Tag Archives: BDL Accelerate

Are Unicorn Startups Too Good To Be True?

Written by

tech bubble

Unicorn is a term that was recently introduced in the venture capital industry. The term denotes startup companies that have soared to $1 billion valuation or higher.  Just like unicorns, the billion-dollar startup was once considered a myth because it was so exceedingly rare for a startup to be worth a billion dollars. Today there are over a hundred startup companies valued over $1 billion.

According to CBS Insights, there is a total of 142 unicorn companies with a cumulative value of $506 billion. Moreover, CBS Insights in collaboration with The New York Times have predicted 50 future unicorn companies. The list of unicorn companies comprises companies such as Uber, Snapchat, Airbnb, Pinterest, Dropbox, Spotify, and Jawbone to list just a few.

The list of unicorn companies has been growing at a rapid pace, almost doubling within 2015. This proliferation of unicorns has many concerned that it is a sign of a tech bubble that is ready to burst. The investors and observers who believe that a tech bubble burst is imminent point towards companies they consider to be unreasonably over-valued, such as Uber, currently valued at $51 billion, apparently a higher valuation than the entire global taxi market. They state that low interest rates have pushed more money into venture capital investment creating a false sense of security.

However, many argue that what we are witnessing is actually a tech boom and these valuations are justified although tech stocks are at an all-time high, and startup valuations are hitting astounding numbers. They believe that these companies may be temporarily overvalued, but they have real revenues and the economies worldwide are shifting in their direction, taking into account the surge of the number of people connected to the Internet that increased from 450 million people in 2000 to 3 billion people in 2014 and the mobile revolution. They state that when you view these high-growth startups as a long-term portfolio, it is evident that there is no impending danger or risk of burst.

The question remains, are unicorns no longer a magical occurrence or are we witnessing a unicorn bubble?

Ahmad Ashkar – Hult Prize

Written by

Blog-template-partner (3)

Ahmad Ashkar
Hult Prize, CEO & Founder

Ahmad Ashkar is the CEO and Founder of the Hult Prize Foundation, named by President Bill Clinton and Time Magazine as one of the top 5 initiatives changing the world. Ahmad is one of the world’s notable experts in crowd and venture philanthropy. He specializes in entrepreneurship, innovation and strategy, and global expansion.

As a Palestenian-American, Ahmad is also an active social entrepreneur in the West Bank where he recently co-founded PalestineWater Company, a public private partnership that delivers clean water to the residents of Palestine. His work has been regularly recognized across the globe receiving several accolades; Harvard Business Review recognized Ahmad as a social innovator, the World Economic Forum nominated him as Young Global Shaper, and he has also been nominated as TR35 Pan Arab Top 35 Innovators Under 35, and a Power 30 Under 30 nominee.

Ahmad also serves as an adviser to both private and government sector entities across the Middle East and Latin American consulting on youth empowerment, entrepreneurship, crowd science and social entrepreneurship. As a recognized expert, he regularly appears as a coach and speaker at the Clinton Global Initiative, World Economic Forum, UN Social Innovation Summit and other notable gatherings.

The Hult Prize Foundation is a startup accelerator for young social entrepreneurs. Hult Prize is the largest student competition for social good in the world: the annual, year-long competition which pits MBA and college students from around the world against each other in a bid to solve the planet’s biggest social issues. The winners receive US $1 Million in seed capital as well as mentorship from the international business community, to help launch a social enterprise.

Since the Hult Prize was founded in 2009, it has been bringing sustainable change to some of the poorest people in the world and tackling several of the world’s social issues. The businesses created generate sustainability through profitable business models that are designed to bring social and financial impact. Winners have gone on to create businesses that provide holistic services at affordable prices to slum-dwellers specializing in chronic disease management, the world’s largest solar lights distributor, an alternative protein industry in micro-livestock, and a few other notable businesses.

By creating Hult Prize, Ahmad changed the world of social entrepreneurship and has been making an impact on the world. Ahmad, one of the truly inspirational and influential people in our world today, will be speaking at BDL Accelerate 2015.

Social Entrepreneurship on the Rise in the Region

Written by

social enterprise

Social entrepreneurs are visionary individuals who create innovative solutions to some of the world’s most perplexing social issues to create a widespread change. They create socially responsible businesses that aim to generate profit whilst solving social and environmental problems and then implement these solutions on a large scale.

Social entrepreneurships are often confused with non-governmental organizations (NGOs). The main difference between the two is the revenue model. NGOs rely on charitable contributions, public funding, and grants to support their programs and cover their overhead. When the economy is bad, donations, funding, and grants decrease if not disappear, causing many NGOs to shut down. Social entrepreneurships, however, have a steady stream of income; similarly to regular businesses, they take loans and form partnerships to expand and ensure that they and their programs are sustainable. Their aim is to create self-sustainable enterprises that do not rely on external funding or donors’ agendas, hence a much more powerful solution than charitable organizations.

