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SeedStartup is a UAE based startup accelerator and seed venture fund focused on digital media (web, mobile, software) startups. Its acceleration program provides seed investment and world class mentorship to internet & mobile entrepreneurs. It has recently become part of the TechStars Network, a select invitation-only group of startup accelerators in major cities across the United States and around the world.

Entrepreneurs from anywhere in the world can apply to the programs. The inaugural program begins on September 30th 2011; The last day for submitting applications is June 30th.

The 10 selected startups will participate in a 3 month mentorship driven entrepreneurship “crash course” in Dubai where they will have access to:

- World class mentorship from successful entrepreneurs, product experts, and seasoned investors (including ArabNet founder Omar Christidis);
- Seed investment of up to $25,000 ($20k if your team has 2 co-founders, $25k if you’re 3 or 4 co-founders) in return for a flat 10% equity stake;
- And the opportunity to network and get exposed to sources of follow on funding.

During the course of the program entrepreneurs will build and refine their products under the guidance of their mentors who can maximize the startup’s chances of success.  By the end of the program, entrepreneurs will have built and gone to market with their new product and be well positioned to raise their next round of funding from angel investors and venture capitalists.
The program culminates in a Demo Day where all startups are given a chance to pitch to angel investors and venture capitalists.

For more infotmation on SeedStartup, the application process, and tips on how to improve your chances of making it into the program, check out SeedStartup’s founder Rony El-Nashar’s interview with Wamda below:

1. What personally motivated you to start SeedStartup?

I love entrepreneurship.  I enjoy it.  That includes both building startups and investing in startups.  Something about the excitement of creating, of building.  I guess it's the same expression of creativity that an artist might enjoy while painting or an architect might enjoy while designing.

SeedStartup was born out of a clear need in the marketplace.  Seed funding in the MENA region is very difficult to come by.  There are only a handful of venture capital firms in the entire region and most of them don't invest at the initial seed stage of a startup's life cycle. It's outside of their risk appetite. MENA angel investment activity in technology ventures is extremely fragmented and has historically been negligible.  So who do you turn to if you're a web/mobile entrepreneur with a great idea but no sources of funding and no significant market traction yet?  Today, you have an answer to that question. SeedStartup.

2. What is the goal of SeedStartup?

Although we're a privately held investment firm whose primary responsibility is generating returns for our investors, SeedStartup actually has a double bottom line.  As a byproduct of the work we do, economic development takes place.  New companies are launched.  Jobs are created.  Goods and services are procured resulting in contribution to increased GDP.

The goals of SeedStartup are:

1. to generate returns
2. to ignite the creation of a true venture capital industry in the MENA region
3. to do good by:
      a. providing opportunities to those who seek them
      b. contributing to economic development
4. To have fun doing all of the above  

3. What are the tangible outcomes that it offers entrepreneurs, in your words?

Founders accepted into the SeedStartup program benefit from seed investment of up to $25,000 coupled with close guidance from our amazing mentor network which consists of successful entrepreneurs, seasoned early-stage investors, and knowledgable product experts.  The SeedStartup program helps entrepreneurs take their idea and turn it into a fundable business by the end of the three month program.

The program culminates in investor demo day where the founders demonstrate their newly built products and pitch their business models to an audience of angel investors, venture capitalists and the media with the intention of raising their first major round of funding.

In addition, we've recently announced that SeedStartup is now a member of the TechStars Network, a select invitation-only group of startup accelerators in major cities across the United States and around the world. SeedStartup will collaborate with the TechStars Network in:

- sharing best practices
- enabling cross-border mentoring
- facilitating cross-border networking between founders
- encouraging cross-border investment

What does that mean for our startups?  Incredible exposure in the U.S. and internationally, the potential for follow-on funding from renowned international VCs and angel investors, in addition to unparalleled opportunities to rub shoulders with the best and brightest entrepreneurial minds in the world.

4. What kinds of entrepreneurs are eligible? Why can't someone apply alone?

SeedStartup is looking to invest in startups whose products are web applications or mobile applications.  We look for innovative startups that are going after large markets, with a differentiated offering and a solid entrepreneurial team.  SeedStartup is open to everyone regardless of nationality or country of residence.  However, we require that all members of the founding team are able to live in the UAE for the duration of the 3 month program.  We've received applications from all over the world including Egypt, Jordan, Syria, Saudi Arabia, Qatar, Greece, Cyprus, Spain, France, the U.S., the U.K. and of course from here in the UAE.

