Speaking at the AI Everything MEA 2026 conference in Cairo, Ibrahim Ramadan, a partner at Egypt-based venture capital firm Sawari Ventures, delivered a crucial message to the region’s founders: sustainable success is built on strategic risk management, not just securing funding rounds. Ramadan emphasized that the next phase of the ecosystem’s maturity requires a deliberate shift towards building resilient and fundamentally sound companies.
Risk Management As A Strategic Necessity
Ramadan argued that in the current economic climate, founders must embrace risk management as a core competency rather than an obstacle to be avoided. He stressed that the challenge lies not in the existence of risks, but in the ability to address them with specialized and informed strategies.
“Risk management requires people who deeply understand the nature of problems,” Ramadan explained. “Risk is not a negative element to run away from, but a factor to be analyzed, evaluated, and managed within a thoughtful framework.” He noted that this capability must be built internally, empowering teams with analytical skills and a true understanding of market dynamics, rather than relying solely on external solutions. This proactive approach, he concluded, is no longer an option but a strategic imperative for navigating a rapidly changing market.
The Illusion Of Funding-Led Growth
Addressing a common pitfall in the startup world, Ramadan cautioned founders against making fundraising their ultimate goal. Drawing from years of experience, he pointed out that capital alone does not guarantee sustainability. Many well-funded startups have failed because they did not evolve from an innovative product into a viable, long-term business entity.
He urged founders to focus on the operational and strategic fundamentals within their companies instead of being preoccupied with product aesthetics or funding announcements. “The most important elements are survival and continuity, before thinking about expansion or raising valuations,” Ramadan stated. He advised founders to build a strong, sustainable foundation from which they can grow steadily, rather than chasing quick wins that do not support long-term stability.
Calculated Expansion Over Reactive Moves
Ramadan also tackled the issue of geographic expansion, observing a trend where companies enter new markets as a reactive measure rather than a calculated strategic step. He warned against expanding into a market simply because it seems like the only available option, emphasizing that such decisions must be a natural extension of a proven business model.
Before considering expansion, founders must possess a deep understanding of their company’s intrinsic capabilities. Ramadan advised asking critical questions: Does this market fit our business model? Is our team equipped to operate there independently? Can we establish a solid base before seeking more investment? Investor confidence, he concluded, is earned through tangible performance and a clear, executable vision, not just ambition. “An investor will not provide additional funding to a company that has not proven its ability to master the basics in its primary market.”
About Sawari Ventures
Sawari Ventures is an international venture capital firm that invests in people turning visionary ideas into market-leading companies in the Middle East and North Africa. The firm is dedicated to helping entrepreneurs build high-impact businesses that can generate exceptional returns.
Source: Fintechgate
