2021 can be described as the year of startups par excellence, as it was an exceptional year for startups at all levels. Despite all the difficulties and challenges related to the spread of the Corona virus epidemic, what startups in the Middle East and North Africa achieved in 2021 did not achieve in all previous years!

In this article, we will take a comprehensive look at the state of startups in the region, and tell you everything you need to know about the state of startups in the Middle East and North Africa in 2021.

First: the development of investments in start-ups

During more than a decade, the business environment for emerging companies has developed in the Arab region, especially in the Gulf Cooperation Council countries, specifically the United Arab Emirates and Saudi Arabia, which have worked to develop the business environment to incubate entrepreneurship through a wide range of incubators and accelerators of the business sector and the governmental sector. Egypt has also witnessed a remarkable development in the business environment. The development in the Arab entrepreneurship ecosystem is reflected in improving the legislative and legal environment and in launching a large number of startup incubators, including Flat6Labs, Falak and Injaz Egypt.

The development in the business environment for startups in the region has translated into a huge increase in the number and size of investment deals in startups, as the total volume of deals for start-ups increased by more than 1280% between 2013 and 2021, and with a growth rate of 312% compared to 2020, which witnessed a slowdown in the growth rate due to the direct repercussions of the spread of the Corona epidemic.

In terms of the number of investment deals in startups, it also increased significantly between 2013 and 2021, and while the number of deals for startups in 2013 did not exceed 148 deals, in 2021 it amounted to 561 deals. The following figure shows the development of investment in companies in the region between 2013 and 2021 in terms of the volume and number of investment deals.

As shown in the figure, the volume of investments in 2021 alone is equivalent to the volume of investments in emerging companies in the region during the period 2017 and 2020 combined. This indicates the significant development that occurred in 2021.

Second: Startups in the Middle East and North Africa for 2021

The following chart shows the volume of deals for startups during 2021 and their growth on a monthly basis. The figure shows the upward curve of investment in startups throughout the past year. The quarterly growth of the volume of deals for startups reached 48%, 32% and 104%, respectively, while the growth rate for the last quarter of the same year decreased by 74%. This decline can be explained by the exceptional rise in the third quarter of the year, specifically in July, when the total volume of deals reached more than 632 million dollars. As for the semi-annual growth level, it reached about 91%. In general, the data before us heralds new levels of investment in start-up companies. The number of startup deals in the second half of 2021 also increased by 28% compared to the first half. This rise is accompanied by a growth in the average size of one deal, which rose from about $3.7 million in the first half to more than $5.6 million in the second half.

Third: Distribution startups financing by country for 2021

The Emirati startups continued to dominate the scene in terms of startup financing, as Emirati companies accounted for about 52% of the total investments received by emerging companies during 2021, followed by the Saudi startups, which came in second place with 24% of the total investments, then Egypt with 15%, and in fourth place, came Jordan with 4% of the total investments. Despite the continued dominance of the UAE in the forefront, and then Saudi Arabia and Egypt, in terms of investments in startups in the Arab region, this year witnessed the entry of new countries to the list, which was limited to 7 to 9 countries at best in the past. The list expanded to include 15 Arab countries , the most recent of which was Sudan, which ranked last on the list. In terms of absolute figures, new regions showed remarkable growth, specifically the Maghreb region, the Levant countries, specifically Jordan and Palestine, in addition to Iraq, which is witnessing a growth in the volume and number of deals for startups.

Fourth: Distribution of the number of startup deals by country 2021

In contrast to the distribution of the volume of investments by countries, which shows a strong concentration on the UAE, the distribution of the number of startup deals shows less concentration on the UAE, which despite issuing the largest number of startup financing deals, about 72% of the deals are distributed to emerging companies from outside the UAE, most notably Egypt, which came in the second place with 25% followed by Saudi Arabia with 24%, then Jordan with 7%, Morocco with 4%, and Tunisia and Bahrain with 3% each.

Fifth: The annual average of the volume of deals for startups by countries for the year 2021

The size and number of startups deals is reflected in the average size of a single deal, and while it is a good indicator of the development of investments in startups, it must take into account the anomaly value that may mislead the reader, as we can see from the graph that the highest rate of average one deal size is for Algerian startups at $15 million per deal. However, this number hides the significant decrease in the number of deals for startups in Algeria, which was limited to only two deals! While the average size of one deal in the UAE can be considered more reflective of the development and growth of the volume of investment in emerging companies, in which the size of one deal amounted to more than 8.8 million dollars. The same applies to the case of Saudi startups, whose average transaction size is about $4.8 million.

