Tag Archives: startup ecosystem

Rebranding Lebanon: The Media

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In a country such as Lebanon that has suffered from decades of instability and troubled civic finances, rebranding is of essence. Since Banque du Liban introduced Circular 331, the Lebanese startup ecosystem has been thriving and the world has been recognizing the country’s attempt to foster innovation and development.

BDL Accelerate 2015 themed, ‘Emerging Startup Ecosystems,’ will gather entrepreneurs, investors, and support institutions from key emerging markets across 5 continents under one roof. So far, the organizers have received over 3500 registration requests from around 50 countries to attend the conference. The success of BDL Accelerate 2014 in establishing Lebanon as an international startup hub has created a global buzz attracting a considerable increase in the number of international applicants to BDL Accelerate 2015.

The change in the Lebanese global reputation is happening and although the process to erase stereotypes may be difficult, they are taking place and the country is signaling change. Everyone has a role in rebranding a nation, but mass media, both traditional and social media, play a major role by promoting all the positive aspects. As the media are observing the impact and benefits of the local startup scene, they have been more enticed to communicate it to their audiences.

Below is a sample of the media outlets who are sponsoring and partnering with BDL Accelerate 2015:

MIT Technology Review Arab Edition, regionally renowned for providing intelligent and serious journalism on technology, will promote innovation through Arab figures at BDL Accelerate 2015. They will be providing regional readers with success stories in the Arab world by exploring and understanding their new technologies and their impact.

In the spirit of finding the next generation of entrepreneurs, the BDL Accelerate 2015 team has been visiting all major universities in Lebanon to inspire youth to join the startup movement and attend the conference. NRJ Radio, Aghani, and Nostalgie have been tagging along to spread the word further and farther. High school students are also encouraged to attend, with a couple of schools already scheduling class trips for their senior students.

BDL Accelerate 2015 has also secured a long list of local and regional media partners:
Al Hadeel, Al Morakeb Al Mali, Al Massira, Al Hasnaa Magazine, Al Bank Wal Mustathmer,Al Bayan, Al Kifah Al Arabi, Joumhouriya, Assafir Daily, Al Sharq, Al Markazia, Tree Ad, Lebanon Daily Star, The Gate, iloubnan, Ekarouna, Focus Magazine, L’Orient Le Jour, Le Commerce Du Levant, Leader Press, FaceLook, Naharnet, National News Agency,  Aalamoki,  Al Markaziya, El Nashra, Al Liwaa,  Ad Diyar, Today’s Outlook, T3 Middle East, Iktissad Wa Aamal, Sinna Iktisad, Beiruting, Lebtivity, Bread on Butter, LiveLoveBeirut, NABD, Techrasa, International New York Times,  Inspirational Unlimited eMagazine.

Are Unicorn Startups Too Good To Be True?

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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?

Understanding Startup Ecosystems

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understand ecosystemEntrepreneurs require the proper startup ecosystem to nurture and thrive. The recent growth of the Lebanese startup ecosystem is incredibly exciting and has been extremely evident in 2015, as is distinct in the collaborations amongst entrepreneurs, support organizations, and investors.

A startup ecosystem is formed by several components interacting as a system to create and sustain startup companies. A successful startup ecosystem is highly developed in all areas of the components. For ecosystems to become a self-sustaining source of innovation, lead to economic growth, and create jobs, it needs to have the following 6 pillars:

  1. Human Capital
    These are the individuals starting, joining, and guiding startup companies. It’s vital to have access to a good quantity of high-quality workers with exceptional skills and competencies. These qualities include but are not restricted to the level of education, the number of graduates, the fields of specialization, and the level of professional expertise. If entrepreneurs are considering global expansion, then English communication is an important skill they would need to have, since it is the global language for international business.
  1. Knowledge Resources
    Having knowledge resources dedicated to a startup ecosystem is a fundamental success factor. It is essential to increase the knowledge generated and distributed within the ecosystem. Universities, innovation labs, and mentoring and network programs all push startup ecosystems to thrive.
  1. Capital
    A fundamental pillar of a successful startup ecosystem is its accessibility to funding opportunities. Funding sources may vary from venture capital firms, loans, angel investors, grants, and accelerator programs to the 3 F’s (friends, family and fools). Choosing the wrong funding source may be detrimental to a startup’s growth therefore founders must be very diligent when raising capital for their company. When evaluating this pillar we don’t only examine the amount of available funding as lump sum but we also examine how it is spread over the different startup growth stages. A successful ecosystem is one where a promising startup at any stage of growth can raise intelligent money.
  1. Governance
    Governmental regulations and policies can make or break a startup ecosystem. Having laws and regulations that support businesses being created, as well as the investors that fund them, move ecosystems in massive strides.
  2. Infrastructure
    Startups require access to affordable office space/ co-working spaces, high-speed internet, mobile, and utilities amongst other requirements. The lack of infrastructure may be detrimental to forming a successful startup ecosystem. Incubators and accelerators tend to provide some, if not all of these needs to prospective startups. Moreover, the city’s actual infrastructure, such as transportation and good standards of living, is a crucial factors to striving startups.
  1. Markets and networks
    Finally, markets and networks refer to the local market size and its dynamism, in addition to having access to other considerable-sized markets. The market needs to be large enough to sustain the startup’s business and if it’s not growing enough, it could turn away investors and entrepreneurs.

