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Hamouda made the remarks during a panel at the Entlaq Summit in El Gouna, held to launch the annual report on Egypt’s entrepreneurship sector. He discussed how founding Thndr changed his view of the way startup founders approach fundraising.

Funding is a means, not a measure of success

Hamouda said founders in the early stages constantly hear about companies raising large sums from investors and delivering strong growth. That can lead them to equate the size of funding with success, or to view securing a major round or reaching a specific dollar amount as an achievement in itself.

He said that perception changes with experience. A large funding round may initially appear to be clear evidence of progress, but founders eventually realize that being “Well Funded” does not necessarily mean a company is moving in the right direction or has achieved its core objectives.

Funding remains critical because it gives startups room to test new ideas and products, experiment with different models, make mistakes and learn from them without every setback threatening the company’s survival.

From survival funding to growth capital

Hamouda stressed that the more important question is not how much money a company has raised, but what it will do with that money and whether it will help move the business into a new stage of growth.

He said the timing of fundraising also matters because funding needs change as a company moves through different stages. At the beginning, capital may be needed to test ideas, understand the market, and identify the right product and customers.

After reaching a more advanced stage, particularly following a Seed Round, the purpose of fundraising should shift toward financing new growth paths rather than simply ensuring survival and continued operations.

Using funding to accelerate growth

The goal, Hamouda said, should be to use current funding to build the company’s capabilities and deliver tangible growth. When the company returns to investors, it should have a clear path that can be funded rather than simply needing additional cash to keep operating.

The distinction between raising money to survive and raising it to fund growth is central to the startup journey, Hamouda said. Success is not defined only by the amount raised, but by the ability to turn capital into experiments, results and real growth, until funding becomes a tool for accelerating growth rather than a condition for survival.