Sixth: Distribution of startup investments by sector for 2021

2021 was a distinguished year in terms of distributing the investments of emerging companies by sector. The food technology sector appeared for the first time to top the list of investments distribution, with 26% of the total investments, followed by the financial technology sector with 21%, a sector that has witnessed steady growth since the year 2019, while the e-commerce sector ranked third with 16%, this sector is experiencing a relative decline, as we have indicated on more than one occasion. The decline of the e-commerce sector is due to the state of saturation that the main Arab markets have reached, although this does not mean that this sector has completely disappeared. E-commerce in the Arab region still needs more expansion and development, but competition in this sector has become more difficult with the rise of many companies that occupied large sectors of the market, and finally the entry of the e-commerce giant Amazon to the most important Arab markets (Saudi Arabia and the UAE) and last year it entered the Egyptian market.

Seventh: Distribution of the number of startup deals by sector for 2021

In contrast to the distribution of the volume of deals of emerging companies that focus on food technology, the distribution of the number of deals for emerging companies was less concentrated among the main sectors on the one hand, and on the other hand, the large number of sectors in which startups succeeded in obtaining financing rounds are, most notably the agricultural technology sector, artificial intelligence, environmentally friendly technology, and other sectors. This distribution indicates the existence of promising opportunities for emerging companies that are active in areas far from the main sectors that have always reaped the largest share of funding, and perhaps the most evidence of this is the decline of the e-commerce sector in favor of the financial technology sector in the past two years, and the displacement of the food technology sector by the technology sector, which took the lead in 2021. So it will not be surprising that companies operating in different sectors are competing for funding this year.

Eighth: Investment stages for start-up companies during 2021

Investment deals in start-up companies in 2021 focused on the initial funding stage (1), with more than 32%, and in the pre-incorporation stage by about 15%, an increase of 2% over the first half of the same year, while the stage of “accelerated growth companies” came in the third place with 15%, and fourthly, financing of category “A” with approximately 9%, while the pre-financing stage of category “A” (2) accounted for about 7%.

Ninth: Distribution of investments by startup companies for 2021 by gender

The share of funding received by startups founded by females is still small compared to the companies founded by males, as the share of funding received by companies founded by females to the total funded startups did not exceed 1.2%. The year 2021 made significant progress, as a number of distinguished financing deals for women-led companies emerged, perhaps the most important of which were the iMile and BitOasis deals, through which the two companies raised $40 million and $30 million, respectively. It is worth noting that the UAE ranked first in terms of the volume of funding and the number of deals of women-led startups, as Emirati startups received investments worth $187 million through 46 deals. Saudi Arabia ranked second, where startups founded by a team of men and women succeeded in raising about $14 million through 9 deals. Egypt came in third place, with total investments of nearly $12 million through 20 deals.

Explanatory notes:

• Initial financing or financing coming from family and friends, is one of the ways of offering securities, where some parties related to the new startup invest an amount that enables the startup to start its business and continue in the market, until it reaches the stage of being able to finance itself or being able to creating value that makes the startup attractive for investors to invest in. It should be noted that seed funding may be a form of crowdfunding.

• Series A Financing, also known as A Round Financing. It is the first round of financing offered to a startup company in which venture capitalists participate, and it comes after the seed round stage. This is usually done when outside investors are given ownership of the company for the first time. This financing is usually provided in the form of preferred shares, and may include anti-reduction provisions in case of more financing being provided, or in the form of common shares or preferred shares in the future.

Sources:

- Press releases issued by start-up companies.

- Wamda Foundation.

Translation By: Fairouz Alnajem

In August, start-ups in the Middle East and North Africa raised about $160 million through 44 transactions. Here are the top 5 transactions for Start-Ups in the region during August, noting that the following list does not include transactions which financing has not been announced.

First: Tabby Company

Country: UAE

Sector: Fintech

Establishment Date: 2019

Founder: Hossam Arab

Tabby, a fintech company specialized in the service of "Buy Now Pay Later", operating in Saudi Arabia and the United Arab Emirates, has received a Series B investment round worth $50 million, making it the largest investment round for a start-up in the United Arab Emirates, Middle East and North Africa in August. The company aspires to use the new investments to expand the Tabby product portfolio and launch it into new markets in the Arab Gulf states.

Second: Red Sea Farms

Country: Saudi Arabia

Sector: agricultural technology

Establishment Date: 2018

Founders: Ryan Lefers and Mark Tester

Red Sea Farms, an agricultural technology company, has raised an additional $6 million, bringing its pre-first funding round to nearly $16 million, led by a group of major Saudi and Emirati investors. Red Sea Farms' technology makes commercial farming of products using saltwater possible. The investment round obtained by the company will enable the company to accelerate the ability of Red Sea Farms to expand its operations in Saudi Arabia and the Middle East.

