ECOSYSTEMREPORT

2020

Oman Startup Hub

Report by: Sara Al LamkiSarrah Al Saadi

An Initiative led by IDO

Investments

OSH

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ABOUT OSH

(Oman Startup Hub)

ECOSYSTEM 2020REPORT

OSH (Oman Startup Hub) is a platform forstartups, investors, advisors, and entrepreneursto connect, discover and learn about theinnovation ecosystem in Oman.

Launched in February 2020 by IDO Investments(a wholly owned subsidiary of Oman InvestmentAuthority), it's goal is to become the mainresource for startups and investors alike tounderstand the current activity in the Omanistartup ecosystem. It is the only platform toconsolidate events, news and resources in oneplace, and now includes the majority of activestartups and supporters operating in Oman.

OSH also runs a series of webinars conductedfor the ecosystem, by the ecosystem, on topicschosen by its viewers, actively engaging with itsparticipants, and producing one-page summarydocuments for ease of reference. The majorityof webinars are recorded and placed on OSH for future viewing.

OSH strives to consolidate the ecosystem,but also to participate actively in building itsknowledge base. This report is an annualreport that provides a snapshot of theecosystem's annual activities, as captured bythe OSH platform.

Although some funding information isavailable, most startups and investors shyaway from disclosing funding amounts.Where information is available, the reportcreates a picture of the amount of fundingdeployed in 2020 and aims to demonstrate notable and main startup activity, andhighlight in more detail the prominentsupporters of the ecosystem in 2020.

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VC Deals

5Capital Raised by Deals

2.8 MCompanies Accelerated by OTF

29Companies Incubated

14Mergers & Acquisitions

1

Oman's journey towards becoming a startuphub in the region has begun with a strongemphasis on supporting startups and SME'sin addition to promoting growth in thetechnology and innovation sector. Releasedduring The Oman 2040 Future VisionNational Conference in January this year, thedraft plan of Oman’s vision 2040 envisagesthe development of a competitive, globallyconnected private economy. In its ambitiouslong-term vision, Oman places specificemphasis on SMEs and the non-hydrocarbons sector. SMEs, which includestartups currently account for around 15 percent of Omani GDP – a figure the PublicAuthority for SME Development has forecastwill double in the next decade asopportunities are created.

2019 saw admirable achievements inOman's startup activities, with a record 5Venture Capital (VC) deals word 2.8 millionUSD. These numbers previously were notheard of in Oman, and more notably, notdiscussed in public news platforms - thusstarting a culture shift of startup growth andtransparency.

An Omani startup, eMushrif, which was onthe growth trajectory also acquired acompany in Kuwait, setting an example forregional startups on mergers & acquisitionand seeking growth opportunities in the Gulfand beyond.

A YEAR OF GROWTH

2019

2019

at a glance

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2020 was all set as a year for continued growthin the startup ecosystem. Riding the wave of2019, regional media took interest in the Omaniecosystem becoming a regional leader. Oman'snewly formed Ministry of Technology's SASIncubator partnered with Google for startups towork with unique startups, and began a trend ofpartnerships, and cultivating a spirit ofinnovation amongst young startup hopefuls.

With the COVID-19 pandemic bringing the worldto a standstill in March, Oman has witnessed ashift in perception and an increased interest insupporting, creating and learning aboutstartups. The outbreak of the pandemic alsoencouraged more online interaction with asudden increase in online meetups, events andworkshops. This in turn resulted in a number of‘relief programs’ and an increase in fundingdeployed to startups, especially in the earlystages.

Though growth stage startups have securedfunding from various local and regionalinvestors, data on funding rounds remainslargely undisclosed and amount of fundingavailable to startups in the ecosystem isuncertain.

STARTUP HIGHLIGHTSFOR THE YEAR

Million USD total committedfunding to startups10.9

Total SMEs registered withMinistry of Commerce andIndustry

45.7k

Published startuprelated news78

Events conducted 55

Growth Stage startups conductedfunding rounds at an aggregate raise of 5 8.5

million USD

OMAN'S STARTUPECOSYSTEM

for 2020

However, monitoring the activity of fundingannouncements in the region, there is greateremphasis in disclosing data, such as capitalraised, as it draws more attention to thesuccess of the startup. We believe Omanistartups will begin will follow suite and begin todisclose. What is evident is the eagerness fororganizations, local and international, tosupport Omani startups with growth potential,especially innovative technology companies,and the increase in number of startups and theirmaturity seen in incubator and acceleratorprograms.

