Dash Venture Labs: Our Weekly Picks (Issue No.72)

1. Entrepreneurship/Startups

Saudi Arabia launches The Garage, the Middle East’s largest startup district

Saudi Arabia has announced the opening of The Garage, the Middle East’s largest startup district, situated within the King Abdulaziz City for Science and Technology in Riyadh.

Covering 28,000 square meters, this space now houses over 300 startup companies and was opened as part of the kingdom’s commitment to nurturing innovation, the company said in a statement. The Garage offers 24 meeting rooms, an event area capable of accommodating over 1,000 individuals, and dedicated workshop spaces.

This transformation began in April 2022 with a mission to empower startups and has since forged partnerships with industry giants such as Google for Startups and the National Center for Information Technology Development.

The startup district also boasts an array of programmes, including The Garage Plus, ACCESS, The Garage Incubator, MVP Lab, GAIA Startup Accelerator, and the Middle East’s inaugural Antler programme. Over 10 programme cycles, it has graduated over 230 startup companies, nurturing 450 founders from over 50 countries, collectively generating revenues exceeding SAR24.5 million ($6.5 million approximately). Moreover, these startups have secured investments exceeding SAR215 million ($57.3 million approximately). The startup district has hosted over 40 events, attracting participation from 150 local and international startups, drawing over 3,500 attendees, including partners, investors, and industry experts.

USAID, ITIDA graduate third cohort of Startups Accelerator Programme

An Expo celebration took place today in the presence of the new USAID Mission Director in Egypt, Mr. Sean Jones, and USAID’s Chief Innovation Officer, Mr. Mohamed Abdel-Kader, to celebrate the 23 startups that have graduated from Cohort 3 of the Sultan Hussein Kamel Innovation Hub in Cairo, Egypt. Mr Jones delivered remarks congratulating the startups and reiterated the long-term partnership between the Government of Egypt and the U.S. and how supporting the entrepreneurship space is key to Egypt’s road to achieving the objectives of Egypt’s Vision 2030.? Entrepreneurs engaged with the USAID Mission Director on strategic priorities related to USAID’s plans for supporting the Government of Egypt in the next few years.?

The USAID Economic Governance Activity is proud to back this innovative program run by the Silicon Valley-based Plug and Play Tech Center, along with our partners: the Information Technology Industry Development Agency (ITIDA), the National Bank of Egypt (NBE), and Egypt Post.?

In a three-month-long program that started in June 2023, the 23 startups of this cohort received unparalleled access to resources, mentorship, and networking opportunities they need to succeed in an ever-evolving business landscape. The participating startups were carefully selected for their potential to drive innovation and economic prosperity in Egypt, and they represent diverse sectors, including technology, healthcare, fintech, and sustainability.

The Surpluss becomes first Race to Zero accelerator

Online sustainability exchange, The Surpluss, has been officially designated as an Accelerator by the UN-backed Race to Zero, a global campaign that catalyses climate action for non-state actors to take rigorous and immediate action to halve global emissions by 2030.

The Surpluss is the first UAE-based Accelerator, and one of only 29 global organizations around the world designated with this distinction. The Surpluss aims to assist 500 companies in the UAE within the next year to take transformative climate action to halve their emissions by 2030, and subsequently, reach net zero emissions by 2050. They aim to accelerate the adoption of various Partner initiatives to suit the needs of SME organisations that are struggling with climate action, such as the SME Climate Hub.

Rana Hajirasouli, Founder of The Surpluss highlights “We are incredibly honoured to be given such a distinction, and wholeheartedly believe our mandate of radical collaboration being a necessary pre-requisite for accomplishing the most pressing challenges of our time.”

Dar Ventures and Acasia Group launch architecture, engineering, and construction incubator for startups

Dar Ventures, the venture capital arm of design and engineering consultancy firm Dar Al-Handasah, has launched the "DARE" incubator programme for startups in the architecture, engineering, and construction (AEC) industries across the Middle East and Africa.

