Top 5 Startup Ecosystem Hitches in Iran

Amirhosein Shirani
2 min readOct 17, 2018

In numerous articles that were written about the startup ecosystem in Iran, you may see that these articles have just pointed out famous startups like Snapp, Digikala, Tap30, Zoodfood and etc.

But these didn’t express that what problems startups may face or deal with, or why they just.

In Iran, there are many accelerators that invest in ideas that they think are interesting. Most of them are in e-commerce fields (answer to the question of why just e-commerce is beyond this article).

Sharif accelerator, one of the accelerators in Iran

Like any other accelerators in other parts of the world, they sign a contract with the members and give them a place and amount of money. They have some mentors here and they help startups to grow. They also give about a 15 percent share from each startup based on how much money they need and how much their ideal value.

Now we try to consider these hitches from first to last for those who may not have a thorough consciousness about it:

1.

the first problem would emerge when there were not well-skilled mentors that help them to say what to do and what not to do; Mostly because of the new age of the ecosystem.

2.

The second problem is that because of the poor economic infrastructure of Iran and the erratic market especially in currency, investors aren’t interested in investing in these fields and they are more likely to invest their money in other (mature) fields that have lower risk and higher return of their investment.

3.

Because political issues which are established in the country, the only market for Iranian startups are in their country and they could not export their values to another country. However, this situation may due to the growth of startups like snapp when there isn’t a competition between internal startups and outer startups like Uber.

4.

Regarded by many startups founders, once their idea accepts, they figure out a really low amount of money that could not help them to grow and furthermore if they wanna raise more money, they lose a lot of their shares.

5.

Filtering is one of the problems for almost any startups in Iran, even famous one. Many startups like jobinja, snapptrip and etc. had been constrained by this misfortune.

I hope this article will be helpful for those who try to start a new business or invest in a startup ecosystem in Iran.

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