## AI Startups Fueling Growth and Innovation in the Middle East

The Middle East is witnessing a surge in AI startups, driven by increasing awareness of the technology's potential across both public and private sectors.  Recent investments demonstrate the region's commitment to AI development and its potential to reshape various industries.

**Saudi Arabia Leads the Charge**

**Intelmatix**, a Saudi-based AI startup, recently secured a **$20 million Series A funding round** led by Abu Dhabi's venture capital firm **Shorooq Partners**. The investment reflects growing confidence in Intelmatix's potential to provide accessible AI and advanced analytics, improving operations and sustainability across industries.

**Intelmatix's platform, EDIX**, aims to bridge the regional AI skills gap by offering user-friendly AI capabilities, maximizing impact and adoption. The company is also supported by Saudi Arabia's **National Technology Development Program**, highlighting the country's commitment to nurturing AI talent.

**Egypt Emerges as a Hub for AI Innovation**

Egypt is also seeing a surge in AI-focused startups, with companies like **Synapse Analytics** and **Educatly** attracting significant funding.

**Synapse Analytics**, focused on AI-driven decision-making solutions, secured **$2 million in funding**, aiming to expand its AI technologies across the Gulf region and Africa, particularly targeting the financial sector. The company's **Konan and Doxter platforms** integrate AI seamlessly into financial institutions' workflows, empowering them with advanced analytics and automation capabilities.

**Educatly**, a network for higher education, raised **$2.5 million** to further its mission of connecting students with educational opportunities worldwide. The platform leverages AI and language models to provide accurate information about schools, universities, programs, and scholarships, helping students make informed decisions about their education.

**Beyond AI: Investing in the Future of the Middle East**

The region's entrepreneurial landscape is not limited to AI. Other notable investments include **Cartona**, a B2B platform digitizing Egypt's traditional trade market, and **Velents**, a company leveraging AI to enhance organizational productivity.

**Cartona's $8.1 million Series A extension**  will fuel its growth across various verticals, expanding its market share and exploring regional expansion opportunities.

**Velents' special investment round with Women Collective** aims to accelerate the growth of women as investors and board members, promoting gender equality in the tech industry.

These investments signal a dynamic shift in the Middle East's entrepreneurial landscape. The region is rapidly embracing technology and innovation, with AI playing a central role in driving economic growth and social progress.

CAIRO: Increased awareness about the implications of artificial intelligence across the public and private sector is evident in Saudi Arabia as startups continue to raise large sums. The latest AI funding round in the Kingdom was bolstered by Abu Dhabi’s venture capital firm Shorooq Partners to fuel Saudi-based Intelmatix’s $20 million series A round. Several Saudi firms also

AI Startups Boom in the Middle East: $20 Million Investment Fuels Growth and Innovation

##  The Great Outdoors, Reimagined: Startups Fueling the Rise of Tech-Powered Experiences

The pandemic sparked a surge in outdoor activities, from golf to fishing to pickleball. This trend shows no signs of slowing down, with outdoor participation reaching a record 175.8 million people in the US. But this booming interest exposed a gap in innovation, leading to a wave of startups aiming to modernize the outdoor recreation industry.

**Tech-Fueled Growth:**

- **Booking made easy:** Startups like **AnyCreek** are developing software for hunting and fishing guides, simplifying booking and streamlining backend operations. **Mallard Bay** provides a platform connecting anglers and hunters with guides, offering a more accessible and efficient experience.
- **Tee time, simplified:** **Loop Golf** solves the frustration of finding and booking tee times at public golf courses, using AI to streamline the process and provide a hassle-free experience.

**The shift to online:**

- **Digital demands:** Consumers are accustomed to online interactions, and they expect the same convenience in outdoor activities. Businesses are adapting, embracing online booking, payment, and communication.

**Investment opportunities:**

- **VC interest:** Venture capitalists are recognizing the potential of this market.  Investments in sports tech companies surged from $48.60 million in 2019 to $949.26 million in 2021. While investment slowed in 2023, it still represents a significant increase over pre-pandemic levels.
- **Experiences over material goods:**  The demand for experiences, especially among younger generations, fuels the growth of startups catering to outdoor activities. This trend is evident in the rise of companies like **Hipcamp** and **AutoCamp**, which offer innovative camping and glamping experiences.

**A vast untapped market:**

- **Room for innovation:** Despite the surge in startups, there's still a vast opportunity for innovation in the outdoor recreation sector. Many businesses remain stuck in outdated models, relying on traditional methods like phone bookings and outdated websites.

**The future of outdoor recreation:**

- **Software-driven growth:** The future of outdoor activities is likely to be driven by technology.  Startups are poised to transform the way we plan, book, and engage in these experiences, offering greater convenience, efficiency, and access to a wider range of options.

**The outdoor recreation industry is ripe for disruption. As more people seek experiences over material possessions,  startups are ready to meet the demand, offering a more tech-savvy and enjoyable way to connect with nature.**

COVID-19 pushed people to take up outdoor activities. Now, startups are helping companies and consumers keep up with demand.

Outdoor Activities Get a Tech Upgrade: Startups Aim to Enhance Your Next Adventure

## When a Big Company Comes Knocking: To Sell or Not to Sell?  

You might think that selling your startup to a giant like Google for billions of dollars would be a no-brainer. But, as Jyoti Bansal, founder of Harness and former CEO of AppDynamics, discovered, the decision is far from simple.

**Factors to Consider:**

* **Seriousness of the Offer:**  Is the offer just exploratory or a concrete deal?  For a private company like Wiz, it's likely to start with exploration due to limited public financial information.  
* **Strategic Fit:** What's the rationale for combining the two companies? Is it exciting and compelling?  
* **Employee and Product Impact:** Will the acquisition lead to job losses or product discontinuations?  
* **Financial Valuation:**  Is the offer a good value for shareholders? 

