Kholoud Hussein 

Startups often outpace their financial capacity. Product traction accelerates, customer acquisition rises, and new markets open faster than revenue arrives. At that point, founders face a familiar dilemma: raise more equity and dilute ownership, or borrow and take on repayment pressure. Between these two paths lies a middle option that is less discussed but increasingly relevant in maturing startup ecosystems: mezzanine financing.

Mezzanine financing is a hybrid form of capital that blends features of debt and equity. It is structured as a loan, but one that can convert into equity if the borrower fails to meet certain repayment terms. It sits “in the middle” of the capital stack — senior to equity but subordinate to traditional bank loans, hence the name “mezzanine.”

For banks, mezzanine loans are too risky. For venture capitalists, they are a way to invest without immediately giving up equity. And for founders, they offer growth capital at a stage where cash needs rise sharply but equity dilution feels increasingly costly.

What Exactly Is Mezzanine Financing?

In practical terms, mezzanine financing starts as debt with a higher interest rate than a bank loan. The higher rate reflects the higher risk. But unlike traditional debt, mezzanine lenders often receive “equity kickers” such as warrants or the right to convert part of the loan into shares later. This hybrid structure gives investors the upside potential of equity with the repayment priority of debt.

The main components of mezzanine financing include:

• A loan with flexible terms
• Interest payments, sometimes deferred
• Equity-linked features
• Subordination to senior debt

This structure is designed to help growing companies bridge the gap between early venture rounds and full-scale profitability.

Why Startups Consider Mezzanine Capital

Startups typically encounter mezzanine financing when they reach the scale-up stage. At this point, the business has traction, predictable revenue, and a clear path to expansion — but needs significant capital to accelerate growth.

Choosing mezzanine financing can make sense for several reasons.

First, avoiding equity dilution.
By raising mezzanine capital instead of equity, founders keep a larger share of the company. This matters especially when valuations are not rising as quickly as expected, or when the founders want to postpone a large dilution event until performance strengthens.

Second, accelerating expansion.
Mezzanine financing is often used to fund acquisitions, new market entries, major hiring rounds, or infrastructure investment — areas where speed matters. The flexibility of mezzanine capital lets startups pursue these opportunities without waiting for the next traditional funding round.

Third, bridging to profitability.
For startups close to break-even, mezzanine capital provides the boost needed to reach sustainable cash flow. It acts as a financial bridge between growth and self-sufficiency.

The Risks Behind the Flexibility

Mezzanine financing is not without trade-offs. Its biggest drawback is cost. Interest rates are significantly higher than bank loans, and equity warrants mean founders may still give up shares in the future. This makes mezzanine capital more expensive than both traditional debt and early-stage equity.

Another risk is pressure. While interest payments can sometimes be deferred, the debt still sits on the balance sheet. If growth slows or revenue falls below projections, repayment becomes challenging. In extreme cases, lenders can convert debt into equity, diluting founders under less favorable conditions.

Because of this, mezzanine financing is suitable only for companies with predictable revenue streams — not for early-stage startups still validating their business model.

Why Mezzanine Capital Is Becoming More Common

As startup ecosystems mature, especially in markets like the GCC, founders increasingly look for financing beyond traditional venture capital. Investors, meanwhile, seek structures that reduce risk while retaining upside. Mezzanine financing meets both needs.

In more established markets such as the United States and Europe, mezzanine funds have been common for decades, especially among later-stage startups and growth companies. The rise of private credit globally has made mezzanine-style instruments more accessible to tech companies expanding rapidly but not yet ready for public markets.

Where Mezzanine Financing Fits in a Startup’s Lifecycle

In the typical startup journey, mezzanine capital sits between:

• Series B–C equity rounds, and
• Large-scale expansion, acquisitions, or pre-IPO growth.

It comes after venture capital has validated the product and business model, but before the company achieves the cash flow stability of a mature enterprise. At this stage, the valuation may not yet justify a major equity round, but the business requires real capital to scale.

