Entrepreneur Middle East February 2018

Internal negotiators often have Zooming ahead conflicting views and perspectives on the organization, its direction UAE car rental startup eZhire raises seed and priorities. investment from Jabbar Internet Group settled based on power, au- as an example. There is rarely Dubai startup eZhire, identity credentials, request a thority arguments, coalitions a marketing executive who an app that wants to rental car of your choice, and or alliances or even escala- wants to constrain budgets, change the way you get it delivered to you, without tion. This is quite unfortunate but finance executives are rent a car, has raised an undis- the conventional hassles of since resources are gener- often ranked on how well they closed amount of seed funding paperwork. Once done with ally not as limited as initially can optimize spending. It is in a round led by Jabbar your car, the user can also perceived and can usually be hard to square the two parties Internet Group. According to schedule car collection from expanded, with the right col- in this situation. There are a statement by the company, the app, and get it picked up. laborative strategies and value also egos to contend with. investors Ali Al-Salim, co- “We had domain expertise in creation techniques. But first, Jeff, an engineer, wanted to founder, Arkan Partners, and car rental, and we found it very negotiators need to appreciate increase his development Sahm A. Yaghi, Partner, Al Jal confusing and complicated to that the correct framing of a budget for building equipment Investors, were also part of the rent a simple car. We believe negotiation can put them in a his firm was manufacturing. round. With plans to utilize the that renting a car should be positive-sum game and gener- But budgets were diverted to funds on marketing, expan- as simple as hiring a cab, and ate superior average returns. marketing to increase sales. sion to other UAE cities, and that’s how the idea for eZhire “Marketing is rubbish,” Jeff to upgrade IT infrastructure, was born,” explains Saduzai. While in external nego- said. “If we spent more money eZhire aims to scale operations As for the team’s fundraising tiations there are times on making quality products, as an on-demand car rental experience, Saduzai believes that if you do not reach a they’d sell themselves.” When app connecting renters to car that the founding team’s deal, you can just move on negotiating externally, par- rental companies. eZhire be- industry expertise, and the to your alternative or best ties focus on creating value lieves this model (of partnering fact that eZhire has been alternative to a negotiated to satisfy both sides’ unique with car rental companies) revenue generating from an agreement (BATNA), but in interests, or even to develop a allows the startup “to operate early stage, helped open doors internal negotiations, this is long-term partnership. They somewhere in between an old- for them. “Within a week’s a much harder thing to do. understand that they need school car rental company and time [of sending pitches] we Your organization is unlikely to work hard to make these a peer-to-peer [tech] service.” got positive responses. Also, to have two departments happen. Although they have “Jabbar Internet Group has we didn’t dig too deep in the responsible for the same different interests, time is a history and experience in negotiation process.” The resource, so that if you are spent analyzing both parties’ investing in success stories,” entire process went on quite denied that resource, there is interests and which ones align notes Hassan J. Saduzai, smoothly, with Saduzai noting nowhere left to turn. This lack to further the negotiation. co-founder and CEO, eZhire. that in “2-3 months, the funds of alternatives increases the Internally, organizational egos “Aligning with them has put were transferred eZhire’s bank internal negotiation tension, can often clash. Negotiators us on the map; their experi- account.” The entrepreneur is and causes mini-monopolies often believe there can only be ence and guidance will provide also thankful to the support to emerge inside a firm. Not one alpha. additional boost to eZhire,” they got (and continue to get) only do such monopolies he adds. Saduzai says that from regional ecosystem en- have a higher temptation to It is easy to be lulled into Jabbar Group’s reputation, and ablers including Dubai Startup use their power, because the thinking that consensus the “humble and very under- Hub and in5 Dubai (where the counterparty cannot walk building among internal standing attitude” they have startup is incubated). away, they also have rules and stakeholders would be easier towards portfolio entrepre-www.eZhire.life regulations that diminish the when working at the same neurs, excites him about the incentives to find creative company. It is important, association. As for the inves- solutions. It is important therefore, to be aware of the tors, Samih Toukan, Chairman, not to act like a monopoly, internal negotiation pitfalls, Jabbar Internet Group, says but to lead by example. Also and devote the necessary in a statement: “We see huge consider what could motivate resources to these meetings. potential in eZhire, they are your colleagues to help you Under-preparation, failure truly redefining the way people find creative solutions that to consider stakeholders’ rent a car. They are the first of encompass their own inter- interests, failure to reinvent its kind in the region, people ests to discourage them from relationships with your col- really needed an easy way to resorting to the monopoly leagues, falling prey to a zero- get a car, and we believe eZhire mindset. sum or monopoly mindset are is the answer to it.” all surmountable hurdles. Take marketing and finance Launched in 2015, eZhire lets you register yourself on a mobile app with required February 2018 / ENTREPRENEUR.COM / 51

‘TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PROBreak through The communications trends brands need to watch out for in 2018 by Maha Abouelenein52 / ENTREPRENEUR.COM / February 2018

H ello, 2018. Pleasure to meet you, The FIFA World Cup endless possibilities to tell and we can’t wait to own you! A will be hosting four fresh stories using video new year signifies a fresh page, Arab nations this year and new technologies like a fresh calendar of days that are augmented reality. Even the overflowing with hope, exciting brand, and take their fol- digital formats and updates unknowns, and a chance to reset lowers along on the journey. from Instagram alone can the button to get focused on big A really good influencer give you opportunities to goals. When it comes to communications, there that I love to follow is Hana tell fresh stories- you can are some key trends to watch that will impact Elawadi (@hanagoeslocal save your stories to your how we do storytelling in 2018 in the region. on Instagram), and she is page, and they are now test- a champion for all things ing sharing Stories straight 1/ Local is cool. 2/ Influencers will still be local. That’s a 2-for-1 trend: to WhatsApp. Remember: influential. As annoying as #winning! Facebook owns both Insta- Micro-trends and lo- this may be for some of us, gram and WhatsApp, so look cal understanding of the the influencer trend is here 3/ 2018 is going to be for the integration to come consumers and markets is to stay in 2018. Some of the eventFUL. This is the year to life in 2018. The company going to be essential. Local influencers have become of events -major events- also owns Oculus- so look at brands, local businesses, and really frustrating by hawk- and this presents exciting virtual reality as another way homegrown ideas are the ing all kinds of brands and opportunities for brands to tell fresh stories. Basically, heroes that consumers in unboxing endless gifts they to boost engagement and start using the tools that are the Middle East are paying have been showered with- build customer experiences already available to you. attention to. Are you Team that’s really not the point of around events that are part Careem, or Team Uber? Grab being an influencer. Some of their lives. So, keep an 6/ Personal brands mat- the popcorn as noon.com really do add value and cred- eye on everything from the ter. People behind compa- takes on Souq.com after they ibility to brands, and I have Royal Wedding to the Spe- nies are interesting, and they team up with Amazon. Up- learned about some really cial Olympics in Abu Dhabi, are brands by themselves. work or Ureed? Consumers cool products and services and, as a bonus, note that You’re going to hear about here support local hometown because the people I was fol- the Holy Month of Ramadan personal branding a lot in heroes, and brands need to lowing shared their experi- overlaps with the World Cup 2018. You can take advan- tap into this- from football ence. So, yes, it does work! I hosting four Arab nations- tage of this trend by focusing clubs to local food hangouts, am living proof. I would have your post-Iftar food coma on a brand called you. Yes, localization wins. Did you never bought a product for just got pumped up. you are a brand, you have in- hear about the Saudi actress Vital Proteins if it wasn’t for fluence, you have value, and Ahd Kamel taking Netflix by a local influencer trying it. 4/ Authenticity is key. No you can make solid efforts storm this year? There is In 2018, brands and compa- fake news here; keep mov- to build your brand equity. also a huge rise in wearing nies are going to use their ing. Press releases are dead. What’s even better? Your local brands and designers influencers differently- and Nobody wants to read how brand is unique- because to support the community, by this, I mean that they will great you are. Be authentic, there is only one you. And our culture, and ultra-local want them to experience the tell a story about real people the kicker? You are a brand urban trends. and real experiences- tell a you can actually control. story of your impact, your Did you think about that? Influencer Hana Elawadi’s Instagram purpose, and your added So, start working on your value. No gimmicks or pub- personal brand, your digitalIMAGES © FIFA.COM | INSTAGRAM licity stunts, just the real footprint, your personal pro- stuff please. file, and what you stand for. Make yourself heard. >>> 5/ Leverage digital for- mats to tell fresh stories. One of the things you should take advantage of are the February 2018 / ENTREPRENEUR.COM / 53

‘TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PROPress releases New year, new you podcasts- and share playlists with friends. One problem you will find is that not manyare dead. Your digital (and savvy) podcasts are from this region- so what better to-do list for 2018 motivation than to start your own!Nobody wants The new year is a great time to start some 4. Make monthly goalsto read how new habits. No, I am not talking about work- ing out and eating healthy (which you should This is a tip to make you more savvy. I hategreat you are. do anyways)- I am talking about giving you annual resolutions- they are unrealistic, and a doable digital to-do list that will make you who can plan a year in advance, let alone7/ Say hello to the SEO + savvy and more efficient with respect to your keep those plans or goals intact. Instead,PR marriage. At long last, digital presence! The aim of this to-do list is I set monthly goals. Smaller increments,public relations (PR) and to give you tips that will make your life easier- achievable goals. The first day of every monthsearch marketing are finally so make an effort to follow them: I write down some goals- personal, work,coming together; the battle finance, social, health goals. I then work onbetween the two is over. In 1. Install Grammarly them during the month, and at the end of it,fact, PR is on track to be I pat myself on the back for what I achieved,one of the smartest ways to It’s my favorite Chrome Extension. If you and set new goals or continue the big onesdrive your SEO results, and write, you need this. It fixes your grammar, for the next month. By setting smaller goals, Iit will be the gold star to get your spelling, and it works on every platform win more, and by seeing my goals regularly, Iyou visibility, drive traffic, tool you use- from Facebook to your email. I actually achieve them. So try making monthlyand help with lead genera- have told everyone I know about this gift from goals for yourself- and use digital apps totion for marketing. Your site the internet gods. Go get it! keep track of your monthly goals. Try outrankings will improve if you Evernote, Simplenote, Google Keep, Note-have more stories out there grammarly.com book, or even the Notes app on the iPhone.about you on big websitesfrom news organizations and 2. Get a cloud-based evernote.compopular online platforms,with links to your website password vault simplenote.comand social channels, and you Can’t remember what password is for what?will get more traffic from Are you using the same password everywhere keep.google.comthem as well. So, getting (which is a digital no-no)? If so, get passwordgood PR is not just going to savvy, and protect yourself. Use a cloud- zoho.com/notebookboost your reputation to get based security vault to store your passwords-you coverage; it will also im- there are so many good ones out there like 5. Learn one new digital skillprove your search rankings, Dashlane, Keeper, or Sticky Password!search listings, and your Never stop learning. The internet presentsdiscoverability on the web. dashlane.com thousands of opportunities and free accessAnd what action do people to learn anything you want to know right attake after they hear about keepersecurity.com your fingertips. Learn one new skill this yearsomething they’re interested that ups your digital game- these could bein? Yes, they Google it! stickypassword.com anything from learning more about digital marketing and SEO, to photo editing, or how8/ What’s your reputa- 3. Follow a podcast to record a podcast. Ever want to know whattion currency worth? is Reddit? Or how to use a GoPro? Do it thisPowerful storytelling isn’t Get on the audio train- there are so many year. Get digital, and get savvy. Check outjust about the message, it’s great podcasts out there! Use your time in the all the free options on YouTube, Udemy, andabout the reputation cur- car, at the gym, at the airport, and other wait- Coursera.rency- how to spend it, and ing periods to listen up and get smart! Youhow to earn it. Reputation can listen to everything from mindfulness, youtube.comis the only currency that to side hustles, to cooking, to sports. I am inmatters. With real-time life love with podcasts, and you can even make udemy.comhappening, thanks to social your own station which lists all your favoritemedia, reputation is the coursera.orgmost valuable currency a business has. Money cannot currency- without it, your business succeeds without save your reputation, but business cannot function, it. So, ask yourself: what’s your actions and words can not with employees, not with your reputation currency build it, protect it, and help stakeholders, nor your cus- worth- and what lengths will you manage it. Your reputa- tomers. Reputation is about you go to increase its value tion is your most valuable trust, and no relationship or every single day.Maha Abouelenein is one of the MENA region’s top communications executives. From working with tech giants like Google and Netflix, to homegrownregional brands like Careem and Orascom, Maha has built her career advising Fortune 500 companies, high-growth tech startups, and top governmentbodies in the USA, UAE, and Egypt. She is the founder of Organizational Consultants, and you can read all about her breadth of experience in media,marketing, PR, events, digital communications and crisis management on her blog DigitalandSavvy.com. Raised and educated in the USA to Egyptianparents, she is home in both West and Arab worlds. She thrives on storytelling, building scalable campaigns, and thought leadership.54 / ENTREPRENEUR.COM / February 2018