Selected startups will receive financial and non-financial support, such as mentorship and coaching, while also benefiting from Dar Al-Handasah's?network of partner universities. The six-month programme is operated by Acasia Group, formerly Cairo Angels.

"The AEC industry is valued at $12 trillion. That said, it accounts for a fraction of global venture activity, representing less than five per cent, if not far less. That leaves DAR ventures with a very vast opportunity to spur innovation in the AEC sector by setting up an ad-hoc marketplace to empower early-stage startups," said Ranya Saadawi, CEO of Acasia Group. Last year, Dar Al-Handasah, in partnership with SIAC and Flat6Labs, launched Makers, a contech accelerator programme geared towards Egyptian startups.

AstroLabs joins forces with LBS’s MENA Entrepreneurship Club

The prestigious London Business School’s MENA Entrepreneurship Club joined forces with AstroLabs, MENA’s leading entrepreneurship ecosystem builder, to support aspiring entrepreneurs with their journey in the Kingdom by bringing the first of a series of co-hosted events in Saudi and the UAE.

The panel discussion about the entrepreneurial ecosystem “What VCs look for in a startup,” which was hosted at the AstroLabs coworking space in Al Malqa, Riyadh, brought together some of the most established venture capitalists in MENA, in an effort to bridge the gap between business school alumni and the Saudi entrepreneurial ecosystem. Through this partnership, budding entrepreneurs acquire a fleshed-out understanding of the requirements needed to rise through the challenges of early-stage operations.

As a dedicated enabler of Saudi-based businesses, and a leading market entry partner to global corporations looking to expand to the Kingdom, AstroLabs continues to build the bridges needed to tie the Saudi startup landscape together. In this light, London Business School’s Entrepreneurship MENA Club panel discussion proved to be yet another successful endeavor to keep fueling the momentum of Saudi entrepreneurship, while endowing new players with the knowledge necessary to ensure maximum success, and in turn, a more prosperous and digitally-enabled Saudi Arabia.

Stalliongates Capital invest in women led startups

Stalliongates Capital partnered with 7 women Founders at the pre-seed and seed stage earlier this year in UAE and USA. The investment firm with its marketing arm Brandbeat Global, handheld these companies from ideation to scale, exceeding the aggregated valuation beyond USD 500 million for these recently acquired businesses. The recent equity acquisitions of women led businesses by Stalliongates Capital includes Harnet Developments, Go-Insuretech, Veha Holdings, Zadasi, Brainstorm AI, IBIDIA and Quick Skills. It’s a diversified portfolio representing real estate development, insure-tech, ed-tech, generative AI, social community apps, health-tech and beauty industry. The only common denominator is women founders.

"We bring a unique value proposition for startup founders and business owners by addressing two most important needs; investment, and marketing. It’s a three-step process. We fix the business ideation and modeling, achieve market validation through creative monetization architecture and scale aggressively through our creative brand marketing strategy. Getting the marketing formula right is as important as getting the core business idea right”, highlighted Shafaat Hashmi, Chairman Stalliongates Capital and CEO Brandbeat Global.

Tamkeen supports EO Accelerator Program in Bahrain

Tamkeen (The Labour Fund, Bahrain) signed an agreement with Entrepreneurs’ Organization Bahrain Chapter (EO Bahrain), aimed at empowering Bahraini entrepreneurs to expand their businesses through the latest edition of the EO Accelerator Program. The program provides comprehensive advisory support and networking opportunities tailored to the needs of entrepreneurs, and it has a proven track record of helping numerous entrepreneurs increase their revenues by the end of the two-year program.

This initiative provides an opportunity for promising Bahraini businesses to enhance their productivity and increase their profitability through both training and advisory aimed at helping them reach revenues upward of USD 1 million at an accelerated pace. EO Bahrain President Bob Thaker said, “This collaboration with Tamkeen embodies our shared commitment to fostering an innovative and sustainable business environment in the Kingdom. The EO Accelerator Program introduces a range of initiatives, enabling participants to scale up their business, broaden their horizons and propel their projects to unprecedented levels of success and growth.”

