Just like so many other things, the tech scene in Iran is synchronizing with the tensions arousing from, or gravitating around the political regime. Every 10 years or so, it seems a new hardline or conversely, a new reformist movement will change the situation.
It’s fair to say that in 2014, though, the trend was mostly positive, with foreign, expatriates Iranians around the world beginning to look back home. A big, 120-130 million Farsi speakers market could be opening soon, and there’s barely any online marketplace or innovative digital service to monetize it.
Iran has a strong tradition of engineering education, made possible first by the US “teachers” of the Shah, then by a long decade of war and then embargo, which pushed the country to develop its own engineering capabilities. Mostly for weaponry and energy, but the heritage is strong, and as a result, you can find many Iranians top engineers in some of the world’s best startups.
Did you know? From eBay to Dropbox to Zoosk to Google/Youtube, Iranians have been within the very first or among the ten first employees of a long list of success stories from the US (not without reminding us of Indians). The diaspora (4-6m people) has other high-level positions in banking, IT within the English speaking world and the Middle-East.
Back home, the country has the strongest mobile penetration of the MENA area, as well as 55% Internet users.
A lot of challenges are still on the road of entrepreneurial success in Iran. Talent outside the government & military industry is not recognized ($2k monthly salary in startups vs $10k in government for engineers). Visa policy and financial insulation with the embargoes make it uneasy to pay online. And the cost of living is pretty high too in Tehran.
Still, while visiting Iran back in 2013, we rarely saw such an energy, level of women participation and sheer volume of teams in a Startup Weekend (Shiraz).
Most of the future of Iran as a startup scene depends on politics. But when it’s solved, then, a strong hub for the Middle-East, UAE and Central Asia might be open for the braves.
PROS
- Market of 120-130M people talking Farsi
- Access to a melting pot of untapped markets (Kurds, Afghans, Central Asians, Iraqis)
- High level of education (5000 new engineers per year)
- Proximity of Dubai and UAE a a regional hub for Middle-East and a global hub for airlines
- Huge diaspora (4-6M) with influential position in tech, business and banking (US, UK, MENA)
- Government opening since last presidential election (2013) with liberal policies
CONS
- Price of talent is unequal (up to $10K/month in government vs $2k in tech startups)
- Brain Drain of talent and rare relocation in Iran
- Cost of life in Tehran is expensive ($450k or 100sq. meters, middle-class area flat)
- An enclosed market for payments: you cannot pay an Iranian company from outside, no bank wire
- Visa policy still complicated, even more for US, UK, Israel
- English not a common language for business
TOP STARTUPS IN IRAN
DigiKala is the largest eCommerce platform in Iran, selling consumer electronics for the past 8 years
ZORAQ.com is the first Iranian travel portal providing Online Hotel Reservation service all around the globe
Takhfifan is the first and the biggest Group buying website in Iran. Operates in 7 biggest Cities in Iran
TOP PEOPLE TO KNOW IN IRAN
Mohsen Malayeri
Co-Founder, Managing Director
Avatech Accelerator
Startup Community Enthusiast. Currently CoFounder of Avatech and previously Iran Entrepreneurship Association (IEA)
Shayan Shalileh
Founder, Managing Director
Anetwork
Director and Founder of Iranian Website News Agency (Webna), Founder of Khavarzamin System Kish Company and Online Advertising Services
Reza Hashemi
Founder and CEO
Persian Commerce and Communications Co.
ICT Pro. Accomplished Entrepreneur. Co-founder of PersianBlog
Said Rahmani Khezri
Founder and CEO
Sarava
Responsible for worldwide business strategy, market development, corporate partnerships, investments, mergers and acquisitions
Patrick McDermott
Mentor
Avatech Accelerator
An entrepreneur based in Singapore with strong ties with the Iran tech scene
Pejman Nozad
Founding Managing Partner
Pejman Mar Ventures
Managing partner in Pejman Mar Ventures, “Silicon Valley’s hottest VC”, early investor in Dropbox, Zoosk, Path
IRAN
| GDP (in billions USD): | 403 |
| GDP per capita (in USD): | 5,165 |
| Population: | 80,840,713 |
| Population in 2050 (est.): | 100,044,560 |
| Internet Penetration: | 55.7 % |
| Mobile Penetration: | 15 % |
| Banking Penetration: | 75 % |
| Credit Card Penetration: | 24 % |
LINKS & RESOURCES
The Potentials & Futures of Iran
Iran Entrepreneurship: Market Analysis
Iran connectors & events of 2014
The Iran Mobile Market: Connectivity in 2014
A history of Iran business startups
Iran startup scene: turning top engineers into businessmen
Iran startup Shafajoo helps get rid of fake doctors
How to turn a “Lost Generation” of engineers in Iran into an innovation asset
Iran should take advantage of its Persia diaspora to become a startup nation
Behind the veil – Iranians hack the system and show an entrepreneurial mindset