‘TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO Five Tips on Executing actual execution to others. I believe in hands-on leader- Big Business ship, interspersed with a healthy dose of managementBalancing leadership and management for a stronger organization expertise. by Ahmed Alkhoshaibi Here are five lessons that I apply to running our groupO ver the past few years, it has become fashionable to ap- portfolio that have served plaud “leadership” and criticize “management.” We are me well throughout my regularly exposed to the current business discourse that career: lauds leaders and attacks managers– and it’s coming from everywhere, including HR departments. What is 1. Ask why actually needed, based on my years of experience both You may be surprised that leading and managing, and appointing both leaders and I bring up Enron in an ar-managers, is an exceptionally rare mixture of the two methodologies. ticle with this title, but the truth is the company hadManaging, contrary to due diligence and procedural the best executers. Execu- the essential idea right– ittoday’s thinking, is not all adherence. Like it or not, tives are, by the very nature just spiraled out of control.bad. In reality, I find that it’s these skills make a company of the word, meant to be Always ask why. Why can’tmanagers who often have run and ensure that your good at executing. Leaders this be done? Why do we dothe best eye for maximizing books balance at year end. are big-picture thinkers, it that way? Why haven’tdata, finding cost-saving Leaders, also contrary to and are often the ones that we tried this method? Youalternatives, and enforcing today’s trend, are not always dream and delegate the would be surprised at the wealth of knowledge every single team member has to share. When I get an answer that begins with “I can’t,” there is always a why coming in response. I need to know why it can’t be done– is there an innovative solution hiding in there somewhere? Is there an element or layer of complexity to this that I am unaware of? If so, let’s hear it. The most effective solutions come from picking apart some of the most basic barriers. The best outcome here is that your leadership side asks why, and your managerial side comes up with the solution. 2. Know your people Know everyone’s name, no matter how big your organization gets. Know what they’re good at. Know what they’re not good at. Know why they joined your organization, and know where they’ve come from. As the CEO, I’m only personally involved in the recruitment of senior management, but I am briefed by my team on every single person who joins us. One of our biggest companies, ARADA, has a56 / ENTREPRENEUR.COM / February 2018

Ahmed Alkhoshaibi , insight you can gather on holders a real reason toGroup Chief Executive what your customers want, stand behind the company–Officer, KBW Investments how they perceive your that reason should be the company and how they per- fact that your company is aThe most effective solutions come ceive the industry as whole. real powerhouse in the sec-from picking apart some of the most Based on this, you strate- tor. I’m not talking aboutbasic barriers. The best outcome here gize your next moves. scale and revenue, I’m talk-is that your leadership side asks why, ing about superior delivery,and your managerial side comes up 4. Pivot with purpose quality, and truly inspiredwith the solution. This doesn’t mean lose output. Distraction is a sight of your vision and curse in the modern worldlarge salesforce. I regularly more you can glean, the mission. You have company of business, and if there isspend time with the sales better positioned you are values, and you need to one salient takeaway it isteam at our B2B and B2C to execute. Of course, you stick to them. It doesn’t that you really need to con-events. Both types of events need to tap into focus mean that you suddenly centrate on what you excelprovide valuable opportu- groups, and assess all of the change trajectory with at. If you cannot delivernities for me to get to know available market documen- little or no thought to the outstanding results to youreach member of the team tation such as research long-term impact. In fact, clients, then perhaps youand discuss their strengths reports compiled by indus- the opposite is true. Study need to rethink your busi-and their successes. Also, try analysts. But there’s an your hard data, study your ness model. Many of theduring my weekly meet- even more valuable source soft data, take the numbers bestsellers on big businessings with the sales team, of intelligence that you may into consideration, then champion experimentationthey are encouraged to be not be maximizing: your decide what needs to and “branching out.” Myvocal and put forward any first lines of contact. This stay and what needs to leadership side believesinformation they believe is heavily connected to my go. If a certain product is that risk is needed, whileis worth sharing. Leaders second suggestion, simply unpopular, determine the my managerial side advo-connect on a personal level, because our sales team are factors contributing to its cates “branching out” onlywhile your managerial side the people on the ground. lackluster performance when we are sure we canestablishes who is being They are the daily recepta- and make adjustments do it better and when we’veunderutilized and poten- cles of market sentiment, accordingly. The finest calculated that risk.tially, undervalued. It gives and they routinely hear cli- decision makers in theme a lot of perspective in ent opinions and concerns. world will tell you that Managers are second tomore ways than human What are your customers agile movement to correct none at ensuring thatcapital, which leads to my asking? Think of your or compensate for an there’s a healthy dose ofnext point. client-facing team as the inadequacy will save you reality injected into any big operators of the biggest working capital now, and dream that comes from a3. Trade in knowledge focus group out there. On opportunity cost in the leader, so you need to beTo make informed deci- an average day, our sales future. both. Thinking big is a keysions for your company, team might see anywhere characteristic of any globalyou must be well informed. from 100 to 300 potential 5. Know your limits success story. That’s whatThe more you know and the clients. Think of all the Not every company is makes for a great narra- destined to be Alibaba. You tive- what doesn’t always don’t need to do everything. make the headlines is the You need to execute your substantial amount of core competencies pro- managerial know-how and ficiently, and give your grit that propelled the likes clients, partners and stake- of Jack Ma to the top. Distraction is a curse in the modern world of business, and if there is one salient takeaway it is that you really need to concentrate on what you excel at.Ahmed Alkhoshaibi is the Group Chief Executive Officer of KBW Investments, and the Chief Executive Officer of ARADA, the UAE’s newestdeveloper. Prior to the formation of KBW Investments, as a serial entrepreneur, Alkhoshaibi founded, managed, and orchestrated several profitableexits in a number of industries with operations that varied in size and scale. With practical leadership and executive experience across a number ofsectors, Alkhoshaibi’s educational background includes a degree in business finance together with an executive MBA. February 2018 / ENTREPRENEUR.COM / 57

‘TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PROReady for the future individuals function. To only advertisement when thrive in the era of artificial attracting new customersToday’s success means nothing if you’re not intelligence, enterprises and repeat clients, as wellalready building for tomorrow (and the day after) across all industries need as when seeking referrals. to look beyond smart and Building a reputation of in-b y Ge n e J i ao innovate to better process, tegrity is also crucial when as well as leverage and learn talking to investors, seekingIt may feel like it when man. Really think about who from big data to adapt to a funding or forming partner- you’re first starting will use your product or ser- user’s behavior and needs. ships. out, but turning an idea vice, and how it will benefit Whether in the form of into a business isn’t them and form meaningful intelligent chatbots, digital 5/ Work with the ecosystem just about building and connections. This thinking assistants, targeted ads or Businesses traditionally selling. At the core, it’s has been a core vision at recommendations, busi- view competition as threats, about building a value Huawei for everything we do nesses need to embrace the but we think it’s healthier system that serves your and is reflected in our motto shift from the smart to the to make the pie bigger for customers, your partners, of “building a better-con- intelligence revolution. Hua- everyone involved. To be a your team, and even your nected world.” It is a vision wei’s Kirin 970 chipset and forward-thinking business, industry, in the best, most we share with all of human- AI-powered phones such as focus on growing the indus- sincere way possible. Look- ity, because the only way our Mate 10 series are just try and making the market ing back at our journey, we to bring about real digital the start for us. bigger, rather than increas- believe Huawei’s success transformation is through ing the size of your own and growth from strength to openness and flexibility that 3/ Customers first While share. Contribute to ecosys- strength as a company isn’t fosters true collaboration it may seem like the most tem development by joining only about our products, but between users of your tech- obvious thing to do, you’d or forming industry organi- also because of our values. nology, and creates extraor- be surprised at how many zations and alliances that In the spirit of sharing with dinary experiences. businesses work on ideas focus on the greater good the ecosystem, here are a keeping in mind return on and success for all. There is few tips for entrepreneurs 2/ Don’t just think smart, investment, rather than strength in numbers- more on how we believe they can think intelligent The future the customer. The former players mean more inno- build for the future: of technology isn’t just is, of course, the desirable vation and prosperity for smart- it’s intelligent. Like outcome. But the latter is a the ecosystem, ultimately 1/ Think about the human it or not, artificial intel- necessary purpose, because benefitting users. connection When develop- ligence (AI) is changing the an idea that does not focus ing your idea, first be hu- way both businesses and on creating long-term value 6/ You’re only as good as for customers by being re- your next innovation The ex-Gene Jiao is President, Huawei Consumer Business Group, sponsive to their needs is ponentially increasing paceMiddle East & Africa. unlikely to deliver sustain- of technological advances able business success. At puts even the newest inno- Huawei, for example, we vations en route to becom- believe customer demands ing obsolete, which makes are the driving forces behind continuous improvement our development, and there- critical for any business to fore, we measure our work keep its heart beating. But against how much value we innovation isn’t just about bring to customers. research and developing new technology. It’s honing 4/ Integrity is our most the ability to actively listen valuable asset to customers and making Whether you’re a startup every facet of an organiza- or a 100-year-old business, tion customer-centric. It’s integrity is what drives us the ability to take feedback all to behave honestly and seriously and be willing to keep our promises, ulti- constantly make changes mately winning and keeping or pivot off course in new our trust and respect from directions. Today’s success both customers and employ- means nothing if you’re not ees. And for entrepreneurs already building for tomor- and new entrants looking row and the day after. At to establish their name in Huawei, we are doing just the market, integrity is their that.58 / ENTREPRENEUR.COM / February 2018

