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Crawl, Walk, Run, and Only Then Compete
A framework for manufacturing innovative entrepreneurial ecosystems in emerging economies
August 2017
"If we want to see any sort of impactful ICT hub in the region, we need to start focusing on seeding the ecosystem
around startups and not the other way around. The byproduct then would be great startups."
- Marwan Soudi
2
Acknowledgments
This report has been in the making for some time and an uphill journey that could have never been
completed without many thanks to Firas Al Kafri, Katherine Nazemi, Zaid Al Masri, Adam Smith, Natalie
Stewart, Steven Koltai (Koltai & Company LLC), Melanie Watchler (Integration Consultants), Declan
Gordon Carroll (EIB Support for Seed Accelerators FEMIP), Willie Elamien (Flat6Labs Cairo).
Authors
Marwan Soudi: UpSpark – An Ecosystem Builder
Firas Al Kafri: UpSpark, Salalem Learning
Contributing Authors & Researchers
Katherine Nazemi: MIT UA Innovation Committee
Adam Smith: Migrate, UpSpark
A special thank you to the EIB for making this research possible by giving us the opportunity to learn and
connect us to multiple organizations from government to private institutions and individuals. It was
invaluable to the research.
UpSpark
UpSpark is an organization dedicated to supporting technology and entrepreneurial ecosystems in
emerging economies by focusing on an ecosystem first and entrepreneurs second approach.
We believe that the ubiquity of high caliber talent and impact driven startups stem from healthy, open
and collaborative ecosystem that are driven towards the interest of building progressive open support
organizations.
3
Foreword
For over a decade, I have been part of a growing entrepreneurial tech wave in Jordan. From a young
age, I’ve been interested in questions of how innovative technology can be deployed to help people and
businesses, and in 2012, I began to think seriously about launching my own startup.
I quickly ran into obstacles. My concept was resource-intensive and technically sophisticated, so I got in
touch with accelerators to understand how they could support me. I searched for mentors, tried to work
closely with tech associations, and investigated existing government programs.
Yet as I tried to chart my own path, I discovered numerous flaws in the ecosystem for entrepreneurs. I
found a culture that was risk-averse and hostile to startups; I found tech associations that were
superficially active but had little interest in engaging with entrepreneurs. The few programs that did
exist were extremely outdated, and working with the government required more time and resources
than a small-team startup could realistically dedicate.
As I struggled to navigate the financial, regulatory, and cultural environment for startups, I began to
discover that many other people were facing similar challenges – both locally and globally. I realized that
whatever knowledge I gained, whatever path I managed to carve out for myself, could also be shared to
help others succeed.
My interests shifted from trying to build a single startup to trying to build an environment that
encourages and supports startups and entrepreneurship more broadly – from "how can I create
something innovative myself?" to "how can I create a whole ecosystem of successful, innovative
startups?"
In my early research, I had discovered a handful of progressive entrepreneurs and tech communities
who had managed to build successful careers in tech against all odds, while being completely detached
from the ecosystems around them. What were they doing right?
I started working with these successful independent founders, and started a number of initiatives to pull
more founders like that into Jordan's tech scene for people to learn from. I formed a team to lead a wide
array of events aimed at community and capacity building for entrepreneurs and tech geeks of all types
including Startup Grind, Founder Institute, and Google Developer Groups. I was also directly involved in
building JO Angels, Jordan’s first angel network, and JoGeeks, a community of techies, to bolster the
overall ecosystem.
I expanded my search for answers beyond the tech world – exploring government partnerships, NGOs,
policy work, theories of economic development and emerging economies – and I realized I was
stumbling upon a question that most countries are trying to answer: How can we create the next Silicon
Valley? Yet it didn't take long for me to realize that this is a misleading question. Rather than applying
cookie-cutter programs and policies, we must identify the country's comparative advantage and
leverage that to generate economic advances.
My research led me to visit emerging and developed tech sectors in seven different countries across
three continents. I visited workspaces in Dublin specifically designed to create corporate-startup
partnerships, science parks in Sweden where I saw firsthand how an open-source culture can lead to
4
collective growth, and think tanks in the UK where I saw the value of studying the process of innovation
itself.
Through my work, I have had the privilege of collaborating with individuals around the globe, who study
and have insights into the roles that government support programs, private sector initiatives, donors,
accelerators and venture capital can play in seeding and supporting an entrepreneurial environment.
I’ve worked closely with individuals in government, with the private sector, with VCs, and with tech
evangelists to try and better understand the problem and potential solutions.
This report collects lessons from around the world, combines them with a deep firsthand knowledge of
Jordan’s entrepreneurial environment, and underpins them with new research into what works and
doesn’t work for innovation-led growth. It is my hope that this report will chart a path forward for
transforming Jordan’s entrepreneurial scene, laying the foundations for a globally competitive ICT hub
If implemented successfully, the recommendations in this report can be selectively applied to emerging
economies worldwide and contribute to the development of progressive civil communities and higher
standards of living – a goal to which we all aspire.
Marwan Soudi
UpSpark Founder & Director
5
Contents
Foreword.......................................................................................................................................................2
Executive Summary.......................................................................................................................................7
Developing human capital ........................................................................................................................7
Developing startup support structures.....................................................................................................7
Defining your impact.................................................................................................................................7
How this report is intended to be read and applied.................................................................................8
Introduction ..................................................................................................................................................9
Chapter 1: Building knowledge capital by building talent, ethos, and know-how.....................................12
1.1 Overview...........................................................................................................................................12
1.2 Talent ................................................................................................................................................12
1.2.1 Regional talent is underdeveloped............................................................................................12
1.2.2 Jordan lacks highly-skilled tech talent .......................................................................................13
1.2.3 Coding bootcamps: a proven model for bootstrapping talent growth......................................14
1.3 Culture...............................................................................................................................................18
1.3.1 Fostering collaboration through clustering, events and workshops .........................................18
1.3.2 Accepting failure is critical for innovation .................................................................................20
1.3.3 Celebrating success can encourage entrepreneurship as a way of life.....................................21
1.4 Know-how: soft skills and practical knowledge for success in any career .......................................22
1.5 Talent takeaways ..............................................................................................................................22
Chapter 2: Accelerating talent to impact....................................................................................................23
2.1 Overview...........................................................................................................................................23
2.2 Existing resources for nascent startups are lacking..........................................................................25
2.3 Selection Process ..............................................................................................................................26
2.3.1 Phase 1: De-Risking Potential Teams.........................................................................................27
2.3.2 Phase 2: Re-evaluating and assessing growth ...........................................................................28
2.3.3 The Program: Taking an Open-Source Approach for Rapid Innovation.....................................29
2.3.4 Continual self-assessment leads to improved long-term performance ....................................32
2.4 Contributing to the greater ecosystem directly and indirectly.........................................................32
2.4.1 Developing smart capital ...........................................................................................................33
Conclusion...................................................................................................................................................34
References ..................................................................................................................................................35
Appendix I: Israel Case in Point...................................................................................................................37
6
Appendix II: Innovation, impact, and accelerators.....................................................................................39
Appendix III: Interrogating the role of government ...................................................................................40
Appendix IV: Accelerator overview.............................................................................................................41
7
Executive Summary
A healthy government, society, business, or entrepreneurial ecosystem all have what we see as related
foundations at their core. In this report, we address the foundational pillars that are needed to build
healthy, vibrant, progressive, globally competitive and most importantly, economically productive
entrepreneurial ecosystems.
This guide takes lessons from around the world, but is intended specifically for emerging economies and
addresses their unique challenges, including:
1) Emerging economies do not have the resources to accept a high failure rate. The availability of
venture capital is limited, and government will to invest seriously is weak to non-existent.
2) Primitive competition results in primitive success that is only relevant in its own environment.
The fledgling startup communities in emerging economies cannot survive aggressive
competition. And if it does, it will not produce companies that are relevant on a regional scale.
While there is much to learn from best practices around the world, in order to be successful, we must
take what applies, discard what doesn’t, and build a framework that is uniquely our own. We identify
several pillars, the development of which is a prerequisite for a productive entrepreneurial ecosystem.
Developing human capital
▪ Talent: manufacturing high quality tech talent to give people the hard skills to develop new
tech.
▪ Ethos: cultivating a culture of collaboration, acceptance of failure, and celebration of
entrepreneurship to make innovation possible.
▪ Entrepreneurial human capital: training people in the skills they need to turn their ideas into
productive businesses.
Developing startup support structures
▪ De-risked: subverting high failure rates by ensuring that accepted teams have a high potential to
succeed.
▪ Open source: accelerating innovation by taking an open-source approach and ensuring that all
knowledge and resources are shared collectively.
▪ Measurement: continuously collecting metrics about the structures and programs in place in
order to analyze the track record and implement improvements.
Defining your impact
▪ What: Thinking carefully about what impact you seek to create. “Innovation” by definition is an
evolving concept that should not be static, and can take many forms. Broadly, it should aim
improve and progress things towards the better, either by its concept of use, business goals,
efficiency, and/or impact.
8
▪ Why: Interrogating “why do you want to do what you want to do?” This process of questioning
leads you to discover root causes and motivations, and derive a clearer answer to “what,” which
eventually leads to “how.”
▪ How: Developing a framework of innovation is just like any business discipline — a set of tools
that are designed to accomplish specific objectives. Just as we wouldn’t rely on a single
marketing tactic or a single source of financing for the entire life of an organization, we need to
build up a portfolio of innovation strategies designed for specific tasks.
How this report is intended to be read and applied
This report should not be read as a step-by-step guide to executing an agenda or business plan, but as a
framework for thinking about and solving problems using unconventional and multi-disciplinary
approaches. We present the examples and solutions that we believe would be best executed in
emerging economies, but it is important to understand the research that led to this approach, in order
to apply a similar flow of thinking tailored to individual contexts.
Essentially, we encourage you to:
▪ Take and apply best that are relevant to you.
▪ Access and discard what is useless and does not apply.
▪ Create novel solutions that are uniquely tailored to your own ecosystem.
And most importantly,
▪ Don’t underestimate the power of the wisdom of crowds, and share!
9
Introduction
Economic growth depends on innovation –
our ability to generate and adopt new
knowledge and ideas. Decades of research
has shown that innovation is the most
important driver of long-term productivity
and prosperity, and that innovative
businesses create more jobs and tend to
scale faster.
But what creates the ideal conditions for
innovation?
Many reports and research papers argue that
government plays a critical role in creating
the regulatory environment for innovation
and entrepreneurship to flourish. Yet making
such policy decisions requires governments
to think long-term, and make investments
today for uncertain rewards in the future.
While the primary function of a government
should be to leverage today’s collective
resources for a better tomorrow, what
happens when governments are unwilling to
do so, and instead make decisions that are
short-sighted and risk-averse? As is the case
in Jordan, progress can be slowed
dramatically, and a country’s economy can
stagnate while the rest of the world’s
economies move forward.
We argue that in these cases, it is not
necessary to wait for government
engagement or reform to start building
productive, sustainable entrepreneurial tech
ecosystems. Avoiding government entirely,
we can “hack” our way to manufacturing an
innovation driven ethos by studying and
selectively adopting best practices from
successful ICT hubs around the world, and
creating what it essentially ours – our own
best practices.1
UpSpark does exactly that.
1
The evolution of Israel’s economy provides an insightful example of what we mean by this. For more, see Appendix I.
Innovation is a very widely used, and overused,
word. Many definitions have been provided over
the years by the OECD and other organizations.
But it is worth setting out a few reminders of
what innovation is, and what it is not. Broadly
speaking, innovation is the process by which
new ideas turn into practical value in the world:
new products, services, or ways of doing things.
It is not just about new technologies or about
scientific R&D. Innovation happens in civil
society and government as well as in businesses;
in humanities as well as in tech.
The benefits of innovation are widespread, and
only a small proportion of them accrue to the
innovator. Economists refer to the ‘spillovers’
from innovation, a recognition of the fact that
many innovators reap no returns at all from the
time and money they invest in innovation, and
even successful ones often create much more
value for their competitors, customers and
unrelated businesses than for themselves.
Innovation is essentially disruptive, but
disruption doesn't rest exclusively in novelty, in
what nobody thought of before, but it also
embodies thinking about traditional problems
from a new perspective.
Providing a complete and rigorous definition of
‘innovation’ could itself be the subject of a
dozen reports, but it is not necessary to pin
down a specific definition before beginning to
explore what steps can be taken to improve
Jordan’s entrepreneurial environment. Rather,
we can start with an initial framework and refine
the definition along the way. For a deeper
exploration of ‘innovation,’ see Appendix II.
WHAT IS INNOVATION?
10
UpSpark aims to seed a healthy, sustainable, progressive and
effective entrepreneurial ecosystem by applying a hybrid
model of validated and successful accelerator models from all
over the world and customized specifically to fit our current
state. Recognizing that no single factor alone can spur and
sustain entrepreneurship, we propose a practical road map to
jump-start the growth of a healthy entrepreneurial
ecosystem in Jordan that will be improved upon with
constant iteration.
In doing so, we tackle the two biggest challenges facing the
development of an entrepreneurial ecosystem in Jordan:
▪ Talent and knowledge capital: Lack of high-quality
Entrepreneurial and tech talent;
▪ Smart capital: Lack of smart capital to help potential
entrepreneurs transform their ideas into successful
businesses.
To address the first problem, we propose a multi-part
program that upends traditional tech education and fosters a
risk-tolerant and collaborative entrepreneurial culture. This
program is run independently of the government; in fact,
many of the components already exist in the form of NGOs,
hobby groups, and professional associations – they just need
to be coordinated and scaled up. Chapter 1 of this report lays
out this program in greater detail.
To address the second challenge, we introduce a framework
for a new model for startup support. This model is an open
accelerator bootcamp that combines education, incubation,
and acceleration and employs a radically open-source
philosophy to de-risk startups, facilitate community and
collaboration, and turn early-stage ideas into profitable
businesses. Chapter 2 of this report is dedicated to describing
the underlying philosophy and ideal operational model of this type of accelerator. Why is a new model
necessary? As the pace of economic development increases, emerging economies are essentially playing
catch-up. Replicating the models used in developed economies will not enable them to be competitive
at a global level. Rather, in order to catch up and move ahead, emerging economies need to innovate on
the business models of accelerators themselves.2
2
Accelerating Startups: The Seed Accelerator Phenomenon by Susan G. Cohen University of Richmond and Yael V. Hochberg Massachusetts
Institute of Technology and NBER - March 2014
Innovation can, and does, happen
in every industry. So why does
UpSpark focus on the ICT sector
in particular?
First, Jordan estimates that over
50% of its startups are now in the
ICT field, including telecom, IT,
mobile online businesses, and
game development. The industry
has also attracted substantial
foreign direct investment. This
makes it an active, and potentially
lucrative starting point.
Second, our personal experience
and expertise is in the ICT sector.
We are familiar with the main
players, with the challenges faced
and the resources available both
locally, and globally for us to learn
from.
Finally, a vast array of knowledge
about how to launch innovative
tech ecosystems. This allows us to
learn from other countries’
successes, and quickly get beyond
initial challenges.
WHY ICT?
11
Ultimately, UpSpark investigates the roots of innovation to design programs that create sustainable
innovation – and its contingent economic gains – in Jordan and in emerging economies worldwide. It
starts with training a new crop of talent using the most up-to-date pedagogies for technical skills and
business know-how, with building a culture that embraces failure and celebrates success, and with
relying on open-source collaboration and open-source metrics for self-improvement. In this way,
UpSpark aims to serve as a catalyst not only for other startups, but for entire entrepreneurial
ecosystems.
12
Chapter 1: Building knowledge capital by building talent, ethos, and
know-how
“Many countries in the region are supported by Jordanian human talent. That’s the
capital that we have. And I think that’s what sets us apart from other countries.”
– King Abdallah II3
1.1 Overview
A thriving innovation ecosystem is built on human capital. It’s a place where talent, teamwork, and risk-
taking come together to produce new ideas; where side-projects scale to the next big thing; where
teams have the hard skills to take their ideas and bring them into reality in a culture that supports
exploration, demands collaboration, and recognizes failure as a necessary part of the invention process.
Yet today, strong talent in the region is lacking. In Jordan, studies have concluded that university
graduates lack necessary skills in technical fields, and that local companies have difficulty accessing high-
quality local talent. A cultural fear of failure stifles growth and innovation, and lack of business
knowledge limits the incidence of startups.
Creating an environment that supports innovation and entrepreneurship in the ICT sector will rest on
the development of three key pillars:
▪ Talent: providing individuals with intensive technical knowledge.
▪ Ethos: creating a culture of self-learning, creativity, collaboration, and judicious risk-taking.
▪ Know-how: developing the practical skills and soft skills necessary to succeed in traditional or
entrepreneurial careers.
This chapter provides an overview of the current state of talent, ethos, and know-how in Jordan, and
charts a path forward for developing the next generation of regional talent.
1.2 Talent
Developing talent is a necessary precondition to developing entrepreneurship. Jordan and neighboring
countries in the region must invest in the education of human capital not only to produce a workforce
with the necessary skills to support a robust entrepreneurial ecosystem, but also to contribute to
technological innovation and entrepreneurship in the future.
1.2.1 Regional talent is underdeveloped
3
CNBC Interview: His Majesty King Abdullah II of Jordan
13
In a 2015 interview with CNBC, Zain Group CEO Scott Gegenheimer
asserted that the Middle East must tackle its skill shortage
‘urgently.’ He argues that the region has substantial untapped
human capital, and that young people, specifically, do not have
sufficient access to the necessary education, training and
development for them to contribute productively to the regional
and global economy.4
This perspective is shared by many organizations, including the
International Labor Organization,5
INSEAD, PwC,6
CEG, EY,7
Wamda,8
and the European Investment Bank,9
all of which have published
thorough research that attests to a regional talent shortage.
A 2016 Wamda research report highlighted that the MENA regional
unemployment rate, at 12% and increasing, is the highest in the
world, and that the region would need to create about 85 million
jobs (and the talent to support them) by 2023 to be on par with the
global average unemployment rate. The same report found that
while 90% of entrepreneurs planned to hire in the next year, over
60% of those entrepreneurs cited finding talent as a barrier to
building their team. As long as talent remains underdeveloped, job
growth will remain stagnant.
The problem of unemployment and talent shortage is particularly acute when it comes to youth
populations in the region. MENA is currently experiencing a record youth population explosion, with
more than 30% of the population under the age of 30. Yet youth unemployment in the region is the
highest in the world. Access to highly qualified talent is the crucial missing link that could bridge
entrepreneurial potential with sustained economic development and job growth.
