[PreMoney MENA 2015] Silicon Badia >> Emile Cubeisy, "MENA's Golden Entrepreneurial Age: What's Working, What's Not & What's Next? "

Prepared for:
PreMoney MENA
Emile Cubeisy
@ecubeisy
MENA’S GOLDEN ENTREPRENEURIAL AGE
BLINK&
YOU’LLMISS

WE BRIDGE BETWEEN EAST…
WHO WE ARE
Through our Middle East-focused fund, Badia Impact Fund, we invest in and work with
entrepreneurs building category leaders in the region as well as globally relevant technologies.
# of Investments = 11
Emile Cubeisy - @ecubeisy - siliconbadia.com

…AND WEST
WHO WE ARE
Through our US-focused fund, Badia Outreach Fund, we invest in startups that are building
technologies in niche markets within traditional “ofﬂine” sectors including life sciences,
healthcare technologies, real estate, education, agriculture, and others.
# of Investments = 30+

A TYPICAL MENA DAY STARTS WITH
INFINITE CHALLENGES…
WHY WE WAKE UP

= INFINITE OPPORTUNITIES
WHY WE WAKE UP

AND MANY (MANY) ARE
TAKING ADVANTAGE
WHY WE WAKE UP

0
30
60
90
120
2010 2015
114
15
MENA Facebook Users (Millions)
100 million USERS
added in
5 years
0
40
80
120
160
2011 2015
155
9.1
MENA Smartphones (Millions)
145 million
SMARTPHONES
added in
4 years
Source: SpotOn, Facebook Source: IDC-CEMA
Evolution at an Accelerated Pace

"Flawlessly earning first
place annually as the world's
most depressed region and
given the intense scientific
correlations between
depression, creativity and self
expression, today's 224 million
Arab youth are weapons of
mass disruption."
Self-Expression
JoBedu Investors: the crowd via Eureeca

0
7500
15000
22500
30000
2015
1,670
22820
Global Retail (US$ billion)
Global eCommerce (US$ billion)
7.32% of total retail
Source: eMarketer Source: IDC-CEMA
0
250
500
750
1000
2015
15
1000 Middle East Retail (US$ billion)
Middle East eCommerce (US$ billion)
1.5% of total retail
e-Commerce

“E-COMMERCE STILL
ONLY MAKES UP 1% OF
RETAIL TRANSACTIONS
IN MENA, YET 85% OF
THOSE TRANSACTIONS
HAPPEN ON FOREIGN AND
NOT LOCAL SITES.
THERE’S A LOT TO BE
DONE.”
e-Commerce
CashBasha Investors:
500 Startups, Aramex Ventures

“LESS THAN 0.05% OF
REGISTERED BUSINESSES
HAVE ONLINE STORES”
SaaS
ShopGo Investors:
Silicon Badia, Wamda Capital, 500 Startups,
Oasis 500, Angels

0
150
300
450
600
2015
171
531
Global Total Ad Spend (US$ billion)
Global Digital Ad Spend (US$ billion)
Average global digital
ad spend as % of total ad spend
32.20%
Source: ZenithOptimedia, Warc Source: Arab Media Outlook
0
2
3
5
6
2015
0.5
6 MENA Total Ad Spend (US$ billion)
MENA Digital Ad Spend (US$ billion)
Digital Adspend
Average MENA digital
ad spend as % of total ad spend 9.33% .
to reach global average,
there is a $1.37 billion opportunity.

“LESS THAN 1% OF ALL APPS
ARE AVAILABLE IN ARABIC,
ALTHOUGH DATA SUGGESTS
THAT 60% OF APP USERS IN
THE MENA REGION PREFER
CONSUMING CONTENT IN
THEIR OWN LANGUAGE.”
Media and Entertainment
Tamatem Investors:
500 Startups, Arzan Ventures,
Kima Ventures, MVI, Funders Club,
MI Ventures, Angels

“3 OUT OF 4 LITERATE ARABS
READ REGULARLY WITH THE
HIGHEST INCIDENCE OF READERS
IN EGYPT (88%) AND KSA
(94%), BUT LESS THAT 2% OF
ARABIC BOOKS HAVE LEGAL
PRESENCE ONLINE, BE IT EBOOKS
PRESENCE OR SIMPLY BOOK
REVIEWS, RATINGS, AND
RECOMMENDATIONS TO HELP IN
BOOK DISCOVERY”
Content
Abjjad Investors:
the crowd via Eureeca, Oasis 500, Angels

Access to Finance (Jordan)
Access to Formal Bank Loans
0%
25%
50%
75%
100%
Micro Small Medium Large Leader
3%
51%65%74%86%
97%
49%
35%
26%
14%
Access to Formal Bank Loans No Access To Formal Bank Loans