Founders often pursue mezzanine financing when:

• Growth is strong
• Revenue is predictable
• The company wants to maintain ownership control
• Traditional loans are unavailable
• Equity rounds would cause heavy dilution

A Tool for Mature Startups, Not Young Ones

Mezzanine financing is not for seed-stage founders. It is a tool for companies that have grown beyond early volatility and are entering a phase where capital efficiency matters. The ideal candidate is a startup with stable revenue, healthy gross margins, and a clear expansion strategy.

To conclude, mezzanine financing occupies a unique space in the funding landscape. It gives founders capital to expand without giving up major equity — but at a cost. It gives investors downside protection through debt, and upside potential through equity features. And it becomes especially relevant as startup ecosystems mature and companies seek alternatives to traditional funding structures.

For the right startup, mezzanine financing is a strategic tool that supports aggressive growth while preserving ownership. For the wrong startup, it can become an expensive strain.

As Saudi Arabia, the UAE, and wider GCC markets continue to develop more sophisticated financial instruments, mezzanine financing will likely become more familiar to founders. Understanding how it works — and when to use it — can be a decisive factor for startups aiming to scale in competitive, fast-growing markets.

Roudny Nahed

For decades, branding has been dominated by the visual world. Companies invested heavily in logos, color palettes, typography, and visual guidelines to ensure consistent recognition across their communications. But as the digital ecosystem evolves, another dimension of branding is gaining strategic importance: sound.

From mobile applications and digital platforms to retail spaces and advertising campaigns, sound has become an integral part of the customer experience. Every notification, confirmation tone, background music track, or advertisement audio contributes to how audiences perceive a brand. As a result, businesses are increasingly recognizing the importance of audio branding, also known as sonic branding.

Today, the brands people hear can be just as powerful as the brands they see.

Every Brand Already Has a Sound
Whether companies realize it or not, every brand already produces sound. A mobile banking notification, the music inside a retail store, the audio in a promotional video, or the tone accompanying a digital transaction all shape how people experience a brand.

However, in many organizations, these sounds are created without strategic alignment. Different teams produce audio elements independently, resulting in a fragmented and inconsistent brand experience.

This is where sonic branding becomes valuable. Just as companies develop visual identity guidelines, leading organizations are now building sonic identity systems. These systems define how a brand should sound across every touchpoint, including sonic logos, brand music, interface sounds, voice direction, and audio used in advertising.

When designed intentionally, these elements create a consistent and recognizable brand presence.

Sound Connects With Emotion Faster
One of the key reasons sound is so powerful lies in neuroscience. Research in consumer psychology shows that sound can trigger emotional responses almost instantly. Music and sound interact directly with areas of the brain responsible for memory and emotion, allowing brands to create deeper connections with their audiences.

This is why a short melody or sound signature can instantly remind people of a particular brand or experience. Audio has the ability to reinforce brand recognition and create emotional associations that visuals alone often cannot achieve.

The Rise of Audio in the Digital Economy
The growing importance of sonic branding is also driven by the rise of audio-driven environments. Today’s digital ecosystem is filled with sound, from social media video content and streaming platforms to smart devices and voice assistants.

In many cases, consumers interact with brands without even looking at a screen. A voice assistant response, a payment confirmation tone, or a branded podcast may be the primary interaction point with a company.

This shift means businesses can no longer rely solely on visual identity. Brands must also think about how they sound across the customer journey.
A Strategic Opportunity for Businesses

While many global brands have already embraced sonic branding, the field is still emerging in several regions, including the Middle East. As industries across the Gulf continue to invest in digital transformation, entertainment, fintech, and large-scale consumer experiences, the role of sound in brand communication will only grow.

Organizations that start thinking strategically about their audio identity today can gain a competitive advantage tomorrow.

The future of branding is multisensory. The strongest brands will not only be recognized visually, but they will also be recognized instantly by the way they sound.
In an increasingly noisy world, a distinctive sound may become one of the most powerful tools a brand can own.

By: Roudny Nahed, Partnership Manager at MusicGrid

Ghada Ismail

When discussions turn to Saudi Arabia’s startup ecosystem, attention usually centers on highly visible consumer platforms, such as food delivery apps, ride-hailing services, digital wallets, and online marketplaces. These are the companies that attract millions of users and quickly become part of everyday life. Their brands dominate headlines, and their apps live on people’s phones.