1.2.2 Jordan lacks highly-skilled tech talent
There are currently 27,000 unemployed ICT graduates in the country. Of the 5,000 ICT graduates
produced annually by Jordanian universities, fewer than 10% find jobs in the ICT industry.10
Despite high
demand for computer engineers in the region, graduates are unprepared.11
A report conducted in 2013
by the ICT Association of Jordan (int@j)12
found that 75% of employers in the ICT sector have difficulties
4
Middle East must tackle skills shortage ‘urgently’
5
MENA Employment Trends for Youth 2015
6
PWC Education Consulting Services
7
EY Report 2015 - How will the GCC close the skills gap?
8
WAMDA and IFC Report - Access to Talent for MENA's Entrepreneurs
9
EIB & World Bank Group Report 2016 - What’s Holding Back the Private Sector in MENA? Lessons from The Enterprise Survey
10
AlZubi, B. (2015, November 10) Personal Interview with Hugh Bosely
11
AlZubi, B. (Re: ReBootKAMP Jordan) Message to Hugh Bosely. December 18, 2015. E-mail
12
The ICT Sector Competencies, Skills and Needs Assessment Report 2013
The top challenges to hiring
are related to skills and
commitment.
44% of entrepreneurs say
that identifying the right
skills or expertise is the top
challenge they face in the
hiring process
35% expressed difficulties
finding committed
employees.
TALENT QUICK STATS
14
finding well-educated employees, and 74% of companies think fresh
graduates who apply to their organizations are deficient in many
skills. The report also found that Jordanian universities face
challenges in keeping abreast of the latest developments in the
global ICT sector due to the rapid advances in technology. This lag
means that university students may be studying outdated or
irrelevant material, which reduces the value of these graduates in
the private sector over time. It was notable that int@j found the
majority of ICT operators sent their staff to post-graduate external
courses to reinforce their skills, indicating that this is a growing pain
in the industry.13
The report ultimately recommends that
universities re-examine ICT education with the aim of better
matching training with the requirements of the workplace.
In addition to traditional companies, entrepreneurship in Jordan is
limited by the talent pool as well. One of the main problems
encountered by entrepreneurs in the region when assembling their
teams is the lack of specialized talent. This includes mainly new
talent, not only in programming, but also in general soft skills that
companies rely on for harboring and cultivating smart talent.
Specialized design, data visualization and analysis, growth hacking,
and best practices of global digital marketing, among others, are
lacking.
The gap between the educational system and the needs of the
private sector and entrepreneurial ecosystem can be drastically
narrowed by incorporating specific subjects in the curricula from an
early age, fostering interest in technology and technical careers,
such as engineering and computer science. However, tackling the
problem from an academic perspective is no short-term solution: it
can take up to five to ten years to increase the knowledge capital in
the space of technology and entrepreneurship. If the ICT sector is to
continue on its path towards becoming a potential innovation hub
for technology companies in the short-term, accelerators must play
a vital role in the education process by creating their own programs
as well as forming strategic partnerships with external training and
educational initiatives. So how do we achieve this?
1.2.3 Coding bootcamps: a proven model for bootstrapping talent growth
A coding bootcamp is a technical training program that teaches the parts of programming with the
biggest impact and relevance to current market needs. It enables students with very little coding
proficiency to focus on the most important aspects of coding and immediately apply their new coding
13
Jordan: ICT jobs and training mismatch - Oxford Business GROUP
A number of initiatives have
grown up organically to
address the difficulties of
finding tech talent.
Salalem is an online
platform that creates
specialized training e-
courses that target the skills
gaps of fresh graduates in
the private sector.
Hello World Kids was
launched by an engineer
who wanted to supplement
her children’s educations
with basic coding and tech
skills. The organization
teaches computer and
mobile programming to kids
from 8 to 12 years old.
ReBootKamp is a program
that trains Jordanians and
refugees to become full-
stack software developers
in 18 weeks, discussed in
more detail below.
SEARCHING FOR
LOCAL SOLUTIONS
15
skills to solve real-world problems. Coding bootcamps teach people with little or no technical coding
background how to write code and build applications on a professional level. They last anywhere from 6
to 28 weeks and are designed for speed and high-impact learning.14
Most traditional engineering-based programs take four to five years. Coding bootcamps isolate the most
relevant skills from a four-year degree and infuse it with relevant industry skills to bridge the gap
between the theoretical world of academia and the real world of startups.
Besides speed and high-impact learning, coding bootcamps teach the latest hard technical skills that
match the technologies that the best startups in the country are using to build and launch products very
closely.
For these reasons, coding bootcamps have proven very popular in the tech industry. As of June 1, 2016,
there are coding bootcamps in 69 US cities and 34 states. Coding bootcamps continue their rise in the
tech industry with an estimated 17,966 bootcamp graduates in 2016, a 1.7x growth rate from 2015. As a
point of comparison, it is estimated that there were 61,408 undergraduate computer science graduates
from accredited US universities in 2015.
In a 2016 job outcomes study conducted by SwitchUp, 63% of bootcamp graduates were found to have
increased their salaries. Further, 80% reported they were ‘satisfied' or 'very satisfied' with their
experience. These programs have become the hiring centers of choice for top Silicon Valley tech
companies.
Programs based on the bootcamp pedagogy are already seeing successes in Jordan. Rapidly scaling up
such programs and opportunities is one way to dramatically increase the talent pool in the short term.
14
https://www.thefirehoseproject.com/definitive-guide/1
When developing talent and culture within the entrepreneurial ecosystem, it is particularly important
to support the development of women entrepreneurs, and to encourage the participation of women
in tech. Currently, in events such as Startup Weekend, the number of female participants doesn’t
exceed 24% of the total attendance. This gap is consistent with the entrepreneurial sector as a
whole, where the gap between male and female entrepreneurs in the region is 24%, according to the
World Bank.
Promoting workforce diversity is important, since studies affirm that businesses with a woman
founder perform 63% better than those founded only by men.1
On one hand, it is necessary to begin
by incentivizing technology careers for women from an early age. Initiatives such as RBK, which have
made a concerted effort to reach gender parity, have seen highly talented women succeed in the
program. Identifying and promoting success stories of women entrepreneurs can inspire new
generations of engineers, programmers, and founders of tech companies.
SUPPORTING WOMEN ENTREPRENEURS
16
ReBootKamp: A Case Study in Talent-Building
In early 2016, the first coding bootcamp was
opened in Amman, Jordan in partnership
with Hack Reactor (a Silicon Valley-based
coding school) with the dual aims of tackling
high unemployment rates in Jordan as well
as the ongoing refugee crisis.
Premised on the idea that the current
education system produces engineers whose
knowledge quickly becomes obsolete given
the rapid progression of the digital economy,
ReBootKamp launched a software
engineering bootcamp that trains individuals
to become full stack engineers in just 18
weeks.
To accomplish this, the program applies an
immersive, fast-paced pedagogy. Students
spend very little time in a traditional
classroom setting. Rather, the majority of
their time is spent learning practical coding
skills through hands-on projects. The
program employs pair learning, whereby
pairs of students work jointly on projects.
This enables students to teach and learn
from each other, encouraging teamwork and
autonomous learning.
The program has two major phases:
• Phase I: 5 weeks. 6 days a week. 8
hours a day. Total structured hacking
time: 240 hours
• Assessment: 1 week. Interview,
review, and selection for Phase II
• Phase II: 12 weeks + 1 solo week. 6
days a week. 12+ hours a day. Total
structured hacking time: 860 hours
The curriculum incorporates code
challenges, real-work projects, lectures on
new concepts,
longer projects that develop project
management, team communication, and
code documentation skills, as well as
incorporating guest speakers, social nights,
networking with hiring partners, and other
events. Topics covered are continuously
revised and updated from cohort to cohort.
Today some of the RBK curriculum includes
industry-relevant knowledge such as
JavaScript, Github, SQL, data structures,
algorithms, HTML/CSS, and more.
Through this curriculum, RBK delivers five
essential qualities demanded by industry:
• Solid English ability developed
through a pre-program English class.
• Strong soft skills: Communication,
Collaboration, Ethics.
• Deep problem solving ability:
practice using deductive and
inductive logic.
• Autonomous learning ability:
quickly adapt to new technologies.
• Market ready programming ability:
advanced Full Stack development.
RBK graduates enter the marketplace and
find careers at companies such as Edraak,
Souq (Amazon), Altibbi, LIWWA,
ArabiaWeather, and many more. The
program runs on a success-based tuition
model: graduates only pay RBK after they
find a job as a software engineer.
RBK delivers immediate impact to the
Jordanian ICT ecosystem. Every 21 weeks, a
new cohort of graduates enters the
workforce as well-trained, highly skilled
individuals equipped with problem solving
skills and the ability to self-teach to keep
pace with evolving industry demands.
Furthermore, since half of RBK admittees
are refugees, the program contributes to
solving a social challenge as well.
17
Hackatari: investing in student initiatives
Hackatari, an initiative of a successful startup
that sprouted its roots from Amman to San
Francisco (Mixed Dimensions), is an
innovation lab that combines student
learning with hands on projects and original
R&D.
Programs at Mixed Dimensions focus on high-
tech innovation, including 3D printing, virtual
reality, and interactive 3D Tech. Conceived by
Mixed Dimensions Inc, it has partnered with
universities around Jordan.
Among other initiatives, Hackatari offers an
internship program to give students direct
work experience in building and managing
software products, and support original thesis
research with mentorship and financing.
Hackatari aims to foster collaboration and
integrations between academia and industry
by building a solid case with Mixed
Dimensions in commercializing research and
expanding IP and patents portfolio in the
field. Mixed Dimensions sees this as a
valuable investment in the long run to access
talent that is not just semi equipped from an
academia standpoint but empowered and
supported by its student driven initiatives.
These initiatives work on cultivating young
student talent and actively invests in their
knowledge capital to breed early innovators
in this emerging industry, something that the
local education system lacks.
Facilities that support and encourage learning
through experimentation, building, and
creating are greatly needed as a way to seed
talent from early on in the pipeline. Resources
like Hackatari, which provide students
enrolled in traditional universities with
valuable hands-on experiences, should be
expanded. More broadly, innovation labs that
give individuals the chance to imagine, build,
and test new ideas should be supported in
meaningful, structured and well thought-out,
impact-driven ways in order to grow
organically, rather than rely on NGO funding,
to become much more widespread.
Leveraging local talent communities
Supporting the creation of venues and opportunities for
education outside the formal system, complementing
traditional education, is another pathway towards more
specialized education. One avenue toward achieving this is
by leveraging the existing knowledge of local talent
communities.
The Jordan UX Association, for example, has collaborated
closely since 2015, and conducts sessions to share
knowledge from community experts in best practices of
user interface and user experience design.
There are also other instances of continuous education
provided by entrepreneurial communities, like Jordan
Open Source Association and Google Developers Group
Amman that aim to bring advanced software development
techniques to Amman, by promoting a "hacker" culture (in
the positive sense) towards programming education.
Such organic communities must be supported and
promoted by funding, partnerships, or collaborative
events.
Today, it is impossible to overlook the value of Massive
Online Open Courses (MOOCs) and other online learning
tools as a way to rapidly gain and share information
about a range of topics from elite educational
institutions. MOOCs have gained popularity to the
extent that institutions such as Harvard and MIT (both
of which produce MOOCs) offer certifications based on
their successful completion. In the context of developing
the regional talent pool generally, and the Jordanian
talent pool in particular, MOOCs should be broadly
utilized to achieve the following:
1. Encourage autonomous learning. MOOCs allow
individuals to pursue curiosity, learn new topics
and skills, and further develop existing areas of
expertise.
2. Continue lifelong learning. Offering diverse
classes on different topics makes it easy for
learners to keep up with the latest news and
trends and be on top of their professional field.
3. Strengthen weak areas of knowledge.
Particularly in entrepreneurship, individuals
must possess a wide variety of skills that they
might not have practiced before. MOOCs can fill
these knowledge gaps.
Encouraging self-learning via MOOCs
18
1.3 Culture
Culture around an entrepreneurial ecosystem must be open, inclusive, and transparent in order to
generate and transform ideas into successful businesses. Aside from specialized talent, it is also
necessary to work on promoting entrepreneurship as a way of life, understanding failure as a stage
along the learning process. The road to a vibrant entrepreneurship ecosystem begins with events in
which its actors meet each other, exchange ideas and experiences, and begin to act as a community.
This gives way to more ambitious initiatives, such as hackathons or co-working spaces, in order to finally
reach more sophisticated scenarios such as venture builders, accelerators and R&D collaborations
between tech firms and local tech communities. Communities provide entrepreneurs with opportunities
for growth and informal learning, often in unplanned and serendipitous ways.
Part of developing the community means instilling a culture in which people feel supported to take risks,
pursue new ideas, and explore new areas of interest. Through side projects with friends and informal
teams, self-learning and experimentation, and exposure to examples of successful entrepreneurs, novel
ideas and new collaborations can emerge. To accomplish this, there must be a purposeful approach to
encouraging collaboration, accepting failure, and celebrating success.
1.3.1 Fostering collaboration through clustering, events and workshops
Big ideas transform into great projects when they're shared. Exchanging experiences, knowledge, and
ideas among entrepreneurs and creators acts as a catalyst for entrepreneurial success and innovation.
The road to a vibrant entrepreneurship ecosystem begins with events in which its actors meet each
other, exchange ideas and experiences, and begin to act as a community. Supporting the formation of
venues and opportunities to reach a certain density of startups is a key factor for the potential of
innovative ventures to emerge.
A great example of such an activity is Mix N’ Mentor Amman – “Marketplace Edition,” a community
event focused on facilitating partnership opportunities between startups and large corporations. Mix N’
Mentor brings together promising entrepreneurs with industry experts and investors to discuss specific
startup challenges. With its unique format, Mix N’ Mentor forges deep long-lasting connections between
entrepreneurs and mentors.15, 16
Events of this type should be made broadly accessible to promote
collaboration between members of the community.
Clustering can facilitate collaboration
To facilitate collaboration, physical proximity between entrepreneurs can be paramount. Innovation is
born out of the confluence of great minds. The concept of cluster, referring to an ecosystem of alike
businesses supported by the vigor and success of all of its participants in a limited geographical area
enables regular, face-to-face contact that nourishes the dialogue between competition and
collaboration, fundamental for the characteristic dynamism of the entrepreneurial ecosystem.
Alongside the idea of a cluster, which has a broader geographic horizon, we can highlight that of co-
working spaces: physical spaces where several companies, not necessarily related, share facilities and
15
http://www.wamda.com/2016/04/mixnmentor-amman-2016-marketplace-edition
16
http://www.wamda.com/2016/06/mix-n-mentor-amman-provokes-heated-debates
19
workspaces every day. The fact of sharing physical space not only enables novel approaches for problem
solving, nourished by the different perspectives contributed by every project, but also creating the
necessary conditions to attract investors, as well as new business and financing opportunities. In many
cases, these spaces transform into landmarks of the local entrepreneurial culture, as is the current case
with the Zain Innovation Campus in Jordan.
There is a clear need as well as a business opportunity trend for the creation of properly managed co-
working spaces with a focused purpose for empowering communities. Aside from free space, Co-
working spaces can also serve as self-sustainable and revenue generating businesses, for mid-stage
startups. When clear and appropriate value is made available that can facilitate or serve as a catalyst for
legal establishment, education, and access to value added services, startup businesses and corporate
sectors gladly pay for these goods, as in the case of AstroLabs Dubai.
Connecting the public and private sector for long-term impact
Community interactions must not be limited to entrepreneurs, but should also aim to create solid
relationships with the private and public spheres. The establishment of a union or body that represents
one common voice for its community is important, as it serves as a source of collective information and
strengthening the dynamism of the sector. From a government standpoint, the establishment of a union
or body to represent the community can be further empowered if the government recognizes and
legitimizes such entities and also works towards shifting the cultural perspective around
entrepreneurship jointly. Governments should also serve as critical partners in defining what impact
ecosystems should aim for. Governments, which often have the most complete information about the
real problems and needs faced by their populations, should approach entrepreneurs with technology
competencies and to work in ways to link entrepreneurs, universities, and other governments to
develop disruptive solutions. Collaborating with governments can be complex and highly context-
dependent. One framework for approaching government collaboration is described in Appendix III.
AstroLabs Dubai is a coworking space for digital technology companies that aims to help startups set up a
presence in Dubai and provides a platform for them to scale globally. AstroLabs gained popularity among
startups and entrepreneurs through the concrete support they provide. Initially just a co-working space,
it built a community that includes entrepreneurs representing over 80 innovative tech startups.
The organization also launched AstroLabs Academy, which focuses on delivering specialized courses on
topics in digital business including digital marketing, coding, analytics & big data, UX design, and business
development. Many courses are open to the public, but they also develop custom-made curricula for
corporate clients and incubators/accelerators across the region.
The success of AstroLabs gained the attention of Google for Entrepreneurs, which adopted AstroLabs and
brought them to the Google global community. Governments and organizations must follow such
examples if they are to take this sector seriously and aim for tangible and measurable impacts.
SUCCESSFUL CO-WORKING SPACES: ASTROLABS DUBAI
20
A robust entrepreneurial ecosystem's foundation lies not only in the development of innovation and the
new projects that arise from it but also the relations with which other sectors nourish and propel it, such
as investors, business and industrial sectors, universities, and governments. They create networks that
link those who wield the tools of technology with the traditional business community who understand
better than anyone the problems that plague the various productive sectors in the region, and may
serve as a gateway to dialogue and to new entrepreneurial solutions to old problems.
1.3.2 Accepting failure is critical for innovation
The mantra "fail often, fail fast" is the cornerstone of entrepreneurial culture in Silicon Valley.17
Innovation is impossible if individuals are afraid to try new things because they might fail. And while
glorifying failure is not a productive goal, failure should not be seen as the end of the world. Further,
lessons learned from failure can propel an individual or organization to successes in the future.
However, this philosophy doesn't necessarily resonate in our region. One way that this fear of failure
manifests itself is in the number of individuals who choose to join traditional businesses rather than
startups. A survey by Wamda Capital found that only 12% of respondents would work for a startup,
while the rest preferred to work for large corporations. While many factors may contribute to this
result, fear of risk and failure may be salient.18
To foster a thriving innovation ecosystem, it will be necessary to work to destigmatize failure. This can
be achieved through specialized events, education, and everyday
interactions.