“THERE'S A $240 BILLION
SME LENDING GAP IN MENA -
ONLY 8% OF BANK LENDING
GOES TO THE COMPANIES
THAT DRIVE 60 - 80% OF ALL
EMPLOYMENT AND
ECONOMIC GROWTH IN THE
REGION”
Fintech
Liwwa Investors:
Dash Ventures, Etihad Bank,
MVI, Silicon Badia

Fintech
“AROUND 85% OF TRANSACTIONS
IN MENA ARE CASH BASED,
CREDIT CARD AND CURRENT E-
PAYMENT SOLUTIONS HAVE LOW
PENETRATION AMONG
CONSUMERS, THERE'S A NEED
FOR BETTER, SECURE AND
CHEAPER EPAYMENT OPTIONS
AMONG CONSUMERS AND
BUSINESSES”

“There are in Egypt alone more
than ~180 million annual
doctor visits with an average
of 1.5 hours waiting time,
that’s more than 240 million
lost hours annually.
Vezeeta is fixing this in Egypt
and in the rest of the region”
HealthTech
Dr. Bridge Investors:
Technology Development Fund, Silicon Badia, Angels

…INCLUDING GLOBAL OPPORTUNITIES
WHY WE WAKE UP

“FOR 3D PRINTING TO REACH ITS
POTENTIAL, THEN A BRIDGE
SHOULD EXIST BETWEEN CONTENT
AND 3D PRINTERS.
MAKEPRINTABLE DOES THAT BEST.
90% OF 3D MODELS IN
3DWAREHOUSE AND DAZ3D ARE
NOT READY TO BE 3D PRINTED.”
IP
MXD3D Investors:
Silicon Badia, Alsop Louis Partners, Dolby Ventures, Angels

AND THOUSANDS UPON THOUSANDS
MORE ACROSS THE REGION ARE
LEVERAGING GROWTH…
WHY WE WAKE UP

SO WHO ELSE
ISN’T BLINKING…

WHO’SE NOT BLINKING
SOME VC INVESTORS IN THE ECOSYSTEM
MENA Based Global with MENA Interest
Source: MENAScapes QI 2015

SOME ACCELERATORS, INCUBATORS, CO-WORKING SPACES IN THE ECOSYSTEM
Accelerators Incubators and Tech Spaces

Accelerators
SOME BUSINESS PLAN COMPETITIONS IN THE ECOSYSTEM

RESULTS OFF THE CHARTS
Participation has peaked to 6,000
participants from 1,500 in 2006
Helped establish over 300 businesses in
the region (sustained for more than 2
years) creating over 5k jobs
Half of participants are women led
teams
21 participation countries with Iraq,
Yemen, Palestine and Sudan
contributing regularly. Top countries are
Egypt, Jordan Lebanon and more
recently KSA showing 200% growth year
on year
In less than its ﬁrst year of established,
Zinc has enabled:
130 events
17,000+ attendees
800+ entrepreneur members (average
of 60 per day)
With over 45 startups either working
with or getting support from Zain
through Zinc.
Over $30M raised by Oasis 500
startups.
Delivered 38 business
development bootcamps, with
2,000 entrepreneurs
participated.
Received 8,000 business ideas.
Invested in 115 companies at
seed and early stage.

GROWING WIDER, CHANGING, AND
CONVERGING BY THE DAY
Univer
sities
Angels
Accele
rators
The
Crowd
Region
al VCs
Global
VCs
Privat
e
Equity
Corpor
ations
Banks
Develo
pment
Financ
e
Organi
zation
s
Gover
nment
s
Family
Offices
LPs

