This Spring, the Founder Institute is preparing to launch a chapter in a new location: Kuwait City. While Kuwait is not widely perceived as a startup technology hub, both the Founder Institute and Kuwait itself are working to change this notion. Here are the three main reasons why we decided to launch a chapter in Kuwait:
If you are interested in participating in the Kuwait Founder Institute's first semester, apply here. If you want to participate in free startup events, click here.
1. Kuwait is Seeking to Diversify Its Economy
The Gulf region as a whole is becoming increasingly more active in the world of entrepreneurship and creative technology. As oil prices continue to decline, Gulf nations have re-doubled efforts to diversify away from oil-dependent economies. This caused countries including U.A.E. to declare 2015 to be a "year of innovation."
Across the Gulf, they understand that challenge very much because they cannot absorb all these young talented people into the government anymore. Not when oil was at $100 and certainly not when oil is at $50 or going below $50. - Fadi Ghandour, venture capitalist
2. Kuwait's Competitive Culture
Whether discussing sports or economics, Kuwait strives to compete with other Gulf countries - and Kuwait's government knows that it needs to compete on the newest front: entrepreneurship. This drive towards creativity and startups is a result of both necessity as oil's future grows uncertain, and desire as Kuwaitis wish to compete with other Gulf countries while attempting to make the world a better place and solve its problems.
"(Kuwait's) people are striving for the same opportunities that they see their peers in other Gulf countries and around the world having. They see a desire among their young people to save the world and create their own career pathways. They are seeing a desire among citizens for a more dynamic economy" - Nish Acharya
3. New Big Investors
Luckily, Kuwait's entrepreneurs and startups are not alone in their journey, as both Kuwait's government and the international startup community have taken notice of Kuwait's move toward entrepreneurship. In 2013, Kuwait's government launched the Kuwaiti National Fund for Small and Medium Enterprise Development. The fund has access to over $7 billion, and dedicates these funds toward supporting local Kuwaiti entrepreneurs and fostering Kuwait's startup ecosystem. The government's efforts aren't limited to providing capital, as the Kuwaiti Foundation for the Advancement of the Sciences (KFAS) has also begun creating and promoting programs that foster the creation of startups.
One of the biggest concerns of prospective entrepreneurs in Kuwait is the belief that the government's red tape will prove to be too intrusive and restricting. The recent actions of Kuwait's government - from the launching of funds to startup-friendly programs and public statements - indicate that entrepreneurs may not need to worry about government red tape quite as much.
Beyond the new government-funded programs designed to nurture entrepreneurship, the private sector has also begun to see Kuwait's startup opportunities and react accordingly. Kuwait-based Arzan Financial Group recently launched Arzan VC, a service dedicated to funding early stage startups. By launching in Kuwait, Arzan VC joins other world-renowned venture capitalists, such as Mohammed Alzubi, with significant presences in Kuwait.
The results speak for themselves, with Kuwait-based startups like Dawrat, an online platform that connects users to trainers and tutors and Jaribha, a crowdfunding platform, attracting global attention.
Conclusion: A Perfect Fit
The Founder Institute sees the potential and the recent success of Kuwait's startup ecosystem and has decided to launch a chapter in Kuwait for the first time ever. Founder Institute is an idea-stage startup accelerator and training program. The exclusive four-month program is designed to take prospective entrepreneurs' ideas and turn them into a reality, with each participant incorporating a durable company at the program's conclusion.
Although the Founder Institute is based in Silicon Valley, an area which favors tech companies, the program does not limit participants to creating tech startups. Alternatively, graduates of the program have created some excellent non-technical companies like BlogMutt, a service for outsourcing blog posts, and Feetz, a personalized shoe startup.
If you are interested in participating in the Kuwait Founder Institute's first semester, apply here. If you want to participate in free startup events, click here.