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‘TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PROHappinessmattersFour ways to keep your team engaged(and thus support your business’ bottom line too) b y WA LID FA KIHR ecent studies say there is evidence that happier employees are more productive in the workplace by any- where up to 20%. Taking this into consideration, as a business owner it’s your job to establish procedures that will keep your employees happyand motivated, not only benefiting the corporateculture, but also supporting your bottom line.Here at McDonald’s UAE, impossible for any CEO to Company leaders across the globe know thatwe were recently recognized know and understand all of keeping their team happy means they can moveas the UAE Best Employer the interpersonal relation- forward together.by the prestigious AON Best ships and goings-on amongstEmployers Award 2017 for employees. are being mishandled, or a 2. Listenthe second year in a row. customer or client is upset. In addition to celebrat-We grow at an average of 12 While keeping an even It is rare that a compliment ing successes, keeping anrestaurants every year, and hand and being aware of the from a customer will make it ear out for the generalwith an employee com- general office (and in our all the way to the top of the sentiment in the office ormunity growing on average case, restaurant) senti- organization, and, because workplace can help influenceby 450 people annually, ment, these are a few of my of this, a job well done flies the office dynamics, andwe need to really focus on tips that can help boost the under the radar. A simple make sure your employeesemployee satisfaction in mood of the entire work- fix of asking for monthly re- are happy. Being availableorder to sustain this growth. place. ports on exceptional service for a conversation showsMcDonald’s UAE provides or implementing an ac- that you’re willing to listen,the best possible working 1. Celebrate success knowledgement program will and value your employees’environments for its em- It’s easier to notice things allow for these superstar thoughts and concerns. Anployees and invests heavily done wrong rather than real- employees to be regularly open inbox, or better yet anin their professional and ize the things that have been brought to your attention, open-door policy, providespersonal growth, but each going really well. Often, top and therefore regularly cel- opportunities for employeesworkplace is different and management are only forced ebrated. This will not only to be heard.has its own dynamic, and it’s to get involved with the day- improve their workplace to-day activity when tasks frame of mind, but will also 3. Encourage development incentivize others within the Most people, especially in Walid Fakih is the General Manager at McDonald’s UAE. company. Saying thank you the workplace, naturally Having been appointed in 2013, he is responsible for the day- is both cost-effective and want to better themselves to-day operations of the business, and driving future growth. easy, and whether delivered and progress. Offering train- With a significant number of years of both international and verbally or through email, it ing programs and providing regional FMCG management experience, Walid is a key asset will go a long way. developmental support to to the continuous growth, development and management ofMcDonald’s UAE, and an important member of the management team.60 / ENTREPRENEUR.COM / February 2018

Start smallemployees of all levels will The manager’s guide to corporate innovationnot only show you an indi-vidual’s ambition, but also b y D i p i k a Ma l lyaensure they feel supportedin their personal goals and Research shows that 8 in 10 employees 3. Keep an eye out for processjourneys. Whether this is an in the UAE report being bored at improvementsonline training course or a work, representing one of the lowest Innovation doesn’t necessarily have to domentor program within the rates of job satisfaction worldwide. with a product, service or business model.office or on the shop floor, Corporate innovation and employee engage- Changes to business processes can have abetter educating workers ment are known to be linked to one another, significant impact on productivity, quality andwill only help the organiza- so influencing one could have a significant the financial bottom line. As a manager, keeption thrive. It is critical to positive impact on the other. a watch on the way business gets done, andhave regular career planning map the processes with your team to discoverdiscussions with your team So, what can you, the mid-level manager, do problem areas and potential solutions. Solicitto ensure you’re support- about this? regular feedback from supervisors to see whating them wherever possible. changes are working. Create a flowchart of keyWhen you empower your While the onus of innovation and culture business processes at your organization; keepemployees with knowledge change is often pushed on higher manage- it visible and handy.and skills, turnover drops, ment or a board of directors, the power of theproductivity stays high, and individual cannot be underestimated. Here are 4. Look for value-based partnershipsyour employees will mean- six strategies that can help you boost innova- Partnering with a cause, mission or organiza-while feel valued; you’re in- tion and creativity at work. Start small with tion that complements your company’s valuesvesting in them, so you must these simple measures to create a change in could be a great way to foster change andwant to keep them around. your organization. innovation. Try incorporating values such as sustainability, education, technology and social4. Give them a positive 1. Develop a customer-centric mindset impact into your company’s product and ser-environment and As with most endeavors, corporate change vice offerings to bring added benefits to yourhave fun often starts from within. Encourage employ- customers and stakeholders. Use the buildingHappy employees make for a ees across business functions to develop a partnerships map to build and sustain newpositive work environment, mindset that focuses on customer needs, relationships.so ultimately if morale is goals and pain points. With the current statehigh, the general corporate of rapid social and technological change, em- 5. Encourage cross-functional teamsculture will compare. Things ployees should be focused on identifying new “Silo” is a frequently-maligned term usedlike publicly acknowledg- trends and drivers, and adapting products to to describe the lack of communication anding accomplishments and address these needs. Use the free empathy understanding between departments at largerproviding lunch after a good mapping tool from Gamestorming corporations. Fight back against this phenom-quarter will maintain good (www.gamestorming.com/empathy-mapping) enon by fostering a sense of collaboration andspirits and motivate them to to start discussions when working on compa- solidarity. While this is easier said than done,work hard. ny projects to bring the customer perspective a helpful strategy is to develop initiatives that to the forefront. require employees to understand the respon-It doesn’t matter what type sibilities and value-add characteristics of theof business you’re in. Your 2. Set aside time for brainstorming other. Ask employees to partner with their col-organization can’t function Stuck in the day-to-day hustle, it can often be leagues to identify their top friction areas andor move forward without hard to set quality time aside to discuss new co-create solutions.people. Company lead- ideas, plans or developments. However, mak-ers across the globe know ing a concerted effort to have a strategy or 6. Suggest an official innovation processthat keeping their team brainstorming session can be an effective way While it might not always be possible forhappy means they can move to start an innovation process. It’s important corporations to invest in dedicated innovationforward together. The most to facilitate these sessions correctly to get labs, it can be beneficial to have a streamlinedimportant qualities for a useful outcomes; use structured ideation tech- process to generate, select and prototypebusiness is to have a culture niques to boost creativity and unique ideas. ideas. This can help with employee engage-where its employees feel Furthermore, software applications such as ment and boost morale, in addition to harness-valued and empowered. A Mural allow participants record ideas in real- ing the innovation potential within the organi-culture where all levels of time and collaborate with others to build on zation. Adobe Kickbox is a great example of athe team are courageous and these ideas afterwards. Conduct a structured structured process that yielded positive results.generous with positive and brainstorming session once a month; be sureconstructive feedback, will to capture and build ideas on Mural.not only demonstrate highmorale, but mutual respect Dipika Mallya is the founder of Ideation Labs, and she facilitates interactive sessions to helpacross the company. incubators, accelerators and startups solve marketing and design challenges. She has worked for leading brands in the region, including Cleartrip, YouGov and the Al-Futtaim Group. She holds a Master’s degree in Advertising from The University of Texas at Austin, and a Bachelor’s degree in Psychology from the University of Illinois at Urbana-Champaign. www.ideationlabs.io February 2018 / ENTREPRENEUR.COM / 61

money ask the money guy | vc viewpoint | your money | ECONIt’s himself moving to a home- “There must be anot less shelter, washing dishes balance betweenjust at a restaurant, and working staying withinabout his way up as a waiter, and certain parametersthe then to an assistant manager. and not being toomoney Eventually, he began to study opportunistic outside for the General Equivalency of your core focus,Modus Capital’s Kareem Elsirafy is on the lookout Development (GED) test, while being pliablefor entrepreneurs building sound businesses that and found a sales job at a car enough to pivot andalso have a positive social impact dealership, saving enough to get on the best path become a licensed insurance to success.”b y Pa m e l l a d e Leo n and financial services repre- sentative, and moving on to its Modus Operations arm.Kareem Elsirafy has he moved with his family at roles in finance services, and Starting up Modus Capital image credit kareem elsirafy had his fair share the age of four to the US, and leading a sales, marketing and of struggles and later enlisted in the Marine operations team. In 2007, he was, Elsirafy says, due to his successes in the en- Corps Reserve. After being launched M1 Marketing Firm, and his partners’ experiences trepreneurial world, discharged from the military, which provided creative and of building companies and and now, in his new role as an he found himself strug- business solutions for small seeing how the venture capi- investor, he’s keen to support gling to transition to civilian to mid-sized companies, tal ecosystem -specifically the ecosystem. Born in Egypt, life, wherein he even found while also enrolling as a stu- the relationship between dent at a community college VCs, their entrepreneurs and to study economics and po- LPs- had its issues, prompt- litical science. Excelling in his ing them to start a novel classes, he enrolled to Colum- approach. In doing so, they bia University and graduated looked at the two main play- in 2012 with a triple major ers in the VC relationship. in Political Science, Econom- From the startup’s perspec- ics and Middle Eastern and tive, they found that entre- South Asian Studies, and an preneurs need more than just MBA in Technology Manage- capital from VCs. He notes ment. After graduating, along that traditionally, VCs invest with fellow partners, driven and provide capital and by their personal experiences, access to light mentorship in 2013, Elsirafy co-founded and network introductions. Unite US, a SaaS platform This leaves ‘treps strug- supporting veterans transi- gling to find the right type tioning from military to civil- and amount of advisory for ian life by digitally connect- strategic value-add, as well ing health and employment as talent. While both are services to individuals. It has available in the ecosystem, since expanded to over 15 US both do come with obstacles: states, and to date, accord- “The right type of advisory ing to Crunchbase, has raised is either expensive, and/or US$10.3 million in funding. is difficult to acquire at the Elsirafy then moved on to frequency a startup needs other ventures, and in 2015, (which is, a lot). This is sim- joined by his other partners, ply a consequence of a high launched Modus Capital, a opportunity cost for people venture capital and operat- with that expertise. On the ing firm based in New York, executing talent side (em- with offices in Los Angeles ployees), companies compete and Cairo. Investing in early with ever increasing salaries to mid-stage companies, the supported by the high valu- firm asserts on its site that ation startup environment its aim is to not just fund which, when combined with their portfolio companies, the general challenges of find- but also partner with them to ing the right type of credible shape their products through62 / ENTREPRENEUR.COM / February 2018

moneyask the money guy | vc viewpoint | your money | ECONKareem Elsirafy, venture capital engagement, teams to either break throughfounder and where you can provide not successfully or let it get theManaging Partner, just more but the right type of best of them.” The ModusModus Capital value added to entrepreneurs, process thus allows Elsirafy while giving LPs a safer de- and his team to really see howtalent that is a cultural fit for positioning their competitive risked investment product.” the startup handles hurdles,the company, presents a very advantage as a sector special- and get a true insight to theirchallenging obstacle.” Either ist, or access to specific deal- For startups wondering operational flow and in-depthway, he notes that startups flow. In the end, and to overly if their enterprise should process.struggle to find the right tal- simplify, the game is making consider working with Modusent at an affordable rate, or educated bets hoping for one Capital, Elsirafy assures that As someone who assesseshire an agency to plug the gap. or two home runs that will with his company’s opera- startups seeking funding,From the VC’s perspective, carry the fund to profitability. tional framework, which can Elsirafy evaluates a startup’sElsirafy and his partners felt While this risk is inherent provide value for early-stage pitch based on a few particu-that in addition to providing to venture capital, we felt startups and SMEs alike, it lar aspects. One, is what thethe right type of value add there is a way to provide a is quite industry agnostic, startup is trying to solve andsupport for portfolio compa- better de-risked investment although the team do have a the solution they’re offering,nies, they needed to offer a opportunity to LPs.” Consid- preference for concepts in fin- plus if the demand is appar-better investment product to ering both these perspectives, tech, regulatory tech, block- ent and warrants the valuetheir LPs. “VCs historically they took on the challenge to chain applications, SaaS, proposition of their productengage in a framed discourse: formulate a “new model of direct-to-consumer services, or service. He looks at their and medtech. The founder approach to the solution:“companies compete with ever increasing and Managing Partner admits from the concept of theirsalaries supported by the high valuation Modus also tends to focus product-market fit, to theirstartup environment which, when on businesses that have the product’s traction as earlycombined with the general challenges of potential for significant social validation, and its USP offinding the right type of credible talent impact: “We’re looking for what makes their product orthat is a cultural fit for the company, companies that can have a service better than what thepresents a very challenging obstacle.” positive social impact en market offers, and whether masse, more so than as a they address the problem dis- simple by-product of a new tinctive. Two, he focuses on successful venture.” And with its opportunity and current an office in Egypt, Modus has and probable future market also launched an initiative value. “Some companies may to expand its model across be addressing today’s market, the region. Elsirafy remarks but knowing where that mar- on how the ecosystem is still ket is heading, and the un- quite nascent, and has a few derlying drivers contributing major gaps that the Modus to its future development is model can help fix. When crucial to understanding the asked if his entrepreneurial long-term opportunity of the background has affected the sector.” Third, he factors in way he sources deals, Elsirafy the startup’s ability to explain explains that Modus’ method- their problem, solution and ology is centered on doing due timeline with as few slides diligence, and having its op- as possible, as it indicates erational teams work with the that the startup has honed entrepreneurs, prior to being on their focus. “There must considered for investment. be a balance between staying From his personal experience, within certain parameters Elsirafy has learnt that even if and not being too opportunis- you’ve met the founding team tic outside of your core focus, countless times and have con- while being pliable enough ducted due diligence, you’re to pivot and get on the best still only getting a partial per- path to success.” Fourth, he spective to the business. “We considers whether the found- all know that execution is ing team compliments each key, and that when challenges other’s skillset, and Elsirafy arise, and stakes are high, this notes how each founder con- provides an opportunity for tributes to an overall pitch, >>> February 2018 / ENTREPRENEUR.COM / 63

