Sharikat Mubasher Expert Thoughts

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Fintech
Dec 7, 2025

Beyond VC and loans: The rise of revenue-based financing for entrepreneurs

Noha Gad

 

In today’s fast-growing startup landscape, founders face several challenges, most notably securing capital to fuel growth without sacrificing equity or facing rigid repayment schedules. Traditional options like venture capital dilute ownership, while bank loans demand collateral that many early-stage businesses lack. Hence, revenue-based financing (RBF) emerged as a flexible, performance-aligned model that reshapes the way entrepreneurs fund their ventures. 

 

What is revenue-based financing (RBF)?

Revenue-based financing, or royalty-based financing, allows businesses to raise capital by giving investors a share of their ongoing gross revenues. This model provides founders with fast, non-dilutive capital that aligns with their actual revenue, offering valuable insights beyond just funding to fuel their sustainable growth.

Unlike debt and equity financing, RBF enables investors to receive a regular share of the business's income until a certain amount is paid. This amount is typically three to five times the original investment.

RBF is particularly popular in small to mid-sized companies or Software-as-a-Service (Saas) sectors as it provides an alternative for companies that are unable to secure traditional financing. It is an ideal option for growing online businesses, especially those with predictable, recurring revenue, that need capital for inventory, marketing, or other operational expenses.

 

How does RBF work?

A company that raises capital through revenue-based financing will be required to make regular payments to pay down an investor's principal. It is distinct from debt financing for several reasons: interest is not paid on an outstanding balance, and there are no fixed payments.

Payments to investors depend on the company’s performance because they vary based on the level of the business's income. For instance, if sales fall off in one month, investors will see their royalty payment reduced. Likewise, if sales in the following month increase, payments to the investors for that month will also increase.  

RBF also differs from equity financing because investors do not have ownership in the business. This is why revenue-based financing is often considered a hybrid between debt financing and equity financing.

 

Benefits and drawbacks

When considering revenue-based financing as a funding option, it is important to weigh its advantages alongside its limitations. This approach offers a set of benefits that appeal to many growing businesses, but it also has potential drawbacks that may impact suitability depending on the company’s specific circumstances. 

Benefits

  • Non-dilutive capital: It allows entrepreneurs to raise funds without giving up ownership or control, which is crucial for founders keen to retain strategic decision-making power.
  • Flexible repayments: Payments fluctuate with revenue, reducing financial pressure during slow periods. This eventually helps maintain healthier cash flow compared to fixed loan installments.
  • Fast and accessible: Approval processes emphasize actual revenue performance rather than projections or credit scores.

 Drawbacks

  • Higher Cost: RBF can be costlier than traditional debt, with repayment caps often ranging from 1.3x to 2.5x the initial amount.
  • Revenue dependence: Companies with fluctuating or unpredictable revenue may face extended repayment terms, which can strain long-term financial planning.​
  • Not for early-stage startups: RBF generally requires a reliable revenue stream. This makes it less suitable for pre-revenue or high-risk ventures.​

 

RBF vs. traditional funding options

Revenue-based financing stands out in a crowded funding landscape by offering a middle path between equity-heavy venture capital and rigid traditional debt. Evaluating it against alternatives like VC, bank loans, and venture debt reveals key trade-offs in ownership, repayment flexibility, and accessibility. RBF preserves full ownership without equity dilution, unlike VC, which requires giving up shares and often board seats. Additionally, RBF does not require collateral or personal guarantees, compared to bank loans, which have fixed payments and asset requirements.

RBF avoids interest rates and equity warrants typical in venture debt, offering purely revenue-based terms without fixed schedules, though both target growth-stage firms.

Finally, Revenue-based financing offers a compelling alternative for founders seeking flexible, non-dilutive capital aligned with their business performance. Although it may carry higher costs than traditional debt and requires steady revenue, its scalable repayment and quick access make it an attractive option for growing companies. As startups navigate funding choices, understanding RBF's unique workings can empower smarter decisions for sustainable growth. 

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Dec 4, 2025

Esports Meets Entrepreneurship: Could Gamers Be Saudi Arabia’s Next Big Investors?

Ghada Ismail

 

When an ecosystem grows fast enough, its consumers often become its creators.. and potentially its funders. Over the past few years, Saudi Arabia’s gaming and esports sector has transformed from a niche leisure activity into a central plank of the Kingdom’s economic‑diversification strategy. This shift is creating a new dynamic: engaged, affluent gamers who understand games, audiences and monetization, and who may soon act like investors. 

 

The resulting feedback loop seems promising: state‑backed capital and high-profile events generate interest; local entrepreneurs launch studios, platforms and tools; and successful players, creators and founders begin to emerge as potential angel investors — accelerating the cycle.

The scale of the opportunity helps explain the momentum. According to according to Savvy Games’ 2024 report, Saudi Arabia’s gaming market generated about US$1.19 billion in revenue in 2024, making it the largest gaming market in the Middle East and North Africa (MENA). 

 

Projections in that report estimate the market could reach US$1.64 billion by 2028, assuming steady growth across platforms (console, mobile, PC). 

Moreover, the overall appetite for gaming in the Kingdom appears substantial. According to one 2025 analysis by Antom.com, Saudi Arabia outpaces the MENA average in per‑capita gaming spending (almost three times higher) and counts about 23.5 million players, with a reported penetration of about 63%. 

 

Thanks to these numbers, as Saudi gamers participate in tournaments, build communities, create content, and use local or regional platforms, they are gaining a kind of product and market literacy, the kind of instinctive sense for audience behavior, monetization and content dynamics that investors typically rely on. With the gaming sector expected to expand steadily through at least the latter half of the decade, the Kingdom may be approaching a novel phenomenon: where players and creators don’t just consume the ecosystem — they fund it.

 

Why Gamers Could Make Effective Investors

The idea of a gamer acting like an angel investor may sound bold, but in Saudi Arabia’s current context, it is increasingly plausible. Gamers tend to develop deep product intuition: after thousands of hours engaging with games, they learn to spot good user experience, balance design, monetization potential, and retention dynamics. They understand what players want, a useful skill when evaluating new gaming or esports startups.

Content-creating gamers — whether they stream, compete, commentate, or run communities — usually build strong followings. That audience gives them real influence. A single post, stream, or tournament partnership can draw attention to a startup, bring in early users, or even attract investors. Because they have this direct reach and credibility, creators can be powerful early supporters or even valuable co-founders.

Some gamers have moved beyond playing or content creation into informal micro‑businesses: coaching, streaming monetization, community tournaments, and even indie game development. These ventures mirror early-stage startup experience, giving gamer‑entrepreneurs a head start.

Because many of these initiatives build on local tastes, culture, language, and regional understanding, there is strategic alignment: Saudi gamer‑investors may be especially motivated to support platforms and titles that resonate regionally.

 

Institutional Support: Savvy Games Group

At the top of the new gaming ecosystem sits Savvy Games Group, created under the Kingdom’s sovereign wealth fund to lead the charge. According to its 2023 annual report, it was set up to align with Saudi Vision 2030 goals: leveraging a young, affluent, tech-savvy population to build a national games industry. 

Savvy’s backing gives legitimacy and resources to the sector — from infrastructure and studio development to global publishing and esports investments. This sovereign‑scale commitment signals strongly to local entrepreneurs and prospective gamer‑investors that gaming is not a passing trend, but a long-term strategic industry for the Kingdom. 