Third: Maxab

Country: Egypt

Sector: E-commerce

Establishment Date: 2018

Founder: Bilal Al Maghribi

Maxab e-commerce company obtained additional funding from its first financing round announced last July, and the size of the new financing amounted to about $15 million, bringing the total amount it raised during its first round to about $55 million, and it also announced its acquisition of WaystoCap, an e-commerce platform Based in Morocco, for an undisclosed value. Maxab offers its services to traditional retailing across Egypt, Maxab's services are to provide business intelligence tools that allow suppliers to accurately predict, monitor and control the impact of their strategies in real time.

Fourth: Tharwa

Sector: Fintech

Country: United Arab Emirates

Establishment Date: 2017

Founder: Mark Chahwan, Jad Sayegh and Nadine Mezher

Tharwa Fintech has secured $15 million in Series B funding. Tharwa aims to revolutionize how young professionals grow their fortunes by bringing smart, simple and affordable digital investment to the region. According to the company's press release, the new investment will support Tharwa in its growth and enables it to reach millions of other users.

Fifth: Mabaat

Sector: Real Estate

Country: Saudi Arabia

Establishment Date: 2019

Founders: Talal Bin Saleh Al Sorayai

Mabaat, which specializes in property management and operation in short and medium-term leasing operations, obtained through a seed investment round a total of $2.4 million. According to Mabaat's press release, it will use the new funding to raise awareness of its digital platform and enhance its value, both to property owners and guests

Edited and Translated by: Hayat Hernández

Amongst the numerous problems we are facing on our planet is food security dilemma, and food waste is considered one of the most critical causes of it.

MENA countries are the most prodigal according to the recent article published by Wamda, which has highlighted the case of food waste in the Arab region, as the GCC are among the most wasteful countries internationally.

Governmental Efforts

Middle Eastern governments are trying to put their tangible force to confront this problem. Both the UAE and Saudi Arabia have pledged to cut down 50 per cent of their food waste and loss by 2030, aligning their policies with the United Nations’ 12.3 Sustainable Development Goal, according to the mentioned article.

Startups innovative role

Wamda has illustrated the innovative solutions conducted by new startups in MENA, inciting their determination to deal with the local food system inefficiencies.

The illustration bellow demonstrates the allocation of recent startups specialized in addressing food wastage in Arab countries.

The role of biotechnology regarding food waste

Using biotechnology, to repurpose the damaged and imperfect crops is becoming a very effective way to produce fuel or fertilizer besides composting. As well as applying technology that uses plant derivatives to extend product shelf life.

Food preservation startup Uvera is operating with these methods by using FDA-approved UV light exposure to extend the shelf life of meat, baked goods, and fresh produce by 20-60 per cent.

As stated by Wamda, the startup plans to raise a second fundraising round in May this year and officially launch in 2022.

Awareness

Cultural awareness is very significant when it comes to food waste, and sustainable food-tech startups are determined to tackle the issue concentrating on redistributing excess food and change consumer habits.

TeKeya founded in 2019, is a good example for this matter, it is a social enterprise that offers restaurants two options for the redistribution of their surplus food. It offers either selling healthy imperfect food with a 50% discount or donate them to charities in need of this food through an application.

Obstacles and challenges

Despite of the governments concrete effort and startups innovative activity, in the less developed startup ecosystems, many obstacles are still faced regarding food waste.

Fooddeals, founded in 2020 in Morocco is still encountering challenges considering local VCs are limited in the northwest African region.

Nevertheless the app offers two solutions to reduce the amount of food loss either by a discount on surplus food for local food providers or donating them to NGOs.

Although there has been a positive change regarding food waste in MENA region thanks to the recent innovative startups, effective steps to fight the issue require heavier partnerships between foodtech businesses, regulatory authorities, and every participant in the food supply chain.

In alliance with Microsoft, the Abu Dhabi Investment Office (ADIO) will offer owners of local startups the resources and tools to “scale their businesses”. Another tech entity, Plug & Play, is also part of this initiative.

“The partnerships are part of ADIO’s commitment to supporting innovation-focused companies,” said Dr. Tariq Bin Hendi, Director-General of ADIO. “We are providing strategic funding and support to the knowledge and tech experts to develop and run programmes that accelerate opportunities in Abu Dhabi for startups.”

Startup focussed

Microsoft will brings its Startups Programme, which provides technology, Azure cloud services, and business support tools to develop the required skillsets.
The first two are the Growth X Accelerator, a virtual accelerator programme with a focus on recruiting local and regional startups, and ‘Highway to 100 Unicorns’, an initiative to recruit high-potential startups for the Accelerator as well as future programmes by Microsoft and ADIO.

Further initiatives focused on entrepreneurship for Emiratis and UAE residents, as well as university students, are in the works.

