Why you should attend ArabNet – Kuwait?

So Arabnet is coming to Kuwait! That’s a great news! ArabNet is a yearly conference event done in a Middle Eastern city to celebrate startups, founders, technology and share knowledge. The most famous ArabNet event is probably Arabnet Dubai and Arabnet Beirut. I need to be honest, I never been to any Arabnet event before. But, I know the team behind it, their motivations and how they are adding value to the startup ecosystem in the Middle East. So when they reached out to help them spread the word about the event, we were happy to do so.

But, I was wondering why they choose Kuwait, do they really believe that we have an interesting tech startup scene? Or the event was paid by the government to show that we have something happening in Kuwait! I was also wondering what can a startup founder gain from attending the conference. Is it a waste of time and money to you? Is there any solid evidence that startups will gain from participating? Who is coming to the event? Any cool and important people attending? While my job is to promote the event, I want to make sure you don’t waste your time or money attending Arabnet – Kuwait.

I chatted with Arabnet team and asked them some questions that I think will help you make your decision:

1- Why did you choose Kuwait?

Kuwait is one of the MENA’s hottest digital markets, boasting entrepreneurial success stories, high internet and mobile penetration, and strong appetite for digital & social media services, currently leads in MENA in digital media adoption, on major social platforms such as Snapchat and Instagram, and is home to GCC’s most important online influencers; not to mention that The country is witnessing a surge in entrepreneurship support and institutions, from funds (including the $7B Kuwait National Fund for SME development in 2013), to co-working spaces, angels and investors. Kuwait is one of the most promising digital ecosystems in MENA today.

2- Who is attending the event?

ArabNet Kuwait 2016 will be bringing together corporate decision-makers innovators, investors, accelerators and top leaders in the MENA region and from around the globe such as : The National Fund for SMEs Development Vice Chairman Abdulaziz B. Al Loughani (Investor/Accelerator) , Beco Capital CEO (Investor/Accelerator), MEVP managing partner (Investor/Accelerator) 212 Managing Director (Investor/Accelerator) as well as a variety of decision makers and top leaders from different countries around the globe such as : Andrew Hyde Director of New Programming at Techstars ( Entrepreneurship) , Lloyed Lobo Chief Growth Officer | Speakeasy.co at Boast Capital  (Entrepreneurship) and many more.

 

3- What entrepreneurs should expect (Some success stories)?

  • [Arabnet Beirut 2016 – Innovation Avenue] Krimston 2 have launched a Kickstarter campaign here
  • Arabnet Beirut 2015 – Startup Demo] Handasiyat founder and CEO on Forbes list of 100 business women in MENA here
  • [Arabnet Riyadh 2014 – Startup Demo] ShortPoint signed a strategic partnership with TjDeeD Technology & DSOA here
  • [Arabnet Riyadh 2015 – Startup Demo] Vanoman qualifies for the international semi-finals of GITR here
  • [Arabnet Summit 2010 – Startup Demo] FOO gets majority stake acquired by Zain here
  • [Arabnet Beirut 2016 – Startup Demo] Reable gets selected to join Techstar’s Barclays Accelerator in Cape Town here
  • [Arabnet Riyadh 2012 – Startup Demo] Foodpanda acquires Hungerstation in Saudi Arabia here
  • [Arabnet Riyadh 2015 – Startup Demo] B8ak earned $10,000 in the 8th MIT Arab Enterprise Forum here
  • [Arabnet Beirut 2015 – Startup Demo] Mini Exchange launching KSA site here
  • Wuzzuf and Eventtus are on the list of The 20 Most Promising Egyptian Startups here
  • [Arabnet Riyadh 2015 – Startup Demo] Jellyfish to Silicon Valley. Monica & TopShou at Speed@BDD Demo Day here
  • [Aabnet Cairo 2011 – Startup Demo] Mai Medhat, founder of the Eventtus, sits with US President Obama here
  • [Arabnet Summit 2012 – Startup Demo] Reserveout raises $4M Series A from Silicon Badia here

The agenda is not finalized so I didn’t get permission to share it with you guys.

To register for the event please visit the link below:
https://arabnet.me/conference/kuwait/

Dana Alfaraj: Why did I choose to work in a startup right after the graduation?