One great example of positive awareness raising about failure is
FuckUp Nights (Or F.U.N).19
The initiative was born in Mexico,
created by five friends who sought a space to speak openly about
entrepreneurial failure. Now, it has become a global movement
and event series that shares stories of professional failure. Each
month, in events across the globe, three to four people get up in
front of a room full of strangers to share their own professional
failure. It provides a more realistic outlook on the process of
failing as an entrepreneur, and potentially imparts valuable
lessons to the audience.
Organizations can cultivate a culture of openness around failure
through their daily interactions. For instance, discussing the
week's errors in a company meeting or sharing experiences of
failure among entrepreneurs helps to turn these events into
sources of learning. Admitting Failure is an organization that
works to help businesses – specifically NGOs and civil society –
discuss and learn from failures. According to their website, “The
17
https://www.slideshare.net/Techstars/fostering-the-startup-ecosystem-in-latin-america
18
https://www.ifc.org/wps/wcm/connect/b8999b4c-bd08-463f-b278-
85d764fd3998/a2t_final_report_july15b.pdf?MOD=AJPERES
19
http://fuckupnights.com/
F.U.N. AMMAN
The introduction of F.U.N. to
Jordan provides an
illuminating glimpse into the
culture around failure in the
country.
Corporates & entrepreneurs
alike both struggled to
discuss failures publicly, yet
a core minority were vocal
supporters.
The region has a long way to
go in developing this culture,
but it is on its way.
21
paradox is that we do everything we can to avoid these pains even though we all know failure is the best
teacher and we have to be open and talk about our failures in order to learn. More than that, openly
acknowledging failure is often a catalyst for innovation that takes our work from good to great.”
The de-stigmatization of failure shouldn't be limited to entrepreneur communities, but should be
extended to the rest of society, in particular children and youths who will become future generations of
entrepreneurs.20
This should start early in education, through experiments and unstructured play.
The ultimate objective is to showcase entrepreneurship as a way of life that is possible. Failure is
nothing other than the other side of risk, which is the main engine of innovation and entrepreneurship.
Whether it happens or not, it is always a possibility.21
Only entrepreneurs who can understand the
possibility of failure as a stimulating challenge rather than a hindrance will achieve their goals. After all,
if there’s no risk, there is likely no prize.
1.3.3 Celebrating success can encourage entrepreneurship as a way of life
Yet to strengthen entrepreneurial culture, it is equally vital to adequately disseminate and value
successes that sprout from the community. One of the major reasons that entrepreneurship is stifled in
Jordan is because it is simply not culturally accepted. Many entrepreneurs will fail multiple times before
they succeed, and the idea of failing can lead to shame or disapproval by family members, friends and
peers. Promoting the idea that entrepreneurship is a viable path to success and celebrating one’s own
ambitions and ideas is crucial to ultimately stimulating growth.
Success stories can inspire more people to aspire to become entrepreneurs, and can demonstrate the
tangible benefits of collaboration, teamwork, and learning from failure. Studies, as well as anecdotal
evidence, has shown that entrepreneurship can be a demanding and isolating endeavor that takes its
toll on an individual’s mental health. Gallup Polls have found that entrepreneurs report experiencing
worry and anxiety at a higher rate than employees.22
This is not broadly acknowledged in Jordan, where
the mental toll of entrepreneurship is dismissed or mocked, even by leaders in the sector. Thus, it is also
important to create a community of individuals who share common experiences and who can support
each other.
1.2 Know-how
1.4 Know-how: soft skills and business skills help individual succeed
20
https://www.entrepreneur.com/article/244307
21
https://www.fastcompany.com/3035310/hit-the-ground-running/what-the-hype-behind-embracing-failure-is-really-all-about
22
https://www.inc.com/magazine/201309/jessica-bruder/psychological-price-of-entrepreneurship.html
Startup Grind is "a global entrepreneurship community designed to educate, inspire, and connect
entrepreneurs." The program has branches in over 200 cities worldwide, and hosts fireside chats in every
city every month. These talks feature successful local founders or investors, with an audience comprising
dozens or hundreds of entrepreneurs.
These talks provide entrepreneurs with opportunities for mentorship, and chances to connect with
potential co-founders or hires. Interviews with the keynote speaker provide lessons and guidance.
STARTUP GRIND: CELEBRATING A COMMUNITY
22
1.4 Know-how: soft skills and practical knowledge for success in any career
Even in a culture of openness, collaboration, and risk-taking, and equipped with technical skills, many
potential entrepreneurs will not have the skill sets needed to take the next step in turning their novel
ideas into viable businesses. Thus, a third pillar of developing an entrepreneurial ecosystem involves
providing opportunities for individuals interested in starting companies to learn about the business
world. This could include events, speakers, or recommended online courses. These opportunities could
take the form of events featuring talks with successful entrepreneurs, work sessions to develop critical
skills, or informational sessions to cover basic areas of knowledge.
1.5 Talent takeaways
Talent is the most critical precondition for developing a healthy, sustainable, productive innovation
ecosystem. The cumulative effect of these educational outreach efforts will be, over time, to build a
community of individuals who have the skills, mindset, and basic resources to begin seeding and scaling
new ideas. It is important to note that there is no single factor that alone can spur and sustain
entrepreneurship. There is no exact formula for creating an entrepreneurial economy, there are only
practical, if imperfect, road maps to jump-start the growth of a healthy entrepreneurial ecosystem. By
taking a people-focused approach, the model outlined above, tailored to emerging economies, lays the
groundwork for a more advanced entrepreneurial economy where individuals have the resources,
capital, and mentorship to take their ideas and apply their technical knowledge to launch viable
startups.
23
Chapter 2: Accelerating talent to impact
“The era of closed-source innovation is dead. If Jordan wants to be a leader in regional
innovation rather than forever playing catch-up, we need to quickly implement novel
ways of sharing knowledge so that the benefits of new insights and discoveries can be
rapidly made universal.
Our approach is a new model of startup accelerator built on principles of minimizing
risk and supporting talent, cultivating and evoking a new type of culture within,
founded on radical transparency, resource-sharing, and open-source collaboration – a
living, dynamic organization that’s constantly evaluating itself and taking metrics to
self-improve.”
– Marwan Soudi, UpSpark Founder & Director
2.1 Overview
Incubators and accelerators serve an important function in a robust innovation ecosystem, serving as
conduits between ideas and impact. Incubators and accelerators provide support and infrastructure for
the existing skills within a community, and enable individuals to scale their ideas to create value for the
whole ecosystem. Fundamentally, they drive novel ideas and new technologies to economic impact by
creating successful commercial enterprises.
Studies have found that about 60% of venture-backed startups fail.23
In the current environment, Jordan
has neither the time nor the resources to accept that kind of failure rate. And while failure is a necessary
part of the innovation process, there are pragmatic steps an accelerator can take to mitigate risks and
create viable, sustainable, and profitable businesses that generate returns for investors in the long term.
It will not work to import the standard Silicon Valley business model and expect it to work in Jordan.
Because Jordan has specific needs, it requires institutions that are customized to meet those needs.
These include:
▪ Minimizing risk: the current ecosystem does not have the resources to sustain a high failure
rate. Accelerators need to take stringent steps to minimize risk, at least in the short term, if they
are to realistically generate returns for investors or ecosystem impact. Our proposed accelerator
de-risks startups with a highly selective admissions process and extensive education programs.
▪ Open-source collaboration: our guiding principle is that collaboration equals rapid innovation.
In order to hack our way to becoming regionally competitive, gains from new advances in
knowledge or technology should be shared. Our proposed accelerator views the skills,
resources, and technologies of its startups as collective tools that can hasten new
breakthroughs.
23
http://fortune.com/2017/06/27/startup-advice-data-failure/
24
▪ Continuous iteration: better data leads to better decision-making. Rather than an ad hoc “spray
and pray” approach, we need to collect data about what works and what doesn’t work, measure
our impact, and continuously adjust our programs based on the results.
In this chapter, we propose a new model for startup support24
that is built on these three principles. If
implemented successfully, the organization could serve as a model for accelerators in emerging
economies worldwide.
An accelerator creates globally relevant, disruptive technologies in a sector it has mastered. If it wants
to lead, its primary focus should be on value-driven businesses. A successful accelerator for the
Jordanian context does not have to create disruptions to be extremely profitable. Rather, the goal
should be to build an organization that can eventually afford to take risks without a fatal backlash.
In comparison to traditional accelerators, ours emphasizes openness, collaboration, and building a
strong business model over closed innovation, individualism, and disruption.
24
We use the term accelerator because the end goal of this organization is to turn early-stage startups into
investment-ready businesses. However, the program blends aspects of bootcamps, incubators, venture builders,
and accelerators.
Traditional Accelerator Principles Open Accelerator Principles
Most of the smart people in our field work for us
Not all the smart people work for us, so we must find
and tap into the knowledge and expertise of bright
individuals outside our company
To profit from R&D, we must discover, develop
and ship ourselves
External R&D can create significant value; internal
R&D is needed to claim some portion of that value
If we discover it, we will get it to market first
We don't have to originate the research in order to
profit from it
If we are the 1st to commercialize we will win
Building a better business model is better than
getting to market first
If we create the most and the best ideas in the
industry, we will win
If we make the best use of internal and external
ideas, we will win
We should control our intellectual property (IP) so
that our competitors don't profit from our ideas
We should profit from others' use of our IP, and we
should buy others' IP whenever it advances our own
business model
25
This chapter lays out existing resources for startups in Jordan, then describes a blueprint for an
organization that combines features of incubators, accelerators, venture builders, and similar
organizations to facilitate the full process of taking nascent teams and ideas, and supporting their
growth and eventual deployment of new products.
2.2 Existing resources for nascent startups are lacking
Whether businesses are just starting or trying to scale, financing is critical for success. Experienced
capital can really make a difference for new companies, and experienced investors can help coach
founders along their journey.
Yet in a recent Wamda survey, the majority of entrepreneurs in Jordan stated that investors are not
offering enough value beyond cash, and most mainstay institutions don’t adequately provide
mentorship or opportunities for collaboration. A rapid influx of investors has left the sector
uncoordinated and disjointed, and according to the UNDP’s SME Development report, “there is no
mechanism for coordinating the range of service providers and programme efforts.” As a result,
entrepreneurs stall at certain phases, and lack the support or expertise to make their next move, even if
the opportunity is theoretically available.
Some investor networks and training programs have already formed regionally, with most headed by
founding angel investors while being funded mostly through membership fees. Yet in the case of Jordan,
some of the recently formed investment networks have at least one of the following shortcomings: they
are poorly publicized to relevant audiences, take a more traditional approach to investments and lack
solid experience in startup and technology investments, or are not as active as they should be. Over
time due to the characteristic flaws of their operations, most of these networks either face fatigue or
demotivation and their initiatives eventually dwindle away with no track of any kind of concrete
impact.25
While angel investing has always been active in the region through individual investments, getting
investment groups active in a network structure has been challenging. Donor institutions (such as
USAID) have previously funded the establishment of angel networks such as Bedaya (now no longer
active) and JO Angels (struggling for sustainability) in Jordan. Attempts to get networks to become
sustainably active face several challenges:
▪ Angel investors do not necessarily understand the business models of tech startups, including
the inherent risks and diversification required.
▪ Cultural differences between angel investors who have typically spent their careers in traditional
business settings, and entrepreneurs who are used to operating in a fast-paced startup
environment.
▪ Incubators and angel networks alike have a large number of applications but a small number of
quality startups seeking funding.
With this lack of maturity in the ecosystem, it is crucial that both angel investors and entrepreneurs gain
the necessary cross-industry knowledge to work together productively.
25
Interview with JO Angels founder Zaid Masri
26
Today there are several initiatives to cooperate among angel networks, like MAIN, a cooperation
initiative26
for Cairo Angels (Egypt)27
, Womena (Dubai)28
, Oqal (Saudi Arabia)29
, Tanmu (Bahrain)30
and
many other new members which are starting to join.
On the other side of the world, similar successful examples in Latin America are The Venture Club of
Panamá, or Guadalajara Angel Investors Network (GAIN), local entities that seek to gather angel
investors in both cities. These associations aim to develop an innovative entrepreneurial culture among
individuals who are in condition to invest in startups, but that have historically created wealth through
traditional investment instruments.
In reflection, support and growth of an investor network such as JO Angels is an important component
to the ecosystem. The approach towards angel investment should be to help mature the space through
initiatives like training and co-investments. One useful international initiative that can directly drive in
value to investor networks is Startup Angels. Startup Angels finds opportunities and identifies, recruits
and trains investors in developing regions to invest in the early stages of tech based businesses. New
Angels get to learn about startup investing, and for expert angels to learn about new markets, giving
them access to a network of experienced investors, introducing them to young companies, and
providing tools and training.31
Yet beyond direct financial investment, a new approach is needed that supports startups in gaining the
right people, resources, knowledge, and capital throughout the development process. In the following
sections, we present a two-part startup support program to meet these needs. In the first phase, teams
are extensively vetted and de-risked, and knowledge gaps are filled; in the second, qualifying teams
undergo specialized training and education, and are given access to the resources of the accelerator.
2.3 Selection Process
Choosing which startups to incubate is one of the most important factors in the success of any
accelerator. Pursuing the wrong type of venture – those for whom the accelerator doesn’t have the
means or networks to provide support, or those without the potential to scale – will spell failure. Our
proposed accelerator model employs a rigorous selection process that blends assessment, education,
and evaluation to locate committed teams with the greatest potential. In the first phase, teams are
extensively vetted and de-risked; in the second, they are re-evaluated and given practical training.
26
https://www.middleeastinvestmentnetwork.com
27
http://www.cairoangels.com/
28
http://womena.co/
29
http://www.oqal.org/ar/
30
http://www.tenmou.me/
31
https://startupangels.com
27
2.3.1 Phase 1: De-Risking Potential Teams
The accelerator takes a people-first, idea-second approach to selecting teams. Though it is very difficult
to objectively judge a new founder by the quality of their idea, creative teams with a productive
dynamic can generate and improve upon ideas that may not initially seem promising. Thus, in the first
phase of the accelerator, teams undergo an extensive evaluation process that only briefly assesses the
idea, and focuses primarily on the personalities and dynamics between team members, as well as the
balance of knowledge versus experience on the team. In this phase, the basic areas of interest and
assessment techniques are the following:
Area of Interest Criteria Assessment Technique
The Idea
Specialization: Generally, does the idea
fall into the accelerator’s area of
specialization?
Technical complexity: How technically
sophisticated is this idea, and is it feasible
given the resources available?
Manpower required: What is the
manpower required to execute on this
idea, and is it feasible given existing
human capital in the startup and the
accelerator?
Determined in consultation
with the accelerator’s board
of experts as well as outside
consultation if needed.
Personality
Are personalities of team members
aligned with the personality profiles that
have been associated with successful
entrepreneurs?
Established through
interactions and interviews
with team members, as well
as personality tests such as
the Myers-Briggs (MBTI)
profile.32
Team Dynamics
Do individual skillsets complement each
other? Do team member personalities and
skillsets complement each other?
Established through
interactions and interviews
with team members, as well
as a Myers-Briggs (MBTI)
profile
32
Assessing personality types is not a precise science. However, studies have found that there are certain
personality types which are associated more strongly with entrepreneurship. Both the Founder Institute as well as
ReBootKamp have employed these methods and seen successful outcomes.
28
Knowledge vs.
Experience
What is the technical background of the
team? What skills and expertise does the
team possess? Where is the balance
between knowledge and experience
among the team?
Established through
interactions and interviews
with the team. This is also
assessed via a Predictive
Admissions Test
administered prior to
accepting teams into Phase I.
Initial Fund Estimate
Is the initial estimate of funds required to
accelerate the startup to launch within the
practical limits of the accelerator?
Determined in consultation
with the accelerator’s board
of experts as well as outside
consultation, if needed.
Depending on the results of this initial assessment, startups may be eligible to receive their first round of
investment. It is important to note, however, that each of the listed areas of interest are weighted with
different importance levels. For example, a startup may still be eligible for support if the team works
well together, even if the original idea was discarded completely. Or, a team with a great idea but little
practical knowledge may still receive support if they complete additional initial training via assigned
MOOCs. An additional benefit of assigning courses is to weed out teams that are not fully dedicated.
During this phase, teams and ideas may undergo extensive modification. The accelerator may require
that teams modify their founding team or talent by removing, replacing or in some cases bring in an
additional team member to balance out skill sets and enhance capabilities. Teams also prepare for phase
two with intensive weeks of accelerated learning, according to a MOOC-based curriculum that’s tailored
specifically to that team’s knowledge gaps. The criteria with least flexibility is the initial fund estimate: if
a startup requires resources that are beyond the capabilities of the accelerator, the accelerator will
connect them to a more relevant partner organization.
During the selection process, we also consider how the various teams will complement each other and
work together. Because of the highly collaborative environment, the accelerator views each cohort as a
tight-knit team rather than a collection of individual startups. When we admit a cohort of startups toto
the accelerator, we want each to add something useful or intriguing to the team, to bring together a
wide range of individual gifts, talents, interests and achievements. In a big-picture sense, we are looking
for a richly varied team of capable people who will support, surprise and inspire each other.
By the end of the first phase, the remaining teams will be comprised of highly driven, committed, and
capable individuals who are able to work together and solve problems in a fast-paced environment.
Potential entrepreneurs have been primed with the skills they need to successfully execute on their
ideas, and the entire cohort has been selected to provide high potential for structured and serendipitous
collaboration.
2.3.2 Phase 2: Re-evaluating and assessing growth
While phase one focused on knowledge and skills, phase two is much more practical. In phase two:
29
▪ Ideas are re-evaluated much more deeply to assess their manpower requirement, technical
complexity, investment readiness level, fundability, and required resources.
▪ Because teams have likely been reshuffled, team dynamics and individual skills will be assessed
once again.
▪ Teams will be tested to determine whether they incorporated the knowledge from Phase 1:
have they learned and bolstered their weak points? Or do their knowledge gaps remain the
same?
▪ During this phase, the strength of the idea becomes a much more highly-weighted factor.
In phase two, qualifying teams are given access to the resources of the accelerator. This access entails
much more than just access to finance, and is where the open-source philosophy of the accelerator
comes into full effect.
2.3.3 The Program: Taking an Open-Source Approach for Rapid Innovation
We envision this ideal accelerator as a collaborative ecosystem, where people of all skill sets,
backgrounds, and experiences share ideas, best practices, metrics, and feedback. Why? Because helping
each other and sharing expertise leads to faster iteration, more efficient innovation, and faster market
growth. To create and foster this collaborative culture within the accelerator, we take a groundbreaking
open source approach where selected teams are expected to share personal or team talent, resources,
and technology across all existing startups to the greatest extent possible. An overview of the technical
aspects of the accelerator model can be found in Appendix IV.