money ask the money guy | vc viewpoint | your money | ECON Kareem Elsirafy, can also be easily missed- it’s ting capital makes it easy to when you begin to encounter founder and vital for entrepreneurs to be hire people to alleviate the diminishing returns.” With Managing Partner, ready, organized and make it existing teams’ workload or new capital and growth, El- Modus Capital easy for investors to have ac- fill a long-needed position at sirafy comments it becomes cess to everything from their a company, don’t rush it.” At harder for an entrepreneur toas it not only indicates how current status, to their future the same time, when it comes keep a balance of their macroeach person brings value, but plans and all due diligence to hiring, Elsirafy suggests strategy and micro executionalso the synergy of the found- items in a packet ready for keeping in mind that every- for it. He advises to establishers as a team. And finally, distribution. Another mis- one has their own profession- a clear internal communica-he examines their fit as an take startups often fall to? “A al and personal goals outside tion framework to ensureentrepreneur and investor. lot of entrepreneurs feel like your company. He says it’s that even when the entre-As they’ll be working closely, investors have all the power, essential to discuss each’s preneur can’t be involved inthough they would bring because they hold key to goals and make a plan in day-to-day micro on-goings,value as investors, it’s essen- their success,” which Elsirafy place to get them there: “Not at least they have relevanttial startups would be flexible informs, is far from the truth. only are you being a good em- information from their teamenough to take advice, and He advises entrepreneurs to ployer and harboring a great that the micro is aligned withsteadfast in maintaining their keep in mind that investors company culture, but you’re the macro strategy. An-vision for their company, so a are “only providing one part also sure to get better output other common mistake thatbalance for each other’s role of what’s needed to make from every member of your Elsirafy brings up is whenis critical. their mark on the world- team since your interests are founders either communicate capital. Yes, it’s a critical aligned with mutually benefi- too much or too little with On that note, Elsirafy also part, but it’s only one part,” cial goals.” Secondly, a factor their investors. “Investorspoints out crucial mistakes he stresses. “This is why you that often gets disregarded don’t need to hear it all,” saysthat entrepreneurs make see a lot of investors say that is identifying diminishing Elsirafy, adding that thoughwhen approaching investors. they invest in people, because returns- as in, for example, it’s easy to be over eager inAn overlooked component is they do. Being yourself and over hiring to the point sharing positive informationforgetting their story- Elsir- confident relays to inves- wherein bringing additional in a long update email to yourafy emphasizes part of every tors that you understand the staff would worsen issues: investors (that is not onlystartup’s story is information value you’re bringing to the “Make sure you properly as- time-consuming for entre-that investors are looking for: table and that you will be a sess your needs and continu- preneurs to write, but forproblem, solution, experience key contributor to the suc- ously perform cost-benefit investors to read too), thisand expertise in that market, cess of the venture.” analysis, so you’re aware of sets a precedented for futurethe ability to speak, market long updates, and when thereand sell it to other investors Upon receiving funding, “Being yourself and isn’t as much to update themand customers, and their per- Elsirafy reminds startups confident relays on, it might be seen as a signseverance and work ethic to that, yes, new-found capi- to investors that of trouble. “Don’t set themake this venture successful. tal can make your startup you understand the bar unnecessarily high, butHe refers to his beginnings better, but it can also easily value you’re bringing also make sure communica-with Unite US, wherein his make it worse. He points out to the table and tions are there and consist-own pain points were the ide- various factors that need to that you will be a ent. Lastly, whatever you do,al use case for the company. be properly considered- first, key contributor to don’t ghost!” He concludesUsing his firsthand knowl- having the right team: “Get- the success of the that he wants entrepreneursedge, it drove product devel- venture.” to find a balance betweenopment, gaining buy-in from “making the money last asinvestors and collaborating far as you can, but withoutorganizations. Being mindfulof an investor’s busy schedule www.modus.vc64 / ENTREPRENEUR.COM / February 2018

moneyask the money guy | vc viewpoint | your money | ECON“Don’t set investment opportunities and ‘trep talk to digest all the informationthe bar investors’ confidence for the and overcome your knee-jerkunnecessarily region. Another opportunity Kareem Elsirafy, founder reaction to a failure helps ushigh, but also unnoticed are SMEs- Elsirafy and Managing Partner of assess what we did wrong ormake sure comments on how long- Modus Capital could have done better, whilecommunications established family businesses also reacting in the mostare there and are having its reigns passed Looking at your experience mutually beneficial way to youconsistent.” to younger and increasingly as an entrepreneur and as an and anyone else involved be entrepreneurial generation, investor, what do you think they an internal teammate athindering the business from and that with the right capi- makes a “good VC firm”? your organization or someonegrowing or doing what needs tal and advisory, could grow “A good VC firm is one that can external.”to be done.” This trait is to large enterprises. And to properly manage their relation-most often found in startups leverage on this opportunity, ship with their LPs (limited In building up Modus Capital,which had bootstrapped for this is when investors need partners) and the entrepreneurs what were the biggest ob-quite a while, raise capital, to step up, to guide entrepre- they invest in. I feel a significant stacles you’ve faced and howand continue to operate lean neurs on best practices, for shortcoming of VCs is that have you overcome it?and allocate resources as ef- which investors themselves their focus is biased towards “Aside from fundraising whichficiently as possible. “If your need to be experienced in portfolio performance strictly is challenging enough itselfgoal is to make a bigger fire, local markets, as well as from the lens of their LPs. We notwithstanding doing so withpouring gas on it does the sound business practices and all understand the fiduciary a new model, I would say [it]job, but doing so without the management procedures to duty of a venture firm’s GPs is educating. I don’t mean inright controls, you can burn provide the entrepreneurs (General Partners) is a posi- a traditional sense of ‘whateverything down.” the right type of support. tive return for their investors to do’ or ‘how to do it,’ but However, Elsirafy has a feel- (that’s their job after all), but more around ‘why.’ Everyone Looking at the year ahead, ing that mentorship might I think if more VCs provided a has their own understandingwhen asked about the op- struggle, at least, for now: better type of support to their of things and this is not whatportunities and needs of the “There is a significant short- companies, positive returns will only drives their actions, butMENA region’s entrepre- age of advisors and mentors be an inherent by-product of also helps forms their viewneurial landscape, Elsirafy is that have gone through a full those efforts. In the end, I don’t of the world around them. Inpositive that the investment entrepreneurship cycle (idea think there is anything called a such a construct, if you don’tarea would continue to bustle to exit). I think this will con- ‘bad VC,’ I just think there are articulate the why behind thewith capital and activity- he tinue to remain a challenge approaches and models that what and how you do, it makesasserts that, this, is likely for the next couple of years are more beneficial than others, it significantly harder for you toas investors would invest until local entrepreneurs in regards to what startups are get buy-in.more as local governments have gone through enough looking for or need.”continue to support and cycles to actually qualify as Attempting a new way tofund economic diversifica- mentors or the transfer of in- With your business growth deploy venture capital in ation initiatives and create formation and skills prolifer- trajectory, how have you supportive ecosystem while“diversified local markets” ates from developed venture experienced failure? How did also providing an alternativefor countries that tradition- ecosystems to MENA.” But you deal with it? investment product to LPs, isally depended on oil or other more so, Elsirafy is adamant “No matter how much data a significant challenge not onlynatural resources. “With on the future, he asserts that you have or how well you plan in educating investors and thelarge labor forces in countries the region would start seeing things, you’re not always right. entrepreneurs we invest in,such as Egypt, Morocco, and a “reverse brain drain” with We’ve made mistakes by work- but also the existing players inSaudi Arabia, governments talent and knowledge trans- ing with the wrong companies the market you’re entering andare hard-pressed to help fer coming back to MENA, or founders in an effort to the greater ecosystem. We’vecultivate an industry with particularly from local na- materialize an engagement that faced a lot of pushback whenincreasing job opportunities, tives and second generation had a clear economic benefit, we initially solicited our model,and inclusive for women and of those who immigrated. although our initial thoughts/ but as soon as we did a betteryouth,” says Elsirafy on how “I’m also confident that it feelings were telling us it may job of explaining why it is thissuch initiatives will increase won’t be a purely economic not be the best opportunity way and the path that got us tothroughout the year (and be- driver behind this, but the from a leadership or thought Modus, we began finding a lotyond), which would increase opportunity for entrepre- process perspective. In the of support from both investors/ neurs, highly-skilled talent, end, our instincts were right, companies and others in the and investors to take on the and the relationships were un- market. In short, we’ve learned challenge of innovating in a sustainable, but we made sure that educating through com- relatively untapped market, to disengage in the gentlest municating the right informa- while contributing to a posi- way possible and always leave tion will help others see things tive social impact.” an opportunity to re-engage from our perspective which is in the future. Taking the time all we can ask of others.” February 2018 / ENTREPRENEUR.COM / 65

money ask the money guy | vc viewpoint | your money | ECONIdentifying potentialOne of the founders of Dubai Angel Investors, Roland Berger ManagingPartner Kushal Shah, explains how the investment club works(and how ‘treps can better their chances at an investment from it)b y Ta m a r a Pu p i cAs a building block ranging from experienced captive fund managed by a Kushal Shah, Managing Partner at of any promising angel investors and partners very diversified and talented Roland Berger, one of the founders of startup ecosystem, in venture capital funds investment committee, with Dubai Angel Investors angel investing to executives of successful rotating members, that drive has been a much companies. “The DAI model the decision making via “Our biggesttalked about topic across the is unique and innovative open sessions. Today, DAI successes areGCC region for years. The for the region,” says Kushal is one of the very few angel where we are veryearly-stage startup fund- Shah, one of the founders of investing clubs that allow its comfortable withing support is vital to the DAI, who is also the Manag- members to be fully engaged, the founder, and ourregion’s successful transi- ing Partner at Roland Berger and get heavily involved in failures are wheretioning from oil-dependent in Dubai. “Firstly, most of the club activities.” we did not assessrevenues to a more diversi- the DAI members are sea- the full flexibility offied market, and the growing soned investors and senior Since its inception nearly the founders.”number of GCC-based angel management executives two years ago, DAI has re-investment groups serves of well-known companies. ceived around 500 deal pro- application is submitted toas a testament that it is When these like-minded posals per year, and ended the DAI’s Investment Com-no longer possible to hold investors came together to up closing approximately mittee for initial screen-back the tide of change. In invest, there was a natural 10 of those per year, Shah ing and selection, followedthe UAE, one of the more desire to create an exclusive says. The process starts with by voting on whether therecently established angel members’ club for invest- an interested entrepreneur interested startup should begroups -Dubai Angel Inves- ments. Secondly, members contacting a member of the invited to one of DAI’s pitchtors (DAI)- is a member-led do not make individual DAI’s Investment Commit- nights, those are usuallyinvestment company made investment decisions. Un- tee to review and advise on held on the second Tues-up of around 70 members, like other clubs, we have a its application. If given the day of every month. When green light, the startup’s asked what entrepreneurs should keep in mind when applying to DAI, Shah says, dubaiangelinvestors.me “There should be a market need and customer willing- ness to pay for their service. That market need needs to be tested through a market- fit process that is iterative and customer-led. Also, the business proposition must be profitable and scalable at relatively modest volumes. The reality is that the MENA is made up of 22 differ- ent countries with varying dynamics. A business must show that it can be profit-66 / ENTREPRENEUR.COM / February 2018