2016_06_27_dana_alfaraj_ghinwa

After 23-year-old Kuwaiti Dana Alfaraj graduated from the American University of the Middle East in January 2016, she decided not to go with the flow and take some job in a public sector, but to start her career in a startup. She holds a bachelor’s degree in Industrial Engineering and is currently working as an intern at Ghinwa, a startup that won the first place at recently held MIT Enterprise Forum Arab Startup Competition.

StartupQ8: What (or who) motivated you to start your career in a startup and not in a public sector? When did you decide to do so?

Dana: Ever since I was young, I lived an ordinary life like any other teenager. Half way through college, I had a turning point because I realized that I don’t want to live the routine life anymore since it is not who I am. I have many ideas in my mind that I have the potential to accomplish, but I never had the courage to take action. I shifted my perspective of life and I started liking change and taking the risk of trying new things.

My mentor Mohammad AlMunaikh, who is the CEO of Ghinwa, had a huge role in motivating me to enter the world of startups and stepping out of my comfort zone. Before graduating in a month or two, I made up my mind to go for it. In both cases, if it turns good or bad, I’ll learn something from it. So far, I love it and believe that I fit there perfectly because I’m learning a lot in a very short time and I’m enjoying the experience.

StartupQ8: Since the team is based in Dubai, from where do you work?

Dana: I work remotely in Kuwait, but I fly to Dubai whenever I am needed there. In general, most of our meetings are via Skype. Though, there are few meetings that take place in Kuwait. Eventually, when I get the full time job, I’ll be moving to Dubai.

StartupQ8: What is the most challenging part of working in a startup?

Dana: For me, I think the most challenging part is that we are all in different locations. I find it a bit hard sometimes to communicate with the team through Skype or Slack all the time. Although, it is getting easier by time. I also didn’t meet the entire team yet. I would like to meet them and know more about the people I’m working with. This is my first official job and all the members of the team are well experienced. Sometimes, I find it challenging to catch up and be on their pace. The good thing is that I get to observe and learn from their experiences.

StartupQ8: Is there any piece of advice you would like to share with fresh graduates when it comes to choosing private sector over public sector?

Dana: People have different backgrounds and experiences. Some people might fit in the private sector rather than the public sector and vice versa. From my experience, the best advice I would give is to try new things and give it time to discover what you really passionate about to end up in the path that you love. Simply, choose the job that makes you sincerely happy, because it will lead you to gradually succeed in what you’re doing. Make sure you live the journey that you want and enjoy the ride.

We couldn’t agree more with Dana.

Did The Technology Industry Reach Its Plateau?

The Technology Hype

There is too much hype around staggering technology startup valuations, unicorns, Apple’s cash position, Alphabet’s vision, and many more. Most of what I hear and read is whether or not the technology industry reached a plateau. Partly the reasoning is the exaggerated valuations, sometimes lavish life style of few technology entrepreneurs, and whether we really want so much new features in our mobile devices, or augmented reality?!

The Scope of the Research

That’s a very broad subject, and I spent time researching various angles that can tackle some of the questions that arise towards the technology industry. In essence, I decomposed the questions I want to answer based on different stakeholders:

Venture Capitalists: Should we raise a new fund? Should we continue investing in more startups? Is there enough room for mergers and acquisitions activity so we exit our positions?

Entrepreneurs: Should I start a new tech startup? Doesn’t it seem a bit too much crowded now to start yet a new startup? Would the big boys with big bucks have any interest/capital in the next 5 years to buy out my startup?

Executives of tech companies: How much more room we have for growth? Can we still play the acquisition game to grow our market share?

Methodology

Obviously, those questions cannot be answered in a one page blog post. However, a simple yet data driven approach can give us amazing insights into answering them.

Business Consolidations

Industries go through four stages until they become so called “mature” or “stable”. Based on the article “The Consolidation Curve” in Harvard Business Review, the four stages are Opening, Scale, Focus, and Balance and Alliance.

Briefly describing, the article tackles the consolidation curve of industries by measuring the market share of the top 3 players of the industry.