“We are committed to deepening our support for investors and innovators in 2021,” said Bin Hendi.
“As the global economy looks to the future, Abu Dhabi’s ecosystem is well-positioned as the region’s foremost investment destination for big thinkers to realise their ambitions.”

source: gulfnews

Bahrain Fintech Bay (BFB) and the US State Department’s Middle East Partnership Initiative (MEPI), have teamed up to launch a virtual acceleration programme called “Build for Bahrain”.

The programme aims to enable local startups to develop innovative solutions that address the challenges in the health and business continuity sector while supporting the economic recovery of the Kingdom and future-proof its digital economy.

“We are proud to be launching this first of its kind programme in the Kingdom of Bahrain with our partners at the US Department of State Middle East Partnership Initiative and we believe tangible cross border collaboration will pave the way for future impactful projects.

‘Build for Bahrain’ is one of several programmes introduced by Bahrain FinTech Bay’s ‘Innovate for Bahrain’ initiative which aims to accelerate economic recovery, health, and prosperity and as an outcome crystalise the kingdom’s long-term commitment to innovation,” said Khalid Dannish, CEO of Bahrain Fintech Bay.

The programme will first accept and review 20 tech-enabled proposals from local startups.

The shortlisted teams will be put into an incubation programme at the BFF, through which they receive mentorship from industry experts and work on developing their minimum viable product (MVP).

The finalists will have the opportunity to pitch at a demo day, where only three teams will receive funding to further develop their solutions.

source: wamda

Amanat will act as their principal strategic partner for the MENA region to help drive growth and business development opportunities

Amanat Holdings has invested AED 18.4 million in BEGiN, a US-based leading education technology company, as part of their Series C financing round.

As part of the investment, Amanat becomes BEGiN’s principal strategic partner in the MENA region, leveraging Amanat’s deep industry expertise and unparalleled network to help drive growth in the region.

The acquisition is Amanat’s first ever venture capital investment and is in line with Amanat’s strategic goals to invest in rapidly-growing education and healthcare technology players with strong regional growth aspirations, demonstrating commitment to playing a key role in the ongoing digitization of the education and healthcare sectors in the region.

BEGiN is focused on early childhood education through its platform aimed at children between two and eight years of age.

The company will be partnering with some of its investors for both content and distribution. Amanat will act as their principal strategic partner for the MENA region to help drive growth and business development opportunities.

Amanat joins other strategic and financial investors including LEGO Ventures, Sesame Workshop, Gymboree Play & Music, 3One4 Capital, Trustbridge Partners and Interlock Partners. “

Earlier this month, BEGiN launched the industry’s first comprehensive early learning program, HOMER Learn & Grow, expanding the brand’s reading program to additional subjects including math, creativity, socio-emotional learning and critical thinking skills delivered across digital, physical and in-person learning experiences.

source: sme10x

The Algerian Confederation of Citizen Employers (CAPC) has launched a support program for innovative projects, based on applied knowledge and creativity, called “Innovate Algeria”. 

“Innovate Algeria is a catalyst program for the knowledge-based economy. It aims at the development of entrepreneurial projects that are based on applied knowledge, creative development and autonomy in the design and engineering of new products and services “, the president of the Startups commission at the CAPC, Mr. Bezzitouni Chams-Eddine said. “Through this program, investors under CAPC, but also all interested investors, will embark on venture capital to encourage startups, which are companies generally not eligible for bank loans.”

president of the Startups commission at the CAPC, Mr. Bezzitouni Chams-Eddine

Here Is What You Need To Know

The new initiative of the employers’ confederation will offer promoters of innovative projects support ranging from training to opportunities for fundraising and internationalization, including strategic advice and business development.

The president of the CAPC, Mohamed Sami Agli, noted that the “Innovate Algeria” program included, as a first action, the support of the winners of HackAlgeria.

Thus, winners of HackAlgeria will be able, thanks to this initiative, to promote their projects during important meetings dedicated to innovation such as the Emerging-Valley, in December 2020 and VivaTech during the year 2021, but also at MIT.

These winners will also join, at the beginning of October, the “Innovate Algeria” program, which will support them, until the end of Aprill, 2021 in the realization of their projects, after the end of the fundraising operations, which would start in May. 2021.

source: afrikanheroes

Startups that understand the new definition of ‘normal’ will try to bring out the best in themselves by grabbing new opportunities and identifying new customers.

Undoubtedly, it is a time to despair. But it is also a time to hope. Yes, the rapidly spreading Coronavirus pandemic has put immense strain on large businesses and startups alike. And yes, investors are on edge, valuations have come down and skilled workers are being laid off across industries. However, I still believe that we have reasons enough to remain hopeful—to see the silver lining in the form of unique opportunities that the crisis will soon throw open.