Yet beneath these familiar platforms lies another layer of the digital economy, one that most consumers rarely notice.

Behind every e-commerce store, fintech app, or digital marketplace is a network of companies providing the technological infrastructure that allows these businesses to function. These firms develop the systems that manage payments, verify identities, deliver notifications, detect fraud, and help merchants run online stores. Without these technologies, many digital platforms would struggle to operate at scale.

While some startups build products designed for the public, others build the invisible systems that allow those products to work. These companies can be described as “invisible startups.” Their customers are businesses rather than individuals, and their technologies operate quietly behind the scenes.

As Saudi Arabia accelerates its digital transformation under Saudi Vision 2030, these startups are becoming a crucial backbone of the Kingdom’s rapidly expanding digital economy.

What Are Invisible Startups? 

Invisible startups are companies that focus on building technological infrastructure rather than consumer-facing products. Instead of launching apps aimed directly at individuals, they develop systems that help other companies operate more efficiently.

Their technology often works in the background. Consumers may interact with the outcomes of these systems—such as receiving a verification code or completing a secure online payment—but they rarely know which company powers the underlying technology.

These startups typically build tools that support essential digital operations. Some develop platforms that allow merchants to create and manage online stores. Others focus on communication infrastructure that enables businesses to send messages and notifications to customers. There are also companies specializing in fraud detection technologies designed to protect digital transactions, as well as firms building logistics systems that help manage deliveries and supply chains.

Because invisible startups operate in the business-to-business space, their growth often comes from enabling thousands of companies to operate digitally. Rather than focusing on user downloads or consumer marketing, they concentrate on building scalable systems that businesses rely on every day.

Why Saudi Arabia Needs Invisible Startups 

Saudi Arabia’s digital economy has been expanding rapidly over the past decade. Government reforms, growing venture capital investment, and rising internet penetration have all contributed to the development of a dynamic startup ecosystem.

At the center of this transformation is Saudi Vision 2030, which prioritizes innovation, digital infrastructure, and technology-driven industries as key pillars of economic diversification.

This transformation is generating strong demand for infrastructure-focused startups. As more businesses move their operations online, the need for reliable technological systems becomes increasingly important. Startups launching digital services require ready-made tools that allow them to operate quickly without having to build complex infrastructure from scratch.

The rapid growth of small and medium-sized enterprises across Saudi Arabia has further accelerated this demand. Many entrepreneurs entering sectors such as e-commerce, fintech, and logistics rely on specialized technology providers that simplify digital operations.

In this context, invisible startups serve as a vital layer within the broader ecosystem. By offering ready-made platforms and services, they reduce the technological barriers facing entrepreneurs and make it easier for new businesses to enter the digital economy.

Startups Supporting Online Businesses 

One of the clearest examples of invisible infrastructure can be found in platforms that enable merchants to launch online stores.

Saudi startups such as Zid and Salla have emerged as key players in this space. Both companies provide technology that allows businesses to create and manage their own digital storefronts without requiring advanced technical expertise.

Through these platforms, merchants can design websites, integrate payment systems, coordinate shipping services, and manage orders through a single dashboard. A traditional retailer that once relied entirely on a physical store can now establish a fully functioning online business within a short period of time.

The impact of these platforms extends far beyond the companies themselves. By enabling thousands of merchants to sell products online, they help expand the entire e-commerce ecosystem in Saudi Arabia.

Consumers browsing online stores may never realize that a specialized platform is operating behind the scenes, yet companies like Zid and Salla have quietly become essential infrastructure for digital commerce across the Kingdom.

Communication Infrastructure 

Another critical layer of invisible technology involves the systems that power digital communication between businesses and their customers.

Modern digital services depend heavily on messaging infrastructure. From verification codes and delivery updates to transaction confirmations and customer service notifications, communication plays a central role in the digital customer experience.

One Saudi company contributing significantly to this infrastructure is Unifonic. The firm provides cloud-based communication solutions that allow businesses to send messages across multiple channels, including SMS, voice, and messaging applications.