  • Opening: A monopoly that soon vanishes and the top 3 players control between 10% to 30% of the market due to an influx of competitors.
  • Scale: Major players emerge and buy up competitors. Top 3 players control between 15% to 45% of the market.
  • Focus: Top 3 players focus on aggressive growth and control 35% to 70% of the market. Still 5 to 12 major players are around.
  • Balance and Alliance: The top 3 players control about 90% of the market and form alliances between themselves.

Current Market Analysis

So if we take that segmentation as a basis to find out how much the technology market has emerged, and how much growth can it still absorb, then what we need to find out is how the top 3 players of the technology market stack against the entire market.

Unicorns and Listed Companies

My assumptions going forward would be the following:

  1. The basis of the research is the United States market.
  2. Listed Technology companies in the NASDAQ market comprise all the publicly traded technology companies. Link to the list.
  3. Private technology companies that matter are the Unicorns, i.e. startups that reached beyond the $1 Billion valuation. Link to the list.

Total Addressable Market

Screen Shot 2016-05-26 at 10.59.44 AM

Top 3 Players of the Tech Market

Screen Shot 2016-05-26 at 10.59.54 AM

Scale Stage

Sum of the top 3 players’ market shares is: 27.9%. This puts the Technology industry into the second stage of scale based on HBR’s article.

So What Does This Mean?

To answer the questions we addressed at the beginning, we need to take a look at the scale stage. Here’s how it’s described based on HBR’s article:

Because of the large number of acquisitions occurring in this stage, companies must hone their merger-integration skills. These include learning how to carefully protect their core culture as they absorb new companies and focusing on retaining the best employees of acquired companies. Building a scalable IT platform is also crucial to the rapid integration of acquired firms. Companies jockeying to reach stage 3 must be among the first players in the industry to capture their major competitors in the most important markets and should expand their global reach.

This describes the rapid M&A activity by large players trying to acquire as much good startups as possible to ensure their own survival. In summary, the answers to the questions would be:

Venture Capitalists: Should we raise a new fund? Should we continue investing in more startups? Is there enough room for mergers and acquisitions activity so we exit our positions?

Answer: In short: Yes. There is still room. However, funds should predict the estimated timing of stage 3 of the market. VCs should focus on growth startups in the industry’s transitioning phase into the third stage. Reason why is that the big players won’t have enough time to buy out startups at early stages and can only accommodate growth startups that will immediately add to their top lines and make fast synergies with their businesses.

Entrepreneurs: Should I start a new tech startup? Doesn’t it seem a bit too much crowded now to start yet a new startup? Would the big boys with big bucks have any interest/capital in the next 5 years to buy out my startup?

Answer: While entrepreneurship is always encouraged, and one should be dedicated to growing his/her company, I think with the tech scene becoming too crowded, tech entrepreneurs should have a solid idea regarding their possible exit strategy to one of the major players in the technology scene. That may seem trivial but from personal experience, I see lots of startup founders tackling legitimate problems but not having an idea about their exit strategy. Also, it does not necessarily mean that the exit synergy should ONLY be with Apple, Google, or Microsoft. Although these three are the giants, other major players are still very legitimate options since the industry hasn’t gone through the third stage yet.

Executives of tech companies: How much more room we have for growth? Can we still play the acquisition game to grow our market share?

Answer: Yes. There is plenty of room to grow. 27.9% of the market is way behind the 90% mark. However, acquisitions should be targeted smartly in various verticals in the sense that not only adds to the top line directly, but also makes it harder for the competitors to join that specific vertical. In short, release products and acquire startups revolving around the product to make the barriers for entry in that product’s vertical harder bracing for an aggressive competition in stage 3.

Announcing: StartupQ8 Event for April 2016

We have an extra special event on Sunday (April 24), with global startups and investors!

Our first speakers will be Ryan Peterson & Sanne Manders from Flexport, a freight forwarding startup out of San Francisco. Flexport is a YCombinator & Google Ventures backed startup that has been featured in Forbes, Bloomberg, WSJ, among others.

Their team will speak about the Flexport story and how it’s revolutionizing international trade.

Following that, we have an Angel Investor & VC Panel featuring Dr. Mussaad Al-Razouki, an entrepreneur and regional investor, alongside Abdul Qader Hussain, a seasoned investor and former consultant with AT Kearney, and Philip Pasler, a Berlin based investor and healthcare sector consultant.

