Jan 2, 2019 · 42m · a16z
a16z Podcast | Is Entrepreneurship a Universal Language?
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In this episode of the a16z podcast, host Sonal Chokshi, tech author Christopher Schroeder, and AvaTech co-founder Mohsen Malayeri discuss the rapid emergence of Tehran's startup ecosystem, detailing how local entrepreneurs overcome international sanctions, adapt business models, and foster a Silicon Valley mindset in Iran.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. The host holds 1.3% of the talking time here. How this is scored →
The host as informed peer 3.9 Guest teaching 4.2 Guest disagreement 1.3 The host pushing back 1.2
speaking balance: gold is the host, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 14:12 Rejecting Silicon Valley Accelerator Templates
Mohsen firmly reframes the host's implicit assumption about startup accelerators, explaining why standard Silicon Valley models like Y Combinator and Techstars cannot be directly copied in emerging markets like Iran.
Hardest push from the host ▶ 30:32 Challenging Optimism with Corruption & Rule of Law ConcernsChris refuses to remain on purely glowing talking points, insisting on confronting the hard institutional realities of doing business in Iran including corruption, lack of rule of law, and capital repatriation obstacles.
Biggest teaching moment ▶ 34:12 Highlighting Iran's 80% Online Payment Adoption RateMohsen educates the host on Iran's surprisingly advanced payment infrastructure, revealing that 80% of top e-commerce transactions are paid online rather than cash-on-delivery, far outstripping regional Arab peers.
The host holds their own ▶ 7:40 Framing Local Founders as Market ImprovisersChris demonstrates extensive global market expertise by rejecting the conventional 'copycats' label and introducing his own published framework of 'improvisers', comparing Iranian tech platforms to Alibaba, Baidu, and MercadoLibre.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | The host as informed peer | Guest teaching | Guest disagreement | The host pushing back | Why |
|---|---|---|---|---|---|---|
| Rise of Tehran's Startup Ecosystem & Startup Weekends | 3 | 3 | 1 | 1 | Chris Schroeder prompts Mohsen to provide a tour of Tehran's emerging startup scene. Mohsen explains how reading Brad Feld's book led to hosting 35 Startup Weekend events across Iranian cities in 12 months. | |
| Major Iranian Tech Success Stories: Digikala, Aparat, & Cafe Bazaar | 4 | 4 | 1 | 1 | Mohsen outlines major Iranian tech success stories including Digikala, Aparat, and Cafe Bazaar. Chris shows specific context about Google Play and iPhone access limitations under treasury sanctions. | |
| Local Adaptation, Copycats vs. Improvisers, and Brain Drain Reversal | 5 | 4 | 1 | 1 | Chris introduces his book's conceptual framework distinguishing copycats from improvisers, citing global examples like MercadoLibre and Maktoob. Mohsen explains how successful local stories are stemming brain drain and bringing diaspora talent back. | |
| AvaTech Accelerator: Vision, Model, and Tailoring to Local Needs | 3 | 5 | 2 | 1 | Mohsen gently pushes back against blindly copying Silicon Valley accelerator models like Y Combinator or Techstars. He educates the host on why Tehran required a custom 6-month program due to immature angel networks and a nascent mentorship culture. | |
| AvaTech Cycle 1 Dynamics & Key Entrepreneurial Challenges | 3 | 4 | 1 | 1 | Mohsen describes AvaTech's Cycle 1 dynamics, mentor network expansion, and core obstacles. He highlights leadership soft skills as the main internal founder challenge and a pervasive lack of belief from institutions as the primary external barrier. | |
| Government Role, ICT Infrastructure, and Early Portfolio Examples | 4 | 3 | 1 | 1 | Chris contrasts Western media stereotypes of Iran with his own observation of 31 government-backed accelerators and forward-thinking ICT ministers. Mohsen confirms the government's post-election focus on building underlying digital infrastructure. | |
| Global Competition, Post-Sanctions Dynamics, and Foreign Entry | 5 | 5 | 2 | 2 | Chris brings up global competitive dynamics, drawing parallels to Turkish startup exits and Flipkart's defense against Amazon in India. Mohsen reveals that foreign players like Rocket Internet have already begun operating quietly in Iran ahead of sanction removals. | |
| Business Environment, Regulations, and Digital Payment Infrastructure | 4 | 6 | 2 | 2 | Chris challenges the guest regarding institutional obstacles such as corruption, rule of law, and capital repatriation. Mohsen acknowledges systemic friction like taking 4-5 months to register a business, but surprises the host by revealing Iran's 80% online payment adoption rate. | |
| Mobile First Growth, Silicon Valley Mindset, and Universal Entrepreneurship | 4 | 4 | 1 | 1 | The exchange concludes with a discussion on mobile adoption, 120% mobile penetration, and adding 1 million smartphones monthly. Chris and Mohsen agree that entrepreneurship acts as a universal language transcending geopolitical borders. |
Statements from this episode (18)
Malayeri organized 35 Startup Weekends across Iranian cities in 12 months
“For example, only the last 12 months, we did like 35 start-up weekend events in different cities.”