We use the term accelerator because the end goal of the accelerator is to turn early-stage startups
into investment-ready businesses. However, the program blends aspects of bootcamps, incubators,
and venture builders, as well as accelerators.
In order to define what innovation we seek to support, it is important to define the impact we seek
to create. The mission of such an accelerator is to manufacture a more open and collaborative
culture that values long-term, collective gains over short term private wins, and in doing so, to lay
the foundations for a more socially driven regional ICT hub.
A NOTE ON OUR TERMINOLOGY AND IMPACT
30
Resource Openness Delivery
Basic organizational
resources
Open to current teams
and alumni
The accelerator will retain a cadre of consultants
in relevant fields that all teams will have access to
via office hours that can be scheduled through an
internal online system. This will include, for
example, accountants, HR advisors, financial
advisors, and more.
Equity
Shared among current
teams and alumni
All startups contribute a percentage of their equity
goes to the other startups in the cohort, and a
smaller percentage goes to the alumni (e.g., 1% to
cohort pool; then give a fraction to the alumni).
Intellectual property
Open across all current
teams, barring any
conflict of interest
(determined in
consultation with
experts such as JOSA)
Any software, technology, or business model
developed within the accelerator must be made
open and accessible to all other current teams.
People Open to current teams
All team members have mandatory time
contributions, and must dedicate between 10-20%
of their monthly time to working with other
startups and solving other people’s problems. This
occurs during weekly huddles, and individuals can
be booked through office hours on the
accelerator’s internal online platform.
Networks
Open to current teams
and alumni
Access to networks and people that you know –
any opportunities, investors, etc. – must be
shared. Additionally, the accelerator maintains an
extensive network of mentors from business and
academia, scientific advisors, and experienced
founders and regional partners who have
specialized expertise.
Internal data
Open to current teams;
alumni may secure paid
access; access to the
public via referrals
The accelerator collects and maintains data on
startups – on customer bases, on what works &
what doesn’t work. Marketing strategies,
customer acquisition, all of which is shared via an
internal knowledge management system.
Past founders Open to current teams
“Smart people can fail, but smarter people learn,
iterate, and reapply.” Founders that are highly
talented exhibit high grit and have a lot of
experience to contribute yet fail to bring their
startup into fruition have the option to opt in any
other startup and join the team. After all, all
startups have stakes in every wave of startups that
are being accelerated.
31
EXAMPLE: TIME-SHARING
DevEx is a team of four software engineers
developing an Arabic-language search engine. For
the past week, they have been stuck on an
algorithm for indexing webpages.
They discuss this obstacle at a weekly
accelerator-wide huddle, and discover that a
member of a fellow startup has successfully
implemented a similar project in the past.
After the huddle, DevEx books an hour of her
time later that week using the online office-hours
portal, and she works with them to help resolve
the issue.
Computer scientists on the Striada team are
testing the concept for an app that uses
Blockchain technology to improve government
transparency and accountability, and reduce
corruption. Yet they are struggling to implement
part of their idea.
The team convenes an accelerator-wide, hour-
long hackathon where they bring together
people from all teams who are familiar with the
technology.
Taking advantage of the wisdom of the crowd,
they are able to quickly arrive at a solution.
EXAMPLE: WISDOM OF CROWDS
A few years after graduating the program,
Accelera realizes that their machine learning
algorithm that matches recent college graduates
with hiring startups may have applications in
other markets. They wonder if it could be used to
match restaurants with food vendors, but know
little about that industry.
Accelera checks the accelerator’s database of
current startups and alumni, and finds one that
worked with restaurants. The founders meet, and
Accelera learns about a slew of regulatory issues
associated with the food industry. This helps
steer them away from a possible failed venture.
EXAMPLE: TAPPING INTO NETWORKS
After DevEx completes its search algorithm,
another current startup, DreamMachine, realizes
they can use that algorithm in the project:
building a massive online network for universities
to share experts, courses, and resources.
An expert panel determines there is no conflict of
interest between the two companies, so DevEx is
obligated by their contract with the accelerator
to give DreamMachine their algorithm.
Later, when DreamMachine successfully exits,
they begin paying DevEx for use of the algorithm.
EXAMPLE: SHARED IP
32
2.3.4 Continual self-assessment leads to improved long-term performance
The third defining pillar of the model accelerator is measurement, self-evaluation, and continuous
iteration. Too much thinking around what makes successful entrepreneurship is ad hoc and hand-
waved; specific metrics and more accessible data are needed to test assumptions and ensure better
decision-making. The accelerator will continually collect data to learn about whether its methods are
working, in order to keep what is useful, iterate on what’s not, and eventually converge on an optimal
approach to spurring entrepreneurship.
At every point along the pipeline, from talent-building to startup exits, UpSpark and the accelerator will
collect data and assess metrics on what works and what doesn’t work. The possibilities are vast, but
some potential areas to start are the following:
1. Talent phase: Survey bootcamp graduates on their experiences, survey hiring partners on what
they are looking for and whether these needs are being met.
2. Culture phase: Surveys of attendants after every event to gauge what they learned, and what
they would like to learn.
3. Know-how phase: Keep track of attendees, see whether they are more likely to start businesses.
4. Selection phase: What kinds of ideas are people pitching to the accelerator? Are they shallow,
or technically sophisticated? Are they diverse, or do they all fall in a similar theme/area? What
kinds of skills do potential startup teams lack when they come into the accelerator? What are
they proficient in? Adjust education upstream if necessary.
5. General data collection: Collect extensive data on participants in the local, regional, and global
accelerators and incubators; demographic information about teams, idea, sector, goals,
investors, market strategies, business plans, challenges encountered. Use these to improve the
program and to help future startups. Leverage technology analytics to help with decision-
making.
6. Ecosystem outcome measurement: Follow up with applicants who were almost accepted, but
ultimately rejected, and with those who dropped out of the program to establish a control
group to allow for the measurement of the causal impact of the accelerator on startup success.
2.4 Contributing to the greater ecosystem directly and indirectly
The accelerator will contribute to the ecosystem through direct and indirect effects. Specific activities
such as investor education will raise the overall sophistication of capital in the ecosystem. By being
rigorous about implementing an open source culture and by working with a broad segment of the
community, the accelerator will also contribute to the development and promulgation of a
collaborative, sharing-based culture.
▪ Education throughout the program leaves a value-added byproduct to the ecosystem’s
knowledge capital. This is a great economic contribution to the sector and the long-term GDP.
The people that leave or drop out leave without a startup but with a higher chance of
employability.
33
▪ We will have partnerships with organizations that accelerate employability on a local and global
level.
▪ Udacity, Salalem, Coursera. All available for free for anyone that enrolled in the program.
▪ Partnerships with Hiring Partners: Corporates, Startups, or any technical company that is looking
for potential tech talent.
2.4.1 Developing smart capital
Just like entrepreneurial human capital in the region, smart capital can be fostered over time. The
accelerator will run programs similar to those aimed at entrepreneurs and startups, but instead around
investor communities. Partnerships with globally recognized workshops, training programs and investor
networks are critical for maturing the investor sector, and can also drive potential success stories over
time. Additionally, the construction of spaces where investors can share their experience around new
technology enterprises is of vital importance to raise awareness on the challenges and opportunities of
the sector, redirecting capital that would otherwise end up in more traditional, less risky enterprises.
Finally, investment funds normally function better when their teams include people who have been
entrepreneurs with firsthand knowledge of the real challenges faced by startups on their path to
consolidation. Thus, successful founders can be encouraged to become investors to strengthen smart
capital.
Crowdfunding provides another potential source of smart capital. Experimenting with new ways to
leverage the wisdom of crowds via crowd-funded projects is another important component of the
ecosystem. Embedding and activating crowdfunding platforms in accelerators and investor networks is
one such approach. One example of how crowdfunding can be incorporated into an accelerator model is
via investor pairing: a local investor with deep regional knowledge pairs up with a global VC firm to both
invest in the same startup. This gives the global VC firm an opportunity to expand, to learn about new
markets, and find far-flung new ideas. It also provides local startups with access to new ideas and
experienced capital.
Finally, startups themselves can serve as sources of smart capital for each other. This can be done
through coopetition: startups that are in the same market can work together in the exploration of
knowledge and research of new products, at the same time that they compete for market-share of their
products and in the exploitation of the knowledge created. A merger of startups and work teams, which
shouldn't necessarily happen as a purchase of one by the other, but also through alternative models
such as share transfer by the better positioned company to the one that is less so in exchange for joining
forces. A microcosm ethos that is open source by foundation promotes such cultures of collaboration
and cooperation.
34
Conclusion
Communities and countries around the world are seeking ways to nurture innovative businesses, as a
way of solving some of their most urgent economic and societal challenges. There is no single model for
developing a successful innovation ecosystem. Although there is much to learn from other countries
about best practice in institution and program design, attempts to directly replicate organizational
models that operate in very different contexts are likely to fail.
Ultimately, this report provides a framework for emerging economies to develop regionally competitive
entrepreneurial ecosystems. Great ideas are found everywhere in the world, and you don't need to be in
Silicon Valley to turn your ideas into great companies. Early ecosystems that turned heads through the
startups that they created include Hungary, which produced huge startups like Prezi and LogMeln,
Estonia, which created Skype, and Germany, which created SoundCloud and more. Tomorrow’s next big
idea could come from anywhere in the world, from Mumbai, to Amman, to Nairobi, to Havana.
Yet countries can take proactive steps to manufacturing a robust innovation ecosystem by fostering
human capital and developing new institutions to support them. Tech communities and countries should
focus on:
▪ Upending traditional education to rapidly improve talent.
▪ Developing a culture that accepts failure, celebrates entrepreneurs, and encourages
collaboration.
▪ Developing entrepreneurial know-how among the community.
Because collaboration in these contexts is more useful than competition – at least initially – the startup
support institutions need to take a different approach than traditional accelerators. In particular, to see
the greatest gains the fastest, they should:
▪ Have a highly selective admissions process that incorporates education and prioritizes people
over ideas.
▪ Demand collaboration and employ a radically open source philosophy in which the people,
resources, and technologies of startups in the accelerators are all shared.
▪ Constantly collect data and use that data to improve its programs and selection process.
No two economies are similar enough that every recommendation in this report would work equally
well for them. Further, there are numerous questions that each country will have to answer for itself:
what is the role of government in creating such an ecosystem? In what area should we seek to innovate?
Countries should use this report as a starting point: take what applies, discard what doesn’t, and build a
system that works uniquely for them. Any framework needs a clear mission, but an ability to adapt and
experiment. Working towards many different objectives at once or constantly changing strategic
direction can make it difficult to deliver impactful innovation support for businesses. However, a long-
term vision of what success looks like should not prevent any country from experimenting with new
approaches, and responding to new needs and opportunities.
35
References
Dutta, Soumitra, Thierry Geiger, and Bruno Lanvin. The Global Information Technology Report 2015: ICTs
for Inclusive Growth. N.p., 2015. Print.
The State of Digital Investments in MENA 2013-2015. N.p., 2016. Print.
Breznitz, Dan, and Darius Ornston. “The Revolutionary Power of Peripheral Agencies: Explaining Radical
Policy Innovation in Finland and Israel.” Comparative Political Studies 46.10 (2013): 1–38. Print.
Diallo, Ali. “The Rise of Venture Builders and the Evolution of the Startup Model.” The Blueprint:
Thoughts on Innovation, Entrepreneurship and Business Management. N.p. Print.
Salido, Eduardo, Marc Sabas, and Pedro Freixas. The Accelerator and Incubator Ecosystem in Europe.
N.p., 2013. Print.
Zero Barriers: Three Mega Trends Shaping the Future of Entrepreneurship. N.p., 2017. Print.
State of Payments 2016. N.p., 2016. Print.
Figures, Key. Annual Report 2015. N.p., 2015. Print.
Nurturing Human Capital: The Missing Piece of MENA’s Entrepreneurship Puzzle. N.p., 2016. Print.
Mocker, Valerie, Simona Bielli, and Christopher Haley. Winning Together: A Guide to Successful
Corporate-Startup Collaborations. N.p., 2015. Print.
Tech Nation: Transforming UK Industries. N.p., 2016. Print.
Dee, Nicola et al. Startup Support Programs: What’s the Difference? N.p., 2015. Print.
Guide, A Practice. Startup Accelerator Programmes: A Practice Guide. N.p., 2014. Print.
Bannerjee, Siddharth, Simona Bielli, and Christopher Haley. Scaling Together: Overcoming Barriers in
Corporate-Startup Collaboration. N.p., 2016. Print.
Edovald, Triin, and Teo Firpo. Running Randomised Controlled Trials in Innovation, Entrepreneurship and
Growth: An Introductory Guide. N.p., 2016. Print.
Saunders, Tom, and Jeremy Kingsley. Made in China: Makerspaces and the Search for Mass Innovation.
N.p., 2016. Print.
Puttick, Ruth. Innovation Teams and Labs: A Practice Guide. N.p., 2014. Print.
Ramalingam, Ben, and Kirsten Bound. Innovation for International Development: Navigating the Paths
and Pitfalls. N.p., 2016. Print.
36
Dempwolf, C.S., Jennifer Auer, and Michelle D’Ippolito. Innovation Accelerators: Defining Characteristics
Among Startup Assistance Organizations. College Park, Maryland: N.p., 2014. Print.
Karo, Erkki, and Rainer Kattel. How to Organize for Innovation: Entrepreneurial State and Organizational
Variety. N.p., 2016. Print. Working Papers in Technology Governance and Economic Dynamics.
Glennie, Alex, and Kirsten Bound. How Innovation Agencies Work: International Lessons to Inspire and
Inform National Strategies. N.p., 2016. Print.
Gabriel, Madeleine, Florence Engasser, and Kirsten Bound. Good Incubation in India: Strategies for
Supporting Social Enterprise in Challenging Contexts. N.p., 2016. Print.
Miller, Paul, and Jessica Stacey. Good Incubation: The Craft of Supporting Early-Stage Social Ventures.
N.p., 2014. Print.
Digital Entrepreneurship: An “Idea Bank” for Local Policymakers. N.p., 2016. Print.
Benton, Meghan, and Julie Simon. Connected Councils: A Digital Vision of Local Government in 2025.
N.p., 2016. Print.
Ballantyne, Perrie. Challenge Prizes: A Practice Guide. N.p., 2014. Print.
Clarysse, Bart, Mike Wright, and Jonas Van Hove. A Look Inside Accelerators: Building Businesses. N.p.,
2015. Print.
The Mentoring Effect on Economic Growth. N.p., 2016. Print.
Emam, Nada. Maktoob. N.p., 2011. Print.
Shen, Jason. Guide to YC: The Complete and Indispensible Game Plan for Founders Applying to Y
Combinator. Hyperink, 2013. Print.
Schwab, Klaus. The Global Competitiveness Report 2015-2016. Geneva: N.p., 2016. Print.
Erixon, Fredrik. EU Policies on Online Entrepreneurship: Conversations with U.S. Venture Capitalists. N.p.,
2013. Print.
Creating Vibrant Entrepreneurial Ecosystems in OIC Markets. N.p., 2015. Print.
Digital Banking Adoption in MENA 2016. N.p., 2016. Print.
Wilson, Fred. Business School for Startups. Hyperink, 2012. Print.
Top App Trends Dominating MENA in 2015. N.p., 2015. Print.
37
Appendix I: Israel Case in Point
In 1968, when Israel decided to build a science-based economy, there were only 886 R&D workers in
Israel’s civilian sector and the country had an R&D intensity (the ratio of R&D investment to GDP) of 1%,
the second-lowest in the OECD. Policy makers’ vision was not of specific industries but of an economy
whose competitive advantage would be based on continuous invention of products to be sold around
the world.
Over the course of more than 40 years of policy experimentation, the office of the chief scientist in the
Ministry of Trade and Industry has aided in the creation and stimulation of companies capable of
carrying out such invention. Officials identified bottlenecks as they arose and developed policies to
relieve them. In the mid-1970s, for example, policy makers realized that entrepreneurs in a mostly poor,
quasi-social-democratic society (as Israel was then) might not have the knowledge to develop, sell, and
service products for the American market, so they created the Bi-national R&D foundation (BIRD) to
finance the joint development of new products by American and Israeli companies, with the U.S. firms
focusing on product definition, sales, and service, and the Israeli firms on R&D. Then, in the early 1990s,
when Israel already had 4,000 companies with products and revenues but no financiers willing to invest
in scaling them up, officials created the Yozma program to accelerate the Israeli VC industry by infusing
it with foreign know-how and connections to NASDAQ.33
Israel's innovation policy was for decades sectorally-agnostic. Over time the
clustering around certain areas (networking, data security, agritech) occurred initially
as an outcome of solving practical problems that the government prioritized (e.g.
security, food self-sufficiency/working the land) – Daniel Isenberg
No one in 1968’s Israel knew what technologies and innovations would allow Israeli companies to
succeed in 2014. No one even dreamed that a new form of finance, called venture capital, which was
taking it first steps in the United States, would prove crucial in changing the Israeli financial environment
30 years later. However, the creators of Israel’s innovation policies had a clear vision of the economy
they wanted to develop, were very willing to tweak this vision and their actions to fit the evolving
reality, and had a deep commitment to develop a thriving private industry, knowing that their own
status and importance would diminish as the industry grew.
Over the past 40 years, each and every case of very successful economic growth based on rapid
innovation has been rooted in policy makers’ clear vision of developing an innovation-based economy.
Thus the importance of the “why” question. You need to understand where you are, and where you
want to be, in order to know which best practices to apply, where you need to experiment, and when
you need to change policy as the industry evolves. If you don’t have a goal, and you are not sure where
you are, then you will get nowhere in particular. Applying all the best practices approved by the world’s
most prestigious consultancies to reach goals such as patent numbers and R&D intensity doesn’t show
that you are an innovation leader. It shows only that yours is a risk-averse society enjoying too much
capital.
33
http://yozma.com/overview/
38
Innovation needs risk taking and grand visions. The willingness to face multiple
failures and undertake repeated experimentation to reach a vision is what separates
those who succeed from those who do not.
It is a cardinal sin of innovation policy not to have a vision. It is a second cardinal sin not to be flexible
and experimental in turning this vision into reality.34
34
https://hbr.org/2014/07/the-cardinal-sins-of-innovation-policy
39
Appendix II: Innovation, impact, and accelerators
The underlying assumptions of this report are that emerging economies cannot successfully seed
entrepreneurial ecosystems by following the standard Silicon Valley approach. This is true for many
reasons, but two in particular stand out:
1) Emerging economies do not have the resources to accept a high failure rate. The availability of
venture capital is limited, and government will to invest seriously is weak to non-existent.