As we prepare to go back to a world which will be changed forever, the time is ripe to reset everything as we knew it. If ever there was a time where it is a level playing field for both celebrated startups and the more modest ones—it’s now. Startups that understand the new definition of ‘normal’ will try to bring out the best in themselves by grabbing new opportunities and identifying new customers.

Also, the pandemic that has gripped the planet will be over soon enough. Keeping this optimistic outlook in view, India’s burgeoning startup ecosystem should remain vigilant for the birth of new ideas that will compel it to re-imagine business for the post-pandemic world. In this article, I examine key pockets of opportunity that the Coronavirus human tragedy is opening across sectors.

Healthcare tech to lead the way
Patient care and public safety have come to the forefront ever since the fight to contain the lethal virus started. As of May 30, there are close to 6 million Coronavirus cases have been reported worldwide. Innovative HealthTech companies are on the cusp of a major transformation that will create virtual health solutions by leveraging AI (Artificial Intelligence), biomedical engineering, 3D printing, nanotechnology and robotics, among other digital technologies to counter the Coronavirus.

U.S.-based HealthTech company Metabiota has deployed machine learning capabilities to present an early and accurate analysis of the geographical spread of the Coronavirus pandemic. Other technology-driven solutions to tackle the virus are also emerging, such as behavioural and biometric data from medical wearables that detect positive cases of Coronavirus.

While startups are on an overdrive to mitigate or suppress the spread of the infection, Microsoft has also pulled out all stops to find innovative patient care solutions. The tech major has partnered with the CDC (Centers for Disease Control) to deploy its AI-powered chatbot called Clara to assess symptoms and risk factors associated with the Coronavirus. The technology aims to track high-risk individuals and suggest a contingency plan to help them gain access to medical resources in a timely manner.

There are an estimated 4,800 HealthTech startups in India that are leveraging cutting-edge technologies to help the government fight the pandemic. Bengaluru-based startup Bione has developed a genetic test using predictive analysis tools to check every individual’s immunity against the virus. In the weeks ahead, more technological innovations will be seen in the HealthTech sector to identify Coronavirus patterns and enable healthcare professionals to effectively focus on patient care.

ACT (Action Covid-19 Team), a collaborative effort led by VCs and leading entrepreneurs, with the active support of State governments and other stakeholders, has backed several homegrown HealthTech startups to combat the pandemic. In particular, the State governments of Telangana, Karnataka and Punjab have initiated rapid action task forces to accelerate scalable solutions to fight the lethal virus.

For instance, with direct support from the Telangana government, ventilator manufacturers Ethereal Machines and Max Ventilators have been shortlisted to manufacture and deploy ventilators to the Army and COVID wards. Ethereal is creating moulds of ventilator splitters to help hospitals cope with the shortfall of the crucial life-support device.
Another HealthTech startup, MolBio, has developed an indigenous, portable and battery-operated RT-PCR machine to scale India’s testing capabilities, even in the remotest areas. Since MolBio is not only making testing kits but the PCR machines itself, they have pitched in to address the huge bottleneck in testing capacity.

The massive shortage of PPE in the country has led HealthTech startup Karkhana.io to deploy 3D Printing, injection moulding, machining, fabrication, and design facility, to produce PPEs. This includes face shields, aerosol boxes and goggles. The startup also produces tools for manufacturing other PPEs (mask machines, gown machines), and ICU equipment valves, connectors and ventilator parts.

A new path for mobility
The novel Coronavirus has potentially altered the definition of a hyper-connected world. The global transportation system and urban centres will never be the same again. The crisis has been an eye-opener for the transportation ecosystem to adapt quickly to travel restrictions, social distancing and other measures to contain the spread of the virus at the local, national and international levels. With massive disruptions impacting commuters worldwide, it is time to pause and think creatively about enabling an agile and seamless mobility system.

The phase after Coronavirus abates will be pivotal as it will set the trends for the future of urban mobility. The strict lockdowns imposed by governments across the world has spurred mobility companies to take unique initiatives to create a safer world for everyone.

The CORE MaaS (COvid-19 REsilient Mobility as a Service) is a project developed by Iomob- a decentralized, open source mobility marketplace-- in partnership with Factual, a boutique consultancy that specialises in all things mobility. The initiative calls for ideas to develop an open SDK-based middleware platform that integrates available mobility service providers (MSPs), public transport, taxis, and other mobility services across multiple cities and regions within Continental Europe. The platform uses intermodal routing algorithms to allow users select available mobility options within a selected geography that optimises social distancing.

