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How to Integrate AI Within your Startup: The Role of AI in Startup Growth

Posted on by Omar

In the ever-evolving landscape of entrepreneurship, one question resonates loudly: Where does Artificial Intelligence (AI) belong within the heartbeat of a startup? Integrating AI within a startup’s framework holds immense potential for founders, offering opportunities to automate tasks, gain valuable insights through data analysis, and enhance engagement with customers and employees.

With labor shortages, high costs, and a fast-paced ecosystem, startups are encouraged to integrate AI to remain competitive and agile in today’s dynamic business environment.

Where could founders apply AI technologies within their startups?

Broadly speaking, AI can support three important business needs: automating business processes, generating new creations, and gaining insight through data analysis.

Automation of tasks

Every role has at least a few repetitive and manual tasks, such as checking emails, inputting data, and generating reports, that take away time from more impactful work. A McKinsey survey found that automation reduced costs by 10-15% and cut order processing time from 2-3 days to 1-2 hours.

In addition to that, a survey of 7,700 sales professionals from Salesforce found that sales representatives spend an average of less than 30% of their week on actual selling. Rather, much of their time is spent on manual tasks such as data entry and sharing updates on their deals in the pipeline. AI tools can help automate time-consuming tasks so sales representatives, as well as other employees, can free up time for more productive work while reducing the risk of human error.

“Our near-future plans in Flat6Labs include automating 80% of the filtration process for applications to our programs as our programs’ team receives thousands of applications,” says Shady Atef, Product & Tech Director at Flat6Labs. “It would be more efficient to focus most of their efforts on reviewing applications of higher quality and interviewing more serious applicants, rather than the process itself so that promising startups get the opportunity they deserve. This, however, still requires human supervision and upper hand in all cases, yet it would save a lot of time and effort for both our team and the startups who applied.”

Generating Content

At the heart of Generative AI lie massive databases of texts, images, code, and other data types. This data is fed into generational models that could use this data to create images, videos, 3D models, music, or text.

There are 2 types of Generative AI tools that benefit startups’ growth:

  • Ready-to-launch tools: 

Platforms like ChatGPT, Synthesia.io, and Google Gemini come pre-trained on vast datasets, allowing users to tap into their generative capabilities without building and training models from scratch. Startups can fine-tune these models with specific data, nudging them towards outputs tailored to particular business needs. However, these public options offer limited control, less customization of model behavior and outputs, and the potential for bias inherited from the pre-trained models.

 

  • Custom-trained models: 

Most organizations can’t produce or support AI without a strong partnership. Innovators who want custom AI can pick a “foundation model” like OpenAI’s GPT-3 or BERT and feed it their data. This personalized training sculpts the model into bespoke generative AI perfectly aligned with their business goals. 

 

One of our portfolio companies in Egypt, Katteb, provides generative AI services in multiple languages where SMEs and copywriters can get instant articles and social media content that is fact-checked and ready to go live.

 

Analysis and Insights and Predictions

Ibrahim Ashqar, founder of Lumi AI, our portfolio company in UAE, mentions how AI tools provide insights and predictions to decision-makers in a way that has never been available before.

“Lumi AI democratizes the access to insights to people who aren’t technical,” says Ibrahim. “When an employee in any department doesn’t know how to code or manipulate data, they could use Lumi AI to ask the question in plain language and get insightful answers to help them in product designing, marketing, or any other field.”

This has been shown clearly with one of Lumi AI’s clients, a huge textile manufacturer who produces jeans and denim, and used to buy a lot of raw materials from a lot of different suppliers. When Lumi AI was connected to their database, within seconds the executive team found out that there are suppliers who are charging more for the same raw material compared to other suppliers. They were able to save around $600,000 based on these rapid and precise analytics.

Similarly, founders find MilkStraw extremely helpful. MilkStraw AI, our portfolio company in UAE, uses an AI model that integrates with a company’s infrastructure and comes up with recommendations to save them up to 75% on Cloud bills.