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Oman Technology Fund (OTF) has a totalcommitted capital of up to 200 million USD andinvests via its 2 accelerator programs -Techween and Wadi and global VC program -Jusoor Ventures.

In 2020, OTF adopted a "Lean Accelerator"model which allows them to run the programsvirtually and in parallel, thus supporting thelargest number of startups to date, offeringcontinuous support and opportunity.

TechweenTypically, Techween accelerator runs for pre-seed stage startups that started as a 3 monthprogram but has extended to 9 months. OTF has concluded it's 6th cohort, and begun the 7thcohort in December 2020. The Techweenprogram involves an investment of 50,000 USDfor an equity share of 7%, and access tocountless resources, workshops, fireside chats,professional and peer mentors. Each cohortaccepts and accelerates 10 startups.

WadiThe Wadi accelerator offers seed stage startups100,000 - 150,000 USD for 7% equity in a 10week program which runs over the course of 4months. The more intensive program can servea greater number of more mature strtups whichare ready, or have started, commercialization.Depending on the growth of these startupsduring the program, and their readiness topitch, the startups go on to participate in eitherof the 2 demo days that take place throughoutthe year, and target VC or similar investmentfrom local and regional firms.

In 2020, in addition to the 2 acceleratorprograms, OTF also ran a hackathon withUNICEF which resulted in funding for 2 startupsand ran a relief fund of 2,580,000 USD whichresulted in funding for multiple startups. Theseinvestments are considered as part of the Wadiacceleration funding and activities.

OMAN TECHNOLOGYFUNDIn Depth

2020 FACTS & FIGURES

Startups Accelerated

8930

Techween Stage

59Wadi Stage

123Active Workshop

Days

2.1kMentor Sessions

Million USD deployed

3.84

Large external eventshosted

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SAS Centre for Entrepreneurship is a centre bythe Ministry of Transport, Communications andInformation Technology that encouragesentrepreneurship and development ofTechnology and Digital Content Startups andSMEs in the Sultanate in collaboration withprivate & public sectors. The centre offersvarious services via it's incubation andaccelerator programs. It does not providefunding to startups.

IncubatorThe centre runs a 3 year incubation program,accepting application all year round. In 2020,services included coaching, mentoring, legalservices, business management services,marketing service, investment readiness,access to finance, client networking, advisoryboard.

Companies that graduate from the program areoffered a paid service to continue receivingsupport from SAS.

AcceleratorSAS runs a multi-week accelerator programprogram with Google for Startups, whichconcludes in a virtual demo day, targetinginvestors. The 2020 cohort ran for 5 weeks, andis the second cohort run with Google forStartups. In addition, SAS launched a 12 weekaccelerator program in collaboration with OTFTechweeen focusing on cybersecurity startups,to generate and validate ideas.

SAS CENTRE FORENTREPRENEURSHIPIn Depth

24 Startups

Graduated Employed instartups

8 130

INCUBATOR

ACCELERATOR

23Startups

Programs Pitched2 17

Received Investment

2

2020 FIGURES

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IDO Investments is the technology investment armof Oman’s Investment Authority, mandated todiscover technologies globally with the greatestpotential to benefit the people and society of Oman.

The company’s portfolio is largely focused aroundthe world; however, it also invests in growth stageOmani startups who are ready to expand globally.

In response to the COVID-19 pandemic, IDO alsolaunched an Emergency Relief Investment Program(ERIP) to speed up investment timelines, and givesmaller ticket investments to aid the Sultanate’sstartups either responding to crises, or contributingto its alleviation. As part of this, IDO invested in 2Omani startups in the form of convertible debt.

In addition, IDO Investments lead the Series A round of an emergingOmani startup, bringing its Omaniportfolio outside of the ERIP program to 3companies. IDO Investments also participated in afollow on investment for one of the existing Omanicompanies in its portfolio.

The diverse investment team actively participate inthe Omani ecosystem by hosting webinars,workshops, judge competitions, both relating toCOVID-19 and outside of the pandemic. The teamalso aid in Omani startups development byintroducing them to international innovators in theirportfolio, and facilitating relevant discussions withexternal stakeholders.