able in each of the countries, of the DAI members.” To Kushal Shah at a Dubai Make it workotherwise the scalability date, the majority of DAI’s Angel Investors eventis questionable. Lastly, the deals have included an Three tips from Kushalteam must pass the stress investment of US$50,000 know your customer (KYC) Shah for MENA-basedtest, and be able to sus- each, which is a minimum and other matters, which enterprises to succeed intain themselves in a VUCA amount that the group are not directly relevant to business(vulnerability, uncertainty, invests directly, with the the startups. Our biggestcomplexity and ambiguity) maximum being $250,000. successes are where we are 1. Improve organizationalworld. This is why investors Furthermore, DAI team has very comfortable with the agility “The pace of changeare more likely to back teams completely led three funding founder, and our failures are is fast in today’s world.and co-founders, rather than rounds, with one investment where we did not assess the You need to keep up witha single entrepreneur, since being of over $1 million, full flexibility of the found- changing environment, be itit is rare that a single person and the other two of around ers.” technology, political situation,has all the necessary skills.” $500,000. business strategies or macro- As for the kind of ventures economic changes. Scenario Come one of the DAI Tues- A decision to invest in that DAI members hope to planning is vital for business-days, and up to four startup a company requires two- invest in the future, Shah es that want to be prepared,teams are given 20 minutes thirds of the DAI Investment points out that the group is rather than surprised.”to present their businesses, Committee members who sector agnostic, and that asfollowed by 10 minutes of attended the relevant pitch long as the startup engages 2. Focus on talent “Acquir-Q&A with members of the night to vote in favor of the with its customers via pro- ing, retaining, and developingDAI Investment Committee. investment. In any case, the prietary technology and has talent is more important than“One of the key differentia- startup is to be informed a capital-efficient vision to managing the digital automa-tors of DAI is that we look of the decision within 24 scale the business, it is good tion alone. People ultimatelyat investments from across hours of pitching. Follow- enough to be considered for make or break a company’sthe world,” Shah notes. “To ing an investment in the their investment. However, ability to compete.”date, we’ve made invest- startup, DAI assigns one of there are certain preferencesments in companies not only its members to track the for 2018, so entrepreneurs 3. Work in collaborationin Dubai, but also in Egypt, startup’s progress and offer in the respective sectors “Building long-term relation-Lebanon, UK and USA. Our an assistance when and should take notice. “Tech- ships with all key marketentrepreneurs come from all where necessary. In addition, nology service providers players is important. Partner-around the world since we DAI’s portfolio companies that are addressing large ships are extremely importantbelieve that entrepreneur- are seldom invited to its new trends, such as provid- to grow in the region. Soloship easily crosses borders, meetings and provide an ing services to corporates to business operations will notnationalities, and personal update on their activities. support their blockchain or work anymore. These includebackgrounds.” There are also From Shah’s perspective, AI activities,” he says. “Also, partnerships with suppliers,additional differences from the DAI team hasn’t had any we see a lot of opportunity customers and in some casesother region-based angel in- major funding “misses” on in logistics, be it transpor- even competitors in areas likevesting groups, one of which their record, but he does tation solutions, last-mile regulations and risk manage-is that DAI members commit point out that NOW Money, delivery, online markets, or ment.”capital upfront, and, in most Malaeb, and Eat are some long-haul carriers. Lastly, wecases, do further invest their of the startups that DAI did have been intrigued by cleanown money alongside the not invest in, but which did energy solution providers inDAI commitment, Shah says. manage to successfully raise solar applications.” But what“DAI has already invested capital from other investors makes for a good pitch by >>>several million dollars, and later on. “Speed is the namein some cases, we lead the of the game for both startupsround as well, without VC and investors,” Shah says.support,” he says. “In those “We typically move fast, butcases, we complete our own sometimes we get draggeddue diligence with the help into processes driven by“To date, we’ve made investments incompanies not only in Dubai, but alsoin Egypt, Lebanon, UK and USA. Ourentrepreneurs come from all aroundthe world since we believe thatentrepreneurship easily crosses borders,nationalities, and personal backgrounds.” February 2018 / ENTREPRENEUR.COM / 67

money ask the money guy | vc viewpoint | your money | ECONan entrepreneur to impress is headed. “Be careful with incremental growth.” Three, investment from Shah andDAI? Shah offers three forecasting, and present the give the investors the full his team at DAI. Good luckpointers. One, demonstrate right balance of forecasting picture. “Present a thorough with your pitches!“use cases” with live exam- and assumptions, not too story, meaning a completeples, such as real customers over ambitious, yet not too roadmap, plans, and clear “Be careful withand scenarios. “Show real conservative,” Shah ex- understanding of the differ- forecasting, andexamples on how they are plains. “We tend to focus on ent aspects of the market- present the rightdisrupting to provide better unit economics and under- competition, barriers to balance of forecastingsolutions to a real problem,” standing how much money entry, and so on.” And there and assumptions, nothe says. Two, be realistic is a company making with you have it, ‘treps- three tips too over ambitious, yetabout where your enterprise every new transaction or to better your chances at an not too conservative.”Be the first mover 2. Understand the role of state enterprises previously technology underlying dominated. Such opennessHow investors should capitalize on a rapidly the disruption. Backed coupled with state supportchanging Middle East by Sea n M c Keo n by government initiatives, and subsidies is driving technology is increasingly innovation in the region.For investors scanning the 1. Identify sectors becoming an investable The UAE, long a center of globe in search of the disrupted by sector in many Middle East technological progress in the next viable opportunity, geopolitical and economies. The growing Middle East, continues tothe Middle East may seem economic shifts. popularity of technology- sponsor new initiatives aimedlike an unnatural place to look. A changing geopolitical enabled businesses and at modernizing the state’sStories on geopolitical up- landscape and demographics growth of venture capital economy. Careem, a Dubai-heaval and demographic unrest offer new opportunities for ecosystems in the UAE and based ride sharing company,dominate headlines. At the investors in the Middle East. Egypt was highlighted in grew to be the region’s secondsame time, a flight to safety In one example, Saudi Arabia’s Christopher Schroeder’s unicorn following investmentin Western markets remains a push for diversification is 2013 book titled Startup by regional and internationalpopular trend, despite predic- creating new domestic and Rising. In just a few years investors. In countriestions of a market correction. regional opportunities as since publication, the region with larger populationAs residents of the Middle East the Saudi government looks has witnessed an increase centers, investments in localknow well, current headlines for new global partners- in tech-enabled businesses businesses offer internationalovershadow an economic the diversity of such and the region’s first two investors the added benefit oftransformation occurring in the partnerships is highlighted unicorns, which includes aiding the region’s economicregion, one that touches a wide in recent announcements Amazon’s acquisition of development.range of industries including with Blackstone and Richard local e-commerce companytechnology, finance, and retail. Branson’s Virgin Galactic. Souq.com. For investors As the region continues toWith this change, comes a At a sector level, retail and sitting in the US and Europe, open up politically, investorsgrowing number of opportuni- consumer continues to technology and tech-enabled should monitor the manyties for global investors willing attract private investment businesses offer a new level ways Middle East investmentsto invest in such emerging as oil and gas investments of diversified access to a can complement an existingmarkets. To better understand decline, according to a 2016 region long dominated by global portfolio. Among thethe available opportunities, we Deloitte report. Population petrochemicals. many reasons are diversifica-need to look closer at what is growth in countries with large tion, access to a region withdriving the newest Middle East youth populations will further 3. Seek out locally- large youth populations, andbusiness revolution and lay out highlight the importance developed ideas the dual benefit social impacta framework for making new of other sectors like backed by government coupled with financial return.investments. transportation and healthcare. initiatives. Homegrown As is the case in many emerg- private sector businesses are ing markets, hurdles to invest- increasingly seen as a viable ment will arise; but, so long place to invest in the region. as change in the Middle East Investors should look for continues, so will the growing market dislocations where number of opportunities. Sean McKeon is an investment advisor based in London and a passionate supporter of entrepreneurship in emerging markets. Talk to him on Twitter @fseanmckeon.68 / ENTREPRENEUR.COM / February 2018

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start it up ecosystem | who’s got VC | Q&A | STARTUP FINANCE Akef Aqrabawi, President and CEO, INJAZ Al-ArabUnlocking potential rising youth population- is simply not in the MiddleINJAZ Al-Arab President and CEO Akef Aqrabawi is on a mission East’s best interests. “Everyto enable Arab youth to drive the region’s economy forward single year we miss, there will be massive, massiveb y A b y Sa m T h o m a s wave of youth coming into the private sector market-Hearing INJAZ Al-Arab regional operating center of skills they need to succeed in place, seeking an opportu- IMAGE credit injaz al-arab the global Junior Achieve- today’s world of work- these nity that does not exist,” hePresident and CEO Akef ment (JA) Worldwide are things that traditional notes. “And that is our roleAqrabawi talk about the network- is reliant on its academia in the region are as INJAZ Al-Arab- to provideorganization’s goal to have partners both in the private (unfortunately) not teach- them with the skills theyits education and training and public sectors to not ing them, but are absolutely need to enter the market-programs reach one million just provide it with financial needed (and demanded) by place properly in the future.”students annually in the support, plus also provide businesses in the current Indeed, that’s why an enter-Arab world by 2022, I’m them with their resources to market landscape. One could prise like INJAZ, doing whatstruck by two things: first, act as volunteers to conduct say that there is thus an it does, is so critical for thethe ambitious nature of this its programs for students urgent need for education Arab world, Aqrabawi pointsparticular objective, and across the region. INJAZ’s reform in the region- but out. “The number of youthsecond, Aqrabawi’s reso- programs, which fall under according to Aqrabawi, wait- in this region: we are talkinglute belief that this target the domains of financial ing for that to happen –even about 200 million students-can indeed be achieved- if literacy, workforce readiness, as the Arab world already 65% of them are under theprovided with the requisite and entrepreneurship, aim struggles with rising unem- age of 25,” he says. “There issupport. As a non-profit at equipping youth with the ployment figures as well a a big need for this program…entity, INJAZ -which is the Our purpose is to equip our young people to drive the economy forward.”70 / ENTREPRENEUR.COM / February 2018

