The Global Startup Ecosystem Report 2023: Cairo’s Legacy of Innovation Continues

Radiating at the heart of Egypt is a technology hotbed that has catapulted the country onto the global stage as a thriving, innovative, and creative force to be reckoned with. Cairo, Egypt’s bustling metropolis, has cultivated a robust tech and tech-enabled startup ecosystem, brimming with talent and bolstered by a supportive infrastructure. Sectors such as fintech, e-commerce, logistics, and transportation take center stage within this vibrant ecosystem, distinguished for its exceptional density of talent, abundance of support resources, rapidly improving infrastructure, and collaborative startup community. With its central geography, a stone’s throw from global financial capitals and trendsetting innovation hubs, and a young, skilled, and ambitious workforce, the country presents an unparalleled opportunity for startups and businesses seeking a competitive edge in the global digital economy.?

Egypt’s Unique Tech Ecosystem??

Cairo is no ordinary city, thanks to its abundance of talented individuals who are passionate about innovation and entrepreneurship. The city boasts a large and growing pool of skilled workers who are well-educated in fields such as technology, engineering, and data analysis. This pool of talent has helped fuel the city's robust tech industry and established support network, making Cairo an attractive destination for both companies and start-ups looking to tap into the region's growing markets. In addition to its talented workforce, Cairo also has a vibrant community of entrepreneurs who are eager to pursue their ideas and bring them to life. The city's supportive ecosystem provides access to resources such as co-working spaces, incubators, and accelerators, which help entrepreneurs turn their ideas into successful businesses.

The start-up ecosystem in Egypt has expanded to several subsectors spearheaded by e-commerce, fintech, and healthtech, followed by up-and-coming sectors such as educational tech, agriculture tech, logistics, real estate tech, and gaming. Startups in these sectors are developing innovative solutions to address challenges in their respective industries and driving economic growth and innovation in the country.

A prime example of this is Swvl, which offers a reliable, safe, and affordable mass transit experience by operating an asset-light, demand-responsive marketplace for high-capacity vehicles. It operates across B2C, B2B, and B2G for public transit agencies, with over 53 million bookings to date across more than 17,000 vehicles, operating in 37 cities across 16 countries globally. Another innovative platform to come out of Egypt is Vezeeta, which offers a seamless digital platform to help patients search, choose, and book their healthcare providers based on real patient reviews and ratings, live doctors’ scheduling, location, fees, and health insurance providers from a network of over 35,000 top-rated doctors across 43 medical specialties. Vezeeta has served 10 million patients to date, with 450,000 monthly transactions and over two million active patients served annually across 78 cities in six countries across the Middle East and Africa.

Egypt’s innovation economy has demonstrated remarkable growth, with an impressive compound annual growth rate of 102.22% from July 2018 to December 2022 and a phenomenal $8.3 billion in ecosystem value created. Ecosystem value, here, is a measure of economic impact, calculated as the value of exits and startup valuations. This phenomenal progress has propelled Cairo to its status in the global tech industry today: a monumental key player, it is undeniable that modern-day Cairo is more than equipped to handle the demands of any booming business. The city's rise in the global rankings showcases its commitment to nurturing innovation and entrepreneurship, as the government continues to promote and support entrepreneurship and innovation through new programs and initiatives.

In Startup Genome’s Global Startup Ecosystem Report (GSER) 2023, Cairo shines as a contender, ranking #13 among the top 25 emerging ecosystems. This recognition is based on robust early-stage funding activity, measured across three key metrics: count, amount, and growth. The city then climbs up the rankings 20 spots higher, witnessing a 97% growth in value, which means Egypt’s start-up scene continues to witness successful innovation driven by its young and tech-savvy population, who are shaping an innovative and vibrant ecosystem.

Talent Magnetism?

One of Cairo's greatest strengths lies in its ability to attract and retain top talent. The city is a melting pot of skilled professionals, fueled by world-class educational institutions and a culture of continuous learning, which has led to the emergence of a skilled workforce with expertise in fields such as software development, engineering, and data analysis. Startups and businesses benefit from the availability of affordable talent, allowing them to assemble agile and highly capable teams. Cairo's reputation as a talent magnet positions it as a premier destination for global companies seeking to establish their presence in the region. Cairo always has been and, for the foreseeable future, will remain the biggest hub in the Middle East for all kinds of talent across multiple industries.

In the GSER 2023, Cairo snagged the #2 spot in MENA Ecosystems for Affordable Talent, the report’s index measuring the ability to hire tech talent. The city also ranks third in Talent & Experience, a measure of long-term trends over the most significant performance factors and the ability to generate and keep talent in the ecosystem – a testament to the Egyptian talent pool’s strength and belief in the local industry.?

Celebrating Cairo’s Entrepreneurial Spirit?

The city's large and growing population, coupled with its strategic location at the crossroads of Africa, the Middle East, and Europe, make it an attractive destination for start-ups looking to tap into these markets. Cairo's tech industry thrives on a spirit of innovation and entrepreneurship. The city has gained recognition as the #3 MENA ecosystem in funding, signifying its commitment to fueling early-stage innovative ventures. This collaborative environment fosters creativity, propels groundbreaking solutions, and propels Egypt to the forefront of the global tech landscape.?

At the core of the country’s tech community is a supportive infrastructure that nurtures startups at every stage of their journey. Incubators, accelerators, and co-working spaces provide a fertile ground for collaboration, mentorship, and knowledge-sharing. The ecosystem's emphasis on talent development ensures entrepreneurs have access to the resources and guidance needed to scale their businesses successfully.?

Cairo's commitment to optimizing resources is evident in its #3 MENA ecosystem ranking for ‘Bang for your Buck’, measuring the amount of runway tech startups acquire, on average, from a VC round. This strategic allocation of resources allows startups to make significant progress, maximizing their potential for success. These factors have combined to create a tremendous opportunity in the most strategic of locations for any business that is just scratching the surface of its true potential.

Cairo's strategic focus on performance has earned it the distinction of being ranked #4 in the MENA region in terms of ecosystem performance. This ranking is based on the accumulated value created by tech startups from exits and funding, indicating that Cairo is a positively growing hub for innovation and entrepreneurship in the region. In addition to its strong performance, Cairo also ranks among the top 5 ecosystems in Knowledge, reflecting the city's commitment to innovation through its extensive research scene. Cairo hosts a number of universities and research institutions that are actively engaged in cutting-edge research and development, and this has helped create a skilled workforce with expertise in fields such as software development, engineering, and data analysis.

The combination of Cairo's strong performance and commitment to innovation has kick-started a tech boom, which has primed the city and Egypt at large as a thriving innovation hub, fostering a culture of entrepreneurship and propelling it onto the global stage. With its impressive growth, strong tech ecosystem, and talented workforce, Cairo provides an unrivaled opportunity for businesses to tap into Egypt's potential. The strategic location, young, skilled talent, and established support attract both multinationals and startups alike to set up or expand operations in Cairo, amplifying the city's allure for ambitious entrepreneurs and forward-thinking companies.

As the city continues to attract global investments and nurture groundbreaking startups, Cairo has made a name for itself as a shaper of the tech industry’s future.??

Don’t miss out on the Startup Genome’s Global Startup Ecosystem Report - get your copy here: https://startupgenome.com/gser2023?