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BusinessEntrepreneurshipEntrepreneurship in Lebanon

Aiming for solar success

by Livia Murray & Thomas Schellen November 13, 2014
written by Livia Murray & Thomas Schellen

This company is part of Executive’s Top 20 in science and technology. Read more stories of our special report on entrepreneurship in Lebanon, as they’re published here.

 

Green Tech

 

Alec Koulajian

Alec Koulajian

Industry: Alternative energy

Year of incorporation: 2003

Employees: 12

Board of directors: No

Founders: Alec Koulajian, Kevork Koulajian

 

For about four months of the year, the climate in Lebanon is hot — and for about two, uncomfortably so. It is then a strange juxtaposition that in the summer, those suffering from routine power outages — the entire country with varying degrees of severity — would have to pay good money for a high ampere generator to heat their water. Particularly since heating water is one of the bigger guzzlers of the household, a 5 ampere generator just doesn’t cut it.

Green Tech’s business proposition is fairly straightforward. Green Tech’s team of technicians installs solar water heaters, the parts for which are imported from China, Turkey, Germany and Italy, and assembled in Lebanon. They also offer 24 hour after sales service, which Alec Koulajian claims has made them stand out from various solar water heater companies that have popped up over the years, only to then shut down.

They install around 50–60 solar water heaters every month, according to Koulajian, with about 75 percent of their customers being homeowners. They mostly install in Lebanon to the tune of 70 percent of their client base, but have also done a few projects in the region, including Algeria, Armenia, Jordan, Saudi Arabia and Iraq, according to Koulajian. Their clients range from residential customers to hotels. They have even installed solar water heaters to heat pools in Jordan, and are currently in negotiations for a UN project to build a solar water heater for a pool in Naqoura, Lebanon.

Price-wise, a 200 liter solar water heater goes for just under $1,000.

Though solar water heater technology itself is not a new innovation, Executive likes the fact that it is an entrepreneurial way to solve a major problem facing Lebanon and many other countries that also suffer from frequent power cuts.

We also like that they are constantly updating their system and looking for new technology in the realm of solar water heating to make their solar water heaters more efficient. One recent update was changing a glass tube that is part of the system to a new one that gives a higher yield. Looking towards the future, Koulajian claims that they will be the first in Lebanon to import the most advanced solar water heater in the world, from Germany. They are also in talks with two European companies that are selling technology patented in France, which heats water and creates steam which can then be turned into electricity.

November 13, 2014 0 comments
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BusinessEntrepreneurshipEntrepreneurship in Lebanon

A different kind of password

by Livia Murray & Thomas Schellen November 13, 2014
written by Livia Murray & Thomas Schellen

This company is part of Executive’s Top 20 in science and technology. Read more stories of our special report on entrepreneurship in Lebanon, as they’re published here.

 

Ki

 

Priscilla Elora Sharuk

Priscilla Elora Sharuk

Antoine Jebara

Antoine Jebara

Industry: Information technology, security hardware and software

Founders: Priscilla Elora Sharuk, Antoine Jebara

Project launch: 2013

Employees at time of interview: None

Board of directors: No, four-member board of advisors

 

Ki is a password storage device that will activate computers and open programs on proximity when the device user authenticates right of access by fingerprint impression on their Ki. The device, which has been prototyped in several iterations, is designed to offer a time saving and easy to install solution to the problems that legitimate users face in accessing password protected computers and programs, and in securely managing and updating complex passwords. Cofounders Priscilla Elora Sharuk and Antoine Jebara have been developing the concept as a software and hardware solution and are preparing to roll out Ki in a two phase project. Release of the software as a mobile app is scheduled for November 2014 and production of the hardware solution is planned to “ideally” commence later this year, using a contract manufacturer in China. Sharuk and Jebara, who bootstrapped the project at the seed stage, are setting a fundraising target of $100,000 for the software product and are endeavoring to raise $500,000 to start production of the device, which is known technically as a hardware authentication token.