Experts opine that the time is ripe for humankind to adopt driverless vehicles as social distancing is likely to stay. It is believed a drastic shift in consumer behaviour due to the Coronavirus will lead to a spurt in driverless cars and eventually mark the decline in shared mobility.

Coronavirus has resulted in other innovative solutions too. For instance, the stay at home directive issued by governments has put a new spin on how future deliveries will be handled by restaurants, pharmacies, and grocery owners, among other businesses. Contactless delivery is the new paradigm of innovation to emerge that ensures the safety of customers and delivery personnel.

In the U.S., Zipline, a medical drone delivery company, is awaiting FAA (Federal Aviation Administration) approval to roll out deliveries without human contact. Its objective is to deliver critical medical supplies to hospitals and ensure that home equipment reaches individuals to enable telemedicine appointments. Autonomous robot vehicles for delivery have also emerged as one of the best practices employed by the transportation sector. Such vehicles were deployed in Wuhan—the epicentre of the Coronavirus—to supply essentials to the city’s residents. Going forward, more such innovations are in the anvil to minimise human intervention in logistics.

The EdTech sector is poised for further growth as expenditure on AR/VR technologies for digital learning is expected to increase to $12.6bn in 2025. Strangely, it took the Coronavirus tragedy to show that technology-enabled education is the new horizon of opportunity for EdTech startups everywhere.

E-commerce and changing customer behaviour
As the Coronavirus threat continues to spread, self-quarantines and social distancing have become the norm. In these gloomy times, e-commerce businesses have received a boost as consumers have turned to online shopping and other digital options, in lieu of physical shopping environments. Further, with an increasing number of people working from home, consumer behaviour will be affected by the current disruptive economic and social circumstances created by the Coronavirus.

Recently, e-commerce players such as Amazon, Grofers, Flipkart and Bigbasket saw a sudden surge in demand, resulting in product shortages in certain categories. In the coming months, online retailers can expect a further spike in orders as the average consumer’s shopping patterns have undergone a radical change. I believe now would be a good time for the e-commerce industry to capitalise on the new opportunities that the shift in consumer behaviour presents.

Redefining the new norm of Work from Home
The rapidly spreading Coronavirus has heralded a new era in the future of work that is here to stay. Work from Home has become the new norm adopted by organisations. It has emerged as a potential gamechanger in how businesses will operate once the crisis blows over. However, in the face of uncertainty, businesses can use the remote learning paradigm to create an enabling environment for their workforce.

The mandatory social distancing policy has led to businesses investing in new technology tools to make work from home seamless and efficient. Organisations across the world are using newer technologies and virtual web conferencing/meeting tools to facilitate remote working. Zoom, GoToMeeting, G Suite and Webx are some leading tools that have enabled organisations to communicate with employees, clients, vendors and other partners. The significance of remote working hits home when technology behemoths Google and Facebook announced an extension of working from home policy until end 2020. It’s not likely employees will return to office full-time anytime before 2021.

As it turns out, the new rules of work have important implications for workforce productivity and the way we will work and interact in the future.

Startups: Change the world order in the age of Coronavirus
The world as we knew it before the Coronavirus has already transformed since the virus outbreak. With social distancing and work from home being the new normal, stakeholders in the Indian startup ecosystem are pivoting to channelise innovation.

From basic apps to complex diagnostic algorithms, startups are developing innovative tech solutions –across industries—to give back to the society. The Indian government has also trained the spotlight on innovation. Its flagship Startup India initiative has launched a competition for budding innovators and companies to contribute creative solutions to fight the Coronavirus crisis.

In the weeks ahead, agile startups will gain further visibility as innovation enablers that aid people and businesses deeply affected by the pandemic. Thus, the need of the hour is for startups to swiftly adapt to the new changes and seize the unique opportunities presented by the pandemic. These organisations should rise to the challenge and assume a larger role to support local communities, the country and the world during this difficult time.

The question everyone is asking is whether we will ever go back to the earlier normal after the outbreak ends. I don’t see the clock being reset. The Coronavirus will usher in a new normal that will create a unique set of opportunities. Startups across the world should seek opportunity in chaos and capitalise on the new trends to build the new normal.
If a journey of growth has to be continued, now is the time for startups to display resilience, chutzpah and creativity. Only when they think outside the box can they innovate and create future opportunities for business.

source: economictimes.indiatimes

The fund will help early-stage Indian and Southeast Asian companies to set up base in Masdar City

ADQ, one of the region’s largest holding companies, launched a Dh1.1 billion venture fund to invest in early-stage Indian and Southeast Asian start-ups and help them set up a base in Abu Dhabi’s Masdar City.

Alpha Wave Incubation (AWI) Fund will be based at the emirate’s financial hub, Abu Dhabi Global Market, the company said in a statement on Wednesday. The programme will be managed by New York-based Falcon Edge Capital.

