Flat6Labs records highest number of start-up deals in Egypt

Flat6Labs, a firm specialising in start-ups has made the highest number of start-ups deals in Egypt, investing in 46 ventures out of 123 completed entrepreneurship deals, a recent Egypreneur study showed.

Although start-ups have good growth potential, investing in start-ups is risky for investors as entrepreneurs cannot guarantee that the project will succeed, the study said. It also emphasised that entrepreneurs should show investors their potential and skills to convince.

Egypreneur (Egypt Entrepeneur) is a network, founded by AbdelRahman Magdy in 2008, to empower of Egyptian entrepreneurs, providing them with resources, services and support models. It created the study to provide basic understanding of the stages that entrepreneurs go through from idea until building a successful company, focusing on the funding process.

According to the study, only 5-10% of start-ups can keep their company alive after the first three years.

Discussing the process of start-up funding, the report said that there is a complete industry that focuses on supporting emerging ventures through buying parts of them in exchange of cash, adding that the funding process happens at different stages until the business model can be a part of the corporate finance world.