The business plan for Ki started taking shape in May 2013 and underwent frequent changes until a pivot this summer, when the cofounders decided to shift focus to finalizing and delivering the software solution to provide prospective corporate clients with proof of concept and hopefully motivate them to place orders for the hardware device. Their initial target market are IT and security companies in the EMEA region, Sharuk and Jebara say, and the intended first users of the device are executives of these companies — because at a $200 sales price per unit, the Ki hardware token will not come cheap. Reaching an order volume of 7,000 tokens is an important aim for the cofounders because it will reduce manufacturing cost per unit and increase their gross margin on the device from 50 to 70 percent. While building toward hardware production with the help of an advisory board of four local and foreign experts, the cofounders will release the software version as a freemium app during Slush, a large meeting for tech entrepreneurs in Finland. Sharuk will attend this program. She and Jebara plan for the formal establishment of a company, most likely as a Lebanese offshore with a Delaware, US, branch holding their intellectual property rights and patents, at the latest possible moment. They have yet to reach a valuation of the intended company and decide on shareholding distribution among themselves and share offerings to investors.

As Sharuk and Jebara note, they represent a “very cross functional team with different skill sets and backgrounds,” with Jebara being tech oriented and Sharuk showing her strength in design and business. The team has a vision to take their project to commercial reality, even if it requires adapting narratives and redefining markets.

November 13, 2014 1 comment
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BusinessEntrepreneurshipEntrepreneurship in Lebanon

Building green walls

by Livia Murray & Thomas Schellen November 12, 2014
written by Livia Murray & Thomas Schellen

This company is part of Executive’s Top 20 in science and technology. Read more stories of our special report on entrepreneurship in Lebanon, as they’re published here.

 

Green Studios

Zeina Kronfol

Zeina Kronfol

Jamil Corbani

Jamil Corbani

Industry: Eco Tech & Design/Real estate development

Year of incorporation: 2009

Employees: 25, 21 of which are in Lebanon

Board of directors: Yes, five members

Founders: Jamil Corbani, Zeina Kronfol, Oliver Wehbe, Marc Abihaila

 

To help cure the drab of dusty and polluted urban Middle Eastern settings, Green Studios uses both sides of the brain. At once a tech and design company, they design green roofs and walls based on a patented technology they have developed employing hydroponics. With the technology able to withstand the harshest desert climates, the company is apt to grow wildly into the Middle East.

The technology they developed consists of a sponge on which plants can grow, both horizontally and vertically. Using hydroponics, the sponge is designed to retain a very high concentration of water per square meter even under the sweltering heat of Arabian lands. In fact, cofounder Jamil Corbani boasts that water absorption of the sponge can last up to three days in the harshest of deserts, and up to a week in milder climates. The sponge also has an integrated technology, what Corbani calls the “smart” component, which are sensors and nano-sensors that measure humidity, temperature, electro-conductivity, and other KPIs essential to a plant’s health. All of this monitoring is transferred to an electrical board, which understands what the plants need, and gives orders for pumps to go on or off, pumping water and mineral-nutrient solutions through the sponge’s irrigation network.

The price of such a techie and sightly product depends a lot on how tough the project is, how rough the climatic conditions, and the complexity of the system they are installing, explains Corbani. But he adds that it can vary from $70–80 dollars to $100–120 per square foot. They also offer a warranty that can go up to 35 years with fixed rates per seven year periods, including maintenance.

Unsurprisingly, this type of offering has wooed the hearts of higher-end clients, such as the upper echelons of real estate developers, architectural and engineering companies, as well as governments rolling in petro-dollars that have pledged themselves to make their cities more green. Between completed projects and those still in the works, Green Studios has tallied up about 45 according to Corbani. The projects under their belt are mostly in Lebanon with a handful in other locales in the region.

With considerable growth over the past year, and revenues going from $630,000 to $1.15 million between their 2013 and 2014 fiscal years which closed in August, they have invested most of their profits into growth preparations. This includes land assets, new machines, developing new ways to produce green walls faster, research and development to further advance their smart system, and more manpower by way of engineers and technicians to train and dispatch in the Arab world.

Their world domination tactics will start in the region. They are in talks with public and private entities in Dubai, Abu Dhabi, Riyadh and Jeddah among others. Over the next couple of years, they plan to follow an aggressive expansion into the MENA region, as well as starting a shy push in the American market which they want to move into once they have some sort of domination over the Middle East. They are currently in negotiations to raise $1.5 million for their regional expansion.