IDO InvestmentsIn Depth

2020 FACTS &FIGURES

2.4 Million USD funding committed

4 Startups supported

4 Webinars conducted

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OmanX Challenge

In 2020, Phaze also launched the Oman XChallenge. An opportunity for individuals andteams to test and validate ideas for softwaresolutions to solve some of the most difficultchallenges facing their corporate partners,particularly the energy companies PDO and OQ.The winning team of the OmanX Challenge hasan opportunity to join the third cohort of theSparkLabs Energy Accelerator Program wherethey will be supported to take their concept tothe next level into a minimum viable productalongside commercial partners. In addition,they will be awarded a grant of RO 10,000 tofund continued business development, as wellas opportunity to receive up to RO 100,000 inequity investment at the end of the AcceleratorProgram.

The winner of the first OmanX is a promisingfintech startup called Mamun ai.

PHAZE VENTURESIn Depth

3 Omani follow-on Investments

1 Grant Awarded

2 Hackathons conducted

Phaze Ventures is a private venture capitalfirm which invests in early stage startupslocally and globally with a focus on the energyand logistics sectors. Phaze also runs theSparklabs Energy accelerator in partnershipwith Petroleum Development Oman (PDO),with the top company from the programreceiving an investment from Phaze and acontract from PDO.

Though Phaze did not add any Omanicompanies to their portfolio in 2020, theparticipated in follow on funding in 3 of theirexisting companies. The amount of fundingdeployed is undisclosed.

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NEW & NOTABLE FOR 2020

Oman Angel Investments

The latest investment firm to the Omani ecosystem with anambitious role to create the first Angel Investor Group in Oman.The company has 3 founders, with various backgrounds, and amandate to invest in seed stage Omani technology companiesand participate in their growth and development.

Structured as a member network with each member handpickedfor specific expertise valuable for the development of startups intheir portfolio. Each member will contribute 50,000 USD with amaximum of 30 members, thus establishing a fund of 1,500,000USD.

The company was established in 2019 and quickly invested in 2up and coming startups.

NEW SUPPORTER

CULTIVATING STARTUPS

EBDA

EBDA is a startup development program by Al Rudha, designedfor entrepreneurs at the concept stage of developing theirstartup.

The program is designed to take the participating teams throughmultiple stages starting from idea affirmation, businessreadiness, and market deployment preparation, and is sponsoredby BP Oman. The program is running its 3rd cohort in 2020 with18 teams graduating.

6 out of the 17 previously graduated companies have gone on toreceive funding.

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ENVIRONMENTALFOCUS

Eco-Innovate

The Oman Environmental Services Holding Company (be’ah)launched the Eco-Innovate Oman (EiO) accelerator program tostartups with a focus on commercialization of natural and artificialresources.

The EiO was launched at the end of 2019 and received the firstbatch of startups in March 2020. 14 startups were accepted to theprogram based on their specialization in resource management andenvironmental sustainability. The program will conclude with apitch competition.

The program ran both physically and virtually to accommodate allstartups given the pandemic.

1 startup has already received 65,000 USD in investment.

NEW ACCELERATOR

PRE-INCUBATOR

Carbon Lab

Powered by TEDx Muscat & Innovation Factory, with support from the embassy of the Netherlands, Carbon is a SocialInnovation lab aims to introduce essential topics that will assistsocial innovators in creating tangible and quantifiable impact toimprove the community by supporting the development andtransfer of practical solutions.

Launched in 2020, the social initiative acts as a pre-incubationprogram targeting entrepreneurs in Oman that haveideas/solutions that tackle a social or environmental challenge.

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The first half of 2020 attracted investments of 659M USD from MENA-based startups in total.According to MAGNiTT, Oman secured 12 per cent of MENA’s total deals in that period in 2020.Subsequent data is difficult to find, and Oman has yet to develop a startup culture that is open tosharing information related to funding. Despite this, the 2030 Digital Oman Strategy or “eOman”shows Oman’s focus on technology adoption and progress.

With the increase of supporter companies, especially those offering funding, and an increase instartups formation, the Omani startup ecosystem is sure to become more open when publishinginformation, and more data can be generated to compare annual growth.

2020 - THE YEAR OF RESILIENCE

CONCLUSION