 

Emerging Domestic Platforms and Startups

As institutional capital flows, local startups and regional platforms are shaping the ecosystem from the grassroots upward. Their existence expands the possible entry points for gamer‑investors. These are the most prominent players in the local market:

  • Grintafy — A Saudi sports-tech platform (founded in 2018 / 2019, based in Jeddah) that connects amateur and semi-pro footballers to clubs, matches, and talent scouts. Grintafy allows users to build a “football CV,” organize or join games, rate players, track performance, and get visibility among clubs and academies — effectively democratizing access to football opportunities across the Middle East. Grintafy has raised external investment: a 2022 convertible note from Wa’ed Ventures, and more recently a strategic investment from Chiliz (a global sports-blockchain company) to accelerate its transition toward Web3 and scale its talent-discovery ambitions. 
  • Spoilz   A Saudi game-development studio (founded 2020) focused on mobile games and live-ops services for the MENA region. Spoilz recently secured investment from investors including Merak Capital and Impact46, with plans to build globally competitive games and expand beyond mobile to PC/console/smart-TV platforms. 
  • Fahy Studios  A Riyadh-based game studio that in 2025 closed a US$1.75 million funding round to develop hybrid-casual games globally. The studio graduated from the educational accelerator program at NEOM Media Industries’ Level-Up accelerator and signed a publishing deal with international publisher Kwalee. 
  • Starvania Studios  A newer Saudi indie studio (founded 2022) that secured US$1.1 million in funding from Merak Capital and Impact46, aiming to expand into PC and console game development. Its first released game (on Steam) draws on Arabian mythology themes, showing local creative ambition and regional cultural resonance. 
  • Rize.gg   A newer, pre-seed startup (headquartered in Riyadh) building a platform for competitive gamers to team up, stream gameplay, and organize tournaments, representing early-stage, community-driven startup activity in Saudi Arabia’s esports ecosystem. 

 

What These Real Examples Tell Us

  • The ecosystem is diverse; not just big capital-heavy firms, but indie studios (Spoilz, Starvania, Fahy), and platform/community-builders (Rize.gg). There is active investor interest and early-stage funding: studios like Fahy and Starvania have secured external investment; Spoilz is scaling. This shows that Saudi Arabia’s gaming scene is beginning to attract real capital beyond state-backed conglomerates.
  • These companies emphasise regional relevance and global ambition — games drawing on local cultural references, but aiming for international distribution; venues and platforms designed for local communities but part of broader esports networks.
  • For “gamer-investors,” this variety offers multiple entry points: investing in indie studios, backing platforms, co-owning venues or clubs, or even participating directly in community-driven content/competition.

 

Government and Regulatory Support: Clearing the Path for Gaming Investment

Saudi Arabia’s gaming ecosystem is buoyed by proactive government policies. The Saudi Esports Federation (SEF) and the Ministry of Communications and Information Technology (MCIT) have implemented frameworks to support esports tournaments, professional leagues, and content creation. Initiatives like SEF Arena in Riyadh, which hosts competitive gaming events, serve not only as a physical hub for players but also as a proving ground for potential investor-gamers to assess market dynamics firsthand. 

Additionally, regulatory clarity around digital assets, in-game monetization, and content licensing is improving, lowering barriers for both startups and investor-gamers. Policies encouraging local IP development and regional content distribution provide incentives for Saudi gamers to participate in funding domestic projects rather than relying solely on foreign titles. These regulatory advances reinforce the sustainability of a gamer-investor ecosystem.

 

The Role of Education and Skills Development in Gaming Investment

Another emerging trend is the overlap between gaming literacy and professional skills. Many Saudi gamers are students or professionals in computer science, design, data analytics, or digital media. Their gaming experience equips them with deep insights into user behavior, digital monetization, and community management, skills that are directly transferable to evaluating startups or running small gaming-focused ventures.

Local educational initiatives, including partnerships with universities and coding academies, are increasingly incorporating esports management, game design, and content production into their curricula. Programs like these provide structured pathways for aspiring investor-gamers to transition from hobbyist participation to professional involvement in the gaming economy, further reinforcing the pipeline from player to investor. 

 

Conclusion

Saudi Arabia’s gaming push is no longer just about big tournaments or major acquisitions. Thanks to strong government support, a young population, and growing local spending, the Kingdom now has the foundations of a gaming sector that can sustain itself.

These foundations could also create a new kind of investor- gamers who understand products, digital culture, and community needs better than traditional investors. As the market grows and more Saudi studios, tools, and platforms appear, these gamers may increasingly step into roles as founders, early backers, or active stakeholders.

In short, Saudi Arabia might be on its way to creating one of the world’s most unique groups of digital-native, gaming-driven investors. This future now feels realistic, it’s just not fully here yet.

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Dec 1, 2025

What Makes Certain Startups Go Viral?

Ghada Ismail

 

Some startups seem to explode overnight, appearing in feeds, conversations, and headlines almost magically. But virality is rarely accidental. Behind every breakout success is a careful mix of human psychology, clever product design, perfect timing, and engineered growth mechanics. Virality is not luck then; it’s strategy. Understanding why certain products spread like wildfire can reveal patterns that founders, marketers, and product teams can intentionally leverage. In other words, going viral is less about chance and more about creating the conditions that make sharing irresistible, adoption effortless, and growth self-propagating.

 

1. Psychology: Why People Share

Viral products succeed because they tap directly into human behavior. People don’t just share products; they share experiences that make them feel seen, valued, or emotionally engaged.

  • Identity expression: Users share things that reinforce how they see themselves or how they want to be perceived.
  • Emotional impact: Strong emotions—whether delight, surprise, or even frustration—motivate people to talk about a product. The more emotionally charged an experience, the more likely it spreads.
  • Social currency: Sharing gives users a sense of contribution or status. By showing others something new, useful, or exclusive, they feel like they are providing value to their network.

Pro Tip: Emotional engagement often drives more shares than functional usefulness. Products that trigger strong, shareable emotions scale faster.

 

2. Product Loops: Growth Built Into the Product

The most viral startups design mechanisms that naturally pull in more users. This is called a “growth loop.”

  • Network effects: Messaging apps or collaborative tools become more valuable as more people join.
  • Referral loops: Incentivized invitations, like Dropbox’s early free-storage strategy.
  • Content loops: Platforms like Instagram or TikTok grow because user-generated content spreads organically.

Pro Tip: Products that embed sharing into their core functionality can sustain long-term viral growth without heavy marketing spend.

 

3. Onboarding: Instant Value Matters

A viral product must deliver value immediately. Users ask:

  • “Can I understand this in seconds?”
  • “Is it easy to start using without instructions?”
  • “Can I quickly experience the benefit?”

Pro Tip: Frictionless onboarding directly correlates with higher share rates. The simpler the first experience, the more likely users are to invite others.

 

4. Timing: Hitting the Cultural Sweet Spot

Even the best product may fail if the market isn’t ready. Virality often depends on alignment with cultural or technological trends.

  • Zoom’s rise coincided with remote work adoption.
  • Fitness apps surged during global lockdowns.
  • New social media tools often succeed when network behaviors are shifting.

Pro Tip: Timing amplifies the effectiveness of psychological triggers and product loops. A perfectly engineered product launched too early or too late may never go viral.

 

5. Social Proof and FOMO: Accelerating Momentum

Virality grows faster when users see others using or endorsing the product. Techniques include:

  • Invite-only launches and waitlists to create scarcity.
  • Influencer endorsements for credibility.
  • Shareable content (screenshots, posts) that spreads awareness.

Pro Tip: Social proof multiplies momentum by increasing the probability that users will share or invite others.

 

6. Speed and Experimentation Create “Luck”

While luck plays a role, successful startups usually create conditions for it. They:

  • Launch quickly and expand based on feedback.
  • Test bold ideas and pivot fast.
  • Observe trends and react before competitors.

Pro Tip: Virality rarely happens without a culture of rapid experimentation. Startups that move fast can capitalize on windows of opportunity that others miss.