November 12, 2014 0 comments
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BusinessEntrepreneurshipEntrepreneurship in Lebanon

Recognizing mobile solutions

by Livia Murray & Thomas Schellen November 12, 2014
written by Livia Murray & Thomas Schellen

This company is part of Executive’s Top 20 in science and technology. Read more stories of our special report on entrepreneurship in Lebanon, as they’re published here.

 

FOO

 

Ghady Rayess

Ghady Rayess

Elie Nasr

Elie Nasr

Industry: Mobile

Year of incorporation: 2009

Employees: 36

Board of directors: Yes, four members including two external

Founders: Elie Nasr and Ghady Rayess

 

In programming, ‘foo’ is often used in examples as a variable that takes the value you assign to it. Foo can be anything, like the ‘x’ in algebra. Similar to its namesake, FOO has throughout its lifespan pivoted from one concept to another, taking on different business roles in the mobile sphere.

Founded in 2009, before there was the budding tech startup ecosystem there is today, Nasr and Rayess, who wanted to make products centered around mobile technology, found that there were no investors willing to provide capital for a new and risky venture. “Nokia had 70 percent penetration, so people did not know that smartphones would rule the world and that mobile apps would come to the market,” explains Nasr. So they moved from product development to service development, bootstrapping with an investment of $20,000.

Business-wise, this has certainly paid off. They currently have 220 clients in 12 countries including Saudi Arabia, Qatar, Kuwait, the UAE, Iraq, Syria and Egypt. Their team has doubled every year and they have had to move their offices three times over the past five years to accommodate the new hires.

FOO does consulting, app development, social media marketing, user interface and experience (UI–UX) design, quality assurance, and data reporting and analytics — all within the mobile sphere. On the technology side, FOO is not messing around. They have incorporated augmented reality, image recognition, Bluetooth beacons, machine learning, image processing and pattern recognition into their offerings.

By 2012, they had “a lot of money to play around with,” and were finally able to branch out into product development. “Servicing was something that kept us alive, but we always wanted to build those products,” says Rayess. So they started building an incubator within the company that acted as a lab of sorts for them to develop their ideas. They also took in startups whose ideas they incubated alongside the ones they were working on in house.

The incubator of sorts is only part of their exciting plan for the future. They are currently preparing to scale the company. They are starting to work on products that can be sold to many clients rather than on a project by project basis. They have even started consolidating the company into a structure that is easy to scale with different teams focusing on different sectors. Their plan is to scale regionally, product-wise and through projects that would spin off from the accelerator. They are looking for $4 million in investment.

And with all the business plans, they have remained true to their techie roots, particularly when looking at new emerging tech, currently leaning on M to M (machine to machine), which is the ‘internet of things’ notion that every machine in the future will be interconnected and interoperable, as well as big data.

November 12, 2014 0 comments
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BusinessEntrepreneurshipEntrepreneurship in Lebanon

Beyond the tech sector

by Livia Murray November 12, 2014
written by Livia Murray

This article is part of an Executive special report on entrepreneurship. Read more stories as they’re published here, or pick up November’s issue at newsstands in Lebanon.

 

We live in an age where technological discoveries, innovation and entrepreneurs finding uses for these discoveries are changing the way we do things, the way we understand the world and how we are connected to it. In many ways the changes brought on by information and communication technologies (ICT), like the groundbreaking inventions of the past that brought on the Industrial Revolution, have had highly positive consequences. Tech has brought down a lot of barriers — from inexpensive global communications to starting a business with minimum upfront costs. It has created high value jobs that offer higher pay to an increasingly specialized segment of the population. It has automated many repetitive manual processes, squashed out inefficiencies and provided advancements in many fields.

But it also has a downside in that it disfavors those who are not connected or who are not part of a specialized segment of the working population. “When you have this big of a mass assumption that connectivity is available for everyone and you start building around that, then those who don’t have connectivity are at a major disadvantage,” says Habib Haddad, CEO of Wamda.

Tech has also had a mixed impact on the labor market. When unskilled laborers do find a place in tech economies, they are given the short end of the deal. In Silicon Valley, blue-collar workers who work around the tech economy — as drivers and cooks — have begun to mobilize, calling out the practices of the tech giants who give them an unfair deal and prevent them from unionizing.