There have been very few success stories for single founder startups.  It's not impossible but it's not ideal.  I believe the ideal founding team consists of either 2 or 3 founders.  It's important that the founding team is well rounded.  Co-founders should have complementary skill sets and be able to complete each other.  So make sure you find at least one co-founder before applying.

5. What does it really take to be accepted into SeedStartup?

Passion.  The entrepreneurs should be passionate about the space they're in, the opportunity they're going after, and the product they're building.  Just as we're taking a risk by investing at such an early stage, we expect that all founders of startups accepted into SeedStartup dedicate themselves on a full time basis to the program.  That means leaving their jobs and making an active decision to leave the corporate world behind and to choose the difficult but rewarding path of the entrepreneur.

Knowledge.  We look for evidence that the entrepreneurs are "plugged into" the ecosystem.  Web and mobile entrepreneurs especially have to be constantly updated on what's happening in the tech world. What new startups have just launched?  Who just got funded?  What new markets are being created? What trends are we seeing?  Staying updated will help you identify market opportunities and differentiation potential. The entrepreneurs' connectedness in the tech ecosystem is usually evident from the quality and level of innovation of the idea they present.

Execution.  We also look for evidence of ability to execute.  Ideas are easy to come by, but what really matters is the ability to implement the idea.  Therefore, we prefer to see a working prototype of the product even if it's very basic with a limited number of features.  We also like to see what members of the team have built in the past.  There is a special area of the online application form where teams can include links to products they've built or to videos demonstrating those products.

Synergy.  Finally, it's important that the founding team is well rounded.  Co-founders should have complementary skill sets and be able to complete each other.

6. What are the biggest mistakes that you see applicants making, and what are the most typical skill gaps that SeedStartup will fill with mentoring, in your opinion?

- Applying alone before having found at least 1 co-founder
- Not having performed sufficient market research to have solid awareness of the competitive landscape
- Not having a clear vision of how they will differentiate and position their product
- Lack of attention to detail i.e. not answering the application questions completely or with adequate thoughtfulness

Entrepreneurs should take their time with the application and pay a great deal of attention to it. It's what we base our initial decision on of whether or not we want to dig deeper. A poorly written or poorly thought-out application is a no brainer for us.  Straight to the rejected pile.

SeedStartup has built an incredible mentor network of successful entrepreneurs, seasoned investors, and knowledgable product experts to provide the guidance young founders need to be successful in their ventures.  The mentorship program is about the mentors taking their experience, wisdom, and industry expertise and applying them to the unique situation faced by the entrepreneurs they are mentoring.  This mentorship approach is in contrast to more traditional training programs where instructors teach specific skills.  That's not what SeedStartup is about.  The idea is that each of our mentors knows what it takes to be successful.  They've either done it or seen it first hand.  Now, they're willing to help a new generation of entrepreneurs succeed as well.  At the early stages of a startup's lifecycle this type of advice and close guidance is more valuable than the investment itself.

7. How did you initially partner with your two investors?

We've been very close friends since our university days.  I explained SeedStartup first to Salem and then to Saif.  They both immediately became enthusiastic about the concept and committed to it right away.

8. How do you think players in the region can encourage more small-scale angel investment?

Make more Series A venture capital investments in early stage startups.  Lead by example.  Allow some level of liquidity/exit for earlier investors.  When seed and angel investors see that there is a clear path to a liquidity event for their investment they will be more likely to invest larger amounts in more startups.

Encourage more M&A activity by the large corporates operating in the region.  Create an SME friendly public stock market with less stringent listing requirements.  NASDAQ Dubai is making great progress on this front.

It really comes down to a very simple notion.  If investors (whether individual or institutional) think they can make money, they'll invest.  If not, they won't.  It's all about building a complete entrepreneurial ecosystem where investors at each stage of a company's lifecycle can see a clear pathway towards generating a return on their investment.  In other words, the infrastructure must exist that will enable investors to sell their shares (hopefully at a profit) in the future.  The more early stage investments, acquisitions and IPOs that take place, the more that infrastructure starts to take shape.