SME 10X Exclusive: 5 most prestigious foreign accelerators in the MENA region
Over the last few years, there has been an increase in the number of foreign accelerators that have come to the Middle East. This article delves into the 5 most prestigious foreign accelerators that have come to the MENA region to accelerate local startups, and the expertise that they bring with them.
Accelerators and startups share a mutually beneficial relationship. While each of them are crucial to the growth of an economy in their own regard, they are also interdependent for long-term success. The MENA region is seeing a budding startup ecosystem, in line with its vision to divest from oil dependency and nurture long-term beneficial drivers of the economy. This, along with the market growth potential and support from the government, is not only attracting new venture capital firms and accelerators to set up in the region, but also major venture capital firms and accelerator programmes from outside the region.
Foreign direct investment is one of the major goals of every country, since foreign investments in a country not only bring in money, but also skills, developmental support and technology. Closer to home, the startup ecosystem needs support from the government and investors alike to grow and lay the groundwork for the future success of the economy. Hence, to have foreign investors take interest in a country’s startups is a major milestone for the region and the countries therein, as it shows the quality of the startup ecosystem.
However, looking from the perspective of a foreign investor or accelerator, it is also very beneficial to track and tap into the growth of emerging economies, which the Middle Eastern countries certainly are with lots of potential and a young population. It helps them diversify their portfolio as well as pave the way for long-term growth. Hence, it’s no surprise that major investment firms are entering the MENA market and offering attractive deals and accelerator programmes.
Following are the 5 popular and prestigious foreign accelerators that have set up and invested the MENA region:
500 Startups MiSK
This accelerator programme is a partnership between 500 Startups, a US-based venture capital firm and Saudi-based Misk Innovation, an initiative of the MiSK foundation, which is a non-profit philanthropic foundation set up by Saudi Crown Prince Mohammed bin Salman.
The programme is based in Riyadh and focuses on pre-seed and seed stage MENA startups in the fields of B2B, B2C, E-commerce, FinTech, EdTech, HealthTech, IoT, Robotics, Artificial Intelligence, SaaS and Messaging services. Two basic criteria for admission are that the startups need to have full-time founder(s), who are also required to have a strong grasp of the English language as the programme will not be offered in any other language.
Each batch selects between 15 to 20 startups and lasts for 16 weeks. In addition to investing $50,000 in each of the admitted startups from the 500 Falcons fund, the programme will also bring global expertise from 500’s international team of partners, entrepreneurs and mentors, with the aim of helping these startups accelerate their development through customised advice, growth hacking and data-driven sales techniques.
Plug and Play–ADGM
Another prominent accelerator programme born out of a partnership between a foreign accelerator and a government entity is Plug and Play–ADGM. Launched in 2018, the programme brings the expertise of one of the world’s largest accelerator programmes, Plug and Play, to FinTech startups in the region.
The programme, part of the new ADGM FinTech Innovation Centre, is planning to intake 10 to 20 startups within a year, with each batch lasting for three months and receiving funding mainly from the Innovation Centre.
Startupbootcamp
Startupbootcamp launched its accelerator programme in the second half of 2018 as well, with the aim of supporting the city of Dubai to become a world leader in the financial services innovation and technology.
The programme, in partnership with Dubai International Financial Centre (DIFC), HSBC and Visa, is planning to accelerate 40 startups within the field by 2021. The three-month programme will not only provide each batch with highly curated access to resources, technology, insights and expertise, but also support from Startupbootcamp’s global network of partners and investors, free co-working space and €450,000 worth of partner deals.
TechStars in partnership with GINCO
TechStars, a global network founded to support startups, has partnered with GINCO Investments, an investment arm of the GINCO Group founded to support local SMEs and entrepreneurs, to offer its accelerator programme to MENA startups. In 2019, the programme will take place in Area 2071 in Emirates Towers in Dubai, which is a government and private sector experimentation space launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
Claiming to be MENA’s top accelerator programme by initial check size, in-program benefits, and follow-on funding, TechStars offers a 90-day programme to approximately 10 startups per batch; with mentorship and training from its global network of partners and entrepreneurs.
Brinc–Batelco
Once again, 2018 saw an international accelerator set base in the MENA region, with the launch of Brinc in Bahrain, in partnership with Batelco, the Kingdom’s leading digital solutions provider.
Investing in early-stage startups, Brinc is the first Internet of Things hardware accelerator in the MENA region. The accelerator programme aims to support startups and entrepreneurs that are working on ways to unlock the world’s data through connected solutions.
Overall, we see many foreign accelerator programmes from across the world coming to the MENA region and being set up in partnership with local investment firms or government entities. This not only gives the homegrown startups access to international expertise and resources, but also gives foreign companies a chance to be part of the transformation of the emerging MENA region.