2) Primitive competition results in primitive success that is only relevant in its own environment.
The fledgling startup community in Amman cannot survive aggressive competition. And if it
does, it will not produce companies that are relevant on a regional scale.
While there is much to learn from best practices around the world, in order to be successful, we must
take what applies, discard what doesn’t, and build a framework that is uniquely our own.
Following this approach, the framework we develop a framework in which we gradually manufacture an
ecosystem that can withstand competition and produce novel ideas, through open-source collaboration.
We first need to define what kind of impact we seek to create. This is important because without a clear
vision, ‘innovation’ is just tinkering around the edges, and will yield only superficial products and
technologies that won’t survive beyond our own small community. It’s also important because the
market for large accelerators is dominated by giants like Y Combinator and others.
Yet innovation isn’t only about the ‘what,’ but also about the ‘how’ and the ‘why.’ So we innovate on the
approach to accelerators as well. When knowledge capital is undeveloped, we believe that ecosystems
can benefit a lot more from cooperating than from cut-throat competition.
Our approach, then, is to create a cooperative microcosm in which startups collaborate, share ideas,
people, and resources. We open source everything, from IP to mentors to alumni. We bring smart,
motivated people together, and let them learn from each other and benefit from their collective
knowledge. We believe that at the beginning, they will be stronger together than apart. The innovative
products that come out of this stage do not have to be disruptive: they only have to increase the
capacity of the ecosystem to absorb risk, without existential threat.
But we also recognize that such an approach must have an expiration date. As the ecosystem develops
more sophistication talent, as we expand smart capital, and as we develop the resources to take larger
risks, then we can begin to open up the microcosm. Competition can become more intense, and the
ideas that emerge become more relevant and sophisticated.
As this process progresses, elements of open source are still embedded in the culture. People make
decisions about how and when to deploy the open source mentality to benefit maximally from it. If such
an approach is successful in the microcosm, people will start to apply it in the broader ecosystem as
well.
Finally, once the entrepreneurial ecosystem gains momentum, it will begin to attract government and
global attention, and will even be able to dictate its own terms. Rather than waiting on government
reform, it will have the credibility and value creation to force progress forward, accelerating it further.
Crawl, walk, run, and only then compete - v5.0
Crawl, walk, run, and only then compete - v5.0

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Crawl, walk, run, and only then compete - v5.0

  • 1. Crawl, Walk, Run, and Only Then Compete A framework for manufacturing innovative entrepreneurial ecosystems in emerging economies August 2017 "If we want to see any sort of impactful ICT hub in the region, we need to start focusing on seeding the ecosystem around startups and not the other way around. The byproduct then would be great startups." - Marwan Soudi
  • 2. 2 Acknowledgments This report has been in the making for some time and an uphill journey that could have never been completed without many thanks to Firas Al Kafri, Katherine Nazemi, Zaid Al Masri, Adam Smith, Natalie Stewart, Steven Koltai (Koltai & Company LLC), Melanie Watchler (Integration Consultants), Declan Gordon Carroll (EIB Support for Seed Accelerators FEMIP), Willie Elamien (Flat6Labs Cairo). Authors Marwan Soudi: UpSpark – An Ecosystem Builder Firas Al Kafri: UpSpark, Salalem Learning Contributing Authors & Researchers Katherine Nazemi: MIT UA Innovation Committee Adam Smith: Migrate, UpSpark A special thank you to the EIB for making this research possible by giving us the opportunity to learn and connect us to multiple organizations from government to private institutions and individuals. It was invaluable to the research. UpSpark UpSpark is an organization dedicated to supporting technology and entrepreneurial ecosystems in emerging economies by focusing on an ecosystem first and entrepreneurs second approach. We believe that the ubiquity of high caliber talent and impact driven startups stem from healthy, open and collaborative ecosystem that are driven towards the interest of building progressive open support organizations.
  • 3. 3 Foreword For over a decade, I have been part of a growing entrepreneurial tech wave in Jordan. From a young age, I’ve been interested in questions of how innovative technology can be deployed to help people and businesses, and in 2012, I began to think seriously about launching my own startup. I quickly ran into obstacles. My concept was resource-intensive and technically sophisticated, so I got in touch with accelerators to understand how they could support me. I searched for mentors, tried to work closely with tech associations, and investigated existing government programs. Yet as I tried to chart my own path, I discovered numerous flaws in the ecosystem for entrepreneurs. I found a culture that was risk-averse and hostile to startups; I found tech associations that were superficially active but had little interest in engaging with entrepreneurs. The few programs that did exist were extremely outdated, and working with the government required more time and resources than a small-team startup could realistically dedicate. As I struggled to navigate the financial, regulatory, and cultural environment for startups, I began to discover that many other people were facing similar challenges – both locally and globally. I realized that whatever knowledge I gained, whatever path I managed to carve out for myself, could also be shared to help others succeed. My interests shifted from trying to build a single startup to trying to build an environment that encourages and supports startups and entrepreneurship more broadly – from "how can I create something innovative myself?" to "how can I create a whole ecosystem of successful, innovative startups?" In my early research, I had discovered a handful of progressive entrepreneurs and tech communities who had managed to build successful careers in tech against all odds, while being completely detached from the ecosystems around them. What were they doing right? I started working with these successful independent founders, and started a number of initiatives to pull more founders like that into Jordan's tech scene for people to learn from. I formed a team to lead a wide array of events aimed at community and capacity building for entrepreneurs and tech geeks of all types including Startup Grind, Founder Institute, and Google Developer Groups. I was also directly involved in building JO Angels, Jordan’s first angel network, and JoGeeks, a community of techies, to bolster the overall ecosystem. I expanded my search for answers beyond the tech world – exploring government partnerships, NGOs, policy work, theories of economic development and emerging economies – and I realized I was stumbling upon a question that most countries are trying to answer: How can we create the next Silicon Valley? Yet it didn't take long for me to realize that this is a misleading question. Rather than applying cookie-cutter programs and policies, we must identify the country's comparative advantage and leverage that to generate economic advances. My research led me to visit emerging and developed tech sectors in seven different countries across three continents. I visited workspaces in Dublin specifically designed to create corporate-startup partnerships, science parks in Sweden where I saw firsthand how an open-source culture can lead to
  • 4. 4 collective growth, and think tanks in the UK where I saw the value of studying the process of innovation itself. Through my work, I have had the privilege of collaborating with individuals around the globe, who study and have insights into the roles that government support programs, private sector initiatives, donors, accelerators and venture capital can play in seeding and supporting an entrepreneurial environment. I’ve worked closely with individuals in government, with the private sector, with VCs, and with tech evangelists to try and better understand the problem and potential solutions. This report collects lessons from around the world, combines them with a deep firsthand knowledge of Jordan’s entrepreneurial environment, and underpins them with new research into what works and doesn’t work for innovation-led growth. It is my hope that this report will chart a path forward for transforming Jordan’s entrepreneurial scene, laying the foundations for a globally competitive ICT hub If implemented successfully, the recommendations in this report can be selectively applied to emerging economies worldwide and contribute to the development of progressive civil communities and higher standards of living – a goal to which we all aspire. Marwan Soudi UpSpark Founder & Director
  • 5. 5 Contents Foreword.......................................................................................................................................................2 Executive Summary.......................................................................................................................................7 Developing human capital ........................................................................................................................7 Developing startup support structures.....................................................................................................7 Defining your impact.................................................................................................................................7 How this report is intended to be read and applied.................................................................................8 Introduction ..................................................................................................................................................9 Chapter 1: Building knowledge capital by building talent, ethos, and know-how.....................................12 1.1 Overview...........................................................................................................................................12 1.2 Talent ................................................................................................................................................12 1.2.1 Regional talent is underdeveloped............................................................................................12 1.2.2 Jordan lacks highly-skilled tech talent .......................................................................................13 1.2.3 Coding bootcamps: a proven model for bootstrapping talent growth......................................14 1.3 Culture...............................................................................................................................................18 1.3.1 Fostering collaboration through clustering, events and workshops .........................................18 1.3.2 Accepting failure is critical for innovation .................................................................................20 1.3.3 Celebrating success can encourage entrepreneurship as a way of life.....................................21 1.4 Know-how: soft skills and practical knowledge for success in any career .......................................22 1.5 Talent takeaways ..............................................................................................................................22 Chapter 2: Accelerating talent to impact....................................................................................................23 2.1 Overview...........................................................................................................................................23 2.2 Existing resources for nascent startups are lacking..........................................................................25 2.3 Selection Process ..............................................................................................................................26 2.3.1 Phase 1: De-Risking Potential Teams.........................................................................................27 2.3.2 Phase 2: Re-evaluating and assessing growth ...........................................................................28 2.3.3 The Program: Taking an Open-Source Approach for Rapid Innovation.....................................29 2.3.4 Continual self-assessment leads to improved long-term performance ....................................32 2.4 Contributing to the greater ecosystem directly and indirectly.........................................................32 2.4.1 Developing smart capital ...........................................................................................................33 Conclusion...................................................................................................................................................34 References ..................................................................................................................................................35 Appendix I: Israel Case in Point...................................................................................................................37
  • 6. 6 Appendix II: Innovation, impact, and accelerators.....................................................................................39 Appendix III: Interrogating the role of government ...................................................................................40 Appendix IV: Accelerator overview.............................................................................................................41
  • 7. 7 Executive Summary A healthy government, society, business, or entrepreneurial ecosystem all have what we see as related foundations at their core. In this report, we address the foundational pillars that are needed to build healthy, vibrant, progressive, globally competitive and most importantly, economically productive entrepreneurial ecosystems. This guide takes lessons from around the world, but is intended specifically for emerging economies and addresses their unique challenges, including: 1) Emerging economies do not have the resources to accept a high failure rate. The availability of venture capital is limited, and government will to invest seriously is weak to non-existent. 2) Primitive competition results in primitive success that is only relevant in its own environment. The fledgling startup communities in emerging economies cannot survive aggressive competition. And if it does, it will not produce companies that are relevant on a regional scale. While there is much to learn from best practices around the world, in order to be successful, we must take what applies, discard what doesn’t, and build a framework that is uniquely our own. We identify several pillars, the development of which is a prerequisite for a productive entrepreneurial ecosystem. Developing human capital ▪ Talent: manufacturing high quality tech talent to give people the hard skills to develop new tech. ▪ Ethos: cultivating a culture of collaboration, acceptance of failure, and celebration of entrepreneurship to make innovation possible. ▪ Entrepreneurial human capital: training people in the skills they need to turn their ideas into productive businesses. Developing startup support structures ▪ De-risked: subverting high failure rates by ensuring that accepted teams have a high potential to succeed. ▪ Open source: accelerating innovation by taking an open-source approach and ensuring that all knowledge and resources are shared collectively. ▪ Measurement: continuously collecting metrics about the structures and programs in place in order to analyze the track record and implement improvements. Defining your impact ▪ What: Thinking carefully about what impact you seek to create. “Innovation” by definition is an evolving concept that should not be static, and can take many forms. Broadly, it should aim improve and progress things towards the better, either by its concept of use, business goals, efficiency, and/or impact.
  • 8. 8 ▪ Why: Interrogating “why do you want to do what you want to do?” This process of questioning leads you to discover root causes and motivations, and derive a clearer answer to “what,” which eventually leads to “how.” ▪ How: Developing a framework of innovation is just like any business discipline — a set of tools that are designed to accomplish specific objectives. Just as we wouldn’t rely on a single marketing tactic or a single source of financing for the entire life of an organization, we need to build up a portfolio of innovation strategies designed for specific tasks. How this report is intended to be read and applied This report should not be read as a step-by-step guide to executing an agenda or business plan, but as a framework for thinking about and solving problems using unconventional and multi-disciplinary approaches. We present the examples and solutions that we believe would be best executed in emerging economies, but it is important to understand the research that led to this approach, in order to apply a similar flow of thinking tailored to individual contexts. Essentially, we encourage you to: ▪ Take and apply best that are relevant to you. ▪ Access and discard what is useless and does not apply. ▪ Create novel solutions that are uniquely tailored to your own ecosystem. And most importantly, ▪ Don’t underestimate the power of the wisdom of crowds, and share!
  • 9. 9 Introduction Economic growth depends on innovation – our ability to generate and adopt new knowledge and ideas. Decades of research has shown that innovation is the most important driver of long-term productivity and prosperity, and that innovative businesses create more jobs and tend to scale faster. But what creates the ideal conditions for innovation? Many reports and research papers argue that government plays a critical role in creating the regulatory environment for innovation and entrepreneurship to flourish. Yet making such policy decisions requires governments to think long-term, and make investments today for uncertain rewards in the future. While the primary function of a government should be to leverage today’s collective resources for a better tomorrow, what happens when governments are unwilling to do so, and instead make decisions that are short-sighted and risk-averse? As is the case in Jordan, progress can be slowed dramatically, and a country’s economy can stagnate while the rest of the world’s economies move forward. We argue that in these cases, it is not necessary to wait for government engagement or reform to start building productive, sustainable entrepreneurial tech ecosystems. Avoiding government entirely, we can “hack” our way to manufacturing an innovation driven ethos by studying and selectively adopting best practices from successful ICT hubs around the world, and creating what it essentially ours – our own best practices.1 UpSpark does exactly that. 1 The evolution of Israel’s economy provides an insightful example of what we mean by this. For more, see Appendix I. Innovation is a very widely used, and overused, word. Many definitions have been provided over the years by the OECD and other organizations. But it is worth setting out a few reminders of what innovation is, and what it is not. Broadly speaking, innovation is the process by which new ideas turn into practical value in the world: new products, services, or ways of doing things. It is not just about new technologies or about scientific R&D. Innovation happens in civil society and government as well as in businesses; in humanities as well as in tech. The benefits of innovation are widespread, and only a small proportion of them accrue to the innovator. Economists refer to the ‘spillovers’ from innovation, a recognition of the fact that many innovators reap no returns at all from the time and money they invest in innovation, and even successful ones often create much more value for their competitors, customers and unrelated businesses than for themselves. Innovation is essentially disruptive, but disruption doesn't rest exclusively in novelty, in what nobody thought of before, but it also embodies thinking about traditional problems from a new perspective. Providing a complete and rigorous definition of ‘innovation’ could itself be the subject of a dozen reports, but it is not necessary to pin down a specific definition before beginning to explore what steps can be taken to improve Jordan’s entrepreneurial environment. Rather, we can start with an initial framework and refine the definition along the way. For a deeper exploration of ‘innovation,’ see Appendix II. WHAT IS INNOVATION?
  • 10. 10 UpSpark aims to seed a healthy, sustainable, progressive and effective entrepreneurial ecosystem by applying a hybrid model of validated and successful accelerator models from all over the world and customized specifically to fit our current state. Recognizing that no single factor alone can spur and sustain entrepreneurship, we propose a practical road map to jump-start the growth of a healthy entrepreneurial ecosystem in Jordan that will be improved upon with constant iteration. In doing so, we tackle the two biggest challenges facing the development of an entrepreneurial ecosystem in Jordan: ▪ Talent and knowledge capital: Lack of high-quality Entrepreneurial and tech talent; ▪ Smart capital: Lack of smart capital to help potential entrepreneurs transform their ideas into successful businesses. To address the first problem, we propose a multi-part program that upends traditional tech education and fosters a risk-tolerant and collaborative entrepreneurial culture. This program is run independently of the government; in fact, many of the components already exist in the form of NGOs, hobby groups, and professional associations – they just need to be coordinated and scaled up. Chapter 1 of this report lays out this program in greater detail. To address the second challenge, we introduce a framework for a new model for startup support. This model is an open accelerator bootcamp that combines education, incubation, and acceleration and employs a radically open-source philosophy to de-risk startups, facilitate community and collaboration, and turn early-stage ideas into profitable businesses. Chapter 2 of this report is dedicated to describing the underlying philosophy and ideal operational model of this type of accelerator. Why is a new model necessary? As the pace of economic development increases, emerging economies are essentially playing catch-up. Replicating the models used in developed economies will not enable them to be competitive at a global level. Rather, in order to catch up and move ahead, emerging economies need to innovate on the business models of accelerators themselves.2 2 Accelerating Startups: The Seed Accelerator Phenomenon by Susan G. Cohen University of Richmond and Yael V. Hochberg Massachusetts Institute of Technology and NBER - March 2014 Innovation can, and does, happen in every industry. So why does UpSpark focus on the ICT sector in particular? First, Jordan estimates that over 50% of its startups are now in the ICT field, including telecom, IT, mobile online businesses, and game development. The industry has also attracted substantial foreign direct investment. This makes it an active, and potentially lucrative starting point. Second, our personal experience and expertise is in the ICT sector. We are familiar with the main players, with the challenges faced and the resources available both locally, and globally for us to learn from. Finally, a vast array of knowledge about how to launch innovative tech ecosystems. This allows us to learn from other countries’ successes, and quickly get beyond initial challenges. WHY ICT?
  • 11. 11 Ultimately, UpSpark investigates the roots of innovation to design programs that create sustainable innovation – and its contingent economic gains – in Jordan and in emerging economies worldwide. It starts with training a new crop of talent using the most up-to-date pedagogies for technical skills and business know-how, with building a culture that embraces failure and celebrates success, and with relying on open-source collaboration and open-source metrics for self-improvement. In this way, UpSpark aims to serve as a catalyst not only for other startups, but for entire entrepreneurial ecosystems.