AWI will help the budding Asian businesses gain market access to the UAE and the broader Middle East North Africa region.

These companies will benefit from the “exceptional digital infrastructure” already in place as well as highly advanced regulatory frameworks and other R&D initiatives, it said.

“As a national champion for the Abu Dhabi government, we are working to embed a performance culture across our broad portfolio that includes many of our emirate’s most important strategic commercial entities,” Mohammed Hassan Alsuwaidi, chief executive of ADQ, said.

ADQ is looking to maximise long-term impact of its investment on society, and will invest in companies that are “pioneering cutting-edge technologies and developing new and innovative business models”, he said.

“Nurturing Abu Dhabi’s start-up ecosystem will attract entrepreneurial talent, create jobs and other opportunities, particularly for those working in data science, artificial intelligence and other knowledge-based industries,” Mr Alsuwaidi said.

Mayank Singhal, head of venture capital and technology at ADQ, said AWI will help the company invest in start-ups that will generate sustainable, long-term financial returns and bring young entrepreneurs to Abu Dhabi.

"We will aim to support them in ways that accelerate their development to create a new wave of winners in the tech landscape," he said.

"These start-ups will also benefit from access to ADQ’s leading companies in sectors such as healthcare, food and agri-business, utilities and FinTech.”

ADQ, formally known as Abu Dhabi Developmental Holding Company, has a portfolio of conglomerates, spanning key sectors of Abu Dhabi’s non-oil economy, including utilities, tourism and hospitality, aviation, transportation, logistics, industrial, real estate, media, healthcare, agri-foods and financial services.

Its portfolio includes Abu Dhabi Power Corporation, Abu Dhabi Airports, Abu Dhabi Ports, Etihad Rail, Abu Dhabi Health Services (Seha), insurer Daman, media companies Abu Dhabi Media and twofour54 and Abu Dhabi National Exhibitions Company, among others.

Last week ADQ agreed to acquire a 50 per cent stake in Al Dahra Holding, an Abu Dhabi-based multinational animal feed and essential food commodities specialist firm, as it expands its portfolio of food and agriculture businesses.

The move is part of state-controlled ADQ’s strategy to support the country's agri-foods sector ecosystem and boost sustainable and diversified food supply in the UAE, it said in a May 13 statement.

In April, ADQ fully acquired National Petroleum Construction Company after buying 30 per cent stake it did not control from minority shareholder Consolidated Contractors International Company for an undisclosed sum.

Abu Dhabi–based NPCC is an engineering, procurement and construction company involved in a number of oil and gas projects in the GCC, South Asia and Southeast Asia.

source: thenational

Schools and universities were among the first institutions that shuttered their doors around the world in the face of the Coronavirus pandemic. According to UNESCO, more than 150 countries have implemented nationwide closures, forcing over 80 per cent of world’s student population, estimated at more than 1.4 billion learners, to stay at home.

These closures have placed unprecedented challenges on governments to ensure learning continuity, likewise on teachers, students and parents. The only viable solution has been e-learning, paving the way for a boom in education technology (edtech) startups.

Across the Middle East and North Africa (Mena), edtech was rarely at the forefront of investment deals prior to the pandemic.

Back in 2017, just $2 million was invested in edtech startups in the region, but as schools looked to upgrade their system and incorporate more technology into their curricula, the level of investment rose to $21 million by the end of 2019.

The number of edtech startups has also increased, on Magnitt’s database there were just 270 listed on the platform in 2017, but this has now exceeded 800 edtech startups as investors seek opportunities that are proving to be “pandemic-resistant”.

Most recently, the Sharjah Entrepreneurship Centre (Sheraa) awarded Jordan-based Little Thinking Minds a $100,000 equity-free grant to boost its development in the emirate.

Three other edtech startups, BoBu, Narrativa and almentor.net were each awarded $20,000 grants.

An Inescapable Need

Various facilities available on digital platforms, which were until now considered as a secondary learning option, are becoming a necessity according to Holon IQ’s Global Education Outlook amidst Covid-19, which states that “the time for online learning has come”.

“There is no running away from education technology,” says Mounira Jamjoom, co-founder and chief executive officer (CEO) at Aanaab, an online platform specialised in the professional development of Arab educators through open learning. “The education sector is being transformed like there is no tomorrow.

I see online learning becoming the norm, not the second option.”

The company recently raised $1.5 million in its seed round with participation from Wamda.

Similarly focusing on teacher enablement, UK-based online teaching platform Teacherly, which has presence in Europe and Mena, provides teachers with an opportunity to work collaboratively, fostering a community of peer-to-peer coaching.

