing them to set their own dietary restrictions and get information on the nutritional value of each meal. Since its official launch this month, Mumm’s new service managed to gather over 700 paying subscribers at 10 companies and startups ranging in size, including Swvl, Robusta, Harmonica, BasharSoft, and Bel using the subscription service.
Golden Scent First Startup to obtain SAGIA Trading License
Leading beauty e-commerce platform celebrates a remarkable achievement in 2019 with a huge boost to its regional position
Following its four years of continued success, Golden Scent, the leading Saudi Beauty E-commerce Platform, announced that it has been granted the first commercial license by the Saudi Arabian General Investment Authority (SAGIA), without the minimum capital requirement.
The company’s excellent reputation, class A investors and customer loyalty all combined to ensure the company could be exempted from the SAGIA’s Minimum Accepted Capital requirement.
The news, which was announced during the 7th Arabnet Riyadh Conference, marks a great achievement in 2019. As Golden Scent has expanded to new GCC markets, by entering the UAE and Kuwait, and exceeding over 3 million app downloads. The E-commerce platform increased its product portfolio by 250%, added new logistics warehouses, and continued to grow its manpower – both quantitatively and qualitatively.
Supporting start-ups has always been a key element for SAGIA’s mission, attracting and retaining investors and establishing Saudi Arabia as a world-class investment destination. As a result, Golden Scent has been granted the commercial license as it represents a perfect example of how Saudi entrepreneurs, supported by foreign capital, can make a significant contribution to developing a sustainable, diversified national economy – a key objective of Saudi Vision 2030.
Founded in 2000, SAGIA is the foreign investment license provider for the Kingdom. Alongside its legislative role, SAGIA works with government entities to create, develop and market business opportunities; offering specialized consultations to companies in different sectors. Through its five business centres, SAGIA provides most of the government services by facilitating the necessary steps for clients to start and maintain business.
Golden Scent is rapidly growing stronger since its launch in 2014 and continues to address and anticipates its clientele needs with special offers and discounts, with more surprises and additions in the pipeline to make 2019 yet another unforgettable year for the platform and its ever-growing client base. As Malik Al Shehab, Co-Founder and CEO of Golden Sent said: “We are very proud of the achievements we have accomplished till now, and receiving the commercial license from SAGIA. And we would like to thank all the supportive parties involved in Golden Scent’s journey in becoming a leading platform and a trusted brand in the Middle East market.”
Egyptian B2B e-Commerce Marketplace, MaxAB Closes Landmark $6.2 Million Seed Round
Led by Egyptian and Libyan entrepreneurs Belal El-Megharbel (previously at Careem) and Mohamed Ben Halim (Previously at Aramex), the 270-strong MaxAB team has built a stock list of over 600 products [including groceries, beverages, dairy, confectionery and non-food products]. Using technology to close the gap between traditional retailers [over 400,000 in Egypt] and FMCGs, the Cairo based start-up leverages technology to connect brands to retailers via its Android app. It is working to automate and simplify Egypt’s $45bn FMCG food retail market and has recorded 50 percent month-on-month growth, with 9,000 activated retailers on the platform already.
Brands using MaxAB have access to real-time demand monitoring and business intelligence tools, which improve end-to-end supply chain control, and better forecasting. Retailers in remote and under-served areas will have access to a wide variety of products, the convenience of ordering stock online in addition to second day deliveries not to mention the added benefit of access to credit facilities.
Belal El-Megharbel, Co-Founder and CEO at MaxAB, says: “Nobody has addressed the underserved retailers before; retailers are faced with a limited assortment of products, the hassle of dealing with multiple wholesalers and restricted access to credit facilities. At the other end of the supply chain, the FMCGs have limited visibility on market trends, demand patterns and retailers’ business needs – leading to losing potential revenue opportunities.
“We are using data and analytics to understand purchasing and retail behaviours, as well as make the end-to-end process of brands seamless and convenient. This will enable FMCGs to make informed decisions about their purchasing, which will ultimately have a positive effect on their bottom line and catalyze one of the biggest markets in Egypt. This investment round will allow us to accelerate our growth plans and develop new products and services throughout North Africa using the first of its kind B2B ecommerce platform”.
Yousef Hammad, Managing Partner at Beco Capital, says: “This is Sparta” was the first impression I got when I met this team of warriors, battling one of the biggest inefficiencies on the country’s balance sheets. By leveraging technology, MaxAB is redefining the grocery supply chain in Egypt to fit the requirements of the micro retailers who make up 90% of the grocery market. The metrics they have recorded in such a short period are impressive, and we expect to continue to see double-digit growth as they scale.”
Peter Orth, co-founder and Managing Partner at 4DX Ventures, says: “We’ve been consistently impressed with how Belal and the rest of the team have executed, and achieved significant traction in a very short period of time. We believe that their B2B e-commerce model is the right way to serve this significant market, and we’re really excited to partner with the team to drive the next phase of growth.”
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