While anecdotal evidence seems to point to tech as a job-killer, it is harder to get a broad picture, and the overall impact of the tech boom on the global economy is hotly debated. A 2011 McKinsey report points to the role of the web in increasing the amount of global GDP. In a study it conducted surveying 4,800 small and medium entreprises (SMEs), it found that “the internet created 2.6 jobs for each lost to technology-related efficiencies.”

However, a 2014–2015 World Economic Forum report points to increasingly polarized societies with a “structural decline in the share of GDP accruing to labor, mainly driven by skill-biased technological change related to globalization.” The report cautions that this may lead to a high concentration of wealth “similar to that experienced by Western economies in the earlier stages of industrialization.”

Lebanon’s tech sector is still far from having a drastic macroeconomic impact on the country, unlike the US. Many institutions have popped up to foster tech entrepreneurship, which they hope will boost the creation of jobs. In fact, the larger part of the entrepreneurship ecosystem in Lebanon revolves around tech. “If you look at the competitions, the programs and investment — it’s all focused on tech,” says Allyson Jerab, program manager at the AMIDEAST Entrepreneur Institute in Lebanon, noting that there were very few exceptions.

If the sector is to grow, as many enthusiasts hope, the question of whether or not the tech sector can provide enough jobs for an economy will be of increasing importance. Lebanon will be interested in promoting policies that keep the flight of talent at bay.

There is a strong case for promoting a tech sector. Lebanese talent is highly skilled and educated, and the costs associated with doing business in Lebanon are much lower than they are in, say, the US. Moreover, having a digital business, being no easy target for physical security attacks, negates some of the more traditional challenges of setting up a business in Lebanon.

While creating a tech hub in Lebanon would be an immense development for the country, going beyond the tech sector and fostering entrepreneurship in other budding industries could lead to a greater production of jobs for a more inclusive segment of the populace. “Now I’d love to see the same happening in other sectors,” says Sadi. “There are plenty of more traditional businesses that can also create jobs,” adds Jerab.

“I think there’s a huge opportunity in Lebanon to rebuild and develop the crafts sector,” points out Sadi. “I think that’s just like Italy or Spain, countries of economies that were built on the backs of SMEs with very high level craftsmanship. If you look at the handicraft that is here, it’s huge. And not so far back, if you look at the 60s and 70s, Prada used to produce their shoes in Lebanon.”

Focused initiatives to help promote industries beyond tech will likely create more viable means of living for people who are not as plugged in. Though perhaps requiring less hard training than our bound and determined engineers, it might have a greater macroeconomic impact in terms of number of jobs created, and thus of livelihoods improved. “Lebanon can build a great tech sector … But we’ll never be a tech economy,” says Sadi.

November 12, 2014 0 comments
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BusinessEntrepreneurshipEntrepreneurship in Lebanon

Motion pictures, mobile phones

by Livia Murray & Thomas Schellen November 11, 2014
written by Livia Murray & Thomas Schellen

This company is part of Executive’s Top 20 in science and technology. Read more stories of our special report on entrepreneurship in Lebanon, as they’re published here.

 

Eurisko Mobility

Ziad Hanna

Ziad Hanna

Edgard Hanna

Edgard Hanna

Zack Morad

Zack Morad

 

Industry: Mobile

Project/Product: Celluloid

Year of incorporation: 2010

Product launch: 2013

Employees: 23 in Lebanon out of 25 total, and hiring

Board of directors: Yes, three members

Founders: Edgard Hanna, Ziad Hanna, Zack Morad

 

Eurisko Mobility’s main business is mobile app development, as well as working on developing products, both from their lab in Zouk Mikael. An element that scored highly with Executive is that, while Eurisko Mobility expanded into the US in 2013, they kept the majority of their team in Lebanon. This means the company still has a positive impact on the economy, creating high value jobs while using Lebanon as a developer’s kitchen.

The main business follows the classic service model, largely consisting of custom mobile development and consultancy services for clients. Essentially they are approached by clients with ideas, and propose functionalities for the apps to have, or, in the case of particularly tech savvy clients, roll with whatever they may propose.

Rooted in a firm belief that mobile technology is the future, the company has a clear drive and direction while remaining adaptable to business needs. “It was a technology that was taking a hold of the world. We knew that everything is going to go mobile,” says Morad.