AND NEW
OPPORTUNITIES ARE TAKING SHAPE

LOOK AT SOME DEALS ANNOUNCED SINCE AUGUST 2015…
Transaction Company Investors Value
Acquisition Fawry (Egypt) Consortium $100M
Acquisition Oltob (Egypt) Hellofood -
Acquisition Talabat (Kuwait) Rocket Internet $170M
Acquisition Dubizzle (UAE) OLX (Naspers) -
Acquisition (IP) Silicon Vision (Egypt) Synopsys -
Funding Careem (UAE) Abraaj, Arzan, Al Tayyar, STC Ventures, BECO Capital, Impulse, Lumia Capital , Wamda Capital $60M
Funding ArabiaWeather (Jordan) Silicon Badia, Wamda, Jabbar, Dash Ventures $7M
Funding MXD3D (Jordan) Alsop Louis Patners, Dolby Family Ventures $3M
Funding JadoPado (UAE) Beco Capital, other investors $4M
Funding UTurn (KSA) Leap Ventures $10M
Funding Yaoota (Egypt) KBBO Group $2.7M
Funding TaskSpotting (UAE) MENA Venture Investments, other investors $1.2M
Funding Mini Exchange (UAE) Angels $1M
Funding Compareit4ME (UAE) STC Ventures, Wamda Capital, DSO $3M
Fudning Mawdoo3 (Jordan) EquiTrust $1.5M
Funding Fetchr (UAE) NEA, Delta Partners, Dhabi Holdings, Roland Berger, Mobiliy 500 Startups $11M
Funding Energy 24 Leap Ventures $3M
Funding JDR Group (UAE) iMENA -
Funding Souq (UAE) IFC $27M
Funding ShopGo (Jordan) Silicon Badia, Wamda, 500 Startups $2.3M
Funding Wuzzuf (Egypt) Vostok New Ventures, Piton Capital $1.7M
ME Growth Uber Uber $250M
ME Growth Zomato Temasek $60M
ME Growth Deliveroo (UK) DST Global, GreenOaks Ventures, Accel, Hummingbird $100M
Source: Wamda, The National, Crunchbase, others Emile Cubeisy - @ecubeisy - siliconbadia.com

BUT WE’VE GOT POTENTIAL
TO DO MUCH BETTER

0.0
0.3
0.6
0.9
1.2
1.5
1.8
Israel
UnitedStates
UnitedKingdom
SouthKorea
India
Brazil
Sub-SaharanAfrica
Poland
China
SouthAfrica
Japan
Turkey
Russia
MENA
0.010.010.030.040.060.080.090.120.180.21
0.28
0.89
1.01
1.62
0.050.070.040.090.040.090.060.090.20.20.24
1.041.07
1.74 2012 2013
Source: Emerging Markets Private Equity Association
PE and VC Investment/GDP (%)

SO WHAT ARE WE
SEEING?

STARTUPS ARE BOTH SOLVING
REAL DEVELOPMENTAL
CHALLENGES AND DELIVERING
PRODUCTS AND SERVICES THAT
RAISE QUALITY OF LIFE
WHAT WE ARE SEEING (1)
▸ In spite of regional turbulence, entrepreneurs
and investors are approaching growth with a
hero mindset.
▸ The region is showing a tremendous appetite
for new products and services, with demand for
the most part exceeding supply.
▸ Many of the solutions will take time and
patience to see through.

PEOPLE, IDEAS, AND
CAPITAL ARE ALL MOBILE.
MORE AND MORE PEOPLE
ARE PARTICIPATING.
▸ There is no “one” point of origin for startups,
and ventures are emerging from all directions,
some within our line of site, and others from
perspectives we do not yet see and understand.
▸ We need to collectively widen our deﬁnition of
an ecosystem, both in terms of pipeline and
investors. The horizon is far wider than we
imagine.

WITHIN THE TECH/VC/STARTUP UNIVERSE, THERE IS
SIGNIFICANT CROSS-BORDER ACTIVITY, BOTH
REGIONAL AND GLOBAL.
▸ VCs from every country in the regional are co-investing with one another,
and also investing alongside global VCs.
▸ Startups are creating in ecosystems wider than their own
▸ LPs of funds are global, regional, and local.
▸ Global startups are also investing in the region.

AS INVESTORS, WE ARE
CONSTANTLY ADAPTING TO
CAPTURE OPPORTUNITIES.
WE DO NOT NEED TO FULLY
UNDERSTAND HOW ALL OF
THESE DOTS WILL CONNECT,
BUT THEY WILL ULTIMATELY
CONVERGE.
▸ Speed of closing
▸ Relevance and nature of value added
▸ Sharpening investment policies

THE DIVERSITY OF INVESTMENT STYLES AND
MANDATES EACH OF US BRINGS IS A NET POSITIVE
FOR OUR WORK IN THE REGION. WE’RE ENSURING
WIDE COVERAGE AND HIGHER SUCCESS POTENTIAL.

EXTRAPOLATE AND LOOK FORWARD…
WITHIN A BLINK, WE’LL ALL
SEE A MUCH BETTER MENA.

THANK YOU
PANTONE 7530 U
Emile Cubeisy- emile@siliconbadia.com - @ecubeisy

[PreMoney MENA 2015] Silicon Badia >> Emile Cubeisy, "MENA's Golden Entrepreneurial Age: What's Working, What's Not & What's Next? "

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[PreMoney MENA 2015] Silicon Badia >> Emile Cubeisy, "MENA's Golden Entrepreneurial Age: What's Working, What's Not & What's Next? "