In addition, Digital First AI, our portfolio company in UAE, uses AI models to recommend the best marketing tactics for companies and SMEs based on their answers to a few questions about their business. It also provides access to a library of tactics where founders are able to view the strategies of popular brands and experienced marketers that the AI models were trained on.

 

How to find AI-skilled talents for your startup 

As a startup founder, integrating AI into the company’s daily operations means hiring the right talent in each role. The right talent will use AI tools in their department to have the work done rapidly and efficiently. So, how could you know that your hire would utilize AI to the startup’s benefit?

“The most needed skills to look for in any hire are adaptability and resilience,” says Nour Mohieddine, our Talent Acquisition Manager at Flat6Labs. “In 2024, founders shouldn’t necessarily find employees with experience in utilizing AI tools, but rather look for ones who are willing to learn new ways to work and are flexible with new technologies. This way you guarantee that even the new technologies that are yet to emerge in the future will be embraced with open minds.”

Founders should use behavioral assessments to assess skills related to learning AI. These skills include:

  • Resilience and adaptability
  • Seeking lifelong learning
  • Having a growth mindset, not a fixed one. 
  • The ability to thrive in a fast-paced environment 
  • Problem-solving
  • Having a positive attitude ( to embrace the change)

 

Providing AI training within your startup

A recent study by the World Economic Forum shows that the cost of hiring a new worker can be as much as seven times that of upskilling an existing employee. 

Founders who invest in AI training for themselves and their employees will have the opportunity to pioneer in their industry. An international survey by Boston Consulting Group found that while 86% of workers believed they would need training in AI, only 14% of front-line employees reported receiving any upskilling training. This gap presents an opportunity for startups looking to upscale.

If you are looking for intensive training, check the courses provided by eFlow, our portfolio company in Jordan. eFlow is a great learning platform for employees for different reasons:

  • eFlow courses include Artificial Intelligence, Web 3.0, NFTs, digital literacy, and more.
  • eFlow is an AI-powered platform, therefore, its expertise in AI is hands-on.
  • eFlow offers 10-15 minute micro-courses in English, Arabic, French, and Spanish.
  • Employees and learners could reach the educational content through Whatsapp, Telegram, Microsoft Teams, or Slack.

While going through the learning and development process for AI in your startup, consider the following topic to tackle:

  • Integrating AI into existing processes
  • Troubleshooting common AI issues/bugs
  • Understanding of the concept of machine learning
  • Familiarity and confidence with AI tools
  • Crafting an effective ChatGPT prompt
  • How to find guidance on AI
  • Ethical considerations relating to AI
  • The link between data, algorithms, and modeling
  • Critical analysis of AI-generated responses
  • Understanding the limitations of AI
  • Selecting the right AI tool

 

Is your startup developing AI solutions?

AI is not a replacement for human talent. It only takes away the mundane tasks so humans could focus more on their growth.

As Shady Atef, our Product & Tech Director, mentioned; “Before the invention of washing machines, humans used to carry out laborious tasks just to get their clothes washed. The challenge of not having clean clothes was the main focus. Now that we have washing machines, humans could focus, not on the cleanliness of clothes, but on making them smell like roses and having them instantly steamed and ironed.”

If the founders and employees of a startup have more time to focus on new ways for the startup’s growth rather than on keeping it functional with the automatic and less creative tasks, one could only imagine which skies they would reach.

If your startup is developing tech solutions to modern challenges, check the open applications to Flat6Labs Programs in the MENA region, aiming to accelerate the growth and scalability of the startups that join. We curate our programs to suit the needs of the ever-evolving and innovative entrepreneurs who need our support to get what they need.

 

Note: Parts of this article were written with the help of AI tools to enhance efficiency and reflect the advancements in technology’s role in content creation.

Are These The Types of Startups MENA Needs Right Now?