Over the years, Tamkeen has provided support to entrepreneurs and emerging enterprises through a diverse range of programs and initiatives. More than 19,000 entrepreneurs have received support in launching their ventures, and over 7,000 small and medium-sized enterprises were supported with access to financing facilities.

2. Technology

UAE sets up framework for AI-based laws

The Ministry of Finance (MoF), in collaboration with the Artificial Intelligence, Digital Economy, and Remote Work Applications Office and the Mohammed Bin Rashid Centre for Government Innovation (MBRCGI), is launching a platform to develop financial legislation and policies using digital solutions.

The “Rules as Code” platform builds a comprehensive digital infrastructure for the creation of AI-based laws and regulations. It aims to improve the legislative environment through digital solutions and coding, facilitating the development of financial laws, regulations, and policies. Developed in collaboration with MBRCGI and OpenFisca, the “Rules as Code” platform utilizes digital solutions and coding to streamline the design of financial laws and policies. It aims to make new laws more transparent by presenting them in digitally readable electronic code. The first phase of transformational projects adapts global AI-based models to meet the UAE’s current needs, and these projects will undergo rigorous testing to ensure alignment with national goals.

Deepcoin Labs Receives Crypto-Commodities Trading Registration From DMCC & Launches $10 Million Fund

Deepcoin Labs , a leading venture capital firm specializing in blockchain, digital assets, and cryptocurrencies, is proud to announce that it has been granted the "Proprietary Trading in Crypto-commodities" registration by the Dubai Multi Commodities Center (DMCC) and the launch of a $10 million fund dedicated to fueling early-stage Web3 innovation projects. This initiative underscores Deepcoin Labs' commitment to nurturing high-quality, forward-thinking projects within the Web3 ecosystem, fostering industry growth, and contributing to the broader community while operating within the regulatory framework established by DMCC.

Deepcoin Labs is now actively seeking innovative and quality-driven Web3 projects on a global scale, reaffirming our commitment to shaping the future of the Web3 landscape worldwide. Funding allocations will be determined based on the quality and impact of each project, with direct contributions made to eligible project teams.

Digital Payments Platform Safexpay Enters The Middle East, To Invest $10 Mn To Set Up Shop

Digital payments solution startup Safexpay has expanded its footprint into three key GCC (Gulf Cooperation Council) countries – Saudi Arabia, Qatar and Oman and plans to invest around $10 Mn in the region to set up operations.

The startup is eyeing to launch white-label payment aggregation, payout solutions, and contactless payment features in the region. In a statement, Safexpay said it has partnered with several organisations in the UAE, including Magnati, Abu Dhabi Islamic Bank, Paynest, Dubai Chamber of Commerce, RAKBANK, and Network International, to onboard merchants in the Gulf.

EaseMyAI Targets Middle East Markets After Securing Seed Funding

EaseMyAI, a startup that helps businesses automate processes through its no-code AI solutions, has made headlines by securing $360,917 (Rs 3 crore) in a seed round of funding from Inflection Point Ventures. Founded by Gagan Randhawa, Yaman Bharadwaj, Surendra Sancheti, and Jekin Dedhia in 2022, EaseMyAI offers businesses process automation using computer vision and AI so that they can effectively manage operations and compliance.

The startup, in addition to its no-code platform, provides its clients with a marketplace that enables them to access, upload, and download a variety of business use cases and services to tailor their dashboards and automate specific workflows. As per Randhawa, Co-founder of EaseMyAI, the freshly raised funds will help the startup scale up in markets other than India, especially the USA and Middle East markets, and turn operationally profitable within the coming months.

