Syria’s Startup Ecosystem: From Survival to Rebuilding
Syria’s startup landscape has changed in the past six months in ways unthinkable for over a decade. The fall of the Assad regime—long known for stifling businesses and suppressing startup growth—has unleashed a wave of ideas and entrepreneurial activity across the country. Startup activity in this short period has already surpassed the total volume of the previous five years, with a 150% increase in newly created ventures compared to the year before, according to figures by Startup Syria. It marks a historic moment for the small business sector.
Even amid years of crisis, Syrians have relied on entrepreneurship as a means of survival. Today, over 80% of people view entrepreneurship as “extremely important,” up from just 26% in 2015. From agritech to e-health and financial services, the entrepreneurial scene has burst into life with a stream of ambitious proposals aimed at addressing the country’s many challenges.
Yet so far, these ambitions remain largely aspirational. Turning ideas into viable businesses requires a long journey—one that most founders are not yet equipped to undertake, and one that the ecosystem is not ready to support.
As Syrian businesses begin shaping their post-conflict trajectories, national recovery priorities and the foundational needs of a startup ecosystem will inevitably overlap. When we hosted Hack for Syria, a hack-a-thon drawing over 5,000 Syrians, the majority of ideas focused on rebuilding core systems: infrastructure and public services (27.6%), education and skills development (26.9%), and economic development and employment (21.5%). Together, these accounted for more than 75% of participants’ focus.
Syria’s startup ecosystem is still in its infancy
Today, over half of startups are at the pre-seed stage, still seeking investment to turn concepts into viable businesses. At the same time, efforts to create a fully functioning ecosystem remain scattered.
Conferences, hack-a-thons, and regular gatherings have helped entrepreneurs exchange ideas and take practical steps to foster innovation. However, without coordination, these efforts have struggled to translate into a balanced national ecosystem. Despite emerging signs of innovation in several provinces, over 70% of startup activity remains concentrated in Damascus, which highlights the need for a more inclusive and decentralized approach, according to figures by Startup Syria.
To support that transformation, the startup ecosystem must rest on a solid foundation, drawing from successful post-conflict recoveries elsewhere. While legal reforms and policy changes will be essential to ignite the startup economy, they are not enough. A broader mindset shift is also needed—one that embraces collaboration over isolation, and innovation over repetitive models that lack relevance to local needs.
Syria’s exit from inward-looking, fragmented markets toward regional and global integration will strongly shape its recovery and capacity for innovation. But this shift cannot be top-down alone. It must begin at the grassroots level for real, sustainable change to take hold.
Long-term investments instead of short-term aid
As in many parts of the world, most Syrian startups still rely on bootstrapping (starting a business with little or no external funding) to get off the ground. The ecosystem has largely been shaped by UN agencies and NGOs that provide income opportunities for vulnerable communities. According to Startup Syria’s recent mapping (unpublished)—conducted with founders and community leaders—95% of organizations supporting startups are non-governmental.
Despite some progress, the mapping highlights major funding gaps. Development finance institutions, venture capital, private equity, and angel investors (early private funders, typically compensated with a share in the company) are nearly absent. Early-stage support—mentorship, events, and talent programs—is relatively abundant, but the imbalance makes it difficult for startups to grow beyond the idea phase.
For the ecosystem to mature, Syria must move past short-term, aid-driven models. Without follow-up support or investment pathways, many entrepreneurs stall after initial assistance ends. Promising ideas remain stuck, and founders risk becoming dependent on aid rather than building market-ready ventures.
Conflict, corruption, and sanctions long discouraged investors. But some are now taking note of the country’s shift and efforts to restore international ties.
Interest has begun to emerge, mainly from overseas, in funding startups operating in Syria. A new USD 15 million fund, Invest in Syria, was launched to support small and medium enterprises (SMEs) inside the country. New syndicate funds—such as Ebla Ventures and Ghaith Ventures—have also been announced by members of the Syrian diaspora in Gulf Cooperation Council (GCC) countries.
Investors, donors, and state-backed funds looking to play a long-term role in the country’s recovery can see innovative entrepreneurship as a strategic entry point. The enabling environment is still emerging, but recent government announcements signal openness to capital and collaboration.
Some sectors are ripe for that opportunity. Agrifood, education, transportation, healthcare, and e-commerce and fintech (financial technology) all face gaps in solutions. Several countries emerging from conflict have successfully used business reforms to energize these areas—but only when socio-political, economic, and legal conditions align within a unified institutional approach to combat unemployment and promote non-traditional venture models.
Local and diaspora founders can thrive together
Syria’s startup ecosystem, though still fragile, is no longer invisible. A young, digitally fluent generation is stepping up to reimagine the country’s future, and the diaspora is poised to play a critical role in accelerating this shift. The talent Syria lost to displacement is now an asset—many are eager to return, bringing global experience and networks. Paired with the resilience of those who stayed, this collaboration offers the best of both worlds.
To scale this momentum, founders need more than ambition. They need policy that enables risk-taking, access to capital and mentorship, collaborative spaces, and formal recognition. Strategic investment in infrastructure, legal reform, and skills development is essential.
Syria’s entrepreneurial future will not be built in isolation. It will be forged through connected, bold partnerships between local and diaspora entrepreneurs—linking global insight with local grit. This isn’t charity or soft power. It’s smart, forward-looking investment. And the time to build is now.