Looking at the MENA region, an area with a high youth population who has been expressing dissatisfaction with the status quo, there has been a rise in civic engagement, so it is no surprise that there has been a rise in the number of social entrepreneurs. The socially committed young generation has been faced with several societal, political, and economic challenges and has turned towards social entrepreneurship as an opportunity to address those challenges. Through self-funding businesses, they aim to create a social impact at an accelerated pace.

Social entrepreneurship has highly benefited war-ridden and poverty struck regions in moving forwards in addition to addressing social development challenges. This new generation has the desire for independence and incorporates a sense of responsibility that goes significantly beyond themselves and their surroundings; and social entrepreneurship is particularly well suited and relevant to them.

In Dubai, Dumye has received recognition for their efforts in nourishing orphans. The concept is that with each handmade doll purchased, Dumye donates a doll to an orphan and hosts art workshops for orphans to create their own dolls. The enterprise has been selling dolls in over 14 countries and hosting workshops throughout the region, most recently to 200 orphans in Lebanon. This idea has empowered children to create something on their own, and it works as a form of therapy. Tahrir Academy in Egypt has been crowdsourcing knowledge to provide video content to deliver educational videos to teenagers, thus impacting education and increasing human rights awareness. Nawaya Network in Lebanon has provided a network to connect youth with resources to train them on skills through several workshops, providing youth with an opportunity in their lives that was otherwise unattainable, and providing them with a chance to generate income and with a sense of self-worth. Then there’s renowned Ahmad Ashkar, who, in addition to creating and founding Hult Prize, the world’s largest social entrepreneur completion, has co-founded PalestineWater Company, a public private partnership that provides clean water to the residents of Palestine.

With rising social problems across the region, the youth understand that there is a need for change. Many inspirational youths are opting for the path that fulfills them socially, morally, and financially. The region’s flourishing entrepreneurial scene has started to recognize the social component and has been providing workshops and mentorship dedicated to social impact.

Marianne Hoayek – BDL

Written by

Blog-template-partner

Marianne Hoayek
Banque du Liban, Director of the Executive Office

Governor Riad Salameh assigned Marianne Hoayek to the challenging task of restructuring Banque du Liban (BDL) in 2005. This huge endeavor was the starting point for Hoayek’s tenure at BDL. 10 years later, she is the Executive Director of the Executive Office that reports directly to the Governor.

The main mission of the Executive Office is to manage and follow up on the organization and reform projects that fall within BDL strategic orientation, and to coordinate their implementation in addition to promoting Corporate Social Responsibility. It is also the Executive Office that oversees the implementation of BDL Circular 331 that encourages Lebanese banks to invest in the startup ecosystem that resulted in US $400 million startup funds. This ambitious project aims to create employment opportunities, and generate income and economy growth.

BDL Circular 331 looks to reverse the trend of Lebanon’s university graduates leaving the country to look for jobs elsewhere. Hoayek stated in her speech at BDL Accelerate 2014 [insert link to script] that Lebanon has the human capital and talents required to develop a startup ecosystem but what was missing were the appropriate tools and financing hence why BDL decided to intervene. It is through BDL Circular 331 that many companies now have the chance to bring their innovative ideas to life not only through the financial aspect, but also by backing and supporting boot camps and training programs that would support and help entrepreneurs develop further.

You can find Marianne Hoayek’s speeches from BDL Accelerate 2014 at the below links:

To watch her speech at BDL Accelerate 2014 Opening Ceremony click here.
To read her introduction speech click here.
To read her closing note click here.
Or watch her closing note click here:

Riad Salameh – BDL

Written by

Blog-template-partner (2)

 

Riad Salameh
Governor of Banque du Liban

Riad Salameh graduated with a degree in Economics from the American University of Beirut. He has been the Governor of Banque du Liban (BDL) for 22 years. He was appointed in1993 and then reappointed for three consecutive terms in 1999, 2005, and 2011. In this capacity, he chairs the BDL Central Council, the Higher Banking Commission, the AML/CFT Special Investigation Commission, the Open Market and Investment Committees, and the Capital Markets Authority. Moreover, he is a member of the Board of Governors at the International Monetary Fund (IMF) and the Arab Monetary Fund (AMF). Prior to becoming Governor, he had an extensive career in Merrill Lynch Beirut and then in Paris, where he was the VP and Financial Advisor at Merrill Lynch.

It is with Governor Salameh’s leadership and his belief that the knowledge economy should become one of the pillars of Lebanon’s economy, along with his confidence in Lebanon’s human talent, that BDL issued BDL Circular 331 to encourage Lebanese banks to invest in this sector.

As governor of Banque du Liban, Governor Salameh has maintained economic stability despite all the political and military turmoil Lebanon has faced since 1993, as well as numerous global economic crises. His achievements have been recognized locally and globally. He has received numerous awards and accolades throughout the years including Central Banker of the Year 2009 by The Banker Magazine, the 2006 Euromoney Award as the best Central Bank Governor in the World, the 2005 Euromoney Award for Emerging Markets as the Best Central Bank Governor in the Middle East, and several more Euromoney Awards.

To read Governor Riad Salameh’s  opening speech at BDL Accelerate 2014 click here and/or watch the opening ceremony: