Unicorns Vs. Camels: A New Narrative For Emerging Markets

In the world of tech startups, unicorns – companies achieving billion-dollar valuations – have long symbolized success. But in emerging markets like the MENA, this obsession with unicorns can often misguide founders. Instead, we should embrace a “camel mindset,” which doesn’t discount unicorn ambitions, but prioritizes resilience, resource efficiency, and adaptability.  

Camels, much like emerging market founders, are built for survival in challenging environments. They are resourceful, move in packs, and pave the way for others – historically, as part of trade caravans. These qualities resonate deeply with Arab founders, who face multidimensional setbacks, from volatile currencies to fragmented regulatory landscapes.  

A camel may grow a horn (or wings) if the time comes, but it doesn’t need to identify as a unicorn to succeed. The narrative should shift from valuations alone to building businesses that withstand the test of time, achieving not just financial success, but true independence, agency, and impact. 

How to Build A Camel Business

The foundation of a camel business starts with people, governance, and self-awareness. 

• MISSION AND CULTURE AT THE CORE Founders must build rapport with their stakeholders, and make their company’s mission and culture visible and adaptable. From the minimum viable product (MVP) stage to an initial public offering (IPO), sharing a clear mission signals maturity, and positions the founder as a thought leader in the ecosystem. It also helps distant stakeholders, from investors to partners, better understand and trust the founder’s vision. 

• GOVERNANCE AS A GROWTH CATALYST Good governance is not a barrier to growth; it’s a foundation for it. In tech companies, this begins with robust data management and cybersecurity practices. Customer trust, especially when handling personal, medical, or financial data, is a cornerstone of long-term success. Neglecting this in favor of rapid growth can lead to costly setbacks. Governance also involves regulatory compliance. While some founders might say, “Better to beg for forgiveness than ask for permission,” that mindset doesn’t work in our region. Arab regulators, though complex, are increasingly open to collaboration with tech founders. Engaging with them early signals responsibility and foresight. In Egypt, for instance, I’ve witnessed regulators at all levels express genuine excitement to support startups while ensuring compliance. 

Use Case: Regulatory Sandboxes

For fintech companies innovating in unregulated or emerging sectors, partnering with regulators through sandboxes can pave the way for success. By collaborating with regulators to establish appropriate frameworks, these companies may experience a temporary slowdown in growth during the testing phase. However, the long-term advantages – including obtaining necessary licenses, attracting cautious investors, and building user trust – often outweigh the short-term compromises. 

Some of the most notable global examples have proven the effectiveness of regulatory sandbox engagement, showcasing their ability to innovate, align with compliance, and remain highly valued in their markets. For instance, Revolut leveraged the UK Financial Conduct Authority’s (FCA) regulatory sandbox to test innovative banking solutions, ultimately earning a banking license that bolstered its credibility and valuations. Similarly, Cocoon, an insulation-focused fintech, gained regulatory insights through the sandbox process, ensuring smoother market entry and increased investor confidence. 

Research shows that fintech companies participating in regulatory sandboxes have a significantly higher probability of securing funding. While the testing period may feel like a setback, it positions companies for sustainable success by fostering innovation, ensuring compliance, and enhancing market credibility. 

In our region, sandboxes are a vital tool for addressing fragmented regulatory environments. Founders who engage proactively with regulators to establish frameworks for new verticals are not only paving the way for themselves but also creating opportunities for their ecosystems. Once regulatory licenses are awarded, these companies can command higher valuations, attract hesitant investors, and generate user momentum. 

Growth: Balancing Capital and Resilience

Growth is essential, but it must be approached with awareness of the regional context. Capital in our markets can be scarce, volatile, or delayed. Founders should understand their investor audience from day one. Many venture capitalists (VCs) in the region now operate with impact theses or backing from development finance institutions (DFIs), emphasizing compliance and sustainability alongside financial returns. 

At the same time, founders must remain cash-efficient and bootstrap when needed. This resilience comes naturally to our region, which has a wealth of human resources but faces challenges like arid capital environments, volatile currencies, and sociopolitical setbacks. Camels don’t stop walking, even in these conditions, and neither should founders. 

A Call to Regional Founders: Write Your Own Narrative

While it’s easy to find technical advice on fundraising or managing investor expectations, what’s missing is an honest conversation about positioning and narrative. Emerging market founders must claim their own terms, reflecting their unique ecosystems and realities. A USD-pegged valuation isn’t always the ultimate marker of success. Instead, focus on being a permanent player in your market, building businesses that last and thrive despite external challenges. 

At Plug and Play, we love unicorns – they are our pride and joy. But I’m personally more attached to camels. Growing up, I watched them cross the desert from the backseat of my father’s red Blazer during school holidays. They seemed slow, but they never stopped. That’s the mindset I want for every founder: steady, resilient, and unstoppable. 

ABOUT THE AUTHOR

Karima El Hakim is a key driving force behind Plug and Play’s investments and operations in Africa, serving as the Country Director for Egypt with a mandate to expand its ventures across the continent. With a career spanning leadership roles at Fawry, Falak Startups, and Orascom Development Holding, Karima has become a recognized expert in fostering innovation, scaling startups, and building robust ecosystems. She holds a BSc in Business Administration from the American University in Cairo and an MSc in Market Intelligence and Research from Sciences Po Paris (IEP). 

In addition to her professional endeavors, Karima humbly invests as an angel in Egyptian founders, reflecting her deep commitment to supporting local entrepreneurship. Known for her hands-on approach, she provides founders with tailored guidance while advocating for governance and transparency in stakeholder relationships. She is particularly passionate about fostering alignment with government and regulatory bodies, ensuring that startups navigate these complex landscapes effectively. Karima’s holistic approach combines strategic insight with grassroots support, empowering founders to build sustainable, high-impact businesses that thrive in challenging environments.