Do you know any country betting 1% of its GDP only for startups? Forget the Silicon Valley, because that's what Lebanon has been putting on the table with $400m dedicated to the knowledge economy early 2014. Lebanon has more coverage of its wars and noisy neighbors (Syria, Israel) than its startups, but they have quite a compelling history of commerce, openness and a few other assets that make them a potentially interesting startup scene. The Middle-East and Levant region is poised to boom, demographically at least, economically probably as well. What are going to be the key Arabic speaking startup addressing this market? In this review, we go back quite far into the Lebanese history to know why they innovate. We assess their strengths and weaknesses and key players of the tech scene. Follow-us on the road of innovation!! Read more about us as we roam the world to explore the emerging markets startups scenes, from Iran to Chile, from China to Nigeria. Reach us at: martin@innovationiseverywhere www.innovationiseverywhere.com

1. Lebanon
innovation ecosystem
Following the Arabnet conference in Beirut
March 2014

2. We believe…
Innovation has no place in a global world, it’s everywhere
Innovation ecosystems can learn from one another
Local context matters and should be a source for innovators
This is why…
We’re on a world tour of innovation ecosystems!

3. History & context of
innovation in Lebanon
Merchants, turmoil, and entrepreneurs in the Levant

4. A brief history of Lebanon innovation ecosystem
• From WW1 to WW2: The French missionaries take the place of Ottomans and
set up schools which will make part of the Lebanese political & business elite
• 70s-90s: Civil war, Israeli occupation of South Lebanon plunges the country into
civil war and accelerates the diaspora movement, making ideas and cultures
even more diverse

5. A brief history of Lebanon innovation ecosystem
• 2010: the first startups appear in Lebanon, mostly copycats, which “train” a
first batch of startupers to try to scale and fail
• 2012+: First batch of more original & innovative startups, such as Instabeat
(smart swimming goggles) and Instabug (bug fixing for app developers)

6. A brief history of Lebanon innovation ecosystem
• 2013: More and bigger funds pop-up even with troubles in nearby Syria,
bigger deals are done (Funds like Berytech: $30M, MEVP: $50M)
• 2014: The Central Bank launches the “proposal 331” with $400mn to be
invested in the knowledge economy via banks, a boost worth 1% of
Lebanon GDP ($42bn)

7. A diaspora 3x the size of the motherland pop
• More than 12M diasporans for a country of 4.5M inhabitants
• $7.5bn remittances back to Lebanon in 2010 (18% GDP)
• Famous diasporan: Carlos Ghosn, Carlos Slim, Shakira, 2 Nobel Prizes…

8. A land of diversity
• Despite turmoils, Lebanese are a diverse people open to innovation, with a
high mobility of capitals, ideas, foreigners
• A tripartite way of governance rule the country. At home, 70% Muslims,
30% Christians. In the diaspora, 70% Christian, 30% Muslims.

9. Not the best infrastructure in MENA…
• Cost of connections is high, with 180$ for 20G, 6$/Go when average
salary is $600-$800. High cost of electricity, rent.
• Smartphone penetration increasing sharply (Android) but still
lagging at 45% (Egypt 26%, Saudi Arabia 60%, UAE 73%)

10. … but fast growing and fond of apps
Asia 27%
• Huge bump in smartphone equipment in 2013
• 70% of smartphone users in Lebanon have downloaded apps
Source: Alfa Telecom presentation at Arabnet 2014

11. Online & tech landscape of Lebanon
• Cost of connections is high, with 180$ for 20G, 6$/Go when average
salary is $600-$800
• Smartphone penetration increasing sharply (Android) but still
lagging at 45% (Egypt 26%, Saudi Arabia 60%, UAE 73%)
Source: Alfa Telecom presentation at Arabnet 2014

12. Regional instability
• Beirut-Damas: 90km
• Flight time from Dubai to Beirut: 2100km in 4h30 (1h of
additional detours to avoid Jordan, Israel, Syria, Irak)

13. Startups to watch for
• Lebanese startups reach beyond borders thanks diasporans
• New $400m proposal 331 from Central Bank with have a lot
new startups pop-up in Beirut
Dermandar: 360 photo-sharing app,
4M users worldwide
Analytics & CRM startup Woopra: 100K users
Instabeat: connected swim goggles
Spotify for the MENA region
Sohati: the Arabic speaking
health forum
2nd-hand certified luxury bags
Localization & Translation services