“By 2040, 70 per cent of the population will be urbanised and this will have an impact on education,” says Atif Mahmood, founder and CEO at Teacherly.

“We did not know this [outbreak] was going to happen, but we already had the vision to promote remote lessons and enable teachers to connect across schools and work remotely.

This put us in a really good position now to take a massive leap and grab the opportunity.”

Teacherly has an increase of 30 per cent in the number of leads it is receiving every day.

The team aimed to shorten the sales cycle by approaching the middle leadership, who are more receptive and quicker to take decisions. Currently, a big chunk of their inquiries come from principals and CEOs.

Teacherly was already present in more than 2,000 schools around the world, and in the first week of home learning, the company onboarded 80 new schools while more than 6,000 teachers and 2,000 students have signed up during the coronavirus period.

“There will be a huge demand post-coronavirus for home schooling, which has been rising significantly year-on-year.

This is a lesson to learn during this experimentational process, it has shed more light on home-learning,” adds Mahmood.

Startup Response

Edtech companies are navigating through the situation in multiple ways, from fast response to strategic shifts, product development, scaling and pushing for high conversion rates. UK-based Century Tech, an artificial intelligence (AI) company whose autonomous machine identifies areas that students find challenging and supports them with content to lead them through initially changed its business model and then its product in response to the virus.

“Century is an autonomous machine that essentially learns how the student is learning, so you do not need to sit next to the child.

It constantly adapts based on every mouse movement the child makes,” says Priya Lakhani founder and CEO at Century Tech. “This is very fast. We looked at the crisis in January and we changed our model. We then looked at consumer demand and we changed our product.”

Century implemented several infrastructure changes in order to scale up and be able to meet the rise in demand.  

“[The outbreak] also affected the business model itself. At Century, we suddenly got an influx of parental interest. While the schools are using a standard LMS [learning management system], the parents are working and cannot sit next to young children all day to go through a scanned textbook, print it, take pictures of their child’s learning progress and send it back to teachers,” says Lakhani.  “A lot of parents started reaching out to us asking to have access for their kids, so at least for one or two hours a day they are supported by AI.”

This is a welcome respite for many parents juggling their own work with their children’s education.

“Parents are much more involved now with their children’s day to day education.

We operate mostly in schools, but as a result of this distance learning we saw much more engagement from parents on our platform,” says Rama Kayyali, founder and CEO of Little Thinking Minds.

“A lot of parents now are thinking why are we paying crazy amounts of money for schools? This is a great opportunity to up our game.”

Little Thinking Minds creates advanced digital solutions and platforms aimed at improving learning outcomes. It is also geared to help teachers manage their classrooms remotely.

Regional Inequality

“We had some schools who we were not able to reach before, now coming to us after realising the importance of edtech solutions,” says Kayyali. “At the same time, some schools are worried and freezing purchasing decisions until things are clearer. We have heard of plans for schools mergers and closures.”

The online learning readiness of schools and universities varies across the region.

Governments in the GCC embraced the technological progress of public schools early on and private schools that charge hefty fees were already well-prepared with edtech solutions.

“Not a lot of schools could afford having the online component, but today schools and governments have no choice,” says Dina Shawr, CEO at Adam Tech Ventures, which recently invested in Jordan-based online learning platform Abwaab. “Investors in general do not like edtech because it is a volumes game and the multiples on it are low, the more students you have, the more traction you can achieve and the higher valuation you can get. However, the engagement numbers today are unbelievable, no one had expected this in such a short period of time.”

But investors and governments needs to be aware that online learning goes beyond providing students with a laptop and tablet and offering online tuition or education videos.

The efficacy comes down to the technological infrastructure of the country and access to the internet. With the uptake of digital learning as an alternative solution for providing education to students at home higher than before, internet and servers capabilities need to be boosted in order to keep up with the surge in users.

“Going forward, the majority of the education sector would have understood how to use these technology effectively.

The big challenge for ministries of educations around the world will be how to ensure that every child has access. There is always going to be this small percent of the population that do not have strong enough bandwidth, nor access to devices,” says Lakhani.  

The education sector has witnessed a paradigm shift in both learning and teaching that calls for public-private partnerships more than ever. Governments can avoid reinventing the wheel by working with edtech companies that already came a long way.

Moreover, many startups are looking to form partnerships with others working in the same field. With the demand rising for a holistic solution, there are a lot of edtech companies who seek to join hands as a conglomerate.

“Edtech companies that are rising to the challenge have to think about their cost-base.

They should consider benefiting from government schemes and be as smart as they can to get through this time by mitigating the risks as much as possible,” says Lakhani.

“Companies are thinking about how they can [grow] not just to thrive, but to survive. If people are not radically thinking of how to change their business right now, they are on the route to failure.”

source: wamda