“There is a big need for this program…Our purpose is to equip our young peopleto drive the economy forward.”But while INJAZ may have a discovered,” Aqrabawi says. An INJAZ Al-Arab event “That is our role aslot more to do for the future “They are talented, but they INJAZ Al-Arab- toit seeks to realize, this or- need an opportunity. They sibilities, one simply won’t provide [young people]ganization has, in the years need a vehicle to get them to know how to tap into those with the skills theyit has been in the region, the right destination.” opportunities. “Our youth, need to enter themanaged to accomplish a lot in general, are not exposed marketplace properlyalready. Since its launch in And INJAZ is certainly to what is available in the in the future.”1999, INJAZ has seen over trying to be just that. Aqra- marketplace,” Aqrabawitwo million students from 14 bawi explains that INJAZ’s explains. “They don’t under- journey that students in itcountries participate (and programs for students, stand what are the growing go through, starting frombenefit from) its programs, which are administered by and trendy industries that coming up with the idea,which has been backed by volunteers from its corpo- they need to look at, from conducting a feasibilitygovernment authorities from rate partners, enable young now until, say, ten years.” study, marketing research,across the region, as well as people in the region to Such a mindset also explains even raising capital- it willcorporate partners from a enhance their employability, why INJAZ has kept entre- change their mindset.”variety of industries- the list while also allowing them to preneurship as one of itsincludes companies like Boe- experiment with their en- core pillars for the programs Aqrabawi speaks froming, J. P. Morgan, Deloitte, trepreneurial capabilities as in its portfolio. “I do believe experience, of course- he’sMcKinsey & Company, and well. Note here that the vol- that if you instill entrepre- been working with INJAZseveral others. In terms of unteers are being more than neurial thinking [in chil- for more than 17 years now,impact, Aqrabawi has plenty just instructors- given that dren] from an early age, this and in this time, he hasof stories to share about they are professionals with will definitely benefit them, seen first-hand the effect itstudents that he personally jobs and careers of their and also keep the pipeline can have on students, andsaw go through an INJAZ own, they serve as much [of new entrepreneurs in the the positive change thatprogram, and come out needed models or inspira- marketplace] going, when further occurs as a result ofas transformed individu- tion that students can aspire they actually grow up in that. “The key point is ourals with renewed vigor and to become. “The beauty of the future,” he says. “If you youth,” he says. “When youpurpose. One such INJAZ our model is in that we bring look at INJAZ’s Company see them talking about theiralum he proudly points out in those in the private sector Program, for example, the products, the companiesis the founder and CEO of to tell the youth about their that they made, the impactthe RiseUp Summit, Abdel- journeys- they will learn a Akef Aqrabawi, you have had on them, yes,hameed Sharara, who, as lot from those experiences,” President and CEO, that’s definitely somethingAqrabawi fondly remembers, Aqrabawi says. INJAZ is, that makes us proud.” Thiswent through INJAZ Egypt’s thus, essentially expanding INJAZ Al-Arab is, in essence, what drivesCompany Program in 2009, the horizons that the youth Aqrabawi and his team atwhich was a precursor to the can look out to- as he put it, INJAZ to do what they do-entrepreneurial endeavors if one doesn’t see the pos- and it’s also a pointer for thehe put his name to after- rest of us to support them inward. While Aqrabawi is un- what they do. After all, thederstandably exultant about future of this region is, ashow Sharara and other Aqrabawi tells me, some-INJAZ alums like him have thing that’s absolutely worthprogressed with their lives, working for.he believes that the moreimportant thing to consideris the number of youth inthe region that are miss-ing out on a better future,simply because they haven’tbeen guided to realize it forthemselves. “I do believethat our youth, in general,have something deep downinside them that needs to be February 2018 / ENTREPRENEUR.COM / 71

‘TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO(Re)energize After some research, I fighting for survival may beyour business discovered that the practice prepared to experiment with originated from 1712 when new ideas or dispense withThe ten commandments of business innovation the English government old practices. started taxing newspaper b y F r ee k Ve r m eu l e n So, don’t take things for companies based on the 5/ Ask insiders for concerns granted. Look at the activi- number of pages they Your own staff understandIf you’re looking for ties of some close competi- printed. In consequence, the business and sector, so ideas to reinvigorate tors. To get you started, the newspaper publishing began ask them for their views. your business –or even ten-point plan below pro- printing on larger sheets of start a new venture- I vides a practical framework. paper to manage their tax 6/ Ask outsiders and new would like to set you Pick one or two points, such bill. staff for suspicions a challenge. Begin by as reverse benchmarking, Individuals who may be picking one or two and make a start. This clearly shows why unfamiliar with your or- long-established comparing yourself or your ganization’s practices may practices -either within your If you’re checking estab- organization in terms of be more likely to question own business, or a sector lished practices, be sure practices or performance, long-established practices. you know about- and review to understand exactly why with a group of peers, and Talk to them, find out what their purpose. This can be a firms are doing what they do. then potentially mimicking practices they query and very effective way to identify If no one quite understands them, can be a recipe for keep an open mind. entrepreneurial opportuni- the reason for a particular poor performance. ties. activity, this could provide 7/ Create bundles of And if you’re considering an opportunity for differen- So, I challenge you to seek practices and a new a sector where businesses tiation and innovation. out a source of innovation. business model Look for are relatively undifferenti- Here are ten ways to help activities that fit together ated, this approach can work Let’s take the example re-energize activities in your and you may be able to particularly well. It’s all too of broadsheet newspapers team, your business, or even create a new niche business easy to become blind to the which circulated in the UK to help identify a whole new idea. negative effects of long-es- for so many years. Why were venture. tablished practices, think- they printed on large sheets 8/ Take aim at a chunk of ing, “that’s just the way it’s of flimsy paper when it was 1/ Cut out the benchmarking the market Identify a corner done,” when the original cumbersome for the reader, as this can prevent of the market where an reason for a particular prac- and more expensive than innovation Comparing your- industry’s long-standing tice has long gone. printing on smaller sheets? self with others and follow- conventions no longer meet ing their approach without the needs of that particu-Dr. Freek Vermeulen is Professor of Strategy and fully understanding their lar market. By targeting anEntrepreneurship at London Business School. He is the author chosen path can perpetuate under-served sector of theof the recently published book, Breaking Bad Habits: Defy bad practices. (Remember market may give you a newIndustry Norms And Reinvigorate Your Business, published by the example of broadsheet opportunity.Harvard Business Review Press. newspapers in the UK.) 9/ Just stop a business 2/ Try reverse benchmarking practice and focus on what’s If there’s no clear reason really important If most why competitors or those in companies in an industry a particular sector are doing are offering something which things the way they do, then customers don’t really want, try doing it differently. you’ve probably discovered a bad practice which can be 3/ Experiment if you can, eliminated. but make sure to do it well Change one element at a 10/ Watch out for “that’s time, and nothing else. That the way we do things way, you should be able to round here” If you hear distinguish the impact of people saying that, it means what you are doing. they can’t identify a particu- lar reason for the behavior. 4/ Monitor entrants and In my view, it’s an instant companies in distress clue that you may have New entrants who may be found a bad habit that needs emboldened by little to lose to stop. or unshackled by old habits, along with organizations72 / ENTREPRENEUR.COM / February 2018

The FDoesruigmnMarch 14, 2018 Venue: TBCThe Design Forum 2018 is an exciting platform to trigger design conversations, interact with industry leaders andnetwork amongst peers. The forum will feature interactive panel discussions and presentations. Tapping into theregion’s current trends, the forum will include industry experts with their opinions on the topics which matter today:Biophilia in design 3D printing & technology in designThe changing design phase of education institutions The growing fit-out industryTo be a part of this exciting event, contact us on the details listed belowCONTACT STEPHANIE HUGHES EDITORIAL ENQUIRIES: SALES MANAGERSPONSORSHIP ENQUIRIES: MOBILE: +971 55 725 9293 ROMA ARORA DIRECT: +971 4 420 0506 DEPUTY EDITORJOAQUIM D’COSTA [email protected] MOBILE: +971 50 250 4625GROUP SALES DIRECTOR DIRECT: +971 4 420 0506MOBILE: +971 50 440 2706 [email protected]: +971 4 420 [email protected]@designmideast /designmiddleeast www.design-middleeast.com @designmiddleeast /designmiddleeast

start it up ecosystem | who’s got VC | Q&A | STARTUP FINANCE ”We got Karim Elsahy, funded!” co-founder, Elves app Egyptian startups Elves and Moneyfellowson how they convinced investors to support them in closing their early-stage funding rounds b y S i n d h u Ha r i h a r a n elves address anywhere in the where Elves was listed as we [would] talk [to] could world, the Elves platform one of the 100 most influen- find a use for Elves,” he says. www.elvesapp.com can make it happen through tial startups, and also won “Because the proposition is its iOS app or on Facebook a shout-out from Facebook so compelling yet versatileReal innovation, they say, Messenger. Co-founded by COO Sheryl Sandberg on a and broad, everyone couldlies in taking the uncharted Egyptian couple Karim Elsa- Facebook post. Amid this, find a use for Elves. It’spath. At a time when enter- hy and Abeer Elsisi in 2016, Elves has now successfully hard to argue against it,prises globally are betting Elves does not make use of raised US$2 million in its when you see yourself use itbig on the power of chatbot any pre-defined algorithm seed round- one that the constantly and effectively.”technology as a game- to do what it does; however, startup terms as having been With considerable experi-changing customer service the assistants do make use “heavily oversubscribed.” ence in managing large calltool, along comes a company of artificial intelligence (AI) The investment came from center projects as part ofthat pairs users with real to learn about their custom- high profile investors in- their careers, Elsahy sayspersonal concierges to get ers, and thus offer better cluding Emaar Group, the he and Elsisi spent a lot oftheir needs met. Egypt- recommendations over time- Kauffman Fellows Syndicate, time in America’s Bay Areabased startup Elves connects which makes it, essentially, Dubai Angel Investors observing the growth of ma-you with a human assistant “a human-assisted AI as- (“their largest investment chine learning. “We felt that–who they call an Elf- who sistant.” thus far”) and other regional pairing our background withchats with you, understands and US-based angels. machine learning could leadwhat you’re looking for, The startup, with a team of to something interesting,” hesearches for options based over 40 employees, has ad- Ask founder and CEO remembers.on your preferences, and mittedly had valuable global Elsahy how the startupmakes tailored recommenda- recognition come its way managed to raise a seed Elves’ proprietary technol-tions for your needs. Be it since its launch. The startup round of a value that’s ogy allows the company toto find the perfect gift for an received an invitation by likely to be considered quite address a number of con-occasion, book a cab, pur- Facebook to its F8 developer substantial for the region, current live user requests,chase a particular product, conference, an invitation to and he attributes it to one which are handled by humanor deliver something to an the World Economic Forum word: relevance. “Everyone assistants. As the company’s website declares, “Bots un- derstand you [user] as data; IMAGE credit elves an Elf really gets to know you,” and Elsahy describes this as “real intelligence- combining the empathy and understanding of a human with the efficiency and scalability of a machine; always ready, relevant, and constantly learning and growing.” To help them scale such a model, the company plans to utilize the seed investment primarily in “marketing our expansion to new markets, and continue to build our tech to enhance74 / ENTREPRENEUR.COM / February 2018

the user experience.” Elsahy imagination of smart inves- industry events throughout to a traditional customer adds, “Our main goal is to tors, you feel validated and the year. “Immediately, we service center where the drive as much traffic as we encouraged,” he says. As a felt that there was a lot of model is one to one.” As for can to our machine learner serial entrepreneur with potential synergy between the road ahead, Elsahy envi- and recruit the best engi- experience in starting and us; also because a large sions their strategy evolving neers to drive Elves forward. leading several success- percentage of our users into a “many-to-many We are now ready to take ful companies including use Facebook Messenger to model, where anyone can be Elves to the next million enterprise software startup communicate with us.” He certified to become an Elf, users.” Without getting into Konnecti.com, and VC firm adds that they have kept and share their knowledge specifics, he says that Elves Genius Ventures (which was the dialogue open with the and experience with people has managed to execute over itself acquired by Sawari tech giant, and “seek their local to them and in their a million conversations, and Ventures), Elsahy stresses support regularly to enhance language.” “with no marketing spend,” that the fundraising phase our user experience.” it has captured over 24,000 should be embraced by en- users till date- double of trepreneurs. “We met some With external support, where they were in August fantastic people along the finance, and technology all last year. way [during fundraising], going in their favor, I ask and learned a lot about our- Elsahy if Elves’ “human- “Our main goal is to selves and different oppor- assisted virtual assistant” drive as much traffic as tunities we could potentially model could pose a we can to our machine explore,” he says, noting the challenge to scaling the learner and recruit positive vibes they’ve en- enterprise. But Elsahy shuts the best engineers to countered in raising finance down the premise, saying drive Elves forward. We for Elves. “As our user base increases are now ready to take with conversations, our Elves to the next million Interestingly, the evolution machine learns more and users.” of the startup is reflective makes our Elves handle of the business model of more concurrent users.” As for the process itself, the platform that it lever- He backs it up with an in- Elsahy calls the fundrais- ages the most- Facebook stance, as well. “To give you ing a “surprisingly fun” Messenger. In fact, noticing perspective, today we have experience for the team. Elves’ performance on their the same number of Elves “We enjoyed going on the platform, the Facebook team handling more than double road to tell people our story. also reached out to start a the user base we had in July When you have a strong conversation with the Elves [2017],” he says. “One Elf and compelling proposition team, and Elsahy too says handling many concurrent that is able to capture the he’s met members of the users is important to our Facebook team at several business model, comparingIMAGE credit moneyfellows Moneyfellows Ahmed Wadi, Founded in 2015, the idea something about it, and do it founder and CEO, for Moneyfellows hit the myself.” moneyfellows.com startup’s founder and CEO Moneyfellows Ahmed Wadi in Germany, Speaking about the busi- Egypt-based Moneyfellows, where as a fresh graduate ness model driving the a tech startup that digitizes The fintech startup had with a modest pay, he was enterprise, the Egyptian informal lending between earlier raised capital in a looking to fund his own entrepreneur says that while friends and family networks, pre-seed round from Startup wedding and honeymoon. Moneyfellows currently has raised US$600,000 in Bootcamp Fintech London, “Doing an offline money charges users a variable an investment round led Flat6labs, and others. circle with friends and fam- fee depending on a user’s by Dubai Angel Investors ily back home was my only selected slot in a money and 500 Startups. The web resort,” Wadi recalls. “It was circle, the team is also and mobile-based platform extremely painful to find working to launch “product- enables individuals to access a suitable one, manage it, based circles, where users interest-free credit under a and keep track of it. If there would get products they’re method of financing wherein existed a digitized version looking for, rather than a community contributes of this, I would’ve been a cash.” At the same time, money to a common fund, frequent user myself. There the company is also in the and then takes turns in wasn’t; so, I decided to do process of “validating a third withdrawing the amount. business model that, if it >>> February 2018 / ENTREPRENEUR.COM / 75