 

Conclusion: Virality Can Be Engineered

Virality is often treated as a mysterious, almost magical phenomenon, but the truth is more tangible. Successful startups achieve virality by understanding human behavior, embedding sharing mechanisms into their products, launching at the right moment, leveraging social proof, and moving faster than anyone else. The brands that truly explode don’t wait for luck; they create it. By studying these patterns, founders can shift their mindset from hoping for virality to designing it into their products, making growth predictable, measurable, and sustainable. 

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Nov 30, 2025

How an AI co-founder can accelerate your startup to market

Noha Gad

 

The entrepreneurship ecosystem is undergoing a profound transformation today, driven by the fast-evolving technological landscape. Traditionally, startups have been launched by visionary individuals or teams sharing complementary skills and a common goal. However, the rise of artificial intelligence (AI) is revolutionizing the future of business, introducing a new paradigm where AI can serve as a full-fledged co-founder alongside human entrepreneurs.

In 2025, several startups are naming AI tools, like GPT-4, Claude, and open-source large language models (LLMs), as co-founders, not just assistants. In many cases, these AI systems ideate, write code, draft pitch decks, analyze markets, and even engage with customers.

The integration of AI as a co-founder democratizes entrepreneurship by leveling the playing field, especially for solo founders or resource-constrained teams. It empowers innovators to accelerate product development, optimize business strategies, and reduce time-to-market, all while fostering smarter, data-driven growth. 

 

What is an AI co-founder?

An AI co-founder is not a robot CEO. It is typically an advanced AI system, often based on LLMs or custom-trained agents, that supports or drives major startup functions from day one. Unlike human co-founders, AI systems operate tirelessly without requiring salaries, breaks, or rest. They harness vast data, predictive analytics, and machine learning to offer real-time insights, automate complex tasks, and support critical decision-making. This transformative concept is quickly moving from futuristic speculation to practical reality, fundamentally redefining how startups are conceived, launched, and scaled.

What makes AI co-founders different from traditional AI tools is their ability to handle up to 80% of early-stage R&D work that usually takes a lot of time and resources from founders. They keep learning and adapting to a startup's specific needs, becoming more efficient and customized over time. Several factors set AI co-founders apart from regular AI assistants. These include:

  • Strategic input: AI co-founders are not just implementing tasks; they propose product directions or market pivots.
  • Continuous learning: they adapt to the startup’s data, goals, and team behavior.
  • High Autonomy: AI co-founders operate without constant human oversight, having access to APIs, CRMs, design suites, code repositories, and more.

 

The impact of AI co-founders on the entrepreneurship ecosystem

AI co-founders play a pivotal role in transforming the startup landscape into a more inclusive, efficient environment where human creativity pairs with relentless computational power to drive sustainable growth and broader economic innovation. They significantly contribute to:

     -Democratizing access to entrepreneurship. They lower barriers for solo founders and underrepresented groups, providing expert-level support without the need for large teams or significant funding.

     -Accelerating innovation cycles. AI co-founders enable rapid execution of market research, product roadmaps, and strategy development, reducing weeks of work into minutes and accelerating innovation cycles across industries.

     -Enhancing cost efficiency. These founders foster cost efficiency and lean operations, as they automate repetitive tasks, allowing startups to iterate faster, manage risks through data-driven insights, and achieve quicker time-to-market.

 

Will AI replace human founders?

AI co-founders do not replace human creativity and leadership; instead, they complement them by automating repetitive and resource-intensive tasks. This partnership enables founders to focus on innovation, strategy, and cultivating the company’s culture. Additionally, AI co-founders complement human strengths through:

    -Automating administrative tasks, data analysis, and routine operations, allowing human founders to prioritize high-level strategy, creativity, and vision.

    -Handling operations without burnout, enabling humans to provide empathy, relationship-building, and ethical judgment, ultimately creating a symbiotic dynamic that enhances innovation and decision-making.

    -Enabling solo founders to achieve what once required full teams, but leadership and cultural nuance remain distinctly human.

    -Shifting hiring toward specialized roles by filling skill gaps, with human-AI collaboration yielding higher-quality solutions.

Finally, blending human ingenuity with machine intelligence can create more accessible, efficient, and innovative ecosystems. From democratizing startup formation and accelerating market entry to fostering symbiotic human-AI teams, these virtual partners empower founders to compete globally without traditional barriers. Entrepreneurs who embrace this collaboration will lead sustainable growth, navigating challenges like regulation and ethics to unlock unprecedented economic value.

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Nov 26, 2025

Al-Abbasi: EdVentures Eyes Saudi Expansion to Empower Regional EdTech Startups

 Shaimaa Ibrahim

 

The education ecosystem in the Arab world is witnessing rapid transformations that are pushing EdTech startups to play a central role in creating solutions capable of bridging skills gaps and improving learning opportunities. At the same time, governments are increasingly adopting broad digital strategies, creating a rising need for entities capable of aligning these ambitions with modern market demands. Within this context, specialized investment firms have become essential contributors to reshaping the learning landscape and supporting the region’s innovation ecosystem.

 

EdVentures, the investment arm of Nahdet Misr Group, is among the most prominent entities that, since its establishment in 2017, has pursued a clear vision to empower EdTech startups. Its efforts have gone beyond supporting digital solutions—it has worked to build an integrated ecosystem encompassing incubation, investment, and mentorship, with the aim of achieving sustainable social impact in the sector.

 

Sharikat Mubasher conducted an interview with Amr El Abassy, General Manager of EdVentures, on the sidelines of his participation in the fourth edition of the HERizon 2025 Summit, organized by Carerha, a leading platform for empowering women and preparing them for the job market in Egypt and the Middle East. The conversation covered EdVentures’ vision, its support programs, its criteria for selecting startups, as well as its strategic outlook on expansion into the Saudi market and the role of technology and artificial intelligence in shaping the future of education in the Gulf and the wider Middle East.

 

To begin, what is the vision on which EdVentures was founded? How do you view your mission in developing the EdTech sector in Egypt and the region?

EdVentures was launched as the investment arm of Nahdet Misr Group—the largest publishing house and educational content provider in the Arab world and Africa—driven by a clear understanding of the absence of startups that could position themselves as meaningful players in the EdTech sector, at a time when fintech solutions dominated the scene.

The company’s vision is centered on empowering startups in the education sector and creating real social impact through knowledge. This is achieved by incubating entrepreneurs, educating them on the nature of the sector, raising awareness about investment opportunities, and helping them build strong, scalable, and sustainable business models.

The journey began with the launch of a business incubator aimed at encouraging new ideas and raising awareness of the importance of investing in educational technology. Later, EdVentures moved toward direct investment in startups to demonstrate the presence of promising opportunities in this sector and to pave the way for further innovation and growth.

 

What is the total number of startups you have supported and invested in? And what is the current combined valuation of these companies?

EdVentures was among the earliest investors supporting a number of EdTech startups in Egypt and the region. It has invested in companies such as ‘eYouth’, which offers mentoring and guidance services in entrepreneurship and has offices in Saudi Arabia and the UAE; ‘Entreprenelle’, which focuses on empowering women in entrepreneurship; ‘OTO’, which specializes in English-language courses and other training; and ‘iSchool’, which provides programming and artificial intelligence education for children aged 6 to 17.

This early investment gave these companies strong credibility in the market and directly helped them attract further funding. It also enabled them to expand into new regional and international markets, strengthening their position and accelerating their growth significantly.

Today, the EdVentures portfolio comprises around 28 startups, with a combined valuation exceeding $200 million. Many of these companies now operate in more than 20 countries, including eYouth, iSchool, and Sprints.

EdVentures has also played an active role in redefining traditional education by offering a comprehensive educational ecosystem that includes professional skills training, employment programs, programming education, artificial intelligence technologies, and specialized medical education.

 

How do you select the startups you support and invest in? What are the main criteria you look for when evaluating a project idea? And do you offer programs specifically supporting women entrepreneurs?