14. Lebanon innovation
ecosystem today
Pros & Cons, Top Connectors & local best practices

15. Pros and cons of Lebanon
innovation ecosystem
• Diverse and tolerant population, prone to
innovation
• Lot of money for the knowledge economy
thanks the Proposal 331 from the Central
Bank ($400m)
• Access to a huge diaspora to conquer other
markets and a tradition for trade and
negotiation
• Home of the main tech regional event,
Arabnet, with satellites in Dubai, Ryadh
• Small market with big competition around
(Israel tech hubs, Jordan more stable and
forward going)
• Infrastructure can be both expensive and not
reliable, with $180 for 20Gb on the web
• Expensive country in the Middle-East
comparatively to neighbors such as Jordan
• English is understood by the geek, business
and elite, but Arabic still needed with most of
the local population
• Unstable country with frequent bombings,
surrounded by countries which regularly
threaten its independence (Israel, Syria)
PROS CONS

16. Top connectors in Lebanon
Omar Christidis (Twitter), founder and CEO of
Arabnet, MENA’s main tech event in Beirut,
Ryadh, Dubai
Fawzi Rahal (Twitter), Founder, Managing Partner
@gamuttco Digital Consultancy, creative
strategist, ex-head of digital at Grey MENA
Walid Hanna Managing Partner (Website), Middle
East Venture Partners (MEVP)
Raafat Moulna (LinkedIn), Senior Head of
Marketing Department at Alfa Managed by
Orascom Telecom

17. Top connectors in Lebanon
Hind Hobeika (Twitter), former professional
swimmer, CEO and founder of Instabeat, the
award-winning connected swim goggles
Joanne Kubba (Twitter), Head of Strategy,
Partnerships & Outreach at Eureeca, former
Google head of public affairs for the MENA region
Ramzi Rizk (Twitter) Co-founder, EyeEm, one of
the biggest community for photographer, based in
Berlin
Maroun N. Chammas (LinkedIn), established
entrepreneur. He is Chairman and CEO of
Berytech and Chairman of the Berytech Fund

18. Best practices of
Lebanon innovation ecosystem
• Circular 331 from Central Bank of Lebanon puts $400m on the table
for the knowledge economy. This money will help banks to fund
accelerators and incubators, but could cause a bubble

19. Best practices of
Lebanon innovation ecosystem
• Arabnet is the MENA top tech conference with satellites (Dubai, Ryadh) mixing
both the tech and the digital marketing communities.
• It’s also a ramp for local talent with several level of competition: Ideathon (project
holders), Startup Demo for established players and Creative Combat for creative
advertising teams

20. Best practices of
Lebanon innovation ecosystem
• Beirut Digital District is a space in town dedicated to the tech startups, with
shared offices and events.
• Three phases are planned until 2023 for building a campus-style tech community

21. What’s next for Lebanon
Attract talent and founders thanks to the $400m envelope from
the Central Bank. Local talent won’t be enough. Create hassle-
free visa for skilled and hungry youth from surrounding countries
Tap into the diaspora’s power, especially with its links to the US
and South America, which are respectively the epicenter of
innovation and one of the largest lagging market for tech.
Expand Arabnet as the key event of all Arabic speaking
countries, from Morocco to Levant and beyond, to leverage on a
huge network which breaks traditional borders.

22. Eager to learn about the
other innovation ecosystems?

23. Documenting innovation through key events
Hot posts, interviews, live-tweet, Google Hangouts
Identifying key connectors on & offline
Discovering alternative and emerging innovation ecosystems
Beyond the Silicon Valley, local innovation hotbeds
Tech, Social impact, Education, Life Sciences…
Increasing mobility of innovators and ecosystem enablers
Connecting doers and thinkers through monthly Hangouts
Offering innovation ecosystem enablers to learn and exchange from peers
About our project
A world tour of innovation ecosystems

24. Martin Pasquier
Entrepreneur in
Singapore (social
media agency), long-
time traveller
Mixes economics,
politics and travels to
analyze ecosystems,
reports on innovation
About our team
Analysis, community & network
Anne Lalou
CEO of Innovation
Factory & Web School
Factory in Paris
Transfer knowledge of
ecosystems to new
generation and to a
network of top French
companies
Nicolas Loubet
Serial entrepreneur
in Paris
with 3 companies,
growth hacker
Manages and
nurtures creative
communities
on & offline

25. Catch us if you can! Roadmap ‘13-’14
SUPPORT US! Travel & time of exploration isn’t free 
 Custom reports on emerging markets & trends
 Workshops, talks on innovation trends
 Connection to key local players for VCs, brands, tech communities

26. Links & resources to know more about
Lebanon innovation ecosystem

27. Ressources
More on Lebanon startup & innovation scenes
• 13 Quick Stats about Internet Usage in the Middle East
(Wamda)
• Ipsos ArabNet Beirut 2014 (Slideshare)
• Top 15 MENA Tech Startups That Are Going Global (Wamda)
• ARABNET 2014: THE INTERVIEW WITH OMAR CHRISTIDIS (Tech
Ticker)

28. Thanks!
Martin Pasquier, for Innovation is Everywhere
martin@innovationiseverywhere.com