Their push into the mobile industry has been rewarded handsomely. While they did not disclose their financial performance numbers, they have served over 120 unique clients, according to Morad, many of whom are returning customers. They work for media portals, TV stations, and develop products for corporate apps and games. They became profitable in 2013, and have grown 100 percent year on year according to the cofounder.

Besides creating a successful business, they have worked with new exciting mobile technologies involved in building leap motion and oculus rift games. But what really makes them stand out from other service centered mobile businesses in our eyes are the products they are developing in house.

They have released a film discovery app, Celluloid, based on award winning technologies that were developed by US tech and media executive Dwight Marcus, in which Morad invested in 2001 for development, and which they are now using on license. The technology works thanks to a display algorithm and metatagging, and Celluloid makes use of it to stream seven second trailers of films based on a search criteria by genre, which eliminates the redundancy of searching for and watching trailers online. They are currently working on an update that would allow the search to be more specific, such as searching for films that are available on Netflix.

“It’s not going to change the industry per say but it’s going to change the way people search for films,” says Morad. The team has a strong database and film background, which Morad claims helped structure a very powerful search algorithm.

Going forward, they are considering making Celluloid into its own company. They are seeking to raise $1 million for Celluloid independently.

November 11, 2014 0 comments
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BusinessEntrepreneurshipEntrepreneurship in Lebanon

Big data at your fingertips

by Livia Murray & Thomas Schellen November 11, 2014
written by Livia Murray & Thomas Schellen

This company is part of Executive’s Top 20 in science and technology. Read more stories of our special report on entrepreneurship in Lebanon, as they’re published here.

 

Economena Analytics

 

Tamim Akiki

Tamim Akiki

Industry: Data, business information/professional information service providers

Project/Product: Economena User Station

Year of incorporation: 2011

Product launch: 2014

Employees: 10, and hiring

Board of directors: Not yet, board of advisors

Founders/shareholders: Tamim Akiki, Fadi Chahine, Gaby Moukarzel, Daniel Tomb and one silent partner

 

The big macroeconomic aim of Economena Analytics is to provide better access for investors to delve into Middle Eastern markets, by providing better access to economic data.

Besides the usual barriers such as the security and electricity situation, lack of access to centralized economic information is also a hurdle to investment. It goes without saying that Executive is particularly excited to see this push among the batch of Lebanese companies that was under our review.

The value proposition is to create a professional platform that provides economic data to economists, researchers, consultants, investment managers, media outlets and policy makers. This eliminates much of the labor intensive work of searching through reports and press releases for data, and leaves firm employees more time to analyze, find new business opportunities or advise clients.

The Middle East is not known for its availability of information, but Akiki is hoping that once they become trusted professional information service providers, there will be more willingness from different sources to share their information. Currently, 95 percent of their data is publicly available information — from official sources such as ministries and private associations — according to Akiki.

The original model started through working with global providers who wanted access to Middle Eastern data for their clients. Out of the world’s five largest data providers, they were dealing with three, according to Akiki. More recently they developed their own platform, a web-based user station that provides access to all of the information along with manipulable graphs, for an annual subscription fee and a two year contract. Subscriptions are offered for between $3,000 to $10,000 a year, depending on the size of the organization and the approximate number of people accessing Economena. As the company provides subscribers with both technical and analytical assistance, the subscription fee is correlated to how much they think the users will seek their team’s professional advice. In the couple of months since they entered into the market with this, their biggest successes so far have been with banks and media companies. They are currently trying to leverage the connections that their partners have through their professional experience in consulting, finance, economics and media.

Competition-wise, while their business overlaps with others, no professional data provider is operating in the same space. “I think our biggest competitor is Google,” says Akiki with a laugh, “because it makes people think that they can get whatever they want pretty easily.”

And looking to the future, “five years from today, I want every economist from the Middle East to be using Economena,” says Akiki.

November 11, 2014 0 comments
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BusinessEntrepreneurshipEntrepreneurship in Lebanon

No more polluted veggies

by Livia Murray & Thomas Schellen November 11, 2014
written by Livia Murray & Thomas Schellen

This company is part of Executive’s Top 20 in science and technology. Read more stories of our special report on entrepreneurship in Lebanon, as they’re published here.