EdVentures focuses solely on a single sector: education. For that reason, we carefully seek out companies capable of understanding real market problems and presenting practical solutions that address the needs of all stakeholders, while also aligning with governmental policies and national education strategies.

Among the most important criteria for founders is having a clear vision for the future of the company and the ability to create both direct and indirect impact through their projects. We also evaluate whether the business idea has the potential to scale, expand, and remain sustainable. We target companies capable of building strategic partnerships with various stakeholders, particularly in B2B and B2G business models.

Regarding women entrepreneurs, about 45% of the companies in the EdVentures portfolio are led by women. Additionally, the company has supported more than 150 startups in the education sector, benefiting more than 6 million learners, nearly half of whom are women—reflecting the company’s strong commitment to empowering women and educational communities across the region.

 

What are EdVentures’ key programs and initiatives for supporting EdTech startups?

The company has launched an integrated suite of programs and initiatives designed to support entrepreneurs and startups in the education sector, in collaboration with local and global partners. EdVentures began with a series of incubation programs in Egypt, most notably a business incubator in partnership with the Academy of Scientific Research, which provides training, mentorship, and expertise to help startups build sustainable business models.

In terms of accelerators, EdVentures offers a program in collaboration with the Mastercard Foundation, launched last year and renewed annually. Each cycle hosts 12 startups at various stages, with special focus on Seed and Pre-Seed companies. The initiative provides a comprehensive six-month support program, during which each startup receives up to $60,000 in funding. The program allows companies to exchange expertise, enhancing their ability to grow and prepare for future investment rounds.

The initiatives also include a joint program with the Challenge Fund for Youth Employment, combining elements of a venture studio and a venture builder to create job opportunities and support startup expansion in Egypt and regional markets.

Finally, EdVentures plans to launch its own ‘Venture Studio’ in 2026 to offer educational content production and podcast services, providing innovative tools to help startups grow and expand their educational and commercial impact across the region.

 

What are EdVentures’ plans for expanding into the Saudi market? What makes the Kingdom a strategic opportunity, and how do you envision your role in supporting its entrepreneurship ecosystem?

The Saudi market is one of the most promising in the region, thanks to its size and the abundance of opportunities that align with Saudi Vision 2030, which focuses primarily on developing student and graduate skills and directly linking them to labor-market needs.

Saudi Arabia is characterized by a strong readiness among institutions and stakeholders to build strategic partnerships with startups, an important incentive that supports the companies in EdVentures’ portfolio and enables them to expand in this dynamic market.

EdVentures’ approach goes beyond offering venture investments; it also provides integrated operational and strategic support to help startups enter new markets and expand their businesses effectively. This combination of funding and strategic guidance—one of EdVentures’ core strengths—enhances its ability to create tangible and sustainable impact for startups in the Saudi market.

 

How does technology contribute to enhancing the growth of startups, and what are your expectations for the future of EdTech in the Gulf and the Middle East?

Technology plays an essential role in enabling startups to scale more efficiently than traditional models, especially after the COVID-19 pandemic, which accelerated the acceptance of digital learning and the adoption of tech-enabled solutions across all learning stages. This shift created major opportunities for startups to offer innovative educational products and reach broader audiences more quickly and effectively.

Rapid advancements in artificial intelligence have also created powerful tools that help startups build stronger, more sustainable business models through performance analytics, personalized content, digital curriculum design, and intelligent assessment tools that accurately measure student progress and provide tailored learning recommendations.

The success of any startup depends on the entrepreneur’s understanding of how to employ technology correctly, ensuring that digital tools and AI are not merely supplementary but strategic assets that support the company’s goals, drive sustainable growth, and create real impact on education quality and learner experience.

 

What are the most effective ways to enhance cooperation among governments, startups, and the private sector to support the EdTech industry in the region?

In recent years, governments have clearly shifted toward integrating entrepreneurship into educational systems, adopting national strategies that increasingly focus on leveraging technology to enhance educational outcomes and align learning with labor-market needs.

Saudi Arabia stands as a prime example of this direction through Vision 2030, which aims to develop youth skills and expand employment opportunities, offering startups the chance to introduce innovative EdTech solutions that directly support these goals.

In addition, ministries of education and communication across the region have launched a continuous stream of initiatives, creating fertile ground for collaboration among different stakeholders. However, the success of these initiatives depends on the ability of startups and the private sector to take the initiative and provide practical, implementable solutions.

Governments possess the necessary resources and infrastructure, while the private sector contributes innovation and execution speed. When these strengths are combined, the EdTech industry can achieve genuine, sustainable growth that serves future generations and amplifies the impact of education across the region.

 

Translated by: Ghada Ismail

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Nov 24, 2025

Passion vs Market: Should You Follow Your Heart or the Data?

Ghada Ismail

 

Few dilemmas shape an entrepreneur’s journey; one of them is deciding whether to build what they love or what the market demands. The truth is: Passion pushes founders to begin, while markets determine whether they survive. And survival is not guaranteed, as global analyses of startup failures consistently show “no market need” as the leading cause, while multi-year business survival data reveals that nearly 20% of companies close within their first year.

These numbers accentuate again this truth that passion is necessary, but insufficient. To build a durable business, founders must understand how passion influences decision-making, why markets punish unvalidated ideas, and where both forces can work together rather than against each other.

 

Why Passion Alone Isn’t Enough..But Still Matters

Passion is a cognitive and emotional resource. Research shows that passionate founders communicate more persuasively, attract stronger early teams, and demonstrate resilience during unpredictable phases of growth. It also fuels creativity, an asset in industries where differentiation is limited.

But passion has blind spots:

  • It distorts risk perception, making founders underestimate threats or overestimate early traction.
  • It can lead to confirmation bias, where only data that supports a founder’s beliefs is acknowledged.
  • It encourages identity attachment for the idea becomes part of the founder’s self-image, making pivots emotionally painful.

Still, passion has a strategic role: it motivates founders to explore ideas others would ignore. Many breakthrough businesses began as passionate obsessions that were later shaped by market reality. 

 

Why Markets Matter More Than Most Founders Think

Markets do not respond to excitement. They respond to value and relevance.

A business survives only if it consistently creates value for a segment willing to pay for it. That is where evidence becomes vital. Market validation is not about killing creativity; it is about reducing uncertainty around three core risks:

  1. Problem–Solution Fit:
    Does the problem exist at scale, and is the solution meaningfully better than alternatives?
  2. Willingness to Pay:
    Do customers value the solution enough to convert it into revenue?
  3. Repeatability:
    Can the solution be delivered consistently, profitably, and without constant reinvention?

Data helps founders understand not just if demand exists, but why, when, and in what form demand becomes monetizable. This fine line separates market-driven businesses from passion-led projects.

 

Where Founders Miscalculate

Early-stage founders often fall into predictable analytical traps:

  • Mistaking enthusiasm from early adopters as proof of broad-market demand
  • Building complex features before validating core value
  • Relying on primal insights rather than behavioral data
  • Misreading small sample sizes
  • Assuming the market will “catch up” to their vision

These misjudgments aren’t failures of intelligence; they are failures of method. Founders are often told to “trust their gut” without being taught how to integrate intuition with empirical validation.

 

The Hybrid Model: Passion Informed by Evidence

The most successful founders treat passion as a hypothesis engine and market data as the filtering mechanism.

1. Start with Passion to Generate Hypotheses

Your passion tells you which problems feel worth solving. Let it direct your curiosity, not your product.

2. Stress-Test Your Idea Through Market Experiments

Use structured methods such as:

  • Problem interviews
  • Pre-order experiments
  • Targeted micro-campaigns
  • Pricing sensitivity tests

These reveal the magnitude of demand and the shape of the opportunity.

3. Apply Analytical Discipline

Evaluate experiments using metrics that matter:

  • Retention curves
  • Churn reasons
  • Willingness-to-pay thresholds
  • Customer acquisition costs versus lifetime value

These metrics force clarity; they reveal whether the business can scale or whether the idea must evolve.

