Iran Startup Pulse: Navigating Challenges and Embracing Growth (October 6 to October 13)

As we delve into this week's developments in Iran's startup ecosystem, it's clear that resilience and adaptability remain vital. The landscape continues to evolve with regulatory challenges, innovative launches, and insightful market analyses shaping strategic decisions.

Reflecting on previous weeks, when digital integration and strategic investments were prominent, this period highlights the complexities startups face within regulatory environments and the strides made in technology and market understanding.

One significant event was the temporary shutdown of Asanism (آسانیسم), a platform connecting customers with caregivers for older people and children. The Ministry of Health ordered the closure due to using the word "nurse" in their website and advertising, citing legal restrictions. Hamed Azizi, CEO of Asanism, expressed frustration over the lack of appropriate regulations for such startups and highlighted the platform's role in creating over 1,600 direct and indirect jobs. This incident underscores the regulatory hurdles innovative businesses may encounter and the importance of navigating legal frameworks carefully.

In venture capital news, Golrang Ventures announced the official launch of "Golrang Crowd" (گلرنگ کراد), their crowdfunding platform, after receiving authorization from the Iran Fara Bourse. This platform aims to support investable projects through crowdfunding, complementing Golrang Ventures' investment chain. Solmaz Sadeghnia, CEO of Golrang Ventures, indicated plans to invest in high-risk, high-value industries beyond the ICT sector by year-end. Notably, despite 40% of Iranian businesses having the potential to benefit from equity-based crowdfunding, no projects have yet successfully raised capital through this method in Iran—a gap Golrang Crowd seeks to address.

Legal developments also made headlines as the Supreme Court exonerated Mohammad Javad Shakouri Moghadam, CEO of Aparat, from charges of violating authors' rights in a lawsuit filed by IRIB. The court recognized Aparat as a hosting platform where users upload content according to site policies, placing responsibility for the content on the users rather than the platform itself. This ruling sets a precedent for user-generated content platforms in Iran, clarifying their legal standing and responsibilities.

New reports from Dataak and Yektanet enriched market insights. Dataak's "Top 100 Most Viewed Iranian Brands" report revealed that Irancell leads with 5.4 billion views related to its brand, followed by Hamrah-e Aval and RighTel. The telecommunications and internet services sector accounts for 57.6% of total brand views, highlighting the industry's significant reach. Interestingly, while Iranian brands differ in activity type compared to international counterparts on platforms like Instagram, they compete closely in follower counts. For instance, Ofogh Kourosh, a domestic retail chain, boasts 2 million followers, nearing Walmart's 3.3 million—a testament to the potential of Iranian brands in leveraging social media engagement.

Yektanet's report on super-app usage among Iranian users in 1402 (2023/2024) showed that over 60% utilize the Snappsuper-app, with My Irancell, Rubika, and App following. Generation Z users particularly favor Snapp, indicating a generational shift in app usage patterns. This data provides valuable insights for businesses targeting younger demographics through super-app platforms.

In the competitive landscape of super-apps, TAPSI announced the upcoming addition of "TAPSI Doctor," which will allow users to order medications from nearby pharmacies, including prescription drugs and special patient medications. Currently, in beta testing with a limited user base, this move positions TAPSI as a new competitor to services like Snapp Doctor, expanding its footprint in the health sector.

The Iran Venture Capital Association's latest report indicated that total direct venture capital investment in Iran reached 1,847 billion tomans across 407 contracts in the past year. The average value per contract was 4.5 billion tomans, with the most significant investor being the Mobarakeh Steel Venture Fund, injecting 600 billion tomans. Notably, over 58% of these investments were concentrated in Tehran, with advanced materials, chemical technology, machinery, and equipment being the most attractive sectors. The investment process, from screening to first payment, averaged 51 days, providing a benchmark for startups seeking funding.

Additionally, Yektanet's portrayal of digital advertising in Iran revealed that 20% of the country's advertising market is now digital, amounting to 11,000 billion tomans. The cumulative monthly income of Iranian influencers and high-traffic social media pages from advertising exceeds 500 billion tomans, tripling compared to the previous year. This surge reflects the growing influence of digital content creators in marketing strategies.

Insights from Reza Novidi Neko, CEO of Nexlooks Market Analysis Agency, highlighted that only 27% of audiences for home streaming networks watch content via paid subscriptions, a decrease from previous years. The majority access content through unofficial channels like Telegram downloads or satellite broadcasts. Despite this, the penetration rate of subscription-based video-on-demand (SVOD) services has increased to 16.8%, indicating a complex market where official and unofficial access coexist.

These developments collectively paint a picture of an ecosystem that is dynamic and full of potential but also faces challenges requiring strategic navigation. Success hinges on understanding regulatory landscapes, leveraging market insights, and innovating in response to consumer behaviors.