Learn About EBNI’s Incubation and Accelerator Programmes That Support Tech Manufacturing Startups in Egypt.
Startups in the electronic device and hardware manufacturing field face numerous difficulties and challenges, which begin with the idea validation, progress through the implementation of a prototype, the obstacles of raising funding, the supply chain to obtain raw materials, and many more. EBNI’s incubation and accelerator programmes are among the supporters of startups specialising in technological manufacturing, and Rasmal interviewed Eng. Ashraf Ali, Director of Entrepreneurship and Innovation at EBNI, to learn more about these programmes and their contribution to Egypt’s business ecosystem.
What is the EiTESAL Business Nurturing Initiative (EBNI), and what function does it seek to play?
EBNI is an EiTESAL initiative that aims to help and nurture ICT-related enterprises in Egypt. EiTESAL is a non-governmental organisation that works within the framework of civil society. The organisation was established in 1997, and the foundation stone was placed in 2004 when it combined with another NGO to form EiTESAL and continue its journey.
EiTESAL works in several axes and directions to advance the ICT industry, particularly in manufacturing electronic devices, computer programmes, and system automation. Throughout our journey, we had several programmes to increase the presence of Egyptian SMEs working in these fields. In 2015 we began the idea of providing support to entrepreneurs who have creative ideas or are taking their first steps in the early stages of establishing their startups, from here the idea of (EBNI) or (EiTESAL Business Nurturing Initiative) emerged to be An initiative that helps incubate entrepreneurs and accelerate the growth of startups that offer technology solutions.
EBNI branches are in several Egyptian cities, including Cairo, Alexandria, Mansoura, and Assiut. EBNI’s goal is to increase the number of companies working in hardware and the manufacture of electronic devices and deep technology and to be one of the first Egyptian accelerators and incubators to focus on supporting technological manufacturing.
What standards does EBNI follow during the Startup Accelerators and Incubation programmes?
EBNI focuses primarily on incubating startups that manufacture electronic and technological devices. It is known that the development cycle of hardware companies is long and complex and requires several stages compared to the manufacture of software; this forces us to incubate already established startups, not just ideas. Most of our incubation programs start with entrepreneurs that have validated the idea and have prototypes and end with either startup having a minimum viable product or a final product ready to be manufactured and sold.
Does EBNI require specific industries for startups participating in their accelerator or incubation program?
EBNI initially supported manufacturing technology startups, but we discovered that the world was shifting to the integrated solutions methodology as time passed; this led us to embrace startups in the software industry whose services intersected with the technology manufacturing companies that we support and focus on. These changes we monitor to keep up with global trends have made our portfolio diverse, with startups graduating from our portfolio, including healthcare, education, agriculture, and transportation.
As the trend of connecting all digital, technological, and electronic items to the Internet has become a reality, we are currently focusing extensively on startups that implement the Internet of Things (IoT) concept. This trend’s growth is due to various factors, including the excellent user experience of the convergence of technology, where devices connected to the Internet have accessible technology, intelligence, and self-learning. We are now attempting to support startups working in this field.
Currently, EBNI has an EU-funded incubation programme for the Center of Excellence (CoE)’s work to develop Egypt’s automotive industry, including IoT, electronic technology, and embedded systems, where we have opened the door for applications to incubate companies working in the field of mobility in general and the automotive industry in particular.
What benefits, services, and resources do EBNI programmes provide for startups?
We have been working on developing the services we provide in our programmes since 2017. Our work on developing these services has doubled with the pandemic and the Coronavirus outbreak as a precautionary measure if a similar crisis is repeated. Now we have a complete system enabling incubated startups to manage their incubation virtually through the (EBNI) web portal.
The EBNI portal enables startups to submit incubation applications, conduct remote evaluations and selections, and apply for various services, including funding for the incubation programme or accelerators and business, human resources, accounting, training, learning, technical support, and infrastructure. The EBNI system also allows entrepreneurs to track the funds they receive via the incubation programme and provides several tools to help founders manage their startups effectively. EBNI also links its extensive network of incubated businesses with prospective investors opening up opportunities for potential funding.
What is the mission of (EBNI)’s educational academy?
We are working to develop services that benefit everyone intending to build the community, whether the beneficiary is a company incubated by another or us; as a non-governmental organisation (NGO), we place a high value on social responsibilities and the establishment of the (EBNI) Educational Academy is one step towards that goal; we have already created a cloud-based LMS portal that allows our customers and partners to launch and manage multiple e-learning courses.
The academy now offers a variety of customised and specialised training courses addressed to startups incubated by us through our LMS portal and manufacturing labs. The training is divided into three stages based on the life cycle of the incubation programme.
The courses begin with an introduction to the idea and product validation curriculum, followed by studies on product quality testing methods, and finally, approaches on fundraising, marketing, and selling, ensuring that startups can present their products to potential investors and survive in the market.
These courses are not limited to the firms we incubate; any startup can access and benefit from a vast selection of free online training content. We also offer lab services to all entrepreneurs at low costs.
Is EBNI used for funding some startups? How will these funds aid creative thinkers?
EBNI offers seed fund programmes ranging from EGP 200k to EGP 340k, depending on the nature of the startup’s product or service. The donation provider plays an essential part in deciding the amount of money. Suppose any of the startups have graduated with a viable final product. In that case, EBNI also allows connecting or bringing in some investors at the end of the incubation phase during demo day.
EBNI, in addition to funding incubation programmes, also provides funding through accelerator programmes. For example, we now run an accelerator programme in collaboration with the Academy of Scientific Research and the European Union Accelerator programme, both of which provide funding to accelerate the growth of Egyptian tech startups.
What is the critical distinction between the EBNI Accelerator and Incubation programmes?