4. Pivot Without Ego

When data conflicts with passion, revisit the problem rather than abandoning the mission. Founders seeking impact often discover that their “why” can be served through a different product with stronger commercial viability.

 

Wrapping Things Up…

The startup world often frames passion and market data as opposing forces. In reality, they form a dynamic partnership. Passion gives founders the courage to explore ideas without guaranteed outcomes. Data ensures they pursue those ideas with discipline, adaptability, and strategic realism.

The formula is simple but demanding:
Use passion to begin. Use evidence to continue. Use both to build something that lasts.

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Nov 17, 2025

The Ego Tax: How Overconfidence Kills Promising Startups

Ghada Ismail

 

Every founder needs confidence. It’s what gets a startup off the ground, convinces early employees to take a chance, and persuades investors that an unproven idea is worth funding. But confidence has a darker side, a hidden cost many founders don’t realize they’re paying until it’s too late. Call it the ego tax: the silent drain on a startup’s potential when overconfidence begins to replace discipline, humility, and reality.

In Saudi Arabia’s fast-growing startup ecosystem — where ambition is high, capital is flowing, and competition is fierce — ego is becoming one of the most underestimated threats to early-stage companies. It rarely appears in pitch decks or failure reports, but its fingerprints are everywhere.

 

Ego Makes Founders Overestimate Their Market

Founders don’t intentionally misread the market. But ego can cloud judgment. It convinces startups that customers will “naturally” adopt the product, that competitors “don’t really get it,” or that early traction is a sign of inevitable dominance.

In practice, this leads to painful consequences: poor market sizing, weak customer discovery, and product-market fit assumptions that crumble under real-world pressure.

Many young Saudi startups expand too fast into multiple cities, or rush into new product lines before proving demand, not because the market asked for it, but because the founders believed it should.

 

Ego Blocks Feedback — Especially the Feedback That Hurts

The best entrepreneurs are feedback machines. But ego filters feedback, letting in only what feels good.

When overconfidence kicks in, founders ignore:

  • Customer complaints
  • Team warnings
  • Investor concerns
  • Industry benchmarks

In boardrooms, investors often see the same story: brilliant founders who stop listening after the first round of praise. The ego tax grows quietly each time a founder dismisses a tough question or refuses to pivot.

 

Ego Creates Blind Spots in Building the Team

A founder with an unchecked ego tends to hire people who won’t challenge them. That leads to weak leadership teams, inflated titles, and a culture where problems stay hidden until they explode.

Some of the most unfortunate startup failures in the region come from teams where everyone “agreed” not because they genuinely believed in the plan, but because it felt safer than disagreeing.

 

Ego Leads to Overbuilding and Burning Cash

Overconfident founders often overbuild products, raise too much too early, or spend aggressively to signal momentum. Offices too fancy. Teams too large. Marketing campaigns too soon.

Saudi Arabia's startup scene is no exception. With investor enthusiasm on the rise, ego-driven spending becomes an easy trap, one that later shows up in runaway burn rates and painful down-rounds.

 

Ego Prevents Startups from Admitting Mistakes Early

The most expensive mistakes in startups aren’t the wrong decisions. They’re the wrong decisions stayed with for too long.

Ego convinces founders that:

  • “One more sprint will fix it.”
  • “The market just doesn’t understand yet.”
  • “If we stop now, it means we were wrong.”

But the smartest founders cut their losses quickly. They pivot without shame. They admit when an idea isn’t working, and that humility often saves the company.

 

How Founders Can Avoid Paying the Ego Tax

You don’t eliminate ego. You manage it. Here’s how:

1. Surround yourself with people who challenge you.
If no one in the room disagrees with you, you don’t have a team; you have an audience.

2. Treat customer feedback as data, not criticism.
The harshest feedback usually holds the strongest truth.

3. Do disciplined market validation before investing big.
Belief is not a business model.

4. Institutionalize humility.
Data analysis, weekly metrics reviews, and open culture create a system that keeps ego in check.

5. Remember: you are not the customer.
Your intuition matters; however, it cannot replace real-world testing.

 

Wrapping Things Up…

In the end, ego rarely destroys a startup overnight. It erodes it quietly in the assumptions left unchallenged, the decisions made without data, and the warnings ignored until they become crises. A founder can recover from a bad hire, a failed launch, or even a funding setback. But recovering from a culture shaped by overconfidence is far harder.

The founders who win in Saudi Arabia’s fast-evolving ecosystem will be the ones who pair ambition with self-awareness. Confidence gets you started. Humility keeps you alive.

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Nov 13, 2025

Second Time Founders: Where Do Saudi Entrepreneurs Go After Their First Failure?

Ghada Ismail

 

In the Kingdom of Saudi Arabia, the startup narrative continues to gain momentum under Vision 2030’s banner of innovation and economic diversification. Yet beneath the high-profile headlines of unicorns and mega‑funding rounds lies a quieter, but equally vital story: that of entrepreneurs whose first venture did not succeed and how they regroup, recalibrate, and launch again. For many Saudi entrepreneurs, failure is not a dead‑end but a stepping stone. So what drives these second-time founders? Where do they go after their first setback? And what does their journey reveal about the evolution of the Saudi startup ecosystem?

 

The first failure: stepping stones, not detours

Failure remains a common part of the startup lifecycle. Research globally suggests the majority of new ventures struggle to survive. For Saudi founders, the hardships may be slightly tougher given local cultural expectations, but shifting attitudes and ecosystem maturity are changing the narrative.

Take the story of Abdullah Alsaadi, co-founder and CEO of Taker.io. He launched his first idea, a cryptocurrency app, and after building nearly 30,000 lines of code, realized he had built something cool, but there was simply no market for it. His second attempt, a Salesforce‑platform app, failed because the Middle East infrastructure and market readiness were not aligned. Only after several more attempts did the business model click.

Similarly, Hatem Kameli (founder of Resal) started his first online business early in his career, closing down more than one venture due to a lack of venture capital.  

Since launching his first company at just 19, Hatem Kameli has been a driving force in Saudi Arabia’s startup scene. Today, the digital entrepreneur is preparing for his boldest move yet as he takes his company, Resal, public.

When a young Hatem founded his first internet startup two decades ago, right after the dotcom crash, family and friends urged him to focus on university and pursue a stable government job instead. But he was determined to chart his own path.

Two decades and several ventures later, Hatem stands as one of Saudi Arabia’s most recognized entrepreneurs. As Co-Founder and CEO of Resal, the Middle East’s largest digital gifting platform, he continues to push boundaries.

“In all my companies, I have always tried to use new technologies in ways that make a real difference to the economy and have a positive impact on people’s lives,” he says. “Whatever I do, I want to add value to the community.”

The journey was far from smooth. Hatem shuttered two early online ventures because of the scarcity of venture capital at the time. After selling one of his more successful startups, he decided to gain corporate experience by working on digital strategy projects for major banks and airlines, while also completing an MBA.

That experience proved invaluable. By the time Saudi Arabia unveiled Vision 2030, Hatem was perfectly positioned to ride the wave of transformation reshaping the Kingdom’s economy.

“Everything changed with Vision 2030,” he says. “We now have incubators and accelerators for startups, plentiful venture capital, and multiple financing programs. The ecosystem is incredible.”

“I’m grateful to work in a regional hub for technology, fintech, e-commerce, and digital entertainment.”

Hatem did not just benefit from this ecosystem. He helped build it. He contributed to one of Saudi Arabia’s first technology incubators, creating bridges between investors and startups. Alongside leading a digital marketing agency and launching a social media analytics platform, he pursued executive education at top international institutions and authored two books on social media marketing.

That same energy and passion for connecting people culminated in Resal, an award-winning platform that enables users and corporations to send and manage digital gift cards across hundreds of partner brands.

