Iranian Entrepreneurs Make Pitches That Are Just Practice, For Now : Parallels Young Iranians are brimming with ideas for tech startups. But extensive financial sanctions facing their country prevent them from entering the global marketplace.

Iranian Entrepreneurs Make Pitches That Are Just Practice, For Now

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Imagine this - you have a great idea for an internet startup company. You know how it works. You're ready to be part of the global market. There is one big problem. You live in Iran, a country facing the most extensive financial sanctions in the world. That was the challenge last month for a team of young Iranian entrepreneurs at a gathering for startups in Istanbul. NPR's Deborah Amos followed them as they made their pitch to bring new technologies to Iran.

DEBORAH AMOS, BYLINE: OK, here's the scene. In the basement of Microsoft's headquarters in Istanbul, there's the clatter of keyboards, the familiar pings of email alerts. At long wooden tables, almost everyone is peering into a laptop screen.


AMOS: The vibe is Silicon Valley, including a ping-pong table and endless free coffee and sweets. But this crowd represents a new tech culture in the Middle East. These startup weekends are part of that emerging culture. It's where aspiring entrepreneurs get to pitch ideas to successful tech company founders and venture capitalists. More than 100 internet startups from across the Middle East are here - from Jordan, Pakistan, Saudi Arabia - and there's one newcomer.

MOHSEN MALAYERI: We are so glad that today, we have two teams that have traveled from Tehran, and they're going to pitch here.

AMOS: He's 29-year-old Mohsen Malayeri. He's the founder of Avatech Accelerator. He calls himself a builder of startup communities in Iran.

Does it make people nervous to go and pitch?

MALAYERI: It does. It really does. The more pitch you do, the lesser stress you'll have for the next one.

AMOS: The pitches reflect the vision of this generation. They want to streamline everything, and some of the most successful companies are founded by women. Malayeri says, startup fever hit Iran about two years. He's organized about a dozen startup weekends in Iran for a generation excited about the prospects of a tech career in a country where 65 percent of the population is under 35 years old.

MALAYERI: And I told you about the average. It's like 23 to 25, usually. But we have people who are showing up - a 12-year-old guy with an idea, which is quite impressive sometimes.

AMOS: Here in Istanbul, this Iranian team hopes to impress the panel of mentors. Mostapha Amiri and Sotoodeh Adibi are huddled around a computer screen. They're practicing their pitch.

MOSTAPHA AMIRI: We do not have any kind of connectivity to Visa or MasterCard.

AMOS: Meet the founders of Zarin Pal, Iran's first e-commerce site. It's similar to PayPal. E-commerce is new in Iran, but the potential is huge in the country of 80 million. Amiri and Adibi say their service is catching on.

SOTOODEH ADIBI: Not like other countries, but it's going to become very popular year-by-year.

AMIRI: We have just 6 million online payments in Iran.

AMOS: Only six million?

AMIRI: Yeah, just.

AMOS: OK, you're going in now?

AMIRI: Yeah.


AMOS: In this first round, Amiri faces the panel of mentors who will help him shape the pitch. They include a venture capitalist from Silicon Valley and a couple of successful startup pioneers.

AMIRI: (Unintelligible) population in Iran...

AMOS: He outlines the Iranian market - a young connected population - no access to international credit cards, but 300 million debit cards linked to Iranian banks. Zarin Pal has built this into a successful Internet business for the domestic market. If the team had come from any other place in the Middle East, the company would be an obvious candidate for investment. But financial sanctions are still firmly in place, and that means the doors are closed to the global market. The mentors say there's not much they can do. Adibi and Amiri are deeply disappointed, and you can hear the pain.

How did it go?

ADIBI: Yeah, it's over.

AMOS: Was it good?

ADIBI: Good enough. Yeah.

AMOS: Was it helpful, though?

ADIBI: Helpful - they actually didn't say that they're going to help a lot in the - because of the sanctions.

AMIRI: We need the help to open the doors of our country.

AMOS: If the sanctions aren't gone, can you do this?

AMIRI: We will try.

AMOS: They voice the frustration of many young Iranians eager for change, for job opportunities, for a role in building Iran's future. Dave McClure, a mentor at this conference, says, he would invest in Iran if he could. He's a founding partner of 500 Startups, that backs promising internet businesses in the Middle East.

DAVE MCCLURE: We're, I guess, somewhat notorious for being one of the more frequent investors in startups outside the U.S., although not in Iran yet. Actually, that's still illegal, according to the current challenges that the U.S. government has with Iran.

AMOS: McClure encourages investments to counter the region's gloomy news narrative. His latest group is called Geeks on a Plane - investors that travel the region to finance the new tech culture - and Tehran is on his wish list for next year.

MCCLURE: Instead of boycotting countries, maybe we should be investing in their entrepreneurs as a way to have a better foreign policy approach and probably increase national security as a result.

AMOS: On the closing day of the competition, the Iranian team is one of 14 companies that makes it to the finals. Mostapha Amiri makes his presentation to the judges and a packed house. This is the pitch that counts.

UNIDENTIFIED MAN: How are you feeling? Are you nervous?

AMIRI: A little.

UNIDENTIFIED MAN: Can we do anything about you being nervous?

AMIRI: I don't know.

AMOS: It's all part of the culture of startup weekends. The audience claps a countdown for him to start.







AMIRI: Hi. I'm Mostapha from Zarin Pal. We are the first Iranian e-wallet system.

AMOS: He's honed the presentation over the past four days. He's learned to hit all the highlights. It's the first time for Iranian entrepreneurs to compete on an international stage. Mohsen Malayeri, the builder of startup communities in Iran who brought the team here, says, they won just by coming to Istanbul.

MALAYERI: I'm not sure if there's any cash prize in place, but, I mean, talking to top active investors is considered as a prize, right? So that's what they get.

AMOS: Are you surprised that the Iranian team got this far?

MALAYERI: I'm kind of happy. Yeah. I mean, these guys - it was their first pitch completely in English, so that was quite good.

AMOS: It's good enough to get an honorable mention in the competition - more important, the intention of international investors. If Iran sanctions are lifted, these young Iranians want to be ready to jump quickly into the global market. Deborah Amos, NPR News.

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