When users receive a one-time password while logging into a platform or confirming a transaction, the message may be delivered through systems developed by companies like Unifonic.

Although consumers see the messages appearing on their phones, the technology behind the communication often remains invisible. Yet these systems are essential for maintaining secure transactions, engaging customers, and ensuring smooth digital interactions.

Security and Trust Infrastructure 

As digital services expand, maintaining trust and security becomes increasingly critical. Online transactions, digital banking, and remote identity verification all require sophisticated technological systems to prevent fraud and protect sensitive information.

Saudi Arabia has witnessed the emergence of several companies developing solutions in this area, including Mozn and Elm.

These companies build technologies designed to monitor financial activity, analyze transaction patterns, and detect potential risks. Their systems are widely used by banks, fintech companies, and government institutions seeking to strengthen security and regulatory compliance.

Artificial intelligence plays an important role in many of these solutions. By analyzing large volumes of data in real time, advanced analytics platforms can identify suspicious activities and help prevent fraud before it occurs.

Organizations across both the public and private sectors also rely on digital services developed by Elm to streamline administrative processes and enhance digital identity systems.

Although these technologies rarely appear in consumer-facing applications, they form a crucial layer of trust within the Kingdom’s digital economy.

Why These Startups Matter for the Entire Ecosystem 

Despite their relatively low public profile, invisible startups play an essential role in supporting Saudi Arabia’s technology ecosystem.

Unlike consumer startups that depend on widespread brand recognition, infrastructure companies grow by enabling other businesses to succeed. A single technology provider may serve hundreds or even thousands of clients, creating significant effects across entire industries.

This model allows these startups to develop highly scalable businesses. Once the technological infrastructure is built, it can be deployed across multiple companies and sectors. The result is a powerful multiplier effect within the digital economy.

Infrastructure startups also accelerate innovation. By offering ready-made tools for payments, communication, and fraud detection, they allow entrepreneurs to focus on developing new products and services rather than building complex technological systems.

In many ways, these companies function like the roads and utilities of the digital economy. They may not always attract attention, but they provide the foundation upon which other businesses operate.

The Future of Invisible Startups in Saudi Arabia 

Saudi Arabia’s digital transformation is still unfolding, and the demand for infrastructure startups is expected to grow in the years ahead.

As industries such as fintech, logistics, e-commerce, and artificial intelligence continue expanding, businesses will require increasingly specialized technology solutions. This environment creates significant opportunities for startups building platforms related to digital identity, cybersecurity, financial infrastructure, and data analytics.

Investors within the Kingdom are also beginning to recognize the strategic importance of these companies. While consumer apps often receive the most media coverage, infrastructure startups can generate long-term value by serving entire industries.

Globally, many of the most influential technology companies operate largely behind the scenes, providing the platforms that power other businesses. Saudi Arabia’s startup ecosystem may increasingly follow a similar path.

The most important tech companies of the future may not be the apps that dominate smartphone screens. Instead, they may be the platforms quietly enabling thousands of businesses to operate digitally.

Invisible startups may not seek the spotlight, but their impact on Saudi Arabia’s digital economy is becoming impossible to ignore. As the Kingdom continues its journey toward a diversified and technology-driven future, these companies will remain an essential force powering the ecosystem from behind the scenes.

Noha Gad

In today's fast-paced business world, companies face increasing pressure to innovate and remain competitive, moving beyond traditional top-down management, which can stop creativity and leave large companies struggling to keep up with quick, new startups. This is where intrapreneurship comes in. This dynamic practice empowers employees to act like entrepreneurs within the safety of an established company.

This approach unleashes internal potential, fostering groundbreaking ideas without the personal risks of full-fledged startups. From accidental invention to tech giants' game-changing products, intrapreneurship has proven its power to drive growth and adaptability.

What is intrapreneurship?

Intrapreneurship is a way of working that lets employees act like entrepreneurs, but from inside their own company. People who take on this role are self-motivated, proactive, and action-oriented individuals who take the initiative to develop innovative products or services. Unlike entrepreneurs, they operate within a company's safety net, which absorbs any failures or losses. 