Posted on by Omar

The realisation that startups have become a pillar to sustainable economic development has dawned upon many in the past few years in the MENA. Driving an eclectic mix of forces to venture, fund, accelerate, and incubate startups, and to support this ecosystem that breeds innovation. With each passing year, there seems to be a change in the sector trends, and where the fund providers seem to be more attracted towards. Should the focus remain on the most promising sectors or towards those with untapped potential? While both options are being explored by Flat6Labs & StartEgypt and other concerned bodies, the 2019 MENA Venture Investment Summary by Magnitt, highlighted that in 2019, Transport received the most funding; FinTech had the highest number of deals, and IT Solutions had the fastest growing number of deals.

If anything, this Magnitt report highlights a market that is becoming highly saturated with companies who are creating solutions in the aforementioned industries; generating revenue, closing investment rounds, and even closing exit deals in those very industries. It has become a highly competitive market for these companies, and if you don’t have something unique that differentiates your product/service, backed up with a strong knowledge of the market, you are most likely to be stomped by competition. What about other industries with untapped potential? How do they fair in comparison to the most trending sectors?

Gaming & E-Sports Market Share Will Reach $300bn by 2025

Gaming for one is an industry that has a stronger standing than the film and music industries, combined. It is expected that by the year 2025, the gaming and e-sports global market share will reach $300bn annually, according to Market Watch. Also, the MENA mobile gaming market share is growing at a steady rate in comparison to other regions, recording $680m in 2015. Most game developers and game studios are using microtransactions as a business model, and are generating high revenue. However, this strategy comes at a cost. Some game developers tend to abuse this business model to generate more revenue by hindering gamers’ progress unless they buy some of the in-game features they have on offer. It sets off the user, and causes rebellion (a great example of that is BattleFront II). The caveat here is to be capable of adopting such a profitable business model, while keeping the users engaged and without messing with the gameplay.

Other Gaming & E-Sports Flat6Labs startups: Seemba, VRapeutic, The Stories Studio, YAYY Studio, & SpicaTech Academy.

Healthcare Spending Will Reach $144 Billion in MENA by 2022

“According to a report from the Middle East Medical Devices and Diagnostics Trade Association, the annual value of the medical technology market in the region is set to grow to $11 billion by 2021 while overall healthcare spending will reach $144 billion in MENA by 2022 according to Al Masah Capital.” — Wamda.com

Chefaa (an online platform to order prescribed medicine from and a Flat6Labs Cairo Startup) has grown tremendously since they have launched their services to receive a six figure seed round. The startup ecosystem support, along with the high demand for services like Chefaa’s showcases a desire for people to actually use advanced technologies to make life easier. According to another article by Wamda.com, “people are willing to use advanced computer technology or robots with AI that can answer health questions, perform tests, make a diagnosis and recommend treatment.” Also, VRapeutic is combining the knowledge of gaming, VR, and health tech into realising a service that will help autistic children develop a more stable learning path through its VR-enabled learning solution.

Other HealthTech Flat6Labs Startups: Curotrip, AXON Medical, Pharmaklik

E-Commerce & Shopping: Are They Saturated Sectors With No Room For Innovation?

Another promising and highly diverse sector, is the e-commerce and shopping sector, with many problems existing in current platforms and abandoned markets, there are always new solutions to create. Exactly like what three of our startups are doing, while Souq.com is focused on selling any and almost everything, Brimore, Dabchy, & Shiphaly are doing things their own way to help people have a better shopping/selling experience. For one, Brimore (a Flat6Labs Cairo startup) offers end-to-end distribution channels where manufacturers can list their products, then it uses its network of women, housewives, and employees to sell and distribute their products in local circles. Brimore has raised $800k last year alone. Dabchy (a Flat6Labs Tunis startup) is an E-commerce platform with a focus on selling/buying women’s clothing whether new, used, or self-made with an active 400k users and a recent $300k fund. Shiphaly (a Flat6Labs Cairo Startup), on the other hand, is an online platform that helps people buy items from around the world, and helps travelers make money by delivering these items.

