Egypt's startups compete for venture capital on global stage

Ahmed Galal’s dental business was not doing well for a year following Egypt’s 2011 uprising, before he started a new project.

The middle-aged Egyptian dentist decided to shut down his clinic and launch an online venture to help connect consumers with the qualified craftsman they need.
"I don't intend to return to my dental career, at least for now as I’m feeling more comfortable with the new project," Galal told Ahram Online. "We are growing so fast, the venture's investments are currently worth LE1.6 million pumped by multinational investors."

His project, Taskty (MyTask) is eyeing LE900,000 in investments and is seeking finance by venture capitalists at Cairo’s third RiseUp Summit for startups.

The startup scene, empowered by the revolutionary euphoria, began to gain momentum in 2011 while the country endured economic crises and saw its unemployment rate accelerate to 13 percent, up from 9 percent in 2010.

Thousands of attendees participated in the Cairo RiseUp Summit earlier this week in the hopes of following in the footsteps of young entrepreneurs who made millions, said Ahmed El-Ibyari, partner at startup coaching company Intellect ME.

“The trend of having a startup or new business is becoming very popular in the new generation,” El-Ibyari told Ahram Online on the sidelines of the summit which aims to forge connections in the startup scene and promote the growth of new businesses.

Chris Schroeder, venture investor and author of a book on the rise of startups in the Middle East, told Ahram Online that the success of the Yahoo acquisition of Maktoob in 2009 has encouraged young entrepreneurs to establish their own businesses.