The main difference between an entrepreneur and an intrapreneur is the level of risk. Entrepreneurs build a business from the ground up and carry all the risk themselves. Intrapreneurs, on the other hand, have the safety net of their company behind them. This support gives people the freedom to try new things and take smart risks without the fear of losing everything.

By creating this entrepreneurial environment, intrapreneurship helps both the company and its people. Employees get the space to test ideas, grow their skills, and build a career within the organization, while the company benefits from fresh thinking and new solutions. 

Intrapreneurship Vs. traditional entrepreneurship

Intrapreneurship differs from traditional entrepreneurship in key ways, starting with resources. In intrapreneurship, employees rely on company funding and tools, such as budgets, labs, or software provided by the organization. This gives them a strong base without needing personal investment. On the other hand, entrepreneurship relies on self-funding or personal networks, where founders often seek loans and contacts on their own.

On risks level, intrapreneurs share risks with their employer, as failures impact the company but not their personal finances or job security. Entrepreneurs face high personal risks, including debt, lost savings, or business failure, that can affect their livelihood directly.

Intrapreneurship begins internally with pilots or tests within the company, allowing ideas to grow safely before wider rollout. Meanwhile, entrepreneurship jumps straight to direct market entry, requiring immediate customer validation and full exposure from the beginning.

To tackle specific challenges, such as increasing productivity and cutting costs, Intrapreneurs must have a high level of skills, including leadership and innovative thinking, to take risks and drive innovation within the business. Successful intrapreneurs must also be comfortable with uncertainty, persistently testing their ideas until they achieve the desired results.

Benefits of intrapreneurship 

• Employee engagement. Intrapreneurship boosts employee engagement by giving workers ownership of projects. They feel valued when leaders support their ideas, which cuts turnover and raises job satisfaction. 
• Driving innovation. Employees spot needs and test solutions fast, using company resources. This leads to new products, ultimately driving fresh innovation inside companies. 
• Business growth. Intrapreneurship helps enter new markets without big startup costs. It also improves customer loyalty through better offerings.
• Talent retention. Companies keep top talent by offering challenge and growth. Workers stay when they can build, not just follow tasks. This could eventually save hiring costs and build skills.

Finally, intrapreneurship bridges the gap between employee potential and company success by sparking innovation from within. It turns everyday workers into drivers of change, delivering engagement, growth, and fresh ideas without the uncertainties of external ventures.

Looking ahead, intrapreneurship will only grow in importance as markets evolve and talent demands more than routine tasks. Companies that adopt it early gain a clear edge, turning their workforce into a powerhouse of ideas and execution.

Mohamed Ramzy

The telecommunications and digital communication sector in Egypt is undergoing rapid transformation, driven by robust growth in e-commerce, the expansion of digital government services, and the organizations’ growing adoption of omnichannel messaging solutions to manage customer relations.

With the growing penetration of smartphones and messaging applications, companies are increasingly seeking more intelligent tools that not only facilitate message delivery but also analyze consumer behavior and enable real-time engagement.

In this context, technology companies are integrating artificial intelligence into the core of communication ecosystems, shifting customer service from a traditional response-based model to a proactive framework centered on automation and real-time data analytics.

On the sidelines of the AI Everything MEA 2026, Sharikat Mubasher interviewed Akram Elaashry, Head of Technology at Broadnet Technologies, to explore the company’s vision to transition from a provider of SMS solutions to a comprehensive developer of intelligent, AI-powered communication platforms. 

First, can you tell us more about Broadnet Technologies and its presence in regional and global markets?

Broadnet Technologies was founded in Lebanon in 2003 and has since expanded into an international organization with over 23 branches worldwide, including offices in Egypt, the UAE, Saudi Arabia, Qatar, India, and the United States.

Starting with SMS aggregation services, the company has grown to serve over 80,000 clients and partner with nearly 10,000 global telecom operators.

What are the key sectors that Broadnet Technologies targets?

