Egypt’s Financial Regulatory Authority and Egyptian Exchange are helping create stronger links between startups and the country’s capital markets, according to Karima El Hakim, regional director and managing partner at Plug and Play.
Speaking to Al Mal, El Hakim said an IPO should not be viewed as the inevitable destination for every startup. Instead, high-growth companies should have a range of options, including private funding, institutional capital, strategic opportunities and public markets.
She said founders backed by venture capital should begin discussions early around governance, disclosure, profitability, capital structure, liquidity and exit options. This can help them reach a stage where they can choose the financing path that best fits their needs.
El Hakim said Plug and Play’s role extends beyond investing. The company helps founders connect with suitable investors, financial institutions and capital-market participants. Two Egyptian companies participating in the AT50 initiative had previously received investment from Plug and Play, she added.
The Cairo initiative brought together Egyptian technology founders, local and international investors, financial institutions and companies with public-market experience, including Valu. El Hakim also said Plug and Play’s participation in Indexa Group’s Governance Council does not give it a role in selecting companies for the index, as those decisions are subject to independent governance and review.
She also praised the regulator’s sandbox and the Egyptian Exchange’s efforts to support entrepreneurship and connect startups with the market.
Source: Al Mal
