Disruptech Founder Highlights Unique Investment Challenges in AI Startups in Egypt
Investing in artificial intelligence startups is fundamentally different from funding traditional ventures, according to Malek Sultan, co-founder of the Egyptian investment fund Disruptech. Speaking at the meska spark vol 2 event held at Creative University Center, Cairo, Sultan emphasized the need for tangible products and measurable market impact.
Sultan noted that AI startups cannot rely solely on theoretical ideas or pitch decks without a clear business model generating real revenue. In Egypt, the AI application layer faces rapid technological obsolescence, making products vulnerable to imitation and requiring stricter investment criteria than other sectors.
“Unlike fintech or other technology sectors, where strong ideas and visionary founders can sometimes justify early investment, AI startups must demonstrate real market traction from the earliest stages,” Sultan explained. He stressed that actual revenue is the key benchmark for investment, and long trial periods or free-service models are no longer viable in a fast-moving market.
He also highlighted the high failure rates in AI ventures, emphasizing that founders need flexibility, adaptability, and resilience to financial, operational, and sales pressures to sustain their startups over time.