  • 12. 12 Chapter 1: Building knowledge capital by building talent, ethos, and know-how “Many countries in the region are supported by Jordanian human talent. That’s the capital that we have. And I think that’s what sets us apart from other countries.” – King Abdallah II3 1.1 Overview A thriving innovation ecosystem is built on human capital. It’s a place where talent, teamwork, and risk- taking come together to produce new ideas; where side-projects scale to the next big thing; where teams have the hard skills to take their ideas and bring them into reality in a culture that supports exploration, demands collaboration, and recognizes failure as a necessary part of the invention process. Yet today, strong talent in the region is lacking. In Jordan, studies have concluded that university graduates lack necessary skills in technical fields, and that local companies have difficulty accessing high- quality local talent. A cultural fear of failure stifles growth and innovation, and lack of business knowledge limits the incidence of startups. Creating an environment that supports innovation and entrepreneurship in the ICT sector will rest on the development of three key pillars: ▪ Talent: providing individuals with intensive technical knowledge. ▪ Ethos: creating a culture of self-learning, creativity, collaboration, and judicious risk-taking. ▪ Know-how: developing the practical skills and soft skills necessary to succeed in traditional or entrepreneurial careers. This chapter provides an overview of the current state of talent, ethos, and know-how in Jordan, and charts a path forward for developing the next generation of regional talent. 1.2 Talent Developing talent is a necessary precondition to developing entrepreneurship. Jordan and neighboring countries in the region must invest in the education of human capital not only to produce a workforce with the necessary skills to support a robust entrepreneurial ecosystem, but also to contribute to technological innovation and entrepreneurship in the future. 1.2.1 Regional talent is underdeveloped 3 CNBC Interview: His Majesty King Abdullah II of Jordan
  • 13. 13 In a 2015 interview with CNBC, Zain Group CEO Scott Gegenheimer asserted that the Middle East must tackle its skill shortage ‘urgently.’ He argues that the region has substantial untapped human capital, and that young people, specifically, do not have sufficient access to the necessary education, training and development for them to contribute productively to the regional and global economy.4 This perspective is shared by many organizations, including the International Labor Organization,5 INSEAD, PwC,6 CEG, EY,7 Wamda,8 and the European Investment Bank,9 all of which have published thorough research that attests to a regional talent shortage. A 2016 Wamda research report highlighted that the MENA regional unemployment rate, at 12% and increasing, is the highest in the world, and that the region would need to create about 85 million jobs (and the talent to support them) by 2023 to be on par with the global average unemployment rate. The same report found that while 90% of entrepreneurs planned to hire in the next year, over 60% of those entrepreneurs cited finding talent as a barrier to building their team. As long as talent remains underdeveloped, job growth will remain stagnant. The problem of unemployment and talent shortage is particularly acute when it comes to youth populations in the region. MENA is currently experiencing a record youth population explosion, with more than 30% of the population under the age of 30. Yet youth unemployment in the region is the highest in the world. Access to highly qualified talent is the crucial missing link that could bridge entrepreneurial potential with sustained economic development and job growth. 1.2.2 Jordan lacks highly-skilled tech talent There are currently 27,000 unemployed ICT graduates in the country. Of the 5,000 ICT graduates produced annually by Jordanian universities, fewer than 10% find jobs in the ICT industry.10 Despite high demand for computer engineers in the region, graduates are unprepared.11 A report conducted in 2013 by the ICT Association of Jordan (int@j)12 found that 75% of employers in the ICT sector have difficulties 4 Middle East must tackle skills shortage ‘urgently’ 5 MENA Employment Trends for Youth 2015 6 PWC Education Consulting Services 7 EY Report 2015 - How will the GCC close the skills gap? 8 WAMDA and IFC Report - Access to Talent for MENA's Entrepreneurs 9 EIB & World Bank Group Report 2016 - What’s Holding Back the Private Sector in MENA? Lessons from The Enterprise Survey 10 AlZubi, B. (2015, November 10) Personal Interview with Hugh Bosely 11 AlZubi, B. (Re: ReBootKAMP Jordan) Message to Hugh Bosely. December 18, 2015. E-mail 12 The ICT Sector Competencies, Skills and Needs Assessment Report 2013 The top challenges to hiring are related to skills and commitment. 44% of entrepreneurs say that identifying the right skills or expertise is the top challenge they face in the hiring process 35% expressed difficulties finding committed employees. TALENT QUICK STATS
  • 14. 14 finding well-educated employees, and 74% of companies think fresh graduates who apply to their organizations are deficient in many skills. The report also found that Jordanian universities face challenges in keeping abreast of the latest developments in the global ICT sector due to the rapid advances in technology. This lag means that university students may be studying outdated or irrelevant material, which reduces the value of these graduates in the private sector over time. It was notable that int@j found the majority of ICT operators sent their staff to post-graduate external courses to reinforce their skills, indicating that this is a growing pain in the industry.13 The report ultimately recommends that universities re-examine ICT education with the aim of better matching training with the requirements of the workplace. In addition to traditional companies, entrepreneurship in Jordan is limited by the talent pool as well. One of the main problems encountered by entrepreneurs in the region when assembling their teams is the lack of specialized talent. This includes mainly new talent, not only in programming, but also in general soft skills that companies rely on for harboring and cultivating smart talent. Specialized design, data visualization and analysis, growth hacking, and best practices of global digital marketing, among others, are lacking. The gap between the educational system and the needs of the private sector and entrepreneurial ecosystem can be drastically narrowed by incorporating specific subjects in the curricula from an early age, fostering interest in technology and technical careers, such as engineering and computer science. However, tackling the problem from an academic perspective is no short-term solution: it can take up to five to ten years to increase the knowledge capital in the space of technology and entrepreneurship. If the ICT sector is to continue on its path towards becoming a potential innovation hub for technology companies in the short-term, accelerators must play a vital role in the education process by creating their own programs as well as forming strategic partnerships with external training and educational initiatives. So how do we achieve this? 1.2.3 Coding bootcamps: a proven model for bootstrapping talent growth A coding bootcamp is a technical training program that teaches the parts of programming with the biggest impact and relevance to current market needs. It enables students with very little coding proficiency to focus on the most important aspects of coding and immediately apply their new coding 13 Jordan: ICT jobs and training mismatch - Oxford Business GROUP A number of initiatives have grown up organically to address the difficulties of finding tech talent. Salalem is an online platform that creates specialized training e- courses that target the skills gaps of fresh graduates in the private sector. Hello World Kids was launched by an engineer who wanted to supplement her children’s educations with basic coding and tech skills. The organization teaches computer and mobile programming to kids from 8 to 12 years old. ReBootKamp is a program that trains Jordanians and refugees to become full- stack software developers in 18 weeks, discussed in more detail below. SEARCHING FOR LOCAL SOLUTIONS
  • 15. 15 skills to solve real-world problems. Coding bootcamps teach people with little or no technical coding background how to write code and build applications on a professional level. They last anywhere from 6 to 28 weeks and are designed for speed and high-impact learning.14 Most traditional engineering-based programs take four to five years. Coding bootcamps isolate the most relevant skills from a four-year degree and infuse it with relevant industry skills to bridge the gap between the theoretical world of academia and the real world of startups. Besides speed and high-impact learning, coding bootcamps teach the latest hard technical skills that match the technologies that the best startups in the country are using to build and launch products very closely. For these reasons, coding bootcamps have proven very popular in the tech industry. As of June 1, 2016, there are coding bootcamps in 69 US cities and 34 states. Coding bootcamps continue their rise in the tech industry with an estimated 17,966 bootcamp graduates in 2016, a 1.7x growth rate from 2015. As a point of comparison, it is estimated that there were 61,408 undergraduate computer science graduates from accredited US universities in 2015. In a 2016 job outcomes study conducted by SwitchUp, 63% of bootcamp graduates were found to have increased their salaries. Further, 80% reported they were ‘satisfied' or 'very satisfied' with their experience. These programs have become the hiring centers of choice for top Silicon Valley tech companies. Programs based on the bootcamp pedagogy are already seeing successes in Jordan. Rapidly scaling up such programs and opportunities is one way to dramatically increase the talent pool in the short term. 14 https://www.thefirehoseproject.com/definitive-guide/1 When developing talent and culture within the entrepreneurial ecosystem, it is particularly important to support the development of women entrepreneurs, and to encourage the participation of women in tech. Currently, in events such as Startup Weekend, the number of female participants doesn’t exceed 24% of the total attendance. This gap is consistent with the entrepreneurial sector as a whole, where the gap between male and female entrepreneurs in the region is 24%, according to the World Bank. Promoting workforce diversity is important, since studies affirm that businesses with a woman founder perform 63% better than those founded only by men.1 On one hand, it is necessary to begin by incentivizing technology careers for women from an early age. Initiatives such as RBK, which have made a concerted effort to reach gender parity, have seen highly talented women succeed in the program. Identifying and promoting success stories of women entrepreneurs can inspire new generations of engineers, programmers, and founders of tech companies. SUPPORTING WOMEN ENTREPRENEURS
  • 16. 16 ReBootKamp: A Case Study in Talent-Building In early 2016, the first coding bootcamp was opened in Amman, Jordan in partnership with Hack Reactor (a Silicon Valley-based coding school) with the dual aims of tackling high unemployment rates in Jordan as well as the ongoing refugee crisis. Premised on the idea that the current education system produces engineers whose knowledge quickly becomes obsolete given the rapid progression of the digital economy, ReBootKamp launched a software engineering bootcamp that trains individuals to become full stack engineers in just 18 weeks. To accomplish this, the program applies an immersive, fast-paced pedagogy. Students spend very little time in a traditional classroom setting. Rather, the majority of their time is spent learning practical coding skills through hands-on projects. The program employs pair learning, whereby pairs of students work jointly on projects. This enables students to teach and learn from each other, encouraging teamwork and autonomous learning. The program has two major phases: • Phase I: 5 weeks. 6 days a week. 8 hours a day. Total structured hacking time: 240 hours • Assessment: 1 week. Interview, review, and selection for Phase II • Phase II: 12 weeks + 1 solo week. 6 days a week. 12+ hours a day. Total structured hacking time: 860 hours The curriculum incorporates code challenges, real-work projects, lectures on new concepts, longer projects that develop project management, team communication, and code documentation skills, as well as incorporating guest speakers, social nights, networking with hiring partners, and other events. Topics covered are continuously revised and updated from cohort to cohort. Today some of the RBK curriculum includes industry-relevant knowledge such as JavaScript, Github, SQL, data structures, algorithms, HTML/CSS, and more. Through this curriculum, RBK delivers five essential qualities demanded by industry: • Solid English ability developed through a pre-program English class. • Strong soft skills: Communication, Collaboration, Ethics. • Deep problem solving ability: practice using deductive and inductive logic. • Autonomous learning ability: quickly adapt to new technologies. • Market ready programming ability: advanced Full Stack development. RBK graduates enter the marketplace and find careers at companies such as Edraak, Souq (Amazon), Altibbi, LIWWA, ArabiaWeather, and many more. The program runs on a success-based tuition model: graduates only pay RBK after they find a job as a software engineer. RBK delivers immediate impact to the Jordanian ICT ecosystem. Every 21 weeks, a new cohort of graduates enters the workforce as well-trained, highly skilled individuals equipped with problem solving skills and the ability to self-teach to keep pace with evolving industry demands. Furthermore, since half of RBK admittees are refugees, the program contributes to solving a social challenge as well.
  • 17. 17 Hackatari: investing in student initiatives Hackatari, an initiative of a successful startup that sprouted its roots from Amman to San Francisco (Mixed Dimensions), is an innovation lab that combines student learning with hands on projects and original R&D. Programs at Mixed Dimensions focus on high- tech innovation, including 3D printing, virtual reality, and interactive 3D Tech. Conceived by Mixed Dimensions Inc, it has partnered with universities around Jordan. Among other initiatives, Hackatari offers an internship program to give students direct work experience in building and managing software products, and support original thesis research with mentorship and financing. Hackatari aims to foster collaboration and integrations between academia and industry by building a solid case with Mixed Dimensions in commercializing research and expanding IP and patents portfolio in the field. Mixed Dimensions sees this as a valuable investment in the long run to access talent that is not just semi equipped from an academia standpoint but empowered and supported by its student driven initiatives. These initiatives work on cultivating young student talent and actively invests in their knowledge capital to breed early innovators in this emerging industry, something that the local education system lacks. Facilities that support and encourage learning through experimentation, building, and creating are greatly needed as a way to seed talent from early on in the pipeline. Resources like Hackatari, which provide students enrolled in traditional universities with valuable hands-on experiences, should be expanded. More broadly, innovation labs that give individuals the chance to imagine, build, and test new ideas should be supported in meaningful, structured and well thought-out, impact-driven ways in order to grow organically, rather than rely on NGO funding, to become much more widespread. Leveraging local talent communities Supporting the creation of venues and opportunities for education outside the formal system, complementing traditional education, is another pathway towards more specialized education. One avenue toward achieving this is by leveraging the existing knowledge of local talent communities. The Jordan UX Association, for example, has collaborated closely since 2015, and conducts sessions to share knowledge from community experts in best practices of user interface and user experience design. There are also other instances of continuous education provided by entrepreneurial communities, like Jordan Open Source Association and Google Developers Group Amman that aim to bring advanced software development techniques to Amman, by promoting a "hacker" culture (in the positive sense) towards programming education. Such organic communities must be supported and promoted by funding, partnerships, or collaborative events. Today, it is impossible to overlook the value of Massive Online Open Courses (MOOCs) and other online learning tools as a way to rapidly gain and share information about a range of topics from elite educational institutions. MOOCs have gained popularity to the extent that institutions such as Harvard and MIT (both of which produce MOOCs) offer certifications based on their successful completion. In the context of developing the regional talent pool generally, and the Jordanian talent pool in particular, MOOCs should be broadly utilized to achieve the following: 1. Encourage autonomous learning. MOOCs allow individuals to pursue curiosity, learn new topics and skills, and further develop existing areas of expertise. 2. Continue lifelong learning. Offering diverse classes on different topics makes it easy for learners to keep up with the latest news and trends and be on top of their professional field. 3. Strengthen weak areas of knowledge. Particularly in entrepreneurship, individuals must possess a wide variety of skills that they might not have practiced before. MOOCs can fill these knowledge gaps. Encouraging self-learning via MOOCs
  • 18. 18 1.3 Culture Culture around an entrepreneurial ecosystem must be open, inclusive, and transparent in order to generate and transform ideas into successful businesses. Aside from specialized talent, it is also necessary to work on promoting entrepreneurship as a way of life, understanding failure as a stage along the learning process. The road to a vibrant entrepreneurship ecosystem begins with events in which its actors meet each other, exchange ideas and experiences, and begin to act as a community. This gives way to more ambitious initiatives, such as hackathons or co-working spaces, in order to finally reach more sophisticated scenarios such as venture builders, accelerators and R&D collaborations between tech firms and local tech communities. Communities provide entrepreneurs with opportunities for growth and informal learning, often in unplanned and serendipitous ways. Part of developing the community means instilling a culture in which people feel supported to take risks, pursue new ideas, and explore new areas of interest. Through side projects with friends and informal teams, self-learning and experimentation, and exposure to examples of successful entrepreneurs, novel ideas and new collaborations can emerge. To accomplish this, there must be a purposeful approach to encouraging collaboration, accepting failure, and celebrating success. 1.3.1 Fostering collaboration through clustering, events and workshops Big ideas transform into great projects when they're shared. Exchanging experiences, knowledge, and ideas among entrepreneurs and creators acts as a catalyst for entrepreneurial success and innovation. The road to a vibrant entrepreneurship ecosystem begins with events in which its actors meet each other, exchange ideas and experiences, and begin to act as a community. Supporting the formation of venues and opportunities to reach a certain density of startups is a key factor for the potential of innovative ventures to emerge. A great example of such an activity is Mix N’ Mentor Amman – “Marketplace Edition,” a community event focused on facilitating partnership opportunities between startups and large corporations. Mix N’ Mentor brings together promising entrepreneurs with industry experts and investors to discuss specific startup challenges. With its unique format, Mix N’ Mentor forges deep long-lasting connections between entrepreneurs and mentors.15, 16 Events of this type should be made broadly accessible to promote collaboration between members of the community. Clustering can facilitate collaboration To facilitate collaboration, physical proximity between entrepreneurs can be paramount. Innovation is born out of the confluence of great minds. The concept of cluster, referring to an ecosystem of alike businesses supported by the vigor and success of all of its participants in a limited geographical area enables regular, face-to-face contact that nourishes the dialogue between competition and collaboration, fundamental for the characteristic dynamism of the entrepreneurial ecosystem. Alongside the idea of a cluster, which has a broader geographic horizon, we can highlight that of co- working spaces: physical spaces where several companies, not necessarily related, share facilities and 15 http://www.wamda.com/2016/04/mixnmentor-amman-2016-marketplace-edition 16 http://www.wamda.com/2016/06/mix-n-mentor-amman-provokes-heated-debates
  • 19. 19 workspaces every day. The fact of sharing physical space not only enables novel approaches for problem solving, nourished by the different perspectives contributed by every project, but also creating the necessary conditions to attract investors, as well as new business and financing opportunities. In many cases, these spaces transform into landmarks of the local entrepreneurial culture, as is the current case with the Zain Innovation Campus in Jordan. There is a clear need as well as a business opportunity trend for the creation of properly managed co- working spaces with a focused purpose for empowering communities. Aside from free space, Co- working spaces can also serve as self-sustainable and revenue generating businesses, for mid-stage startups. When clear and appropriate value is made available that can facilitate or serve as a catalyst for legal establishment, education, and access to value added services, startup businesses and corporate sectors gladly pay for these goods, as in the case of AstroLabs Dubai. Connecting the public and private sector for long-term impact Community interactions must not be limited to entrepreneurs, but should also aim to create solid relationships with the private and public spheres. The establishment of a union or body that represents one common voice for its community is important, as it serves as a source of collective information and strengthening the dynamism of the sector. From a government standpoint, the establishment of a union or body to represent the community can be further empowered if the government recognizes and legitimizes such entities and also works towards shifting the cultural perspective around entrepreneurship jointly. Governments should also serve as critical partners in defining what impact ecosystems should aim for. Governments, which often have the most complete information about the real problems and needs faced by their populations, should approach entrepreneurs with technology competencies and to work in ways to link entrepreneurs, universities, and other governments to develop disruptive solutions. Collaborating with governments can be complex and highly context- dependent. One framework for approaching government collaboration is described in Appendix III. AstroLabs Dubai is a coworking space for digital technology companies that aims to help startups set up a presence in Dubai and provides a platform for them to scale globally. AstroLabs gained popularity among startups and entrepreneurs through the concrete support they provide. Initially just a co-working space, it built a community that includes entrepreneurs representing over 80 innovative tech startups. The organization also launched AstroLabs Academy, which focuses on delivering specialized courses on topics in digital business including digital marketing, coding, analytics & big data, UX design, and business development. Many courses are open to the public, but they also develop custom-made curricula for corporate clients and incubators/accelerators across the region. The success of AstroLabs gained the attention of Google for Entrepreneurs, which adopted AstroLabs and brought them to the Google global community. Governments and organizations must follow such examples if they are to take this sector seriously and aim for tangible and measurable impacts. SUCCESSFUL CO-WORKING SPACES: ASTROLABS DUBAI
  • 20. 20 A robust entrepreneurial ecosystem's foundation lies not only in the development of innovation and the new projects that arise from it but also the relations with which other sectors nourish and propel it, such as investors, business and industrial sectors, universities, and governments. They create networks that link those who wield the tools of technology with the traditional business community who understand better than anyone the problems that plague the various productive sectors in the region, and may serve as a gateway to dialogue and to new entrepreneurial solutions to old problems. 1.3.2 Accepting failure is critical for innovation The mantra "fail often, fail fast" is the cornerstone of entrepreneurial culture in Silicon Valley.17 Innovation is impossible if individuals are afraid to try new things because they might fail. And while glorifying failure is not a productive goal, failure should not be seen as the end of the world. Further, lessons learned from failure can propel an individual or organization to successes in the future. However, this philosophy doesn't necessarily resonate in our region. One way that this fear of failure manifests itself is in the number of individuals who choose to join traditional businesses rather than startups. A survey by Wamda Capital found that only 12% of respondents would work for a startup, while the rest preferred to work for large corporations. While many factors may contribute to this result, fear of risk and failure may be salient.18 To foster a thriving innovation ecosystem, it will be necessary to work to destigmatize failure. This can be achieved through specialized events, education, and everyday interactions. One great example of positive awareness raising about failure is FuckUp Nights (Or F.U.N).19 The initiative was born in Mexico, created by five friends who sought a space to speak openly about entrepreneurial failure. Now, it has become a global movement and event series that shares stories of professional failure. Each month, in events across the globe, three to four people get up in front of a room full of strangers to share their own professional failure. It provides a more realistic outlook on the process of failing as an entrepreneur, and potentially imparts valuable lessons to the audience. Organizations can cultivate a culture of openness around failure through their daily interactions. For instance, discussing the week's errors in a company meeting or sharing experiences of failure among entrepreneurs helps to turn these events into sources of learning. Admitting Failure is an organization that works to help businesses – specifically NGOs and civil society – discuss and learn from failures. According to their website, “The 17 https://www.slideshare.net/Techstars/fostering-the-startup-ecosystem-in-latin-america 18 https://www.ifc.org/wps/wcm/connect/b8999b4c-bd08-463f-b278- 85d764fd3998/a2t_final_report_july15b.pdf?MOD=AJPERES 19 http://fuckupnights.com/ F.U.N. AMMAN The introduction of F.U.N. to Jordan provides an illuminating glimpse into the culture around failure in the country. Corporates & entrepreneurs alike both struggled to discuss failures publicly, yet a core minority were vocal supporters. The region has a long way to go in developing this culture, but it is on its way.