The goal of the incubation programme is to focus on developing the idea to create a primary or final product that meets people’s needs and has the potential to position itself in the market (go-to-market strategy). In contrast, the accelerator programme focuses on the startup’s growth and expansion stage.
The second distinction is the quantity of financing granted since the value of funding in accelerator programmes exceeds that of incubation programmes. The orientation of the accelerator programme and the donor also influences the investment size. Some programmes go straight to direct investment, such as the Academy of Scientific Research programme, which increases the amount allocated to startups who join the programme.
You can compare the amount of funding granted in the accelerator and incubation programmes by looking at our EU programme, where funding for startups in the incubation programme is up to 10,000 euros while funding for startups in the accelerator programme is 50,000 euros.
What are the primary hurdles that entrepreneurs in the hardware manufacturing industry face?
The supply chain is the most challenging obstacle for hardware startups. EiTESAL’s board has been striving to develop a strong network with government partners, investors, and software and hardware manufacturers to overcome supply chain problems and other challenges since its inception.
As EBNI programmes work directly with the Egyptian Ministry of Communications and Information Technology and the Information Technology Industry Development Agency (ITIDA), we also sign memorandums of understanding (MOU) with private and government electronics factories such as the Arab Organization for Industrialization in addition to deals with the National Telecom Regulatory Authority. All of these initiatives assist startups in resolving industry issues to increase the presence of manufacturers and manufacturing in Egypt rather than going to and manufacturing in the abscess, thereby creating new job opportunities that contribute to the construction of a sustainable economy.
What elements have contributed to global investors’ faith in Egypt’s business ecosystem, allowing them to fund potential startups?
I believe that the maturity of Egypt’s business ecosystem is one of the essential factors of investor confidence and that attracting capital will be easier as long as stakeholders – from funds to venture capital firms, banks, and donors – are informed about the evolution of the ecosystem and the government’s trends supporting startups. One of the most important reasons for the flow of finance and investment is investors’ monitoring of the climate and features of the Egyptian ecosystem, as well as their assurance of the availability of talents, cadres, incubators, and accelerators that function per international standards.
How does EBNI stay up with market developments and changes to keep its incubator competitive?
In keeping with global trends, EBNI has created initiatives to help startups that emphasise the involvement of women and marginalised groups in the business sector. This ambition led to our expansion into the governorates of Upper Egypt and the centre of the Delta to assist startups throughout Egypt and significant cities.
EBNI is committed to assisting women in closing the gender gap among startup founders. We have succeeded, with 30% of female programme participants starting or co-founding a firm.
Caring for the environment is another critical trend that EBNI is working to address by promoting sustainability and a green economy among startups interested in agricultural technology, clean energy, and clean technology. The Conference of the Parties to the United Nations Climate Convention (COP27) took place last year in Sharm El Sheikh, Egypt, has pushed to accelerate environmentally friendly economic practices, strengthening the trend to finance sustainable startups. We have already supported some companies to generate clean energy from wind and sun.
How do EBNI-incubated startups approach marketing and growth strategies? What challenges do you confront in this area?
I believe that the most critical factors impeding the success of marketing and growth strategies are randomness and the inability to determine the persona of the target audience; if the startup has not been able to identify the correct persona of potential customers since its inception, there is a distraction of the message and confusion in marketing; therefore, we work with startups incubated in (EBNI) to identify the correct personality of potential customers, and then startups receive a portion of the financing to develop the marketing strategy and perform professional advertising campaigns.
What recommendations would you provide to a startup in its early stages?
As we frequently suffer from founders’ clinging to their ideas and convictions during the incubation periods, (EBNI) pays attention to the stage of idea verification, which allows the development of the product or service in line with people’s needs and market requirements.
We advise startup founders to seek legal counsel and professional marketing, finance, and accounting consultants once the company is established. It is not the founders’ responsibility to carry out these tasks themselves. Still, they must be familiar with the components of the various departments and discuss them with specialists per the directions of their startups.
5 Startups Successfully Incubated by Ebni.
The EBNI Incubation Programme has graduated 45 startups from various industries, some of which have gone on to achieve remarkable outcomes, including:
1. Mogassam Co. LLC
Mogassam Co. LLC specialises in producing medical products for dentists using three-dimensional printing technology, saving doctors and patients time and effort. Instead of designing dental bridges and crowns in laboratories, which can take several days, dentists can create these products and others using the three-dimensional printing technology adopted by (Mogassam Co. LLC), and the company has been able to obtain investment funding and achieve good profits.
2. SEAVO
SEAVO provides a recreational vehicle for water transportation and diving. The company continues to use EBNI laboratories to research and improve its product, as EBNI provides highly specialised laboratories that aid in producing prototypes.
3. AKOUB
AKOUB Agricultural Services Company seeks to connect technology with agriculture. AKOUB uses drones to pollinate palms, spray pesticides, control pests, and identify crop illnesses, which helps recuperate land and enhance the agricultural area.
4. I-School
I-School offers popular technological education programmes for pupils aged 6 to 18 to assist them in learning and pursuing jobs in programming, graphics, artificial intelligence, robots, and electronics. In September 2018, I-School was named Egypt’s most innovative and impactful EdTech startup, taking first place at the BIZNEX Startup Investment Fair.
5. Re-Nile
Re-Nile is a startup that specialises in the Internet of Things (IoT) in general and environmental services in particular, offering customers effective technological solutions such as intelligent fish farming devices, digital fish farm management, soilless farming (hydroponics), and animal plant farming (aquaponics).
Follow us on Instagram, LinkedIn, and Twitter for startup & business news and inspiring stories of MENA businesses, entrepreneurs, startups, innovators, investors, and change-makers.
To report any issue or error in the story, please email us editor [at] rasmal [dot] com.
