Egypt is among the active areas for investment in emerging companies



Wednesday 11/December/2024 – 11:03 AM

The Information and Decision Support Center issued In the Council of MinistersA new analysis of startup companies, in which it addressed the definition of startup companies, their life cycle, and the best startup companies at the global level as well as in the Middle East region, in addition to reviewing the role of these companies in driving sustainable economic growth.

Ministers’ information: Egypt is one of the active regions for investment in emerging companies

The analysis indicated that startups have become a vital part of the global economy, due to their significant contribution to creating job opportunities and stimulating innovation.

Start-up companies appeared for the first time in the United States of America in the 18th and 19th centuries, and in the 1980s the concept of start-up companies began to take shape. A number of start-up companies were founded at that time, including Apple, Microsoft, and Genentech. The success of these companies contributed to stimulating… Other companies to start their own business.

The analysis defined emerging companies as companies in the early stages of their commercial activity, which are established by one or more entrepreneurs who wish to develop or provide a new product or service to customers in the market, and indicated that the financing of these companies is done through investors, and companies also pass through… Emerging companies – when established – go through several stages; Among them is the obligation to verify the company’s idea before agreeing on it, and to develop a final structure that explains how to implement the idea starting from establishing the company until achieving profit from it, in addition to developing a business plan that includes a detailed explanation of the company’s activities and the functional tasks of each department in the company, and converting the idea into a trademark to give A clear identity for the project, then registering the company with government agencies to guarantee its ownership rights and facilitating its work in the market, then arriving at the most difficult and most important stage in all stages of construction, which is the search for safe financing, as the success of that stage affects the success of the entire project, and that stage is completed by selecting The right financier And communicate with him by the best means, and finally the company begins its real activity after obtaining appropriate financing.

The analysis reviewed the life cycle of startup companies, as these companies pass through four stages:

-The idea: This stage focuses on evaluating the project business idea, seeking the assistance of specialized experts, reviewing the work of specialists in the field of interest of the company founder, and conducting interviews with them.

– Launch: During this stage, the company works to implement the idea on the ground, taking into account determining the product or service that it will provide and finding a suitable market to provide the product.

Growth: This stage is related to the process of expanding the scope of work, and once the company reaches that stage, this means the company’s success in launching the product and expanding its consumer base. The major obstacle at this stage is dividing time between different requests, such as: identifying new customers, helping customers, and developing Product.

-Maturity: At this stage, the company aims to search for new opportunities for expansion by increasing the staff providing the service or searching for new opportunities to develop the product.

The analysis indicated that the Startup Ranking Foundation – which works to promote startups around the world – provides a classification for all startups in the world, and it is worth noting that India acquired three companies among the top 10 startups in the world in the ranking during the year 2024, including the company Cutt.ly, which shortens long electronic links, came in second place with a score of 87.5 points out of a total of 100 points. On the other hand, the United States of America acquired two companies among the top 10 startups in the world during the same year: Open AI, which operates as a search engine based on artificial intelligence, which ranked first in the world with a score of 88.61 points, and HotJar. Which provides behavioral analytics and feedback data to help a person understand customers.

The analysis also indicated that emerging companies in the Arab world continue to flourish and grow, and this has become clear in recent years through the trend of major companies towards investing in emerging companies in the region, as Al-Tayyar Travel Group – the largest travel company in the Arab region – and Majid Group invested Al-Futtaim is involved in emerging companies, in addition to concluding many major deals in the Arab region, including Amazon’s acquisition of Souq.com, and Emaar Malls Construction’s acquisition of a majority of Namshi.com’s shares. The United Arab Emirates is at the forefront of Arab countries in terms of its embrace of startups, and Egypt, Lebanon, and Jordan are very active areas for investing in startups.

It is worth noting that the search for safe financing for startup companies constitutes the most important stage of the establishment stage, and the success of the project is linked to that stage. Accordingly, there are startup companies in the Middle East and North Africa that receive significant funding and have achieved high successes in the fields of food technology, financial technology, video broadcasting, and services. Logistics.

Regarding the top 10 startups in the Middle East and North Africa in terms of funding for the year 2023, the analysis reviewed the most prominent of these companies, as the Emirati shopping and financial services company Tabby, which was founded in 2019, topped the list of startups by obtaining funding amounting to 394 million US dollars. While the leading Egyptian financial services company, Paymob, which was founded in 2015, came in tenth place by obtaining financing of 68.5 million US dollars, and the Kingdom acquired… Saudi Arabia received 50% of the top 10 companies in the region in terms of financing, as the list included 5 Saudi companies, including Tamara e-commerce company, which was founded in 2020, and came in third place by obtaining financing amounting to 366 million US dollars, and TruKKer company for logistical transportation services. , which was founded in 2016, came in fourth place by obtaining funding amounting to 203 million US dollars, and Nana, which is a platform for delivering grocery orders to… Homes, which was founded in 2016, came in fifth place with financing amounting to 212.2 million US dollars.

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