Digikala is the largest online retailer in Iran
“Digicolor is basically the biggest online retail in Iran. It's like Amazon of Iran.”
Cafe Bazaar maintained market dominance in Iran over Google Play
“By the time that the Google play service was opened up in the country, although there was, there hasn't been a lot of advertising around it, which I don't think Google needs, but cafe buzzer has already created some domination in the market. So they are still …”
Yahoo acquired Middle Eastern portal Maktoob for nearly $200 million
“I had a wonderful entrepreneur who built what was effectively the Yahoo of the Middle East called Mach two, which got bought by Yahoo for almost two hundred million dollars.”
Iran graduates up to 700,000 engineers across all disciplines annually
“You guys graduate something like six or 700,000 engineers across the spectrum of engineering every year.”
Global tech diaspora members are returning to Iran to build startups
“We have started to see some of those successful diaspras started to coming back to the country. Those who have been working in top tech, you know, engineering companies and top startup companies, they now realize that maybe this emerging market is the right th…”
Silicon Valley accelerator models fail in emerging markets like Iran
“We haven't tried to copy Techstars or Y Combinator company to here, which we believe that doesn't work in, in such markets.”
Iranian entrepreneurs face a lack of belief from government and investors
“The biggest challenge that the entrepreneurs in Iran are faced with is the word belief. I think that's the biggest challenge that they're believing. Nobody is believing them. I mean, the government, sometimes they don't believe in them. The investors, they don…”
Schroeder observed 31 government-backed technology accelerators during his Iran visits
“I was quite surprised to see 31, ah, government accelerators with some very good technology in it and I was very surprised to talk to ministers in the information communication technology area who talk about a hell of a vision to build infrastructure there, to…”
Turkish food delivery startup Yemeksepeti was acquired for over $650 million
“The food service service there, the seamless of Turkey is a company called Yema Sepeki, which just got acquired for over six hundred and fifty million dollars, and there have been several multi-hundred million dollar exits there.”
Local market dynamics pose a greater barrier than language for startups
“Language is absolutely a barrier, but I don't find it as the biggest barrier. I think the biggest barriers is the local challenges that building is a business has in this market from understanding the dynamics of the market, the perspective of the customer, ho…”
Rocket Internet is quietly operating and spending heavily in Iran
“There is a well-known company, Rocket Internet, which has already started operating in the country. A German company, which is basically cloning the successful models in emerging market, where the ecosystem is not really bright that local entrepreneurs be able…”
Iranian Android app marketplace Cafe Bazaar reaches 5 million daily users
“Now there is a platform where fifteen million, more than fifteen million users are already using it. And five million people are using it every day, like daily users.”
A local Iranian display ad network serves 60 million banners daily
“There are, for example, a platform of local display ads network, which is serving more than sixty million banners every day.”
Iran adds one million smartphones to its cellular networks every month
“Every month there is one million smartphones being added to the network of the country.”
Top Iranian e-commerce websites process 80 percent of payments online
“The top websites are now exploring 20% cash on delivery and 80% online payments.”