We serve a wide range of organizations and companies, not just a single sector. Our portfolio in Egypt and the region includes prominent clients such as Banque Misr, global retail companies like LC Waikiki, ministries of Health, Planning, and Irrigation, securities trading firms, and every entity seeking reliable communication channels with its target clients.

Broadnet Technologies recently participated in the AI Everything MEA 2026 summit and unveiled its omnichannel solutions. What does this technology add to the communication ecosystem?

Omnichannel technology enables companies to send bulk campaigns via key channels, including SMS, WhatsApp, email, and Telegram. It also empowers companies to deliver interactive campaigns via WhatsApp, incorporating links that direct customers straight to websites, significantly boosting conversion rates and marketing efficiency compared to traditional methods.

Speaking of AI, what is the "AI Chatbot" project you are currently working on?

This project represents our primary focus. We are preparing to launch a comprehensive AI agent that integrates with messaging systems and omnichannel platforms. It will operate as an intelligent assistant, handling customer inquiries and resolving technical issues with exceptional accuracy and speed.

The agent will go beyond traditional automated responses: it will detect technical malfunctions, troubleshoot daily operational issues, and reduce reliance on human intervention for routine tasks, ultimately boosting operational efficiency.

How do you assess the current state of AI in Egypt, and what does the Egyptian market need to foster growth in this sector?

Egyptian AI sector is experiencing rapid growth, yet it remains in its early stages compared to more advanced global markets. Despite rising awareness of the importance of technology and intelligent robotics, we noticed that most companies and organizations have yet to fully realize how to integrate these technologies into their daily operations effectively and practically.

One of the most prominent needs for the Egyptian market to grow is investment and financial support. Developing AI solutions requires significant investments, whether in creating advanced software solutions or in testing new technologies and adapting them to meet customers’ needs. Startups and small-sized enterprises need incentives and funding to continue delivering leading-edge solutions without being hindered by financial hurdles.

Secondly, spreading awareness and technical knowledge is critical. Many organizations do not realize that their operational and marketing issues can be solved using AI, from enhancing customers’ experience to automating internal operations. This is where leading technology companies, such as Broadnet Technologies, play a pivotal role in delivering customized solutions and guidance on the most effective ways to deploy these technologies, thereby improving operational efficiency and increasing returns.

Thirdly, the market needs a robust technological infrastructure, including reliable communication networks, access to high-quality data, and advanced security frameworks to ensure AI solutions operate seamlessly and reliably while protecting customers’ information and privacy.

SMEs are a key pillar of the Egyptian economy. Does Broadnet Technologies offer services that are tailored to their capabilities?

Certainly. We support startups with flexible packages that start with 10,000 messages at affordable prices. Our goal is to back these companies in their early stages, enabling them to reach their target audience using advanced technologies, such as AI chatbots, at a reasonable cost.

The Saudi market is undergoing a profound transformation in the technology and AI fields. How would you describe your current footprint in the region, and what is your vision for future growth there?

We have a strong and long-standing presence in the Saudi market. Through our office there, we serve banking, public, and private sectors, in collaboration with major operators such as STC, Zain, and e&.

Today, the Saudi market is a highly attractive environment for investment. We currently operate advanced technology projects such as HLR and i-Messages, and we are planning to expand our presence by opening new offices and strengthening our partnerships with government entities to support the Kingdom’s digital vision.

What are Broadnet Technologies’ top priorities for growth and expansion over the next five years?

Our ambition is limitless. We work daily to develop our applications to keep pace with the latest global developments. We also strive to become the world's premier choice for communication and messaging solutions and to lead the innovation trajectory in the Middle East by integrating AI into the core of our operations.

At Broadnet Technologies, we aim to become one of the four largest companies in the world soon by enhancing services and expanding our operational procedures.

Finally, Broadnet Technologies aims to keep pace with the technological advancements in the field of AI, evolving from a provider of SMS services into a developer of AI solutions and intelligent conversational agents. This strategic transformation solidifies the company’s position among the companies driving the development of customer experience in the region. 

With its carefully planned expansion into strategic markets such as Saudi Arabia and Egypt, Broadnet Technologies stands as a model for companies investing in innovation to serve comprehensive digital development across the region. 

Translation: Noha Gad