 

Eco Industries

Roy Debbas

Roy Debbas

Farid Mechaka

Farid Mechaka

Inaam Debbas

Inaam Debbas

 

Industry: Agriculture Tech

Year of incorporation: 2011

Employees: Three

Board of directors: Yes, five members

Founders/shareholders: Roy Debbas, others from the Debbas and Mechaka families and other silent partners

 

With vegetables in Lebanon known to be grown in sometimes suspect conditions, the average vegetable buyer can only guess what toxins that gleaming cucumber or tomato on the store shelf may have been exposed to — from the use of dirty water for irrigation to growing in polluted lands. To solve the problem of polluted veggies, Eco Industries is deploying new technologies such as hydroponics, vertical farming and environmental control.

Environmental control allows the company to grow produce without pesticides and have full control over oxygen, light and temperature. Debbas claims that this gives a yield of 30 percent above average and lets them plant for any climate no matter the season. Meanwhile, hydroponics allows them to use 90 percent less water, and vertical farming allows them to harvest from a surface of 200 square meters what would normally require 10,000, according to Debbas.

After two years of experimenting and perfecting the concept, they began production six months ago and currently have three regular clients in Lebanon, all of whom are high-end users in the hospitality industry. The produce is slightly more expensive than average produce — Debbas claims they are starting with a niche market that appreciates a clean product. They are currently able to grow 80,000 plants per month over 200 square meters, according to Debbas.

He acknowledges, however, that the only drawback is that the operation requires a lot of energy, as it runs 24 hours with lights and pumps. This is especially problematic in Lebanon, where the frequent use of generators makes the cost of electricity very expensive. But the project is perfect for countries that don’t have much fertile land for agriculture and have to import most of their produce. The team considers the Lebanese version a pilot project whose concept will be exported to these countries.

In this space they are currently finalizing a partnership to start growing in Dubai. Their partners will be the majority investors and thus have a majority stake in equity over the Dubai operations, though the original group will maintain a share and run the Dubai branch. They have currently invested $1.5 million in the company and plan on investing $6 million more.

After Dubai they plan on moving into the Qatari and Saudi markets. With a big global market for agriculture, the concept could also have an impact on providing produce for urban settings, where cities will no longer have to worry about bringing in produce from afar.

November 11, 2014 0 comments
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BusinessEntrepreneurshipEntrepreneurship in Lebanon

Academics and industry

by Thomas Schellen & Livia Murray November 10, 2014
written by Thomas Schellen & Livia Murray

This company is part of Executive’s Top 20 in science and technology. Read more stories of our special report on entrepreneurship in Lebanon, as they’re published here.

 

E2

 

Daniel Asmar

Daniel Asmar

Industry: System Integration and robotics

Project launch: 2014

Founders: Daniel Asmar, Elie Shammas, Ghassan Deeb

Employees: None

Board: No

 

E2 is a partnership of academics at the American University of Beirut that began to delve into bidding for engineering projects in early 2014. Initial projects included a robotic device required by a professor in Saudi Arabia for use in research and an industrial grader for agricultural producers in Lebanon. A third project under preparation is an energy monitoring device and service for which E2 sees a huge need in Lebanese institutions such as hospitals. The scientific insights and engineering skills of the founders are the venture’s intellectual capital and the budding academic entrepreneurs have submitted bids for about 10 projects this year. They price all their bids with a high regard for research and development and a low consideration for marketing and sales expenditures. The founders are benefiting from a strong relationship with a corporate vendor of measuring hardware and software, US-based National Instruments (NI) which has an office in the Beirut Digital District. E2 draws on this relationship in the sourcing of technology as well as by receiving referrals to potential customers from NI. Daniel Asmar and his colleagues are aiming to form a company in close integration with AUB under an incubation program that the university is in the process of formalizing. While the founders have not yet finalized a valuation and detailed business plan, they are in the starting blocks to incorporate their venture and start raising funds for their business as soon as their bids for the agro-industrial device come through.

The economic value proposition of E2 is delivery of engineering solutions that are in tune with the needs of industries in the Middle East. Asmar notes that academic research at the region’s universities is often undertaken with the goal of publishing it in top international journals but that the research is usually too advanced to address and solve practical problems faced by local industries in Arab countries. Applying their expertise in robotics and systems integration to real life problems, such as a Lebanese agro-industry company’s need to grade cucumbers for pickling and packaging with an automated visual measuring system that is not currently available in any market, the founders of E2 see potential for both good business and positive economic impact. Similarly, E2 proposes that its energy monitoring service can fill a gap in current energy audits and reduce wastage of energy for large institutional and industrial consumers.