While in any of these industries you have a great chance at success, you do not need to be in a specific sector and following a specific trend to succeed. We welcome all kinds of innovative startups, and we invest in teams, passion, and true drive in every industry as long as they are tech-based. You will constantly be challenged, sometimes you will fail, and sometimes you will need to pivot because you’ve just realised a true gap in the market that you can fill. Do your best and luck will be in your favour. If you believe your startup could be MENA’s next unicorn, apply now for one of our programs: Flat6Labs or StartEgypt.

We want to see you make a dent in the industry you are in.

Here Are 5 Reasons Why Governments Should Implement Startup Acts Like Tunisia’s

Posted on by Omar

In order to create a more dynamic startup ecosystem that fosters innovation and encourages entrepreneurs to venture into unknown lands, governments, corporations, and policymakers must understand the benefits of employing new policies and passing new laws that supports the geeks behind each innovation.

While governments across the MENA region have been allocating funds and initiating programs to support early-stage startups, there is little to be seen when it comes to enacting standardised laws that maximize the entrepreneurs’ chances to success.

Yehia Houry, Flat6Labs Tunis Managing Director, on the left, lobbying for the Startup Act at the Tunisian Parliament

“New policies and regulations should take into account the challenges faced by entrepreneurs and the needs of the ecosystem. The timing of the Startup Act couldn’t be better as it stimulates and encourages entrepreneurship across the country. Ultimately, it will result in thousands of new jobs created, important advances in technology and national economic growth.” — Yehia Houry, Flat6Labs Tunis’ Managing Director

Tunisia is one of those countries with its eyes set on empowering its startup ecosystem, and allocating the necessary resources for its hungry and passion-driven entrepreneurs.

“The Startup Tunisia initiative is meant to put the country on the map of startup-friendly ecosystems, sustained by three main pillars: the Tunisian Startup Act; the 200m Euro Fund of Funds; and the ecosystem support. With these things in motion, a synergy effect is expected to be produced between three key players: Investors, as the growth engine; incubators/accelerators as the performance lifter; and Startups as the economic and innovative locomotive.” — Haythem Mehouachi, General Manager of Smart Capital, Startup Tunisia operator.

Through Tunisia’s latest Startup Act, it hopes to create a fertile ground for innovation that both encourages competition and propels individuals who seek to utilise their solutions to the benefit of the community in many industries through its pre-set criteria (as quoted from the Tunisian Startup Act).

– Its legal existence does not exceed eight (08) years from the date of its constitution

– Its human resources, its total balance sheet and its annual turnover do not exceed the ceilings set by government decree

– More than two-thirds (2/3) of its capital is held by natural persons, venture capital investment companies, and collective investment funds. investment, seed money and any other investment body according to the legislation in force or by foreign Startups

– Its business model is highly innovative, utilizing cutting-edge technology

– Its activity has strong potential for economic growth.

This criteria set ensures that only the innovative, competitive, and ambitious startups get the Tunisian “Startup” label, and according to Salma Baghdadi, Smart Capital’s Startup Ecosystem Manager, 210 startups have earned it; out of which were 20+  startups like, Dabchy, Tap4Glam, Sqoin, Junior Robotics Lab, Grabingo, Chantier, Logis, Trust It & many more.

Some of our startups getting the “Startup Label” from the Tunisian Ministry of ICT

Ali Mnif, the Country Manager of Silatech in Tunisia and a member of the ‘Collège des Startups’ and one of the pioneers that worked on the project since the beginning said:

“Clearly, the best thing that could happen is a Startup Act 2.0. All the learnings, the mistakes, the feedback will better shape the second iteration of the key measures to be included.

Startup act 1.0 is a breath of fresh air for many entrepreneurs, startups and investors. It is also a powerful wave that reached many other countries. We keep hearing good news mainly in Africa.

In any iteration, the startup act is capable of breeding more mature startups with solid teams, who are backed up by experienced investors. The challenge would be to quickly incubate, accelerate and support the next regional champions.”

This act should be employed or adapted by other governments because:

1) Promotes Unmatched Innovation of Young & Hungry Entrepreneurs

One of the main criteria of getting the startup label is to be utilising a highly innovative business model, and to use cutting edge technology as part of the solution you are offering, be it a service or a product.