The event will be held Sunday (April 24) @ 7.30 pm at @Mefazec (Alhamra Tower, 16th Floor). Here is the schedule

7:30– 7:35 Welcome
7:35 – 8.20 Flexport
8.20 – 8:30 Break
8:30 – 9:15 Angel Investor Panel
9:15 – 10 Networking pizza
. . .
As always, the event will be in English and it is open to everyone (no need to register). Check our blog more info.

See you there!

Announcing Coded’s Spring Coding Bootcamp

Folks,

We all know how hard it is to find a talented coder to hire or be your co-founder. So sometimes, the best thing to do is to go learn the technical stuff yourself. In the least, mastering the fundamentals of programming helps you  communicate with your technical team, and be more valuable to the product building process.

There’s no doubt that the time and effort you invest in your coding education will pay dividends for your startup in one way or another.

If you’re looking for a place to learn how to code, Coded, Kuwait’s first and only coding bootcamp, has announced earlier this week that they are accepting applications for the Spring coding bootcamp.

Coded Bootcamp Announcement

The bootcamp is aimed at beginners who want to become professional programmers. Coded students graduate as junior level professional coders.

The Spring bootcamp, which starts in March, is an intensive part-time bootcamp with 4 hours of class every weekday (5m to 9m), and lasts 14 weeks. The part-time format makes it easy for those who have a full-time commitment in the day time to join the bootcamp in the evening.

The application deadline is Feb 7th, 2016.

You can check it out and apply on joincoded.com 

 

Good luck!

 

 

 

 

 

Reminder: The MIT EF Arab Startup Competition is accepting applications

Startup folk: the deadline for the MIT EF Arab Startup Competition is fast approaching! Hurry and apply. Details below:

 

The 9th edition of the MIT Enterprise Forum Arab Startup Competition is currently accepting applications from the entire Arab region! The application deadline is January 4, 2016.

Launched in 2006, the MIT Enterprise Forum for the Pan Arab Region (MIT EF Pan Arab) is one of the 28 worldwide chapters of the MIT Enterprise Forum Global, an avid promoter of entrepreneurship and innovation worldwide. The Pan Arab chapter has a proven record in promoting MIT-style entrepreneurship by organizing the annual MIT Enterprise Forum Arab Startup Competition that targets 21 countries of the Arab region and brings in more than 5,000 applications a year. The competition has trained 1,600+ top tier entrepreneurs and has helped start over 260+ knowledge-based and technology-driven companies in countries of the MENA region.

Organized by the MIT EF Pan Arab in partnership with Community Jameel and Zain, the MIT EF Arab Startup Competition is one of the largest entrepreneurship competitions and provides participating entrepreneurs with training, mentorship, media exposure, and networking opportunities.

Apply now to the 9th MIT EF Arab Startup Competition on www.mitarabcompetition.com for the chance to win:

Startups Track: $50K for the first place winner, $15K for the second place winner, and $10K for the third place winner

Ideas Track: $15K for the first place winner, $10K for the second place winner, and $5K for the third place winner

Social Entrepreneurship Track: $15K for the first place winner, $10K for the second place winner, and $5K for the third place winner

MITEF Roadshow Competition

Attention: The MIT EF Arab Startup Competition is accepting applications

Startup folk,

 

The 9th edition of the MIT Enterprise Forum Arab Startup Competition is currently accepting applications from the entire Arab region! The application deadline is January 4, 2016.

Launched in 2006, the MIT Enterprise Forum for the Pan Arab Region (MIT EF Pan Arab) is one of the 28 worldwide chapters of the MIT Enterprise Forum Global, an avid promoter of entrepreneurship and innovation worldwide. The Pan Arab chapter has a proven record in promoting MIT-style entrepreneurship by organizing the annual MIT Enterprise Forum Arab Startup Competition that targets 21 countries of the Arab region and brings in more than 5,000 applications a year. The competition has trained 1,600+ top tier entrepreneurs and has helped start over 260+ knowledge-based and technology-driven companies in countries of the MENA region.

Organized by the MIT EF Pan Arab in partnership with Community Jameel and Zain, the MIT EF Arab Startup Competition is one of the largest entrepreneurship competitions and provides participating entrepreneurs with training, mentorship, media exposure, and networking opportunities.