start it up ecosystem | who’s got VC | Q&A | STARTUP FINANCEworks, [they] wouldn’t need 10th MIT Enterprise Forum and trust the investors had traditional offline ROSCAsto charge our users a cent, Arab Startup Competition in them, the additional into the online world, andwhile still being able to make held in Bahrain. support they can expect to disrupt banking services (ora margin for ourselves.” get out of their networks, as the lack thereof) for peopleWithout going into the spe- Moneyfellows’ fundraising well as the ability for them worldwide.”cifics of the new offerings, story is certain to strike a to continue funding theWadi says that are aiming chord with other regional startup in successive rounds. Moneyfellows’ core busi-to utilize the funds raised entrepreneurs working to- Hasan Haider, Partner, 500 ness itself is not alien to theto finance their expansion wards financing the growth Startups, notes that Monye- region. For a large popula-plans. “We plan to acquire of their startup. “We’ve fellows’ innovative model, tion that has no credit his-more than 45,000 paying probably reached out to ev- which helps provide finance tory, and hence can’t accessusers, build and expand our ery single investor out there for the unbanked, attracted conventional financing fromstar team (we are currently in the region,” notes Wadi. them to the startup. “[By] banks and other institutions,hiring), as well as some ini- “Some never answered back, leveraging traditional forms the ROSCA model of financetial country expansion plans others never gave us a ‘no’ of lending and savings, that (popularly known as gameyalike obtaining regulatory (which kept us hangingWoeugot of Rotating Savings and in Egypt) is a crucial leveler.approvals, beta launches and there around them for aoffice in Credit Associations (ROS- By digitizing this process,testing those markets,” he while), some of which wDueb’vaie CAs), and bringing them on- Moneyfellows is enablingsays. The startup claims to signed term sheets with but line, Moneyfellows is going Egypt (and subsequently thebe gaining traction steadily were never really able to after a very large potential entire MENA region) achievesince the time it participated eventually close, and finally market worldwide,” he says. financial inclusion quickerin the Barclays Egypt and some that offered us funding “We love investing in locally and at a larger scale. AndFlat6labs-powered 1864 fin- that we were stupid enough developed innovations and with the region’s policymak-tech startup accelerator, and to reject,” Wadi remembers. teams with an execution- ers and regulators keen toit had also won first place Not surprisingly, Wadi focused mindset like this. support fintech in everyin the startups track at the admits that keeping the core We expect to see them take way they can, startups like team focused on customer Moneyfellows may soon be Hasan Haider, acquisition and product able to bring those excluded Partner, building during this period from the region’s financial 500 Startups was a tough challenge as networks into it. well. However, luckily for Moneyfellows, this chal- “We plan to acquire more lenging phase ended by than 45,000 paying users, raising what Wadi refers to build and expand our star as “smart capital from some team (we are currently of the bravest and smartest hiring), as well as some angel investors out there, initial country expan- while being able to maintain sion plans like obtaining close relations with some regulatory approvals, other potential Series A, B beta launches and testing and C investors.” those markets.” And, as for the team’s IMAGE credit Moneyfellows, 500 Startups expectations from aligning with their current investor group, Wadi is excited about the amount of confidence76 / ENTREPRENEUR.COM / February 2018

International conference Boosting the start-up ecosystem: A Hub for Entrepreneurs and InvestorsOn March 6th,2018 in BahrainYour passto a new worldof opportunitiesin The GulfIn partnership with Bahrain Economic Development Boardwww.thinkers-doers-bahrain.comLocation InformationShaikh Ebrahim bin To register :Mohammed Al Khalifa Center [email protected] Culture and Research

start it up ecosystem | who’s got VC | Q&A | STARTUP FINANCENour Al Hassan, documentation, transla- disrupted, or at least com-founder and CEO, tion, and more. After all, for plemented and improved, byUreed businesses seeking to reach their online and app-based online audiences in the Arab peers.”Tapping world, the need for Arabicinto content in the digital realm Of course, the proof of theopportunity cannot be understated, and pudding is in the eating, Ureed, with its network of and Ureed’s appeal (andUreed founder and CEO Nour Al Hassan aims for freelancers, seeks to capital- potential) as a businessher platform to be “the largest marketplace for ize on this opportunity. can be best exemplified byArabic content writers and translators in the world.” “Ureed.com is the region’s its current state of affairs. first marketplace focused on “As of today, Ureed has 320 b y A b y Sa m T h o m a s editorial and linguistic ser- registered clients, and 500 vices,” Al Hassan declares. completed projects,” Al Has-As the founder and experience in this domain “You can simply go online san says. “The feedback we IMAGE credit ureed CEO of the UAE- that one is compelled to sit and hire talented freelancers have received so far is very based translation up and take notice of her to work with you, safely and positive; clients have been agency Tarjama, newly launched enterprise, easily. Whether you’re seek- able to get jobs done at high Nour Al Hassan Ureed, a digital editorial ing creative copywriters to speed and quality, withoutis someone who has been marketplace that aims at write your website content, the hassle of signing con-working in the linguistic and connecting businesses or simply need someone to tracts, or the requirementseditorial services arena of and freelance linguists to proofread your work, Ureed of going the traditional routethe Arab world for over 10 collaborate on a variety of is the way to go.” Much like of working with a company,years now. And it is essen- content-related tasks, which Tarjama, which employs and in many cases, for atially because of her prolific include copywriting, editing, more than 400 full-time and much more competitive part-time workers across price.” From the perspec- the Arab world, Ureed is also tive of the freelancers on focused on using talent from the platform, Ureed offers the Middle East to help busi- them the opportunity to gain nesses communicate better income by working on their to their audiences in this own terms- you may have region. In terms of a value a full-time job elsewhere, proposition, Al Hassan notes or you may be making a liv- that Ureed’s offering will be ing by doing only freelance particularly of interest to work, but as Ureed’s website smaller-sized enterprises proudly declares, your like startups or e-commerce paradigm can essentially be: platforms, which, while hav- “your desk, your rules.” Al ing large volumes of editorial Hassan also notes that such work to be done, may not be a set-up allows for Ureed to able to afford the high mar- cater to a variety of clients- gins that the typical agency be it your average internet model would charge for such user wanting to get an tasks- they now have a much article translated for their more cost-effective alterna- personal blog, or a company tive at their disposal. As seeking tens or hundreds of for why she chose to launch articles written or created Ureed at this point of time, on daily basis. “We have Al Hassan points toward her different models that cater assessment of the landscape to both types,” Al Hassan ex- around her. “I saw an oppor- plains. “The Standard Ser- tunity for making the service vice is where a user, whom more accessible for a wider we refer to as an ‘Employer’ audience more efficiently,” can manage the process of Al Hassan explains. “I felt finding people and getting that Ureed was the natural the job done by themselves evolution of our industry, on the platform, and we have similarly to the evolution an Enterprise Service, where we’re witnessing today with companies simply commu- taxi services or hotels being nicate their requirements to an Ureed Project Manager,78 / ENTREPRENEUR.COM / February 2018

“Ureed.com is banks for SMEs is almost day, and indeed, its “It’s normal to have toughthe region’s first impossible. Access to capital success does bode days- they actually occurmarketplace is getting better through well for Al Hassan’s more often than the easyfocused on editorial venture capital funds and leadership of Ureed ones; it’s the nature of theand linguistic angel investors, but [it’s] today. In terms of business! But the idea ofservices. You can still not enough.” So, what capital, Al Hassan quitting doesn’t apply in oursimply go online can be done to make the says that Ureed environment as a company.and hire talented landscape more welcom- has had only an We need to keep going untilfreelancers to ing for entrepreneurs? Al initial seed round, we reach our next mile-work with you, Hassan has one suggestion which was entirely stone- and so on…” If hersafely and easily.” that can be (easily) put to self-funded. “We response is any indication, practice given her personal didn’t actively seek then Al Hassan seems to bewho in turn takes full care experience with Tarjama: any funding at this quite comfortable tacklingof the project(s) from start “Maybe [create] zones for stage, but we still the journey of entrepreneur-to end.” companies that are starting, managed to attract ship one day at a time- and [which are] tax free, regis- a lot of interest it’s a modus operandi that With Ureed being a new tration fees free or minimal, from various investors,” she her peers in the ecosystementrepreneurial endeavor discounted rent rates?” she says. “What we’re sure of should perhaps take to heartfor Al Hassan, I ask her how says. “I’ll give an example is that we’re very open to as well.she’s finding the startup here: twofour54 in Abu building strategic partner-journey this time around, Dhabi helped Tarjama with ships that could expedite thehaving gone through this discounted rent for over five growth of Ureed.” After all,process last in 2008, which years! This was something Al Hassan sure has some bigwas when she launched we couldn’t find elsewhere, dreams for Ureed- she aimsTarjama. “It’s never easy and this helped the company for it to be “the largest mar-starting something new,” with its bootstrapping, and ketplace for Arabic contentAl Hassan candidly admits. allowed us to grow without writers and translators in“The process and growth the need to fundraise. [This the world.” Of course, that’sare as tough as in the old was] on top of [them] giving easier said than done- butdays of growing Tarjama. us a monthly retainer of Al Hassan doesn’t seem toBut what helps Ureed is my their translation business be too perturbed with thegreat team, and the experi- for three years.” idea that Ureed may have toence we have in the content tackle some tough times inand translation space.” Such steps have helped the days to come. “I don’tBut have there been any Tarjama to come into its own think of stopping,” she says.changes in the ecosystem as a regional enterprise to-at large- is it at all easier toset up (and run) a business Nour Al Hassan, founder, Ureed (second from left),today in the region? “It’s at the RiseUp Summit 2017 in Cairo, Egypttough being a startup,” AlHassan replies. “Gainingclients’ trust, [while] beinga small company, is nevereasy. Clients tend to alwayswant to give business for thebig well-known names. It’schanging now slowly to helpstartups more. As for otherhurdles, it’s very expensiveto start a business- fromlicense fees and registra-tions, and now, tax, it isn’ta very inviting environ-ment for business to startand grow. Getting financialsupport and loans from February 2018 / ENTREPRENEUR.COM / 79

