5 ms·

An untold story of the Tunisian startup ecosystem

38 points by redbell 3y ago

aogaili 3y ago
Looks to me the issue is with the author's mindset rather than the market. He wants to build startups to compete on global scale, when half of his country doesn't have a bank account...maybe he is solving the wrong problems..
- mkoubaa 3y ago
  A VC backable startup by definition has to scale to greater than 12 million people. If you're point is "why doesn't author just start a small business?" then you are seriously missing the point
  - aogaili 3y ago
    I know what a VC start-up aim is, that's basic knowledge. But talent pool is limited and all is being either offshored or using for VC gambling when they clearly have many local problems by the author's assertion. You seriously missed my point.
    - mkoubaa 3y ago
      Talent pool is not limited, it is a highly educated and tech literate society.
      - aogaili 3y ago
        It is a 12 million after all, and you a have a finite number of resources that can be deployed to different problems. It's not like the US where they can import minds from all over the world and they already boost a high population.
        mkoubaa 3y ago
        I don't understand the point, nobody is saying that Tunisia's startup scene will rival the US
        aogaili 3y ago
        And I didn't say either. But asserting that the pool is not limited is a false statement, it is limited and small.
        aogaili 3y ago
        My point is that it has finite set and limited resources, that mind resources could be used to solve the many local issues. Instead they are offshored as cheap labor. The author is pointing fingers and those who try to solve local problems, yet he goes later to say there are tons of local problems and half the country doesn't have bank account.
mighmi 3y ago
First of all, I love such perspectives. Could anyone point me to more similar things (describing the business worlds elsewhere)? Aside from corruption, funding etc. the author is in a veritable smorgasbord. There are countless unsolved problems in the local market because few seek to address them. Instead of competing with a thousand other startups for a reddit clone or some sort of dev tooling, he could concentrate on solving day to day struggles of the average Tunisian, transforming people's lives through tech. Indeed, that's what the startups in the incubator were doing! But instead of embracing that, he seems to complain that they don't want VC funding, they don't want to scale to the whole world? And then complains about how it's difficult for them to get VC funding... How strange and circular this logic! In Eastern Europe or Latin America, many companies grew quickly doing this a few decades ago - developing alternative payment systems etc. to bank the unbanked as aogaili alludes to. How amazing it would be if today we had the chance to develop new infrastructure on which future products would be built! Alas, everything seems done and ossified. How green the grass on the other side is...
- jonnycomputer 3y ago
  While I don't think you should have been DVd, I think that you are ignoring his argument that the Tunisian market is just not there. And, frankly, if you can compete, with local talent, on a global scale, you have a lot going for you, and, it will inevitably lead to more at-home investment to support all the money you are bringing into the local economy. I also find it hard to justify criticizing someone's decision with years of experience in that market.
  - mighmi 3y ago
    I say the above out of nostalgia for my past, when I was working in the Romanian and Russian speaking markets. In those days, charging people for software was a no go as you would just invite warz people to break them but infrastructure and business services were valid as were assisting companies who wanted to enter the markets for whatever reason. The goal was to make a self-profitable company and build it from the ground up which is how the Eastern tech hubs grew. I believe this is a better model than chasing after VC money a la San Francisco, especially when the VC pipelines have dried up even in those areas.
Cyph0n 3y ago
Tunisian here. The local ecosystem isn’t that strong relative to other players in the MENA region.. for now. If you dig under the covers, the most successful examples and exits started out in Europe or NA by Tunisian founders with a secondary presence in Tunisia. I think it comes down to two main reasons: 1) Insane levels of regulation and bureaucracy, with a sprinkle of corruption. 2) A banking system that seems diversified and modern on the surface, but is actually an oligopoly and extremely behind technologically. That being said, I think there is a lot of talent in the country. Also, at least among the younger generation, there has been a shift towards learning English (instead of French) to better work with the US market. Side note: I’ve always wanted to work on a fintech startup for the Tunisian market to help with point (2) above, but as soon as I think about dealing with the banking system and government regulations, I reconsider.. One interesting player in this space is Flouci.
- mkoubaa 3y ago
  Tunisian here too. Speaking English is also an advantage because the anglosphere isn't predisposed to prejudice against north Africans.
  - Cyph0n 3y ago
    Good point.
  - Cannabat 3y ago
    Can you elaborate or point to some writing on this topic? Who is prejudiced against North Africans and why?
    - zen_1 3y ago
      >Who is prejudiced against North Africans and why? I think France, Germany and the Netherlands have some degree of prejudice against North Africans (specifically Moroccans and Algerians). As for why, you'd need to consult at a history book and look at the socioeconomic statuses of the aforementioned North African diasporas in those countries.
- 3y ago