Apply now to the 9th MIT EF Arab Startup Competition on www.mitarabcompetition.com for the chance to win:

Startups Track: $50K for the first place winner, $15K for the second place winner, and $10K for the third place winner

Ideas Track: $15K for the first place winner, $10K for the second place winner, and $5K for the third place winner

Social Entrepreneurship Track: $15K for the first place winner, $10K for the second place winner, and $5K for the third place winner

 

MITEF Roadshow Competition

Three lessons I learned from Startup Weekend (Kuwait)

Last week, the third version of Startup Weekend Kuwait took place at The VIVA Coded Academy. The whole weekend was exhilarating and intense! Over 120 people participated, forming 21 full teams that built MVP’s, put together business cases, and presented in front of the judges and audience after 54 hours of non-stop work. The turnout, energy, and resounding success of the event showed how far the startup scene had come in Kuwait over the past 18 months!

It’s always amazing to see how real life situations and decision making play out in teams over the course of the Weekend. Mobile or Web? Focus on marketing or building the product? Subscription Vs Freemium? Designs Vs Functionality? I saw every team dealing and struggling with these decisions, as would a real startup in “the real world”.

Along the same lines, as an organizer and observer during Startup Weekend, I learned a thing or two (or three) about what it ultimately takes to be build a successful startup:

Lesson one: It’s (mostly) about the team, not the idea

One of the participants, called Mohammad, was looking for a team to join late in the first day. Most teams had already formed, but I knew Mohammad personally, and knew that his marketing and event management background made him him a valuable member to any team. As I was walking around with him trying to find a team, I was surprised that several teams declined his offer to join them. Eventually, we found a team that had only two members who I knew to be talented and driven, just like Mohammad. He like their idea and they recognized the value they brought to them (both of them were coders/ designers). They formed a small but strong and balanced team of three.

Their initial idea was ambitious, but they pivoted to something entirely and extremely different. It wasn’t as ambitious, and I personally thought there were at least 4 or 5 more exciting ideas in the competition. I didn’t like their chances. But, lo and behold, Mohammad’s team won first place. Their idea, Mukancom, is a platform to find co-working space in Kuwait. Arwa and Shahd, Mohammad’s team mates, did a stellar job building an MVP. But, going by the judges score cards, what really set them apart was Mohammad’s final presentation. There might have been better ideas out there, but Mukancom’s overall execution and presentation was superb, and their team was strong on all fronts, and that made all the difference. (There’s another lesson here about pivoting too).

 

Lesson two: It’s not about the money, money, money

One of the things that caught my attention was the participant’s seemingly lack of interest in the cash prize. Over 210 people had signed up as participants before we had event announced the money reward. I made the announcement on stage during the event, and I distinctly remember listing the non-cash prizes first (free co-working space at Sirdab Lab, free UX consultation from Catalyst) and leaving the cash prize at the end, anticipating it would get the biggest cheer. That wasn’t the case. The non-cash prizes got a lot more noise and excitement than the cash prize announcement.

In fact, not once during the Weekend did I hear people talking about the cash prize. I got asked a few times about the non-cash prizes. It seemed that no one really cared about the money at the end of it all. And yet here there were, 21 teams working 54 hours straight without much regard for the possibility of monetary reward.

You often hear successful people say something like “Don’t start a business for the money” or “At the end of the day, it’s not about the money” but those sayings often get dismissed as idealistic mantras reserved for the already rich and successful. But the lesson I learned here is that passion, competition, and the desire to build something worthwhile are far bigger motivators than money. (I’m happy to report that the top 5 teams have all continued working on their startups after the event!)

 

Lesson three: The true value of having a co-founder

In Startup Weekend, most dropouts occur late in the second day. It’s around that time when participants start feeling exhausted, and the finish line is oh-so-far without any guarantee of success. Our lead organizer tells me the following story: two participants from the same approached him around midnight on the second day. One of them, the “CEO” of the team (she came up with the startup idea), told him she wanted to quit. She was mentally drained and didn’t think her team had a chance of winning, so she wanted to pack up and go home.  But her teammate (the co-founder) insisted she stays. She was asking the organizer to convince the CEO not to give up. She was begging her friend to see it through until the final presentations, for the sake of the team, because she knew that if the CEO quit, the rest of the team would too. The CEO, quite literally with tears in her eyes, decided to soldier on.