What emerges is a pattern: founders who don’t succeed the first time often gain resilience, domain familiarity, and networks, which prime them for a second act. From this, we realize that failure isn’t a detour; it becomes part of the journey.

 

What drives the comeback?

  • Experience and resilience: Founders who have been through a rough first ride often have a thicker skin and better perspective. Alsaadi remarked that the six years of “failure after failure” taught him far more than success ever could. 
  • Ecosystem backing: The Saudi startup ecosystem has grown substantially. Incubators, accelerators, government-backed funds, and regulatory reform now offer greater support than in earlier years of many founders’ first ventures.
  • Refined idea selection: Having seen what does not work, second-time founders are often more deliberate about product–market fit, monetization, and business model viability.
  • Network and credibility: Although prior failure carries a reputational risk, it also signals experience; founders who persevered have built networks, seen terrain, and can often draw on those assets for the next venture.

 

Paths taken after failure: Saudi second-time founder routes

In the Saudi context, second-time founders tend to follow one of a few broad routes:

a) Pivot and rebuild in the same or adjacent domain
Some entrepreneurs double down in their field, applying the lessons learned. Hatem Kameli’s pathway illustrates this: after early web‑ventures and business roles, he launched Resal in the digital gift‑cards sector when the timing and ecosystem were more favourable. This route allows the reuse of domain knowledge and contacts built during the first run.

b) Shift to a different sector or business model
Others take a hard pivot: they may leave a B2C model or consumer‑play and move into B2B, SaaS, enterprise, or niche segments where unit economics and market clarity improve. Alsaadi’s evolution is instructive: after his first few failed attempts, he focused on a SaaS platform (Taker.io) targeting restaurant ordering for a tighter set of customers, a clearer value‑proposition, and more achievable scale in Saudi. 

c) Serial entrepreneurship/portfolio approach
There is a growing mindset among Saudi founders: treat ventures as cycles. One venture may fail, but it becomes input into the next. Rather than view failure as ending the journey, they see it as calibration. In this sense, the second act is not “re-trying the same idea” but “applying accumulated experience to a better‑aligned idea”.

 

Lessons brought into the second act

From founder interviews and credible commentary, several recurring lessons appear:

  • Test product–market fit early & deeply: Alsaadi admitted that his first app failed not because of technology, but because there was no market. 

 

  • Own your destiny from day one: Second-time founders often emphasize controlling core components — hiring, metrics, cashflow — rather than relying purely on hype or external validation.
  • Accept failure and iterate quickly: failure is not taboo, but rather a stage of the journey. 
  • Adapt to the Saudi market context: Founders who succeed the second time have tailored their solution to local culture, regulatory environment, and consumer behavior rather than importing templates blindly.

 

Conclusion

The story of second-time founders in Saudi Arabia illustrates the evolution of the Kingdom’s startup ecosystem. Founders such as Abdullah Alsaadi and Hatem Kameli show that failure is not the end of the road; it can be the launchpad for a more aligned, disciplined, and timed second act. As the ecosystem matures, more Saudi entrepreneurs are using their first setback not as a stigma but as preparation.

Yet, success is not automatic. It demands realism, discipline, adaptation to the Saudi market, and courage to iterate. The key takeaway? For Saudi founders, the second attempt often matters more than the first. Failure is no longer taboo; it’s rather a credential. And in the Kingdom’s dynamic startup world, the founder who didn’t give up may be exactly the one who succeeds.

 

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Nov 11, 2025

Red Ocean vs Blue Ocean: Which Strategy Should Your Startup Swim In?

Ghada Ismail

 

Every startup starts with a spark.  That moment when a founder spots a problem and thinks, “I can fix this.” But once you dive in, you quickly realize the water’s already full of other swimmers, all chasing the same customers, the same investors, and often, the same idea.

Welcome to the Red Ocean, a sea of fierce competition where businesses fight for survival. The water turns “red” because everyone’s battling for the same slice of the market.

But just beyond that chaos lies another kind of ocean: calm, vast, and full of possibility. It’s called the Blue Ocean. This is where startups don’t just compete; they create. Instead of fighting for market share, they open entirely new markets that didn’t exist before.

For founders building in Saudi Arabia’s fast-moving ecosystem, understanding which ocean you’re swimming in — and when to change course — can be the difference between sinking and sailing.

 

The Red Ocean: Competing in Crowded Waters

A red ocean is an existing market that’s well-defined, familiar, and crowded. It’s where businesses fight to stand out by cutting prices, speeding up delivery, or launching new features every few months.

Think about how saturated the food delivery market has become across the region. Every app offered the same restaurants, the same deals, and the same “15-minute delivery” promises. Growth came fast, but it came at a cost of endless discounts and shrinking margins.

Still, red oceans aren’t all bad. They’re predictable. There’s already demand, data, and investor interest. If you’re more efficient or execute better than others, you can thrive. But you’ll need to stay alert because one small shift in the market can wipe out your edge overnight.

 

The Blue Ocean: Creating Calm Waters of Your Own

Now picture the opposite: a market so fresh it doesn’t even have competitors yet. That’s the blue ocean. Here, startups create new demand, redefine value, and make competition irrelevant.

Take Tamara, for example. When it launched, “buy now, pay later” wasn’t yet common in Saudi Arabia. Instead of joining the traditional payments crowd, Tamara introduced something new: a local twist on BNPL that emphasized flexibility, trust, and Sharia compliance. It didn’t fight for customers; it created new ones. That’s blue ocean strategy in action: finding unmet needs and meeting them in a way no one else has.

 

Why So Many Startups Start in the Red

Most founders don’t dive straight into blue waters. It’s much easier — and safer — to start in a red ocean. Investors like proven markets. Customers understand the product. The data already exists.

But there’s a catch: red oceans often turn into races to the bottom. When every company offers the same thing, differentiation disappears. You stop focusing on innovation and start focusing on survival.

Saudi Arabia’s booming startup scene is seeing this happen fast — especially in fintech, e-commerce, logistics, and SaaS. The number of players in each space keeps growing, and standing out is getting harder by the day.

That’s why smart founders don’t just compete harder; they compete differently.

 

How to Find Your Own Blue Ocean

You don’t have to invent an entirely new industry to swim in a blue ocean. Sometimes, all it takes is a fresh perspective.

Here’s how founders can start shifting from red to blue:

  • Reimagine value. Don’t just add more features, rethink what truly matters to your customer.
  • Look at non-customers. Who isn’t using your product yet? What’s stopping them? That’s often where opportunity lies.
  • Simplify boldly. The best ideas solve one problem exceptionally well, not ten problems halfway.

 

Balancing Vision with Reality

Blue oceans sound exciting — and they are — but they’re also unpredictable. There’s little data, few customer benchmarks, and no guarantee investors will understand your idea right away.

That’s why many founders blend both strategies. They start in the red to prove demand and sail toward the blue once they’ve earned traction. This hybrid approach helps balance risk with opportunity, a smart strategy in a developing yet ambitious market like Saudi Arabia’s.

 

So, Which Ocean Is Yours?

If you love efficiency and fine-tuning an existing model, the red ocean might suit you. If you thrive on innovation and uncertainty, the blue ocean could be your calling. But the best founders know how to navigate between both, combining the best from the two worlds: learning from the red, then sailing into the blue when the tide is right.

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Nov 2, 2025

Solopreneur vs entrepreneur: What you need to know to choose your business style

Noha Gad

 

The dynamic process of establishing a new business venture involves a blend of creativity, risk-taking, and vision to create value and drive economic growth. Entrepreneurs often seek to disrupt existing markets by introducing brand-new solutions, and their efforts can lead to significant social and technological advancements. This mindset involves identifying opportunities, leading change, and managing risks to build sustainable enterprises that can scale and influence industries over time.