  • 21. 21 paradox is that we do everything we can to avoid these pains even though we all know failure is the best teacher and we have to be open and talk about our failures in order to learn. More than that, openly acknowledging failure is often a catalyst for innovation that takes our work from good to great.” The de-stigmatization of failure shouldn't be limited to entrepreneur communities, but should be extended to the rest of society, in particular children and youths who will become future generations of entrepreneurs.20 This should start early in education, through experiments and unstructured play. The ultimate objective is to showcase entrepreneurship as a way of life that is possible. Failure is nothing other than the other side of risk, which is the main engine of innovation and entrepreneurship. Whether it happens or not, it is always a possibility.21 Only entrepreneurs who can understand the possibility of failure as a stimulating challenge rather than a hindrance will achieve their goals. After all, if there’s no risk, there is likely no prize. 1.3.3 Celebrating success can encourage entrepreneurship as a way of life Yet to strengthen entrepreneurial culture, it is equally vital to adequately disseminate and value successes that sprout from the community. One of the major reasons that entrepreneurship is stifled in Jordan is because it is simply not culturally accepted. Many entrepreneurs will fail multiple times before they succeed, and the idea of failing can lead to shame or disapproval by family members, friends and peers. Promoting the idea that entrepreneurship is a viable path to success and celebrating one’s own ambitions and ideas is crucial to ultimately stimulating growth. Success stories can inspire more people to aspire to become entrepreneurs, and can demonstrate the tangible benefits of collaboration, teamwork, and learning from failure. Studies, as well as anecdotal evidence, has shown that entrepreneurship can be a demanding and isolating endeavor that takes its toll on an individual’s mental health. Gallup Polls have found that entrepreneurs report experiencing worry and anxiety at a higher rate than employees.22 This is not broadly acknowledged in Jordan, where the mental toll of entrepreneurship is dismissed or mocked, even by leaders in the sector. Thus, it is also important to create a community of individuals who share common experiences and who can support each other. 1.2 Know-how 1.4 Know-how: soft skills and business skills help individual succeed 20 https://www.entrepreneur.com/article/244307 21 https://www.fastcompany.com/3035310/hit-the-ground-running/what-the-hype-behind-embracing-failure-is-really-all-about 22 https://www.inc.com/magazine/201309/jessica-bruder/psychological-price-of-entrepreneurship.html Startup Grind is "a global entrepreneurship community designed to educate, inspire, and connect entrepreneurs." The program has branches in over 200 cities worldwide, and hosts fireside chats in every city every month. These talks feature successful local founders or investors, with an audience comprising dozens or hundreds of entrepreneurs. These talks provide entrepreneurs with opportunities for mentorship, and chances to connect with potential co-founders or hires. Interviews with the keynote speaker provide lessons and guidance. STARTUP GRIND: CELEBRATING A COMMUNITY
  • 22. 22 1.4 Know-how: soft skills and practical knowledge for success in any career Even in a culture of openness, collaboration, and risk-taking, and equipped with technical skills, many potential entrepreneurs will not have the skill sets needed to take the next step in turning their novel ideas into viable businesses. Thus, a third pillar of developing an entrepreneurial ecosystem involves providing opportunities for individuals interested in starting companies to learn about the business world. This could include events, speakers, or recommended online courses. These opportunities could take the form of events featuring talks with successful entrepreneurs, work sessions to develop critical skills, or informational sessions to cover basic areas of knowledge. 1.5 Talent takeaways Talent is the most critical precondition for developing a healthy, sustainable, productive innovation ecosystem. The cumulative effect of these educational outreach efforts will be, over time, to build a community of individuals who have the skills, mindset, and basic resources to begin seeding and scaling new ideas. It is important to note that there is no single factor that alone can spur and sustain entrepreneurship. There is no exact formula for creating an entrepreneurial economy, there are only practical, if imperfect, road maps to jump-start the growth of a healthy entrepreneurial ecosystem. By taking a people-focused approach, the model outlined above, tailored to emerging economies, lays the groundwork for a more advanced entrepreneurial economy where individuals have the resources, capital, and mentorship to take their ideas and apply their technical knowledge to launch viable startups.
  • 23. 23 Chapter 2: Accelerating talent to impact “The era of closed-source innovation is dead. If Jordan wants to be a leader in regional innovation rather than forever playing catch-up, we need to quickly implement novel ways of sharing knowledge so that the benefits of new insights and discoveries can be rapidly made universal. Our approach is a new model of startup accelerator built on principles of minimizing risk and supporting talent, cultivating and evoking a new type of culture within, founded on radical transparency, resource-sharing, and open-source collaboration – a living, dynamic organization that’s constantly evaluating itself and taking metrics to self-improve.” – Marwan Soudi, UpSpark Founder & Director 2.1 Overview Incubators and accelerators serve an important function in a robust innovation ecosystem, serving as conduits between ideas and impact. Incubators and accelerators provide support and infrastructure for the existing skills within a community, and enable individuals to scale their ideas to create value for the whole ecosystem. Fundamentally, they drive novel ideas and new technologies to economic impact by creating successful commercial enterprises. Studies have found that about 60% of venture-backed startups fail.23 In the current environment, Jordan has neither the time nor the resources to accept that kind of failure rate. And while failure is a necessary part of the innovation process, there are pragmatic steps an accelerator can take to mitigate risks and create viable, sustainable, and profitable businesses that generate returns for investors in the long term. It will not work to import the standard Silicon Valley business model and expect it to work in Jordan. Because Jordan has specific needs, it requires institutions that are customized to meet those needs. These include: ▪ Minimizing risk: the current ecosystem does not have the resources to sustain a high failure rate. Accelerators need to take stringent steps to minimize risk, at least in the short term, if they are to realistically generate returns for investors or ecosystem impact. Our proposed accelerator de-risks startups with a highly selective admissions process and extensive education programs. ▪ Open-source collaboration: our guiding principle is that collaboration equals rapid innovation. In order to hack our way to becoming regionally competitive, gains from new advances in knowledge or technology should be shared. Our proposed accelerator views the skills, resources, and technologies of its startups as collective tools that can hasten new breakthroughs. 23 http://fortune.com/2017/06/27/startup-advice-data-failure/
  • 24. 24 ▪ Continuous iteration: better data leads to better decision-making. Rather than an ad hoc “spray and pray” approach, we need to collect data about what works and what doesn’t work, measure our impact, and continuously adjust our programs based on the results. In this chapter, we propose a new model for startup support24 that is built on these three principles. If implemented successfully, the organization could serve as a model for accelerators in emerging economies worldwide. An accelerator creates globally relevant, disruptive technologies in a sector it has mastered. If it wants to lead, its primary focus should be on value-driven businesses. A successful accelerator for the Jordanian context does not have to create disruptions to be extremely profitable. Rather, the goal should be to build an organization that can eventually afford to take risks without a fatal backlash. In comparison to traditional accelerators, ours emphasizes openness, collaboration, and building a strong business model over closed innovation, individualism, and disruption. 24 We use the term accelerator because the end goal of this organization is to turn early-stage startups into investment-ready businesses. However, the program blends aspects of bootcamps, incubators, venture builders, and accelerators. Traditional Accelerator Principles Open Accelerator Principles Most of the smart people in our field work for us Not all the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company To profit from R&D, we must discover, develop and ship ourselves External R&D can create significant value; internal R&D is needed to claim some portion of that value If we discover it, we will get it to market first We don't have to originate the research in order to profit from it If we are the 1st to commercialize we will win Building a better business model is better than getting to market first If we create the most and the best ideas in the industry, we will win If we make the best use of internal and external ideas, we will win We should control our intellectual property (IP) so that our competitors don't profit from our ideas We should profit from others' use of our IP, and we should buy others' IP whenever it advances our own business model
  • 25. 25 This chapter lays out existing resources for startups in Jordan, then describes a blueprint for an organization that combines features of incubators, accelerators, venture builders, and similar organizations to facilitate the full process of taking nascent teams and ideas, and supporting their growth and eventual deployment of new products. 2.2 Existing resources for nascent startups are lacking Whether businesses are just starting or trying to scale, financing is critical for success. Experienced capital can really make a difference for new companies, and experienced investors can help coach founders along their journey. Yet in a recent Wamda survey, the majority of entrepreneurs in Jordan stated that investors are not offering enough value beyond cash, and most mainstay institutions don’t adequately provide mentorship or opportunities for collaboration. A rapid influx of investors has left the sector uncoordinated and disjointed, and according to the UNDP’s SME Development report, “there is no mechanism for coordinating the range of service providers and programme efforts.” As a result, entrepreneurs stall at certain phases, and lack the support or expertise to make their next move, even if the opportunity is theoretically available. Some investor networks and training programs have already formed regionally, with most headed by founding angel investors while being funded mostly through membership fees. Yet in the case of Jordan, some of the recently formed investment networks have at least one of the following shortcomings: they are poorly publicized to relevant audiences, take a more traditional approach to investments and lack solid experience in startup and technology investments, or are not as active as they should be. Over time due to the characteristic flaws of their operations, most of these networks either face fatigue or demotivation and their initiatives eventually dwindle away with no track of any kind of concrete impact.25 While angel investing has always been active in the region through individual investments, getting investment groups active in a network structure has been challenging. Donor institutions (such as USAID) have previously funded the establishment of angel networks such as Bedaya (now no longer active) and JO Angels (struggling for sustainability) in Jordan. Attempts to get networks to become sustainably active face several challenges: ▪ Angel investors do not necessarily understand the business models of tech startups, including the inherent risks and diversification required. ▪ Cultural differences between angel investors who have typically spent their careers in traditional business settings, and entrepreneurs who are used to operating in a fast-paced startup environment. ▪ Incubators and angel networks alike have a large number of applications but a small number of quality startups seeking funding. With this lack of maturity in the ecosystem, it is crucial that both angel investors and entrepreneurs gain the necessary cross-industry knowledge to work together productively. 25 Interview with JO Angels founder Zaid Masri
  • 26. 26 Today there are several initiatives to cooperate among angel networks, like MAIN, a cooperation initiative26 for Cairo Angels (Egypt)27 , Womena (Dubai)28 , Oqal (Saudi Arabia)29 , Tanmu (Bahrain)30 and many other new members which are starting to join. On the other side of the world, similar successful examples in Latin America are The Venture Club of Panamá, or Guadalajara Angel Investors Network (GAIN), local entities that seek to gather angel investors in both cities. These associations aim to develop an innovative entrepreneurial culture among individuals who are in condition to invest in startups, but that have historically created wealth through traditional investment instruments. In reflection, support and growth of an investor network such as JO Angels is an important component to the ecosystem. The approach towards angel investment should be to help mature the space through initiatives like training and co-investments. One useful international initiative that can directly drive in value to investor networks is Startup Angels. Startup Angels finds opportunities and identifies, recruits and trains investors in developing regions to invest in the early stages of tech based businesses. New Angels get to learn about startup investing, and for expert angels to learn about new markets, giving them access to a network of experienced investors, introducing them to young companies, and providing tools and training.31 Yet beyond direct financial investment, a new approach is needed that supports startups in gaining the right people, resources, knowledge, and capital throughout the development process. In the following sections, we present a two-part startup support program to meet these needs. In the first phase, teams are extensively vetted and de-risked, and knowledge gaps are filled; in the second, qualifying teams undergo specialized training and education, and are given access to the resources of the accelerator. 2.3 Selection Process Choosing which startups to incubate is one of the most important factors in the success of any accelerator. Pursuing the wrong type of venture – those for whom the accelerator doesn’t have the means or networks to provide support, or those without the potential to scale – will spell failure. Our proposed accelerator model employs a rigorous selection process that blends assessment, education, and evaluation to locate committed teams with the greatest potential. In the first phase, teams are extensively vetted and de-risked; in the second, they are re-evaluated and given practical training. 26 https://www.middleeastinvestmentnetwork.com 27 http://www.cairoangels.com/ 28 http://womena.co/ 29 http://www.oqal.org/ar/ 30 http://www.tenmou.me/ 31 https://startupangels.com
  • 27. 27 2.3.1 Phase 1: De-Risking Potential Teams The accelerator takes a people-first, idea-second approach to selecting teams. Though it is very difficult to objectively judge a new founder by the quality of their idea, creative teams with a productive dynamic can generate and improve upon ideas that may not initially seem promising. Thus, in the first phase of the accelerator, teams undergo an extensive evaluation process that only briefly assesses the idea, and focuses primarily on the personalities and dynamics between team members, as well as the balance of knowledge versus experience on the team. In this phase, the basic areas of interest and assessment techniques are the following: Area of Interest Criteria Assessment Technique The Idea Specialization: Generally, does the idea fall into the accelerator’s area of specialization? Technical complexity: How technically sophisticated is this idea, and is it feasible given the resources available? Manpower required: What is the manpower required to execute on this idea, and is it feasible given existing human capital in the startup and the accelerator? Determined in consultation with the accelerator’s board of experts as well as outside consultation if needed. Personality Are personalities of team members aligned with the personality profiles that have been associated with successful entrepreneurs? Established through interactions and interviews with team members, as well as personality tests such as the Myers-Briggs (MBTI) profile.32 Team Dynamics Do individual skillsets complement each other? Do team member personalities and skillsets complement each other? Established through interactions and interviews with team members, as well as a Myers-Briggs (MBTI) profile 32 Assessing personality types is not a precise science. However, studies have found that there are certain personality types which are associated more strongly with entrepreneurship. Both the Founder Institute as well as ReBootKamp have employed these methods and seen successful outcomes.