2) Releases Entrepreneurs From The Shackles of Failure

Aspiring entrepreneurs are often burdened with the fear of failure, and it seems to shackle most startup ecosystems around the world, with the first thought being losing the main job that earns them a living, the sustained expenses that come with establishing a startup, and more. Tunisia’s Startup Act allows them to maintain the contract they have with their previous employer without the benefits and grants them a “Startup Leave.” This allows them to focus solely on their startup, and gives them a safety net to fall on if it so happens that the startup fails. It also allows for free local and sometimes international intellectual property registration for startups, and exempts them from corporate taxes.

3) More Innovation Means More Competition

Flat6Labs Tunis Fourth Demo Day Startups

While the day to day consumer or business is often limited by the choices of big corporates, and public services that might be either too outdated or lacks quality, startups pave the road for unmatched innovation at often reasonable prices. More startups usually means more competition, and more competition means better products and services for the community at lower prices.

4) Proves that Innovation Is Often Synonymous With Solving Current Problems

Younger generations think daily of their problems, and many have innovative solutions to the problems at the back of their heads. Utilising this power is instrumental to helping governments resolve the country’s problems. When these entrepreneurs innovate, they solve a problem.

5) More startups means more job opportunities.

Instead of depending on large and medium-sized corporations and governments to do the hiring, startups can offer fresh graduates a new path of learning that is both beneficial and more challenging with often better pay if the startup happens to succeed.

These factors help sustain economic growth and prosperity for the country and the startup ecosystem. They breed a nation driven by sustained innovation in every corner and every industry.

Here Is Why Flat6Labs Believes MENA Needs More Women Entrepreneurs

Posted on by Omar

More women entrepreneurs means more innovation

 

There are often two reasons why someone would start a startup, and it can be either the potential of an untapped opportunity or the potential of surviving poverty and unemployment. In a recent study on women entrepreneurship in the MENA region, Hala Hattab found that the general consensus is that women are driven to take part in entrepreneurial activities because of the existence of opportunities, especially in Egypt. Since we’ve already mentioned that women compromise 48% of MENA’s population, this means that with more women entrepreneurs there is a much higher chance for innovative products and services, and room for improvement in every industry. This will benefit consumers, businesses, governments, and economies of countries at large.

Women-led small businesses tend to create an overflow of job opportunities

 

If more women entrepreneurs were to start venturing with scalable businesses, more job opportunities will be created, and the GDP of countries affected by such growth will increase. In one research, it has been forecasted that if women were capable of starting such businesses, millions of jobs will be created; Dell’s research further elaborated that in the U.S. alone 15 millions jobs will be available for the unemployed. Hattab’s research on the employment rate in women-led small businesses in MENA, indicated that the highest average of employment rates exists in Jordan, Lebanon, and Yemen with around 20 employees per startup; a big number considering that the businesses are still at their infancy.

Women inspire other women

 

Women inspire women. Independent, powerful, and socially impactful women can inspire women to start their own businesses, and be a strong force in any economy. StartEgypt initiative has roamed 17 cities over the past years, and has trained and counseled 1,000 women entrepreneurs around Egypt through 14 Female Founder sessions. During such sessions, StartEgypt brings successful entrepreneurial models to inspire Egyptian females all across Egypt, and they also offer workshops for female entrepreneurs, and provide them with access to their incubation program. Also, StartEgypt’s ‘Inspire’ which was held 42 times, saw about 6,000 females attending it. Last but not least, StartEgypt has welcomed 20 female founders to their incubation program the past cycles! When women are inspired they can lift themselves up from poverty, they can fight unemployment, and their independence will evidently inspire other women.

Women are more likely to invest their revenues to further extend the growth and impact

 

A research conducted by the World Bank, found out a pattern where women are more likely to invest 90% of their income in supporting their families and communities. To further elaborate, a Goldman Sachs report states “enabling women, particularly as entrepreneurs, benefits future generations because women tend to spend more on their children’s education and health, which should boost productivity as well.”