Huston Hedinger – Lebanon

I had an extremely positive weekend with Silatech.  I pitched VilCap discussing the curriculum and VilCap’s results.  This was a very different experience than mine in Beirut, and might tell us something about our model.  Additionally, VilCap would not be coinvesting in these programs- post program investment would come exclusively from Qatari angels.  This is fabulous because it show very strong local buy in.

Silatech’s reach extends all over the region, and partnering with them in Doha, will go very far for VilCap’s proof of concept in MENA.  Also, I was really impressed by the local talent in Doha.  I filmed parts of the pitches from the VilCap simulation, and I think you all will be impressed by the young Qataris as well. This group happens to want to build a community that is active in entrepreneurship and Angel investing, and it will get done because they are willing to commit the resources for the talent, time, and training to launch it.

Here are a few photos from the weekend…

The key to success in any endeavor is the ability to adapt and overcome the situation at hand.  Sometimes opportunities fall apart; however, we learn lessons from these failed opportunities. That way, we can assess future opportunities with more scrutiny.  Here are 2 recent lessons I have learned from Beirut.

Lesson #1

Do not look to partner with the biggest incubator in town, unless they are passionate and excited about the program. This should be obvious, however when actively exploring partnerships red flags are not always easy to recognize.

Out with the old, in with the new. Recently, a number of positive opportunities have opened up. We have been offered office space, as well as fundraising support for the program.  Additionally, Wamda is very interested in supporting us.

Lesson #2

Lesson Learned:  I actually know a lot about VilCap.  After pitching it for 4 months, it was not a problem to get up in front of professional investors and development folks and pitch the program.  That being said, it is important to know VilCap statistics and the curriculum like the back of your hand.  Also, have materials to help you get the points across, and don’t be afraid to draw lots of pictures…

That’s right, now stop crying and take the following quiz:

We will do this like a standardized test-

“An FM Scout drives….”

A) The closer vehicle B) The farther vehicle C) Both vehicles D) Neither vehicle
…  If you answered A you are correct!  That’s right I get around on those 60 pounds full of testosterone and speed.  Turns out one of the most important lessons Beirut had to teach me was on the streets.  I have only been hit twice, I haven’t hit anyone, and it hasn’t been stolen الحمد الله

The last week has been full of action.  I took a trip to a conference for young leaders in Zurich, Switzerland, One Young World and visited regional partners in Jordan.  Additionally, I have been meeting with a number of local Social Entrepreneurs (most of them don’t have websites, sorry), and we are about to put out a ‘call for applications’ for VilCap Beirut.

I am going to break from my past format, because there is really no way to give you a concise update whilst including EVERY meeting.

Here are a few highlights:

My fiance and I had one of our most delicious meals yet at Tawlet!  Tawlet means “table” in Arabic, and is an off shoot of Souk El Tayeb Lebanon’s first farmers market.  Souk El Tayeb translates to “the delicious market.”

Tawlet is one of the most interesting restaurants I have ever been to.  They serve lunch every day that is cooked by a different women from various parts of Lebanon.  In all they have over 15 women that come and cook on a rotating basis.  This is a fantastic model in so many ways.  Many of these women typically would not have any other source of personal income.  In addition to their daily wage (which is far above the going market wage rate, if they had been able to find employment elsewhere), there is a measure of prestige that goes along with traveling to the ‘big city’ to cook at a fine restaurant twice a month.  Souk El-Tayeb has a number of for profit initiatives, of which Tawlet is one.  They have a couple concepts up their sleave that could be highly scalable, and I am looking forward to future talks with them…

In Amman I was able to meet with the Aramex’s Entrepreneurial Support Unit, Ruuwad, and the King Abdullah II Fund for Development.

Aramex founder Fadi Ghandour has a strong belief in entrepreneurship.  He also happens to be the major backer of Ruuwad, and group that focus on community development in the lowest of income areas in Jordan.  Like many individuals around here where the start up and venture investing industry is so young, many individuals in the Aramex office wear the investment analyst, mentor, and even entrepreneur hat simultaneously.  For in stance, the MENA Venture Fund is run out of the Aramex office as well.

The KAFD is going to be a fantastic recruiting and marketing partner.  They have been recruiting and mentoring fellows for three years now, and have had two complete classes.  A lot of there fellow have received a lot of tips on how to start there business and are working in the ‘seed stage sweet spot,’ where what they really need to do is scale.  This is fantastic because as participants in VilCap they will get a chance to focus on how to take on investment and do just that, scale.  One of KAFD’s most successful entrepreneurs/enterprises has been Souk Tel.  And if you just caught that the word “souk” appeared half a page up, you may have a future in linguistics.  Souk Tel is an online marketplace for connecting potential employees to jobs, particularly in Palestine.  You can read more about them on their website- I hope to be able to meet the founders at some point.

Thank you for reading, and I will do my best to stick with bi-monthly updates from now on.

I leave for Beirut tomorrow, and will arrive late Monday night (Beirut time). As I do some last minute preparations, I would like to showcase two entrepreneurs and their enterprise.

2bdesign, founded by Benedicte de Blavous Moubarak and Raja Moubarak, is a business whose mission is to “Restore the unseen beauty of the broken- broken people, broken
heritage, broken environment.”  2bdesign salvages and reclaims elements of architecture from destroyed traditional houses (wrought iron window frames and balconies, railings etc..) and transforms them into unique pieces such as lamps, candle holders etc.   They do this all the while, employing the unemployable, providing marginalized and disabled persons with training and employment opportunities.

2bdesign utilizes a hybrid business model, utilizing a for profit business for operations and marketing, and a non-profit for training of employees (which is often longer and more intense than with employees in better socioeconomic standing).  Earlier this month when I spoke with Raja Moubarak, he told me that 2bdesign intentionally pays about 40% above the market wage rate to their employees.  “The typical wage for these individuals, is simply unstainable,” I was told by Raja.  “The marginalized have little options without adequate pay.”

I look forward to meeting Raja and his partner, and figuring out ways to support there tremendous work.  Raja is an accomplished executive and entrepreneur in the region, with a wealth of experience in for profit and not for profit organizations.

Keep me in your thoughts as I travel, and please comment on what you would like to see from Lebanon and social impact investing in Beirut!!