It would be a step too far to say that E2 has a fully fledged business plan and revenue model. As Asmar acknowledges, he lacks business knowledge in several areas even though he gained his first entrepreneurial experience in Beirut in the 1990s from co-creating a startup venture in building renovation. Things that are enticing about E2 in our assessment are the venture’s regional first mover advantage in building upon the technologies which it uses, the convergence of academic research expertise with industrial applications and the venture’s integration with incubation by an academic institution, which in our view has potential to be a model in the widening of the Lebanese entrepreneurship ecosystem. In confessing that he cannot pinpoint whether part economic sentiment or pure zeal for engineering are his motivators, Asmar also exhibits an impressively healthy approach to the question of what makes an entrepreneur.

November 10, 2014 0 comments
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Leaders

End the boys’ club

by Executive Editors November 10, 2014
written by Executive Editors

The message of success (see “In praise of chaos“) bears repeating: as Executive surveyed the offices, workshops and hangouts of ambitious young companies over the past two months, we found the Lebanese entrepreneurship ecosystem in 2014 to be performing far beyond the assumptions of defeatists, and even our own optimistic expectations.

But while this ecosystem is growing and maturing faster than anyone but the most wide eyed enthusiast could have suspected half a decade ago, we must take extreme care to not fall into a self-congratulatory trap. Our budding tech entrepreneurship is amazing, but there is much more to do. And now is the right time to think critically and strategically about how to remedy the ecosystem’s all too real shortfalls.

One striking deficiency in tech companies is that they sorely lack women leaders. The insight has been painfully slow in unfolding, but an enlightened, global consensus has formed that women have far more to contribute to corporate performance than they are asked of today. There is no evidence of this realization, however, in the ranks of our list of science and tech entrepreneurs. Among our Top 20 in 2014, we can only present a handful of women among an overflow of men. And although the number of startups and projects which we investigated while crafting the Top 20 involved talking to a much larger number of venture pilots than made it on the list, the share of women in this wider group was also depressingly low.

Of course, this is not just a Lebanese problem. Recent international studies show that high tech is an environment where even female MBA grads forsake their careers at much higher rates than their male counterparts, and we also have known for most of the information age that the high tech industry hosts a hostile environment for highly skilled women. Moreover, female leadership and perspectives are underrepresented in the entrepreneurship ecosystems the world over, with deficiencies spanning from lower acceptance of women’s ideas in science and tech companies to general underestimation of their investment capabilities and preferences.

Yet it would be preposterous to assume that women are lesser entrepreneurs than men. Statistics demonstrate that women and men are represented in different proportions in different fields of economic activity and one cannot rationally deny those differences. But why such discrepancies exist is an entirely different, and often assumptions driven and ideology laden, discussion.

Here is not the place for this discussion, but there are a few things that are clear.  When it comes to women in high tech companies and tech driven growth industries such as the development of online games, their underrepresentation must be attributed almost entirely to male misogyny. It cannot be traced to any lack of computing skills or tech talents in women, because such allegations have been disproven by scientific research.

Neither can one blame the problem on imaginary issues by postulating something inane such as feminine disinterest in leadership and enterprise management. Any sincere observation of the Lebanese entrepreneurship case proves that women play decisive roles in the growing ecosystem, and in many fields of entrepreneurship, they seem to account for much higher proportions of risk embracing, future minded enterprise builders when compared with the narrow high tech sector.

One might want to dismiss the misogynist aberrations found in the tech environment as simple backwardness, but it has clear and negative economic consequences. If we pretend that our tech entrepreneurship can develop without a greater participation of women while other, competing ecosystems are brimming with initiatives and efforts to address this imbalance, we will deprive Lebanon of at least 50 percent of its human growth capital in the sector.

If denied opportunities in Lebanon’s tech sector, top female talents will take their skills and passions elsewhere — to other industries or other geographies. This cannot happen. Instead, tech leaders must use the time when this ecosystem is still young and elastic to forge a more inclusive, forward thinking approach towards women tech entrepreneurs.

November 10, 2014 0 comments
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