LFi Labs Launches in Dubai: A Pioneering Central Hub for Crypto

LFi, a pioneering force in innovative technology, continues to break fresh ground in Dubai as it expands its presence locally with the soft launch of its new LFi Labs office. Over a thousand visitors were recently treated to an exclusive sneak peek of this groundbreaking project, which will serve as a central hub of new advancements and innovations by the LFi brand.

LFi's presence in Dubai allows the startup to leverage the city's intellectual diversity and strength as it seeks to harness the best and brightest minds in the region. The company looks to collaborate with visionaries, tech enthusiasts, and creators from various backgrounds to realize revolutionary ideas that will shape the future. The soft launch of LFi Labs served as the perfect occasion for select guests to visit the freshly inaugurated space.

Oracle likely to boost its cloud offering in the UAE and Saudi Arabia

Oracle has plans to add more cloud regions in Europe, the Middle East and Africa, with the UAE and Saudi Arabia leading contenders thanks to their high adoption rates of the technology, according to the company's top regional executive.

In the wider Middle East, the adoption of cloud technology is growing amid the rise of technology-focused young consumers and the evolving digital landscape.

This has given global cloud providers incentive to tap into the potential offered by the region, most notably in the UAE and Saudi Arabia. The two countries are focusing heavily on technology and innovation as part of their economic diversification plans. They will eventually have five Oracle cloud regions between them.

Paradigm 3D establishes first-in-region AED20mln 3D printing facility in Dubai with Stratasys technology

?Paradigm 3D today opened the doors to its state-of-the-art AED20 million 3D-printing facility in Dubai?the first in the Middle East capable of producing parts in accordance with the aerospace-specific EASA Part 21G regulation.

Outfitted with industry-leading industrial 3D printers from Stratasys Ltd. (NASDAQ: SSYS), the facility will initially focus on producing parts for the region’s aviation industry. The 10,750 sq ft. factory in the Jabel Ali Industrial Area will initially have a production capacity of approximately 2,000 additively manufactured parts per year, with expectations to grow to around 20,000 per year over the next decade. Typical components produced at the facility will include aircraft interior components for seating, lavatories, electronic cooling ducts, environment control system ducting, wire guides, filter boxes, micro vanes, gaskets, component connectors, air intake manifolds and more.

Paradigm 3D has partnered with Stratasys’ long-time Dubai-based platinum partner, The Design to Manufacturing Company (theD2Mco) and Latvia-based certified aerospace production company, AM Craft which holds an EASA Production Organization Approval (POA). theD2Mco installed the industrial 3D printers at the new facility and will be responsible for 24-7 uptime and support.

3. Funding Activity

Zero Carbon Ventures closes $5 million Seed investment

Zero Carbon, a company dedicated to bringing carbon-reducing technologies to the Middle East and North Africa region, is honoured to announce the closing of its seed investment round. This coincides with the appointment of His Highness Sheikh Ahmed bin Mana bin Khalifa Al Maktoum as strategic investor and chairman of the board of directors.

This dual role not only underscores His Highness’ commitment to supporting Zero Carbon’s mission to deliver innovative decarbonization projects but also sets the stage for the company's intensified drive towards global sustainability execution at scale. Founded in 2022 by Peter Jodlowski and Martin Reynolds, Zero Carbon aims to bring carbon-reducing technologies to the Mena region through four key pillars: waste, water, energy and materials.

The new investment will facilitate Zero Carbon’s mission to drive sustainable development through COP28, which will take place in the UAE later this year. This investment and appointment mark just the beginning for Zero Carbon. With the highly anticipated COP28 in Dubai Expo City less than three months away, the company is gearing up to be at the forefront of sustainability dialogues and actions on the global stage.

Web3 startup Cultos Global secures new funding

Dubai-based Web3 startup, Cultos Global, has successfully raised an undisclosed amount in its latest investment round. The funding round saw participation from high-profile investors, including Sameer Mehta, founder and CEO of Boat; Tarun Katial, founder and CEO of Coto; Ashwath Bhat, finance head at Fractal Analytics; and Vijay Ratnaparkhe, head of Bosch Southeast Asia, who will also join the company’s advisory board.