**The AppDynamics Story:**

Bansal experienced this firsthand when Cisco made an offer for AppDynamics just days before its IPO in 2017.  The negotiations involved multiple offers, and eventually, Cisco acquired the company for a price significantly higher than the IPO valuation. Bansal acknowledges that even with the offer, it wasn't an easy decision, as he had to consider the interests of investors, executives, and board members.  

**Wiz's Decision:**

In the case of Wiz, a cloud security startup, Google's rumored $23 billion offer was significant, but the company ultimately decided to stay independent, believing it could achieve greater value by remaining private.  

**The Risks of Selling:**

Bansal notes that while the deal made his employees millionaires, he sometimes wonders about the potential of AppDynamics had it gone public. The years after the sale were a boom period for B2B SaaS, and it's possible the company could have reached even greater heights.  

**The Risks of Staying Independent:**

On the other hand, Wiz may face regrets if it doesn't reach the value it could have achieved with the big money from Google.   

**Ultimately, the decision to sell or stay independent is complex and requires careful consideration of all factors involved.**

You might think that when a startup gets a big offer to sell, it would be an easy decision, but there are lots of factors to consider.

Should You Sell Your Startup to a Big Company? A Founder Shares His Lessons Learned

## Soonicorn Ventures: Democratizing Startup Investments and Backing Transformative Tech

Vijay Singh Rathore, co-founder of Soonicorn Ventures (SV), is on a mission to democratize quality startup investments. Since its founding in January 2022, SV has built a robust platform of over 2,500 investors, including HNIs, VC/PE funds, family offices, and angel networks. 

**SV's Approach**

SV focuses on backing **transformative tech startups** at the seed to Series A stages, with an average ticket size ranging from INR 25 lakh to INR 3 crore. They prioritize **strong founding teams** with clear visions and execution capabilities. 

**Key Sectors of Interest**

SV is particularly interested in startups operating in sectors like **electric mobility**, **sustainable technologies**, **digital platforms** enhancing operational efficiencies, and **AI-driven solutions**. They seek companies that not only demonstrate strong growth potential but also contribute to **societal well-being** and **environmental sustainability**.

**Notable Success Stories**

One notable success story involves facilitating a strategic partnership between two portfolio companies, a gig platform and an HR and payroll company. This collaboration helped the HR tech company reach a broader user base through the gig platform's workforce, accelerating growth for both startups.  

**Investment Highlights**

SV has backed over 40 startups, including notable names like: 

* **Zypp Electric**
* **ZingBus**
* **Samosa Party**
* **Dharaksha**
* **Burger Singh**
* **Skylark Drones**
* **Skye Air**

**Key Investment Metrics:**

* **Portfolio Size:** 41
* **Average Ticket Size:** INR 50 lakh
* **Total Exits:** None
* **Total Assets Under Management:** Approx INR 10 Cr till date

**Vijay Singh Rathore's Vision**

With the acquisition of a SEBI licence for a CAT-1 Angel Fund in August 2023, SV is well-positioned to continue supporting early-stage startups with funding and guidance. Vijay Singh Rathore is optimistic about the future of the startup ecosystem, particularly in the areas of **electric mobility, sustainable technologies, and AI-driven solutions**. SV's commitment to backing **transformative tech startups** and its focus on **societal impact** positions it as a key player in the Indian startup landscape.

Typically, the Gurugram-based firm invests at the seed to series A stages, with an average ticket size ranging from INR 25 lakh to INR 3 crore.

Soonicorn Ventures: Democratizing Startup Investments and Backing Transformative Tech

## Turning Junk Jets into Eco-Friendly EV Batteries: A Singapore Startup's Innovative Solution

Nandina REM, a startup based in Singapore, has developed a revolutionary recycling plan that transforms retired commercial jets into sustainable components for electric vehicles (EVs).  Instead of letting valuable aircraft parts languish in junkyards, Nandina REM repurposes them into high-quality EV battery casings and other car parts. 

**The Problem:**

- Approximately 8,000 retired aircraft are currently sitting idle around the world, with another 15,000 expected to join them within the next decade.
- These planes contain valuable materials like aluminum, carbon fiber, and plastics that are often wasted, contributing to environmental pollution.
- Mining for bauxite, the raw material for EV battery casings, has significant environmental impacts, including air and water pollution and land degradation.

**Nandina REM's Solution:**

- The company's team of experts specializes in circular economies, aviation, and research & development, utilizing decades of experience to extract valuable materials from retired aircraft.
- By recycling these materials, Nandina REM aims to significantly reduce the carbon footprint associated with EV battery production and contribute to a more sustainable future.

**The Benefits:**

- **Environmental Impact:** Reduces reliance on bauxite mining, minimizing pollution and land degradation.
- **Material Efficiency:** Reuses valuable materials from retired aircraft, creating a circular economy and reducing waste.
- **Cost Reduction:** Provides a more cost-effective alternative to sourcing raw materials from mining operations.

**The Impact:**

- Nandina REM has already successfully recycled three Boeing 767s, recovering 90% of the valuable materials.
- The company plans to recycle 40 more aircraft as part of its growth strategy.
- Nandina REM estimates that recycling retired aircraft could produce tens of millions of EV battery casings, contributing to a significant shift towards sustainable transportation.

**The Future:**

- Nandina REM's innovative approach offers a promising solution to the environmental challenges associated with EV battery production.
- The company's success demonstrates the potential for circular economy models to reduce waste and promote sustainability in various industries.

2 months ago Startups News Digested