The growing interest in solo business ventures and startups is reshaping the entrepreneurial landscape as more individuals choose to launch businesses on their own, triggered by the desire for autonomy, flexibility, and direct control over their work and income. This surge reflects an ideal shift where people prefer manageable, passion-driven enterprises that they can operate independently rather than large, complex organizations. Hence, the solopreneur model emerged as an emphasis on self-reliance, direct responsibility, and often a lifestyle-oriented approach to business.

 

What is a solopreneur?

A solopreneur is an individual who owns, manages, and runs their business independently without the support of co-founders, partners, or full-time employees. They typically start their ventures with personal funds and maintain tight control over every aspect of operations, favoring stability and manageable growth.

Key characteristics of a solopreneur include versatility, as they perform multiple roles themselves; high accountability, as they are responsible for all decisions and outcomes; and resourcefulness, often working with limited resources and finding cost-effective solutions to sustain their business.

Unlike traditional business owners who build teams, solopreneurs typically operate on a smaller scale, focusing on manageable business models that align with their skills and lifestyle preferences.

 

Solopreneur vs. Entrepreneurs

Key differences between solopreneurs and entrepreneurs include their approach to business structure, growth goals, risk, and control.

*Business structure

Solopreneurs: act as both the founder and the employee who handles every aspect of the business. 

Entrepreneurs: focus on building and managing teams. They delegate responsibilities, hire specialists, and create systems that allow the business to operate independently.

*Growth goals

Solopreneurs: seek sustainable, manageable businesses that support their lifestyle and financial independence. They prioritize steady income and control over rapid growth

Entrepreneurs: aim for scale and long-term expansion, targeting market dominance, multiple revenue streams, and sometimes preparing for acquisitions or an eventual exit.

*Funding

Solopreneurs: They typically self-fund their ventures, bearing lower financial risk as their operations are smaller and less complex.

Entrepreneurs: They require substantial capital investment to cover payroll, infrastructure, and growth initiatives.

*Control

Solopreneurs: maintain complete control over every business decision

Entrepreneurs: share control with partners, investors, and employees by delegating authority to manage complex business functions.

*Business focus

Solopreneurs: focus on a single product or niche, maintaining simplicity and direct client relationships.

Entrepreneurs: handle multiple projects, markets, or product lines.

 

Pros and cons of being a solopreneur

Being a solopreneur comes with several notable advantages and disadvantages. Understanding these can help individuals decide if this path aligns with their personal goals, skills, and lifestyle preferences.

Pros:

  • Full creative control over business vision, brand, and decision.
  • Flexibility to set schedules and work from anywhere, supporting better work-life balance.
  • Low overhead costs as the is no need to pay salaries or office rent.
  • Ability to adapt rapidly to market changes and make quick decisions.
  • Retain all profits.

Cons:

  • High workload as they handle every aspect of the business. 
  • Limited expertise outside core skills.
  • Risk of isolation and loneliness due to lack of team interaction and collaboration.
  • Bearing full financial and operational risks.

 

There are many factors that individuals must consider to decide which bath is right. This includes: personal goals and ambitions, risk tolerance, desire for control versus collaboration, and lifestyle preferences. Individuals who seek complete autonomy and manageable, lifestyle-friendly businesses may prefer solopreneurship, while those driven by growth, innovation, and building sizable enterprises with multiple stakeholders may find entrepreneurship more suitable. 

Finally, both solopreneurs and entrepreneurs play pivotal roles in the business ecosystem, and understanding their differences empowers you to forge a fulfilling and impactful journey in the world of business.

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Oct 27, 2025

What Is Customer Net Promoter Score (NPS): Why It Matters for Startups

Ghada Ismail

 

Among the countless metrics startups track, few reveal as much about real customer sentiment as the Net Promoter Score (NPS). Unlike vanity metrics such as downloads, sign-ups, or even short-term revenue spikes, NPS goes deeper as it measures trust, satisfaction, and advocacy.

For early-stage founders, that distinction matters. You can buy installs or clicks, but you can’t buy genuine loyalty. NPS tells you whether customers are simply using your product or genuinely believing in it. It shows if your startup is building transactional relationships or further creating a community of promoters who will spread the word for free.

At its core, NPS helps answer a fundamental startup question: “Do people care enough about what we’re building to tell others about it?” The answer can shape everything from product decisions and customer experience to your long-term growth strategy.

 

How NPS Works

The Net Promoter Score is based on a simple question:

“On a scale of 0 to 10, how likely are you to recommend our product or service to a friend or colleague?”

Responses are divided into three categories:

  • Promoters (9–10): Loyal fans who love your product and actively recommend it.
  • Passives (7–8): Satisfied customers, but not passionate enough to promote it.
  • Detractors (0–6): Unhappy users who are more likely to churn or leave negative feedback.

Your NPS is the percentage of promoters minus the percentage of detractors. Scores range from –100 to +100. Anything above 0 means more love than hate, and +50 or higher is considered excellent.

 

Why NPS Matters for Startups

For startups, every customer interaction counts. You don’t have the luxury of a massive brand reputation, where your users are your reputation. That’s why NPS is so valuable: it gives you an early pulse on customer satisfaction and helps you understand whether your product is delivering real value.

Here’s why it matters:

  • Validates Product-Market Fit: A consistently low NPS might mean your product isn’t resonating deeply enough, even if usage looks good on paper.
  • Guides Improvement: Feedback from detractors points directly to what’s breaking or frustrating users.
  • Builds Investor Confidence: A strong NPS signals a loyal customer base, something investors see as a sign of growth stability.
  • Drives Organic Growth: Promoters become advocates. In early stages, word-of-mouth marketing can make or break a startup.

 

When to Start Measuring NPS

The best time to start is as early as possible, even with just a few dozen users. Early NPS surveys can uncover insights that analytics tools can’t.

Ask yourself:

  • Are customers finding real value in what we offer?
  • What’s stopping them from recommending us?
  • Are we creating promoters or passive users?

By tracking NPS early, startups can spot issues before they scale and ensure they’re building loyalty alongside growth.

 

How to Use NPS Effectively

To get the most out of NPS, make it part of your product’s rhythm, not just an occasional survey.

Here’s how:

  • Time it right: Send the NPS survey after meaningful interactions, completing onboarding, using a key feature, or receiving customer support.
  • Ask a follow-up question: “What’s the main reason for your score?” The qualitative feedback is often more valuable than the number itself.
  • Act quickly: Reach out to detractors, thank promoters, and turn feedback into action.
  • Monitor trends: The direction of your NPS over time matters more than a single snapshot.

 

What’s a Good NPS for a Startup?

There’s no universal benchmark, but here’s a rough guide:

  • Above 0: You’re moving in the right direction.
  • Above 30: Customers are happy and loyal.
  • Above 50: Your product inspires genuine advocacy.

Remember that context matters. A young startup in a competitive market may score lower initially, but a steadily improving NPS indicates strong product and customer experience growth.

 

Turning NPS into a Growth Engine

NPS isn’t just a feedback tool; it’s a growth signal. When you consistently measure how customers feel and act on their input, you build a brand that listens, adapts, and earns loyalty. Over time, those promoters become your most powerful marketing channel.

In a world where attention is expensive and trust is rare, NPS helps startups focus on what truly drives retention and referrals: happy customers who believe in your mission.

Because in the end, your most valuable growth strategy isn’t ads, funnels, or virality, it’s a product people love enough to talk about.

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Oct 21, 2025

HealthTech innovations: How AI and digital tools revolutionize healthcare in Saudi Arabia

Noha Gad

 

Emerging technologies, particularly artificial intelligence (AI), significantly transform the healthcare sector globally by improving diagnostics, treatment precision, patient monitoring, and healthcare delivery. Saudi Arabia is one of the leading countries that harnesses these technologies to modernize its healthcare system and increase accessibility. 