38 points by redbell 3y ago

Looks to me the issue is with the author's mindset rather than the market. He wants to build startups to compete on global scale, when half of his country doesn't have a bank account...maybe he is solving the wrong problems..

mkoubaa 3y ago
A VC backable startup by definition has to scale to greater than 12 million people. If you're point is "why doesn't author just start a small business?" then you are seriously missing the point
- aogaili 3y ago
  I know what a VC start-up aim is, that's basic knowledge. But talent pool is limited and all is being either offshored or using for VC gambling when they clearly have many local problems by the author's assertion. You seriously missed my point.
  - mkoubaa 3y ago
    Talent pool is not limited, it is a highly educated and tech literate society.
    - aogaili 3y ago
      It is a 12 million after all, and you a have a finite number of resources that can be deployed to different problems. It's not like the US where they can import minds from all over the world and they already boost a high population.
      - mkoubaa 3y ago
        I don't understand the point, nobody is saying that Tunisia's startup scene will rival the US
        aogaili 3y ago
        And I didn't say either. But asserting that the pool is not limited is a false statement, it is limited and small.
      - aogaili 3y ago
        My point is that it has finite set and limited resources, that mind resources could be used to solve the many local issues. Instead they are offshored as cheap labor. The author is pointing fingers and those who try to solve local problems, yet he goes later to say there are tons of local problems and half the country doesn't have bank account.

mighmi 3y ago

First of all, I love such perspectives. Could anyone point me to more similar things (describing the business worlds elsewhere)? Aside from corruption, funding etc. the author is in a veritable smorgasbord. There are countless unsolved problems in the local market because few seek to address them. Instead of competing with a thousand other startups for a reddit clone or some sort of dev tooling, he could concentrate on solving day to day struggles of the average Tunisian, transforming people's lives through tech. Indeed, that's what the startups in the incubator were doing! But instead of embracing that, he seems to complain that they don't want VC funding, they don't want to scale to the whole world? And then complains about how it's difficult for them to get VC funding... How strange and circular this logic! In Eastern Europe or Latin America, many companies grew quickly doing this a few decades ago - developing alternative payment systems etc. to bank the unbanked as aogaili alludes to. How amazing it would be if today we had the chance to develop new infrastructure on which future products would be built! Alas, everything seems done and ossified. How green the grass on the other side is...

jonnycomputer 3y ago
While I don't think you should have been DVd, I think that you are ignoring his argument that the Tunisian market is just not there. And, frankly, if you can compete, with local talent, on a global scale, you have a lot going for you, and, it will inevitably lead to more at-home investment to support all the money you are bringing into the local economy. I also find it hard to justify criticizing someone's decision with years of experience in that market.
- mighmi 3y ago
  I say the above out of nostalgia for my past, when I was working in the Romanian and Russian speaking markets. In those days, charging people for software was a no go as you would just invite warz people to break them but infrastructure and business services were valid as were assisting companies who wanted to enter the markets for whatever reason. The goal was to make a self-profitable company and build it from the ground up which is how the Eastern tech hubs grew. I believe this is a better model than chasing after VC money a la San Francisco, especially when the VC pipelines have dried up even in those areas.

Cyph0n 3y ago

Tunisian here. The local ecosystem isn’t that strong relative to other players in the MENA region.. for now. If you dig under the covers, the most successful examples and exits started out in Europe or NA by Tunisian founders with a secondary presence in Tunisia. I think it comes down to two main reasons: 1) Insane levels of regulation and bureaucracy, with a sprinkle of corruption. 2) A banking system that seems diversified and modern on the surface, but is actually an oligopoly and extremely behind technologically. That being said, I think there is a lot of talent in the country. Also, at least among the younger generation, there has been a shift towards learning English (instead of French) to better work with the US market. Side note: I’ve always wanted to work on a fintech startup for the Tunisian market to help with point (2) above, but as soon as I think about dealing with the banking system and government regulations, I reconsider.. One interesting player in this space is Flouci.

mkoubaa 3y ago
Tunisian here too. Speaking English is also an advantage because the anglosphere isn't predisposed to prejudice against north Africans.
- Cyph0n 3y ago
  Good point.
- Cannabat 3y ago
  Can you elaborate or point to some writing on this topic? Who is prejudiced against North Africans and why?
  - zen_1 3y ago
    >Who is prejudiced against North Africans and why? I think France, Germany and the Netherlands have some degree of prejudice against North Africans (specifically Moroccans and Algerians). As for why, you'd need to consult at a history book and look at the socioeconomic statuses of the aforementioned North African diasporas in those countries.
3y ago