confirmed Egyptian Insurance Federation, that startups face several problems, including financial risks, which more than 80% of startups are exposed to due to cash flow problems, and startups often spend more than they earn during the first three years.
The Egyptian Insurance Federation, in its weekly bulletin, referred to the risks related to the product or service offered by the startup company and the resulting liability towards third parties, including the risks related to competition, where a patent must be registered for the unique selling point of the product or service whenever possible so that competitors cannot of stealing ideas.
The Egyptian Insurance Federation added that the most common risk is electronic penetration, as hackers have become widespread and are waiting for any loophole in the systems of emerging companies to take advantage of the situation, whether by requesting a ransom to restart the company’s system that was hacked or to steal customer data, employee records, bank account information, or any other Other relevant information.
The Egyptian Insurance Federation stressed that Egypt is the leading country in emerging projects, but rather the first country in Africa as an economy that attracts investment in emerging projects.
He added that the importance and necessity of insurance for start-up projects, especially since many startup companies view insurance as a luxury unlike reality.
The Egyptian Insurance Federation pointed out that using insurance policies as a means of transferring risks helps founders make work more attractive to partners and investors.
The Egyptian Insurance Federation stated that the work environment for start-up companies is highly diverse, which means that no two startup companies require the same type of insurance coverage.
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