That team ended up winning second place, and were in close contention for first place.

It goes to show that, above all else, the greatest benefit of having a co-founder is having someone to lean on when you’re ready to give up. In the emotional roller coaster that is a startup, co-founders must take it in turns to support each other through the tough times.

 

I can’t wait for next year’s Startup Weekend, where I’m sure the ideas will be even bigger and better!

 

 

 

 

 

Announcing this week’s Coffee Meetup + Raspberry Pi Talk

Hi all,

For the third week running, we’re having our weekly Coffee Meetup at The VIVA Coded Academy. What happens at the weekly Coffee Meetup, you ask? It’s a casual get-together for local entrepreneurs and tech enthusiasts to meet, network, share ideas and collaborate over some good coffee.

As with previous weeks, there’ll be a talk following the meetup directly. This week’s talk is part of the Google Developers Group weekly talks. The subject this week is Raspberry Pi! (Yes, we used an exclamation mark because we’re excited!)

If you aren’t familiar with it, Raspberry Pi is a small sized computer that plugs into a monitor and enables people to explore computing and hardware programming. It’s a great tool for beginners as well!

If you’re interested in building hardware and want to learn how to program your creations, this talk is for you! Come learn the incredible things you can do with Raspberry Pi!

The talk will be given my Abdulrahman Alotaibi, who holds a degree in Computer and Electrical Engineering (with a minor in Computer Science), and has placed fourth in International Aerial Robotics Competition 2012.

Abdulrahman also spoke at DjangoCon Europe 2015 in Cardiff (UK), and is one of Google Developers Group Kuwait organizers.

Here are all the details:

When: Wednesday, Sept 2.

Schedule:

7.15 pm- Coffee Meetup

7.45 pm- Raspberry Pi Talk

9.00 pm- Discussion, Network, and Pizza!

Where: The VIVA Coded Academy at Al-Tijaria Tower- 35th Foor

 

As always, this is an open invitation and everyone is welcome to join!

 

RECAP: StartupQ8 Monthly Event (August ’15)

Every month, StartupQ8 hosts two speakers from the startup world to talk to the Kuwaiti startup community about some of the lessons and experiences they’ve went through, and talk about the startup they’re currently working on. Last night, the event took place at The VIVA Coded Academy. The two speakers were Ali Abulhasan, co-founder of goTap, a new payment ecosystem for Kuwait, and Saleh Almusallam, co-founder of Prodesign IT, the makers of FanScan (Instagram based app that has over 3 million downloads).

The two topics of discussion were mirrored around how a technical founder deals with the business side of a startup (Saleh’s part), and how a business founder manages a technical project and a development team (Ali’s part).

Both speakers offered valuable insights on their respective approach. For Ali, he admitted having initial trouble bridging the gap between himself and his technical team. One of the ways he mitigated that was by educating himself on some of the fundamentals of software as related to his field (payments) in which he already had previous experience. The other way was for him to board on developers who had the right mindset for a Tap’s philosophy of focusing on user experience. Ali admits that he would love to have more developers on his team, but that a lack of coding talent has restricted him greatly in that sense (we hope our Coded students can solve that problem!). To combat that issue, he tries to work with freelancers who might have the potential and intention to become full-timers at Tap.

As for Saleh, he faced a different dilemma. Saleh is a technical founder, and has had experience launching a few applications and websites. In his talk, he discussed the importance of learning on how to stay “lean”. He warned that the biggest pitfall for a technical founder was not in disregarding the business side, but rather the need to perfect a product before launching. Saleh advised the audience that “done is better than perfect”, alluding to the importance of launching a product early to gain feedback and data on usability. As for dealing with the business side, Saleh is a believer in first making something people love, than backing that up with venture financing and a strong business model that comes naturally with the product. He did, however, warn against sticking to a single revenue stream or remaining inflexible when it comes to changing the business model.

 

Stay tuned for more of our monthly events to hear more from startup founders and entrepreneurs! Don’t forget to follow us on Twitter and Instagram @startupq8

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