  • 28. 28 Knowledge vs. Experience What is the technical background of the team? What skills and expertise does the team possess? Where is the balance between knowledge and experience among the team? Established through interactions and interviews with the team. This is also assessed via a Predictive Admissions Test administered prior to accepting teams into Phase I. Initial Fund Estimate Is the initial estimate of funds required to accelerate the startup to launch within the practical limits of the accelerator? Determined in consultation with the accelerator’s board of experts as well as outside consultation, if needed. Depending on the results of this initial assessment, startups may be eligible to receive their first round of investment. It is important to note, however, that each of the listed areas of interest are weighted with different importance levels. For example, a startup may still be eligible for support if the team works well together, even if the original idea was discarded completely. Or, a team with a great idea but little practical knowledge may still receive support if they complete additional initial training via assigned MOOCs. An additional benefit of assigning courses is to weed out teams that are not fully dedicated. During this phase, teams and ideas may undergo extensive modification. The accelerator may require that teams modify their founding team or talent by removing, replacing or in some cases bring in an additional team member to balance out skill sets and enhance capabilities. Teams also prepare for phase two with intensive weeks of accelerated learning, according to a MOOC-based curriculum that’s tailored specifically to that team’s knowledge gaps. The criteria with least flexibility is the initial fund estimate: if a startup requires resources that are beyond the capabilities of the accelerator, the accelerator will connect them to a more relevant partner organization. During the selection process, we also consider how the various teams will complement each other and work together. Because of the highly collaborative environment, the accelerator views each cohort as a tight-knit team rather than a collection of individual startups. When we admit a cohort of startups toto the accelerator, we want each to add something useful or intriguing to the team, to bring together a wide range of individual gifts, talents, interests and achievements. In a big-picture sense, we are looking for a richly varied team of capable people who will support, surprise and inspire each other. By the end of the first phase, the remaining teams will be comprised of highly driven, committed, and capable individuals who are able to work together and solve problems in a fast-paced environment. Potential entrepreneurs have been primed with the skills they need to successfully execute on their ideas, and the entire cohort has been selected to provide high potential for structured and serendipitous collaboration. 2.3.2 Phase 2: Re-evaluating and assessing growth While phase one focused on knowledge and skills, phase two is much more practical. In phase two:
  • 29. 29 ▪ Ideas are re-evaluated much more deeply to assess their manpower requirement, technical complexity, investment readiness level, fundability, and required resources. ▪ Because teams have likely been reshuffled, team dynamics and individual skills will be assessed once again. ▪ Teams will be tested to determine whether they incorporated the knowledge from Phase 1: have they learned and bolstered their weak points? Or do their knowledge gaps remain the same? ▪ During this phase, the strength of the idea becomes a much more highly-weighted factor. In phase two, qualifying teams are given access to the resources of the accelerator. This access entails much more than just access to finance, and is where the open-source philosophy of the accelerator comes into full effect. 2.3.3 The Program: Taking an Open-Source Approach for Rapid Innovation We envision this ideal accelerator as a collaborative ecosystem, where people of all skill sets, backgrounds, and experiences share ideas, best practices, metrics, and feedback. Why? Because helping each other and sharing expertise leads to faster iteration, more efficient innovation, and faster market growth. To create and foster this collaborative culture within the accelerator, we take a groundbreaking open source approach where selected teams are expected to share personal or team talent, resources, and technology across all existing startups to the greatest extent possible. An overview of the technical aspects of the accelerator model can be found in Appendix IV. We use the term accelerator because the end goal of the accelerator is to turn early-stage startups into investment-ready businesses. However, the program blends aspects of bootcamps, incubators, and venture builders, as well as accelerators. In order to define what innovation we seek to support, it is important to define the impact we seek to create. The mission of such an accelerator is to manufacture a more open and collaborative culture that values long-term, collective gains over short term private wins, and in doing so, to lay the foundations for a more socially driven regional ICT hub. A NOTE ON OUR TERMINOLOGY AND IMPACT
  • 30. 30 Resource Openness Delivery Basic organizational resources Open to current teams and alumni The accelerator will retain a cadre of consultants in relevant fields that all teams will have access to via office hours that can be scheduled through an internal online system. This will include, for example, accountants, HR advisors, financial advisors, and more. Equity Shared among current teams and alumni All startups contribute a percentage of their equity goes to the other startups in the cohort, and a smaller percentage goes to the alumni (e.g., 1% to cohort pool; then give a fraction to the alumni). Intellectual property Open across all current teams, barring any conflict of interest (determined in consultation with experts such as JOSA) Any software, technology, or business model developed within the accelerator must be made open and accessible to all other current teams. People Open to current teams All team members have mandatory time contributions, and must dedicate between 10-20% of their monthly time to working with other startups and solving other people’s problems. This occurs during weekly huddles, and individuals can be booked through office hours on the accelerator’s internal online platform. Networks Open to current teams and alumni Access to networks and people that you know – any opportunities, investors, etc. – must be shared. Additionally, the accelerator maintains an extensive network of mentors from business and academia, scientific advisors, and experienced founders and regional partners who have specialized expertise. Internal data Open to current teams; alumni may secure paid access; access to the public via referrals The accelerator collects and maintains data on startups – on customer bases, on what works & what doesn’t work. Marketing strategies, customer acquisition, all of which is shared via an internal knowledge management system. Past founders Open to current teams “Smart people can fail, but smarter people learn, iterate, and reapply.” Founders that are highly talented exhibit high grit and have a lot of experience to contribute yet fail to bring their startup into fruition have the option to opt in any other startup and join the team. After all, all startups have stakes in every wave of startups that are being accelerated.
  • 31. 31 EXAMPLE: TIME-SHARING DevEx is a team of four software engineers developing an Arabic-language search engine. For the past week, they have been stuck on an algorithm for indexing webpages. They discuss this obstacle at a weekly accelerator-wide huddle, and discover that a member of a fellow startup has successfully implemented a similar project in the past. After the huddle, DevEx books an hour of her time later that week using the online office-hours portal, and she works with them to help resolve the issue. Computer scientists on the Striada team are testing the concept for an app that uses Blockchain technology to improve government transparency and accountability, and reduce corruption. Yet they are struggling to implement part of their idea. The team convenes an accelerator-wide, hour- long hackathon where they bring together people from all teams who are familiar with the technology. Taking advantage of the wisdom of the crowd, they are able to quickly arrive at a solution. EXAMPLE: WISDOM OF CROWDS A few years after graduating the program, Accelera realizes that their machine learning algorithm that matches recent college graduates with hiring startups may have applications in other markets. They wonder if it could be used to match restaurants with food vendors, but know little about that industry. Accelera checks the accelerator’s database of current startups and alumni, and finds one that worked with restaurants. The founders meet, and Accelera learns about a slew of regulatory issues associated with the food industry. This helps steer them away from a possible failed venture. EXAMPLE: TAPPING INTO NETWORKS After DevEx completes its search algorithm, another current startup, DreamMachine, realizes they can use that algorithm in the project: building a massive online network for universities to share experts, courses, and resources. An expert panel determines there is no conflict of interest between the two companies, so DevEx is obligated by their contract with the accelerator to give DreamMachine their algorithm. Later, when DreamMachine successfully exits, they begin paying DevEx for use of the algorithm. EXAMPLE: SHARED IP
  • 32. 32 2.3.4 Continual self-assessment leads to improved long-term performance The third defining pillar of the model accelerator is measurement, self-evaluation, and continuous iteration. Too much thinking around what makes successful entrepreneurship is ad hoc and hand- waved; specific metrics and more accessible data are needed to test assumptions and ensure better decision-making. The accelerator will continually collect data to learn about whether its methods are working, in order to keep what is useful, iterate on what’s not, and eventually converge on an optimal approach to spurring entrepreneurship. At every point along the pipeline, from talent-building to startup exits, UpSpark and the accelerator will collect data and assess metrics on what works and what doesn’t work. The possibilities are vast, but some potential areas to start are the following: 1. Talent phase: Survey bootcamp graduates on their experiences, survey hiring partners on what they are looking for and whether these needs are being met. 2. Culture phase: Surveys of attendants after every event to gauge what they learned, and what they would like to learn. 3. Know-how phase: Keep track of attendees, see whether they are more likely to start businesses. 4. Selection phase: What kinds of ideas are people pitching to the accelerator? Are they shallow, or technically sophisticated? Are they diverse, or do they all fall in a similar theme/area? What kinds of skills do potential startup teams lack when they come into the accelerator? What are they proficient in? Adjust education upstream if necessary. 5. General data collection: Collect extensive data on participants in the local, regional, and global accelerators and incubators; demographic information about teams, idea, sector, goals, investors, market strategies, business plans, challenges encountered. Use these to improve the program and to help future startups. Leverage technology analytics to help with decision- making. 6. Ecosystem outcome measurement: Follow up with applicants who were almost accepted, but ultimately rejected, and with those who dropped out of the program to establish a control group to allow for the measurement of the causal impact of the accelerator on startup success. 2.4 Contributing to the greater ecosystem directly and indirectly The accelerator will contribute to the ecosystem through direct and indirect effects. Specific activities such as investor education will raise the overall sophistication of capital in the ecosystem. By being rigorous about implementing an open source culture and by working with a broad segment of the community, the accelerator will also contribute to the development and promulgation of a collaborative, sharing-based culture. ▪ Education throughout the program leaves a value-added byproduct to the ecosystem’s knowledge capital. This is a great economic contribution to the sector and the long-term GDP. The people that leave or drop out leave without a startup but with a higher chance of employability.
  • 33. 33 ▪ We will have partnerships with organizations that accelerate employability on a local and global level. ▪ Udacity, Salalem, Coursera. All available for free for anyone that enrolled in the program. ▪ Partnerships with Hiring Partners: Corporates, Startups, or any technical company that is looking for potential tech talent. 2.4.1 Developing smart capital Just like entrepreneurial human capital in the region, smart capital can be fostered over time. The accelerator will run programs similar to those aimed at entrepreneurs and startups, but instead around investor communities. Partnerships with globally recognized workshops, training programs and investor networks are critical for maturing the investor sector, and can also drive potential success stories over time. Additionally, the construction of spaces where investors can share their experience around new technology enterprises is of vital importance to raise awareness on the challenges and opportunities of the sector, redirecting capital that would otherwise end up in more traditional, less risky enterprises. Finally, investment funds normally function better when their teams include people who have been entrepreneurs with firsthand knowledge of the real challenges faced by startups on their path to consolidation. Thus, successful founders can be encouraged to become investors to strengthen smart capital. Crowdfunding provides another potential source of smart capital. Experimenting with new ways to leverage the wisdom of crowds via crowd-funded projects is another important component of the ecosystem. Embedding and activating crowdfunding platforms in accelerators and investor networks is one such approach. One example of how crowdfunding can be incorporated into an accelerator model is via investor pairing: a local investor with deep regional knowledge pairs up with a global VC firm to both invest in the same startup. This gives the global VC firm an opportunity to expand, to learn about new markets, and find far-flung new ideas. It also provides local startups with access to new ideas and experienced capital. Finally, startups themselves can serve as sources of smart capital for each other. This can be done through coopetition: startups that are in the same market can work together in the exploration of knowledge and research of new products, at the same time that they compete for market-share of their products and in the exploitation of the knowledge created. A merger of startups and work teams, which shouldn't necessarily happen as a purchase of one by the other, but also through alternative models such as share transfer by the better positioned company to the one that is less so in exchange for joining forces. A microcosm ethos that is open source by foundation promotes such cultures of collaboration and cooperation.
  • 34. 34 Conclusion Communities and countries around the world are seeking ways to nurture innovative businesses, as a way of solving some of their most urgent economic and societal challenges. There is no single model for developing a successful innovation ecosystem. Although there is much to learn from other countries about best practice in institution and program design, attempts to directly replicate organizational models that operate in very different contexts are likely to fail. Ultimately, this report provides a framework for emerging economies to develop regionally competitive entrepreneurial ecosystems. Great ideas are found everywhere in the world, and you don't need to be in Silicon Valley to turn your ideas into great companies. Early ecosystems that turned heads through the startups that they created include Hungary, which produced huge startups like Prezi and LogMeln, Estonia, which created Skype, and Germany, which created SoundCloud and more. Tomorrow’s next big idea could come from anywhere in the world, from Mumbai, to Amman, to Nairobi, to Havana. Yet countries can take proactive steps to manufacturing a robust innovation ecosystem by fostering human capital and developing new institutions to support them. Tech communities and countries should focus on: ▪ Upending traditional education to rapidly improve talent. ▪ Developing a culture that accepts failure, celebrates entrepreneurs, and encourages collaboration. ▪ Developing entrepreneurial know-how among the community. Because collaboration in these contexts is more useful than competition – at least initially – the startup support institutions need to take a different approach than traditional accelerators. In particular, to see the greatest gains the fastest, they should: ▪ Have a highly selective admissions process that incorporates education and prioritizes people over ideas. ▪ Demand collaboration and employ a radically open source philosophy in which the people, resources, and technologies of startups in the accelerators are all shared. ▪ Constantly collect data and use that data to improve its programs and selection process. No two economies are similar enough that every recommendation in this report would work equally well for them. Further, there are numerous questions that each country will have to answer for itself: what is the role of government in creating such an ecosystem? In what area should we seek to innovate? Countries should use this report as a starting point: take what applies, discard what doesn’t, and build a system that works uniquely for them. Any framework needs a clear mission, but an ability to adapt and experiment. Working towards many different objectives at once or constantly changing strategic direction can make it difficult to deliver impactful innovation support for businesses. However, a long- term vision of what success looks like should not prevent any country from experimenting with new approaches, and responding to new needs and opportunities.
  • 35. 35 References Dutta, Soumitra, Thierry Geiger, and Bruno Lanvin. The Global Information Technology Report 2015: ICTs for Inclusive Growth. N.p., 2015. Print. The State of Digital Investments in MENA 2013-2015. N.p., 2016. Print. Breznitz, Dan, and Darius Ornston. “The Revolutionary Power of Peripheral Agencies: Explaining Radical Policy Innovation in Finland and Israel.” Comparative Political Studies 46.10 (2013): 1–38. Print. Diallo, Ali. “The Rise of Venture Builders and the Evolution of the Startup Model.” The Blueprint: Thoughts on Innovation, Entrepreneurship and Business Management. N.p. Print. Salido, Eduardo, Marc Sabas, and Pedro Freixas. The Accelerator and Incubator Ecosystem in Europe. N.p., 2013. Print. Zero Barriers: Three Mega Trends Shaping the Future of Entrepreneurship. N.p., 2017. Print. State of Payments 2016. N.p., 2016. Print. Figures, Key. Annual Report 2015. N.p., 2015. Print. Nurturing Human Capital: The Missing Piece of MENA’s Entrepreneurship Puzzle. N.p., 2016. Print. Mocker, Valerie, Simona Bielli, and Christopher Haley. Winning Together: A Guide to Successful Corporate-Startup Collaborations. N.p., 2015. Print. Tech Nation: Transforming UK Industries. N.p., 2016. Print. Dee, Nicola et al. Startup Support Programs: What’s the Difference? N.p., 2015. Print. Guide, A Practice. Startup Accelerator Programmes: A Practice Guide. N.p., 2014. Print. Bannerjee, Siddharth, Simona Bielli, and Christopher Haley. Scaling Together: Overcoming Barriers in Corporate-Startup Collaboration. N.p., 2016. Print. Edovald, Triin, and Teo Firpo. Running Randomised Controlled Trials in Innovation, Entrepreneurship and Growth: An Introductory Guide. N.p., 2016. Print. Saunders, Tom, and Jeremy Kingsley. Made in China: Makerspaces and the Search for Mass Innovation. N.p., 2016. Print. Puttick, Ruth. Innovation Teams and Labs: A Practice Guide. N.p., 2014. Print. Ramalingam, Ben, and Kirsten Bound. Innovation for International Development: Navigating the Paths and Pitfalls. N.p., 2016. Print.
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  • 37. 37 Appendix I: Israel Case in Point In 1968, when Israel decided to build a science-based economy, there were only 886 R&D workers in Israel’s civilian sector and the country had an R&D intensity (the ratio of R&D investment to GDP) of 1%, the second-lowest in the OECD. Policy makers’ vision was not of specific industries but of an economy whose competitive advantage would be based on continuous invention of products to be sold around the world. Over the course of more than 40 years of policy experimentation, the office of the chief scientist in the Ministry of Trade and Industry has aided in the creation and stimulation of companies capable of carrying out such invention. Officials identified bottlenecks as they arose and developed policies to relieve them. In the mid-1970s, for example, policy makers realized that entrepreneurs in a mostly poor, quasi-social-democratic society (as Israel was then) might not have the knowledge to develop, sell, and service products for the American market, so they created the Bi-national R&D foundation (BIRD) to finance the joint development of new products by American and Israeli companies, with the U.S. firms focusing on product definition, sales, and service, and the Israeli firms on R&D. Then, in the early 1990s, when Israel already had 4,000 companies with products and revenues but no financiers willing to invest in scaling them up, officials created the Yozma program to accelerate the Israeli VC industry by infusing it with foreign know-how and connections to NASDAQ.33 Israel's innovation policy was for decades sectorally-agnostic. Over time the clustering around certain areas (networking, data security, agritech) occurred initially as an outcome of solving practical problems that the government prioritized (e.g. security, food self-sufficiency/working the land) – Daniel Isenberg No one in 1968’s Israel knew what technologies and innovations would allow Israeli companies to succeed in 2014. No one even dreamed that a new form of finance, called venture capital, which was taking it first steps in the United States, would prove crucial in changing the Israeli financial environment 30 years later. However, the creators of Israel’s innovation policies had a clear vision of the economy they wanted to develop, were very willing to tweak this vision and their actions to fit the evolving reality, and had a deep commitment to develop a thriving private industry, knowing that their own status and importance would diminish as the industry grew. Over the past 40 years, each and every case of very successful economic growth based on rapid innovation has been rooted in policy makers’ clear vision of developing an innovation-based economy. Thus the importance of the “why” question. You need to understand where you are, and where you want to be, in order to know which best practices to apply, where you need to experiment, and when you need to change policy as the industry evolves. If you don’t have a goal, and you are not sure where you are, then you will get nowhere in particular. Applying all the best practices approved by the world’s most prestigious consultancies to reach goals such as patent numbers and R&D intensity doesn’t show that you are an innovation leader. It shows only that yours is a risk-averse society enjoying too much capital. 33 http://yozma.com/overview/
  • 38. 38 Innovation needs risk taking and grand visions. The willingness to face multiple failures and undertake repeated experimentation to reach a vision is what separates those who succeed from those who do not. It is a cardinal sin of innovation policy not to have a vision. It is a second cardinal sin not to be flexible and experimental in turning this vision into reality.34 34 https://hbr.org/2014/07/the-cardinal-sins-of-innovation-policy
  • 39. 39 Appendix II: Innovation, impact, and accelerators The underlying assumptions of this report are that emerging economies cannot successfully seed entrepreneurial ecosystems by following the standard Silicon Valley approach. This is true for many reasons, but two in particular stand out: 1) Emerging economies do not have the resources to accept a high failure rate. The availability of venture capital is limited, and government will to invest seriously is weak to non-existent. 2) Primitive competition results in primitive success that is only relevant in its own environment. The fledgling startup community in Amman cannot survive aggressive competition. And if it does, it will not produce companies that are relevant on a regional scale. While there is much to learn from best practices around the world, in order to be successful, we must take what applies, discard what doesn’t, and build a framework that is uniquely our own. Following this approach, the framework we develop a framework in which we gradually manufacture an ecosystem that can withstand competition and produce novel ideas, through open-source collaboration. We first need to define what kind of impact we seek to create. This is important because without a clear vision, ‘innovation’ is just tinkering around the edges, and will yield only superficial products and technologies that won’t survive beyond our own small community. It’s also important because the market for large accelerators is dominated by giants like Y Combinator and others. Yet innovation isn’t only about the ‘what,’ but also about the ‘how’ and the ‘why.’ So we innovate on the approach to accelerators as well. When knowledge capital is undeveloped, we believe that ecosystems can benefit a lot more from cooperating than from cut-throat competition. Our approach, then, is to create a cooperative microcosm in which startups collaborate, share ideas, people, and resources. We open source everything, from IP to mentors to alumni. We bring smart, motivated people together, and let them learn from each other and benefit from their collective knowledge. We believe that at the beginning, they will be stronger together than apart. The innovative products that come out of this stage do not have to be disruptive: they only have to increase the capacity of the ecosystem to absorb risk, without existential threat. But we also recognize that such an approach must have an expiration date. As the ecosystem develops more sophistication talent, as we expand smart capital, and as we develop the resources to take larger risks, then we can begin to open up the microcosm. Competition can become more intense, and the ideas that emerge become more relevant and sophisticated. As this process progresses, elements of open source are still embedded in the culture. People make decisions about how and when to deploy the open source mentality to benefit maximally from it. If such an approach is successful in the microcosm, people will start to apply it in the broader ecosystem as well. Finally, once the entrepreneurial ecosystem gains momentum, it will begin to attract government and global attention, and will even be able to dictate its own terms. Rather than waiting on government reform, it will have the credibility and value creation to force progress forward, accelerating it further.