The Kingdom invests heavily in digital healthcare to improve efficiency and patient outcomes, potentially unlocking as much as $27 billion by 2030. This includes advancements in telemedicine, electronic health records, and other digital health technologies.

The Saudi Vision 2030 emphasizes the importance of privatization and Public-Private Partnerships (PPPs) in driving healthcare transformation. By fostering collaboration, these approaches contribute to achieving the digital health goals outlined in Saudi Arabia's ambitious vision for the future.

The Saudi healthcare sector is witnessing unprecedented privatization, with over 290 hospitals and 2,300 health institutions transitioning into private operations. By 2030, private sector involvement is expected to grow from 25% to 35%, unlocking fresh capital inflows and efficiency improvements, according to recent insights into the Saudi healthcare market by Eurogroup Consulting.

Digital transformation continues to accelerate in Saudi Arabia, with $1.5 billion invested in telemedicine, AI-driven diagnostics, and electronic health records (EHR). These innovations are reshaping healthcare accessibility, allowing remote consultations to flourish and minimizing hospital congestion. AI-powered automation also optimizes treatment plans, improving patient outcomes and reducing administrative burdens. 

Additionally, the mental health market in the Kingdom is undergoing a remarkable transformation, triggered by a mix of government reforms, social awareness, and growing private investment. According to Eurogroup Consulting, the mental health market in Saudi Arabia is projected to reach $8.9 billion by 2033, with a compound annual growth rate (CAGR) of 5.23% from 2025 to 2033. This growth reflects a broader shift in the Kingdom’s healthcare priorities, where mental wellness is increasingly seen as fundamental to social stability and productivity.

 

Telemedicine innovations in Saudi Arabia

Telemedicine emerged as a vital component in transforming healthcare delivery across Saudi Arabia, enabling patients to access medical care remotely through digital platforms. This technology breaks down geographical barriers, bringing expert consultations and continuous care to rural and underserved regions, which traditionally struggled with limited healthcare infrastructure.

The COVID-19 pandemic accelerated telemedicine adoption by mandating remote care solutions to reduce infection risks while maintaining healthcare access. This surge highlighted telemedicine’s potential to alleviate hospital overcrowding, enhance patient convenience, and reduce healthcare costs.

A recent report released by Ken Research showed that the Saudi telemedicine market is valued at $1.2 billion, driven by the increasing adoption of digital health solutions, rising healthcare costs, and the need for accessible medical services, especially in remote areas. It highlighted that Riyadh, Jeddah, and Dammam dominate the telemedicine market due to their advanced healthcare infrastructure, high population density, and significant investment in health technology. 

Another report by Grand View Horizon anticipated the telemedicine market in the Kingdom to reach a projected revenue of $ 2.3 million by 2030, showing a CAGR of 18.4% between 2025 to 2030.

AI-driven telemedicine platforms in Saudi Arabia integrate AI into telehealth to enable proactive health management, optimize clinical workflows, and support early disease detection. Seha Virtual Hospital, launched by the Ministry of Health (MoH) as part of the Health Sector Transformation Program (HSTP), is a notable example. Being the first virtual hospital in the Middle East, Seha offers a full spectrum of telehealth services, including emergency and critical consultations, specialized clinics, multidisciplinary committees, supportive medical services, and home care services, empowering the best health consultants and practitioners in micro and rare specialties using the latest medical technologies.

Another example is Sanar, an MoH-licensed medical platform that offers comprehensive medical services including telemedicine consultations and home medical services. Other key players in the Saudi telemedicine sector include Cura, Vezeeta, MedIQ, Altibbi, Labayh, and more.

Overall, telemedicine innovations in Saudi Arabia focus on combining AI capabilities with digital platforms to offer accessible, efficient, and patient-centric healthcare, ultimately cementing the Kingdom’s position as a regional leader in AI-powered telemedicine and digital health solutions.

 

AI-driven diagnostics

In recent years, AI has redefined various sectors, notably healthcare. One of the most promising applications of AI is in diagnostics, where it enhances the accuracy and speed of identifying health conditions. In Saudi Arabia, AI diagnostics contribute to advancing the medical field, becoming a cornerstone of Vision 2030’s goals of diversifying the economy and improving public well-being through high-tech healthcare solutions.

With Saudi Arabia pledging massive investments in AI to improve its healthcare services, the AI diagnostics market in the Kingdom is projected to reach $204.9 million by 2030, marking a CAGR of 36.5%.

A recent study by Research and Markets indicated a favorable view of AI in healthcare among respondents in Saudi Arabia, with many disagreeing that AI diminishes the value of the medical profession. Half of the respondents either agreed or strongly agreed that AI contributes to reducing errors in medical practice.   

AI diagnostics analyze medical data more consistently and accurately to address human errors in diagnosis, which may lead to misdiagnosis, delayed treatment, or even unnecessary procedures. 

AI systems can operate tirelessly and remain unaffected by fatigue or cognitive biases, which can affect even the most skilled healthcare professionals.

AI and robotics are expected to contribute over $135 billion to the national economy by 2030. AI diagnostics are vital to this transformation, aligning with the Kingdom’s strategic goals to diversify away from oil dependence and develop knowledge-based industries. 

Although AI diagnostics offers many advantages, they come with several challenges. One of the major challenges is that implementing these technologies requires substantial investments in infrastructure, including high-performance computing systems and secure data networks.

Specialized training is also required to help health care professionals work effectively alongside AI systems, while patients and providers alike must adapt to this new approach to medical care. 

Key players in the AI diagnostics sector in Saudi Arabia include SDM, a health tech startup specializing in AI-driven diagnostics for various and chronic diseases, and Nuxera AI, a Saudi-headquartered AI company that empowers doctors and healthcare providers by streamlining workflows, reducing administrative burdens, and enhancing patient care.  Another example is the Amplify AI company, which integrates AI into thermal imaging to enable fast, accessible, and objective diabetic foot screening. 

 

Mental health solutions and digital well-being tools

The Saudi mental health market is witnessing a remarkable transformation, driven by a mix of government reforms, social awareness, and growing private investment. With mental health services being considered as a vital part of national well-being, the market is anticipated to hit $8.9 billion by 2033, showing a CAGR of 5.23% from 2025 to 2033. This growth reflects the shift in the Saudi healthcare priorities, where mental wellness is increasingly seen as fundamental to social stability and productivity.

The Saudi government made significant reforms to drive this transformation and modernize the healthcare sector by integrating mental health into primary care systems, ensuring accessibility and reducing stigma. This approach promoted new regulations, awareness campaigns, and funding programs aimed at promoting mental well-being as part of the country’s holistic health agenda.

The MoH launched the ‘Innovate for your health’ initiative, in partnership with the Digital Government Authority, to raise community awareness about the importance of mental health and to improve the quality of life among youth and society as a whole.

Additionally, digital well-being tools, such as applications and interactive platforms, were designed to monitor and improve mental health by reducing digital addiction and associated risks such as anxiety and loneliness.

O7 Therapy is another notable example of mental health platforms in Saudi Arabia. it offers a network of over 180 qualified Arabic-speaking therapists, benefitting people across 110 countries. Since its inception, the platform has provided more than 60,000 therapy hours. It helps users to find the right therapist whose approach aligns with the user’s needs and preferences.

 

In conclusion, Saudi Arabia’s healthcare sector is witnessing a significant transformation, backed by emerging technologies and strategic reforms under Vision 2030. The Kingdom’s heavy investments in AI, telemedicine, and digital health platforms are revolutionizing healthcare delivery by enhancing diagnostics, improving treatment precision, enabling remote access, and optimizing patient outcomes. Privatization and PPPs are pivotal in this transformation, attracting fresh capital and fostering innovation that aligns with the Kingdom’s goal of becoming a regional leader in advanced healthcare. 

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