start it up ecosystem | who’s got VC | Q&A | STARTUP FINANCEDany El Eid, “Entrepreneurship chose me, VC’s four-month accel-founder and CEO, but I wish I had known how eration program in SiliconPixelbug difficult it would be. Not that Valley, El Eid also got invited I ever imagined that it would to participate in the VentureDANY EL EID be easy, but I also didn’t Out program in New York.FOUNDER AND CEO, think it would require so “This gave us access to thePIXELBUG much patience. The learn- advertising and media giants ing curve and adrenaline on the East coast,” he says.With an Expo 2020 Dubai contract rush one gets from being an “This was a major achieve-in the bag, the entrepreneur is now entrepreneur is incompara- ment for us since it exposedgetting set to take his company to ble. However, this truly is a us to the fast-paced mind-its next stage of growth marathon, not a race, so it sets of the Valley and the Big is important not to compare Apple. As a result, we haveb y Ta m a r a Pu p i c yourself to others.” Commit- built a network of top tier ted to his own journey and VCs from both the East andBeing a pioneer means bug, a AR/VR tech startup trajectory despite the hard- West Coasts.” IMAGE credit pixelbugleaving tradition, taking founded in Dubai in 2012, ships, El Eid first becamerisks, and being patient staying calm and quiet, known after releasing Color- Furthermore, the big suc-along the way- especially while making a trail in this bug, a family-oriented AR cess came shortly after, inwhen it is in the augmented new industry has been a edutainment app that brings the summer of 2017, whenand virtual reality space. challenge more often than characters in coloring books Pixelbug won the contractHowever, for Dany El Eid, not. “I didn’t choose to be to life, in May 2015. How- to become the mixed realityfounder and CEO of Pixel- an entrepreneur,” he admits. ever, even before that, he had provider for Expo 2020. “I’m already had a few wins under really proud of landing the his belt, such as introduc- Expo 2020 contract. Having ing viable commercial AR a key role in the success of applications for multination- this historical project is one als, including P&G, Nestle, of those accomplishments Lego, and Atlantis, or work- that will be remembered ing with Dubai Properties, as our legacy,” El Eid says. a Dubai-based real estate With 2017 having been an master developer to create explosive year for AR and a virtual reality tour of the VR, El Eid expects 2018 to be company’s Bellevue Towers, even more exciting. “We’ve to name but a few. always been more focused on augmented reality, because I Yet, recent years have knew early on that it would brought other notable be more scalable, since AR achievements. In a bid to experiences can be con- capture a larger market share sumed via smartphones that with more cost-efficient everyone already owns. In options for companies with contrast, VR requires ad- smaller budgets, Pixelbug, ditional hardware that can at the beginning of last be costly for mainstream year, devised an innovative adoption. Virtual reality business model, a hybrid of is effective in certain use subscription and premium cases, like trade shows and services. It helped them also education, but mainstream attract international inves- adoption will come from tors and land high profile AR. We’re already seeing long-term contracts. At convergence between AR and the same time, the Pixel- VR into what’s called mixed bug team was selected to reality (MR) or extended join Boost VC, the world’s reality (XR). We’re seeing leading AR/VR accelerator the space fuse with other AI that is managed by Tim and technologies, such as natural Adam Draper, tech investors language processing (NLP) who have desirable stakes and machine learning, to in companies like Tesla, make the human-machine SpaceX, Skype and Baidu. interactions more compelling While taking part in Boost to users.”80 / ENTREPRENEUR.COM / February 2018

“this truly is a marathon, not a race, so it is important ‘TREP TALKnot to compare yourself to others.” Three tips forWhile he plans to continue still highly cynical of the spite its best efforts to alter entrepreneurs fromhis business development Middle East, and very few the region’s perception, it Dany El Eidefforts in the region, making actually pay attention to the remains too small a marketPixelbug’s presence in North region at all,” he says. “It is to be taken seriously by 1. Raising funds is good,America more permanent very stigmatized. Most will international investors.” but generating revenueis on top of his agenda for demand that you have a per- is better “Focus on getting2018, all in order to ac- manent presence in North Dubai setting the example business and generatingcess larger investments and America to pursue discus- for others to follow is the revenue, so you can hold offstronger talent. This state- sions. On the other hand, reason why most Arab entre- from needing VC money.ment might give a window entrepreneurs from this re- preneurs flock to the Emirate This not only validates yourinto his past struggles with gion are plagued with inves- to get a chance at a secure product and market strategy,raising funds in the region, tors who often have a clique future, he explains, citing a but also gets you close toyet El Eid doesn’t seem to mentality due to how small MAGNiTT report which not- your customers, who arehave had any. Starting Pixel- the ecosystem is. Most VCs ed over 40% of MENA start- most important.”bug with his own funds, he remain highly risk averse ups are actually based in themanaged to capture lucrative which makes them behave city. Nevertheless, setting up 2. Start local, think globalcontracts early on due to be- more like PE firms. A stark in Dubai has its own chal- “Use the region as a testinging a first mover in the AR/ contrast to the early stage lenges, El Eid adds: “Cost of ground, and set up abroad,VR space. The capital was VCs in the US. For example, doing business here remains either North America orreinvested in the business, the recent acquisitions of highly prohibitive, and time Asia, as quickly as you can.allowing the Pixelbug team Souq and JadoPado should to setup is still long. Policies Unless, of course, you’re ato forego seeking external have signaled the move are outdated, and have yet localized ‘me too’ serviceinvestors for several years. towards untapped exponen- to catch up with the rise of or product. However, if thatBefore long, the technology tial technologies like AI, AR/ tech startups. It no longer is the case, keep in mindstarted maturing and with it VR, robotics, or blockchain. makes sense to keep an office that your market will remaincame aspiring new entrants, Yet, due to the region’s herd lease tied to the number of small, relatively speaking.leading El Eid to double mentality, we still witness visas and license renewal, Not that one is better thandown on building their way too much money flowing when most startups operate the other, simply depends onown B2B and B2C digital towards online e-commerce under a remote structure. one’s vision and objectives.”products to scale faster, and portals or Uber-ized ‘me Companies working underposition the company as too’ products. Recently, I the knowledge and shared 3. Remember what theya cost leader as well. This saw a Saudi firm invest in economy should be able to say about opinions?strategy allowed him to close a portal selling perfume, an choose whether they opt for “Avoid opinion overload,a seed round last year from ancient dot com era type of office space, and that deci- and stick to your guns. Haveleading regional and inter- investment. This might be sion should not affect the confidence in your vision,national investors. At this due to the fact that VCs are renewal of its commercial your purpose, and yourpoint, however, El Eid opens fund managers who need to license, or how many visas capabilities.”up on his current challenges, answer to their LPs and GPs, are allocated, especially withwhich finally explains the just like startups have to the introduction of VAT.” equate co-founders, payingcompany’s plans to seek its answer to their board mem- attention to distractions,base in other parts of the bers. The fact of the matter But regardless of the red focusing too much on fund-world. “Unfortunately, most is that the regional ecosys- tape or other problems, El raising, and saying yes wheninternational investors are tem is still very nascent, Eid points out that over- I should have said no more coming such hurdles is up often than not. However, the ColorBug app trying to find to one’s entrepreneurial important thing is to focus its footing in an skills- a good entrepreneur on successes, no matter how increasingly fast will recognize mistakes, but small, to stay motivated. paced world, and a great entrepreneur will Frankly, one of my biggest home to a market quickly act on feedback to successes is having the privi- with inhospitable course correct. “One thing to lege of working with some business condi- quickly learn as an entre- very smart people whom I tions still running preneur is that mistakes will learn a lot from. Another is on archaic trade happen, whether you like attracting great partners and laws. Dubai is it or not,” he says, advising founder-friendly investors, the only beacon those who are just starting who keep me motivated and of hope in the out. “I’ve had many misses, accountable.” region, but de- some more critical than oth- ers. From choosing inad- February 2018 / ENTREPRENEUR.COM / 81

in the loopReimagining fundraising through the blockhain [tech] will ultimately add more500 Startups’ alumni partner to launch 22X Fund, offering tokenized value to our companies andopportunity to invest in startups to investors. We all see the future in security ICOs, whichA s 2018 emerges as Sami AlSayyed, “ICOs are all the rage is different than typical ICOs,” the year crypto- founder and CEO, right now, but few have he notes. Chris Rawlings, currency captures ShortPoint a concrete offering founder, Judolaunch, another the imagination underpinning the value participating 22X company, of technologists tokens issued by 22X will have of their token. Since said in a statement, “ICOs areworldwide, initial coin offer- an opportunity to support the ICOs represent a new all the rage right now, but fewings (ICOs) too are fast gaining growth of 30 participating form of early-stage have a concrete offering un-traction as an attractive mode early-stage ventures, which funding, 22X is leading derpinning the value of theirfor entrepreneurs to raise are said to have already raised the way by offering token. Since ICOs representcapital. Startups globally face over $22 million capital in a token that gives a new form of early-stagea critical question today- total among themselves, from investors real value funding, 22X is leading theshould they stick to pursuing VCs and other traditional right from the start.” way by offering a token thattraditional venture capital modes. gives investors real value right(with all its limitations), or over our fundraising process,” from the start.” Some of thelook at ICOs or token offerings Interestingly, one of the 30 he notes. “We all wanted to 30 startups part of 22X Fundof the cryptocurrency world, startups from this group of raise funds, and we had an are ShortPoint, Judolaunch,where money is quick though ambitious entrepreneurs is the idea to do it all together as a OHALO, Fincheck, and Stealthdotted with uncertainties? Dubai-born ShortPoint, a sub- group. We think there is the Co. among others. scription software that helps potential that we may not Well, as it so happens, build “engaging intranets” have to approach the tradi- AlSayyed believes that theentrepreneurs are definitely with no coding, which is now tional route again.” 22X Fund also democratizestaking a chance on this front. based out of Silicon Valley. investments in startups, giving30 tech startups from over ShortPoint founder and CEO Commenting on the potential the opportunity to almost any-14 countries that are part Sami AlSayyed, who is part of such security-backed ICOs one from all over the world “toof 500 Startups’ summer of the 22nd batch of the 500 emerging as a mainstream invest in 30 of highly vetted2017 program in San Fran- Startups program, believes funding channel for upstarts, startups” easily, and with ben-cisco have announced a ICO that 22X Fund is an innova- AlSayyed says, “We believe efits. “No carry fees or follow-called the 22X Fund, a token that VCs often do add some on fees on your investment.offering that enables inves- tive fundrais- value (after all, if it weren’t You do not have to wait until ators to invest in and own up ing technique for VC, we wouldn’t all be startup gets acquired becauseto 10% equity in the group of that has a lot of together), but we think that we will issue 22X tokens forstartups. With token pre-sales potential. “We decentralizing this process you that you can trade afterhaving commenced on Janu- saw the massive one year [for liquidity],” heary 26, 2018 at 07:00 EST, excitement that explains. Interested investors22X is aiming to raise US$35 cryptocurrency (satisfying required accredita-million, which, according to was creating and tion criteria) can subscribe toa statement, will be deployed realized that if the 22X Fund in any currencyimmediately, and invested on we did an ICO, (conventional and crypto)a pro-rata basis in the equity we could take in return for regulation-of participating companies. more control compliant 22X Token. As theThus, investors purchasing the startups grow, investors earn proceeds from either exit or IPO or even by trading the image credit shortpoint | 500 startups 22X Fund token. To carry out this token sale, 22X Fund has engaged Securitize.io, a startup platform by itself that facilitates the purchase and transfer of tokens, as invest- ment manager. Platforms like Securitize help tokenize ownership, thereby allowing enterprises to “move from the analog world of certificates to the digital world of the blockchain.”82 / ENTREPRENEUR.COM / February 2018