This investment will enable Cultos Global to expand its product and engineering teams in the UAE and India, facilitating the integration of cutting-edge features into its platform, and further transforming the way brands engage with their customers.

Cultos Global’s Co-Founder and Chief Commercial Officer, Adib Samara, explained, “Cultos Global is revolutionizing brand-customer engagement with a sophisticated, unified platform that seamlessly combines digital marketing and customer rewards programs. This transforms passive consumers into an active network of nano-influencers.” Founded by Adib Samara and Pavan Govindan, Cultos Global provides brands with tools to establish their own brand token and rewards systems.

This investment will enable the company to expand its product and engineering teams in the UAE and India.

Jordan’s DigiZag raises Series A funding

Digital advertising and performance marketing company, DigiZag, secured a seven-figure "Series A" funding from the SME Investment Fund managed by Al-Arabi Investment Group as part of its expansion strategy, which aims to increase DigiZag's market presence and digital advancement in the GCC region.

Established in 2015, the Jordanian company, DigiZag offers cutting-edge technology-enabled solutions in the field of performance-based marketing with a business model that focuses on payment based on achieved results. With its advanced platform, DigiZag provides companies and institutions with the opportunity to boost their revenues and increase sales through targeted customer acquisition marketing campaigns that minimize marketing spending and eliminate any associated risks.

The new funding will enhance DigiZag's market presence and digital advancement in the GCC region.

Fuze closes $14 million Seed round

Abu Dhabi-headquartered Fuze, a digital assets infrastructure provider, has unveiled a record-breaking Seed round of $14 million, the largest Seed investment in a digital assets startup in the history of the Middle East and North Africa region (Mena). A first-of-its-kind infrastructure provider in Mena, Fuze enables any bank, fintech or traditional enterprise to easily offer regulated digital assets products to their customers through their native apps.

The investment was led by Abu Dhabi-based Further Ventures, along with participation by US-based Liberty City Ventures. Fuze will benefit from the strategic capital and network of these investors, acting as a catalyst for the business as it builds the digital asset infrastructure that will drive the future of finance.? Founded in 2022 by Mohammed Ali Yusuf, Arpit Mehta and Srijan Shetty, Fuze enables banks, fintech startups and traditional enterprises to offer regulated digital asset products to their customers through their native apps.

The funding will propel Fuze’s growth as it obtains regulatory licensing, adds strategic hires in key roles, continues to expand its technological capabilities, and accelerates its geographic expansion across the region. Its products, such as Fuze Trader and Fuze Loyalty, allow banks, brokerages and superapps to offer digital asset products in a simple, easy and trusted manner.

Venture capital fund, Varys Capital all set to enter GCC

Venture capital fund Varys Capital seeks to enter the GCC market, enabling institutional and qualified investors to penetrate the next digital era asset venture investment arena and leverage the firm’s quantitative trading expertise.

The firm is looking to raise US$75 million for its equity-focused venture fund centered around blockchain innovation which aims to achieve long-term growth from a curated portfolio of high-quality, early-stage businesses utilising blockchain to solve addressable needs in the wider software, gaming, and finance industries. The company has received inquiries from local institutions and prominent investors. The fund has 12 commitments in place across decentralised (DeFi) and centralised (CeFi) finance, GameFi/Web3, infrastructure, and emerging technologies. Darius Askaripour, Managing Partner, Varys Capital said, “We are looking at entering the UAE market first encouraged by supportive local government directives, its high innovation levels, robust infrastructure, and forward-thinking mindset, but plan to deploy across the Middle East and North Africa with multiple deals already at the final stages of due diligence.”

Since 2018, Varys Capital has managed an equity-focused venture fund and a distinguished quantitative trading fund. Its blockchain venture fund boasts a total value to paid-in capital returns of 440% and over triple-digit internal rate of return since capital deployment in March this year.

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