Taking into consideration all the 6 pillars, Lebanon may not have a highly developed startup ecosystem; however, there really is no startup ecosystem in the world that is perfect. We have observed several positive signs indicating that the Lebanese startup ecosystem is headed in the right direction.

What to expect at BDL Accelerate 2015

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The theme for BDL Accelerate 2015 being “Emerging Startup Ecosystems,” Lebanon’s 2nd international startup conference will be bringing together influential stakeholders from startup ecosystems from 9 key cities – London, Istanbul, New York, Tehran, Berlin, Cairo, Singapore, Madrid, and Beirut. An exceptional set of startups, venture capitalists, accelerators, policy makers, and more will represent the 9 ecosystems that will each have its own pavilion to showcase its institutions.

There will be 2 stages at the conference, one of which will be dedicated to panels, keynotes, and fireside chats as a space for 100 influential speakers from over 30 countries to share their best practices, discuss the challenges they faced during the developing stages of their ecosystems, and exchange their knowledge. The aim of the valuable engagement and knowledge shared on this stage will be a great stepping stone for the Lebanese ecosystem to thrive through learning from the trials and errors of other ecosystems.

The second stage will be dedicated to the startup pitches as part of the two competitions BDL Accelerate 2015 is hosting dedicated for idea stage startups and early stage startups. The aim of these competitions is to educate and provide tools to aspiring entrepreneurs and to assist them in succeeding, as well as to find the best startup in the local scene.

Applications for the Idea Stage Startup Competition are currently open until (updated) November 1. Once teams are selected, successful applicants will be notified to partake in a series of weekly workshops over the span of 5 weeks, around the “Reimagine Lebanon” theme. The workshops are offered by SETT, a think tank focused on enabling emerging startup ecosystems, empowering youth with the entrepreneurial skills to develop solutions for a better Lebanon. The participating teams will pitch their ideas to a panel of judges in front of an audience during Banque du Liban Accelerate 2015 for the chance to win 5,000 USD. To be eligible, one may be of any age and background with the will to learn new methods of thought and passionately wants to create an impact in their community.

The 2nd competition, the Early Stage Startup Competition, features a pitch competition for early stage startups. The deadline for applying for this competition is November 9th, from which the selected startups will pitch at Banque du Liban Accelerate 2015 for a chance to win 10,000 USD in cash, and the opportunity to win a trip to a top tier international startup competition.

Emerging Startup Ecosystems

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ecosystem

Under the leadership of Banque du Liban (BDL) and following the successful BDL Accelerate 2014, entrepreneurship in Lebanon has been taking off, the ecosystem has been taking shape, success stories have been popping up, and dedicated accelerators and investors have been active.

Under the theme “Emerging Startup Ecosystems,” this year’s conference, BDL Accelerate 2015, aims to bring influential stakeholders from startup ecosystems from around the globe to share their best practices, discuss the challenges they faced during the developing stages of their ecosystems, and exchange their knowledge. For an early stage ecosystem such as Lebanon, such valuable engagement and knowledge are essential to educate and inspire attendees to learn from the trials and errors of other ecosystems.

There are diverse perspectives to what contributes to the development of ecosystems and to what factors could lead to its stagnation. BDL Accelerate 2015’s mission is to build a sustainable and vibrant entrepreneurial ecosystem in Lebanon through the education of the thriving Lebanese ecosystem by bringing together exceptional entrepreneurs, investors, and support institutions from 9 key cities – London, Istanbul, New York, Tehran, Berlin, Cairo, Singapore, Madrid, and Beirut to share, inspire, network, connect, learn, exhibit, fundraise and do business at BDL Accelerate 2015.