Kholoud Hussein 

Startup growth is often described as a linear process: build a product, acquire customers, generate revenue, raise capital, hire more people, and expand. But some of the most powerful startups grow differently. Instead of treating growth as a sequence of separate steps, they create a system in which each achievement strengthens the next. This is the idea behind the growth flywheel.

A flywheel is a self-reinforcing cycle. The more momentum it gains, the easier it becomes to keep moving. In a startup, this means using customers, data, product improvements, technology, talent, and capital to create a continuous loop of growth.

The concept differs from a traditional growth funnel. A funnel describes how potential customers move from awareness to purchase and retention. A flywheel focuses on what happens after those interactions: how each customer, transaction or improvement creates an advantage that helps attract the next customer.

How the startup flywheel works

Consider a software startup. It launches a product and attracts its first group of customers. Those customers provide revenue, but they also generate something equally valuable: feedback.

The startup uses that feedback to improve the product, making it more useful and easier to adopt. A better product can increase customer satisfaction, retention and referrals, helping the company attract more customers. More customers generate more revenue and more feedback, allowing the company to continue improving.

The cycle then repeats:

More customers → more feedback and data → better product → stronger customer value → more customers.

The important point is that growth is no longer simply an outcome. Growth becomes an input into future growth.

Why this matters for startups

This model is particularly important for startups because they typically operate with limited resources. They cannot always compete with established companies through larger marketing budgets, bigger sales teams or stronger brand recognition.

A flywheel can provide another source of advantage: compounding momentum.

For example, a marketplace can become more valuable as it attracts more buyers and sellers. More sellers create greater choice, which attracts more buyers; more buyers increase the opportunity for sellers, encouraging more suppliers to join.

Similarly, a fintech startup may use transaction data to improve its products and risk assessment. A SaaS company can use customer behavior to refine its software. A platform can benefit from network effects as each additional user increases its value to others.

Different businesses have different flywheels, but the principle is consistent: the business should become stronger because it is growing.

Beyond customers: Talent and capital

The flywheel can extend beyond the product itself.

As a startup grows, it can attract stronger talent, build relationships with larger customers and gain access to additional capital. Experienced employees may eventually become founders themselves, while successful investors can reinvest returns into new companies.

This creates a broader ecosystem in which one company's growth can contribute to future entrepreneurial activity.

Capital, however, should be viewed as fuel rather than the flywheel itself. Funding can accelerate hiring, product development, and expansion, but it cannot substitute for customer demand or a sustainable business model. If growth depends entirely on continuously raising more money, the flywheel has not necessarily been created.

Building a sustainable flywheel

The strongest startup flywheels are built around genuine value creation.

Companies need to identify what becomes more valuable as they scale. It could be customer data, network effects, brand recognition, distribution, technology, operational efficiency, or accumulated expertise.

The objective is not simply to grow faster. It is to build a business in which growth creates the conditions for further growth.

That is what makes the flywheel powerful. A startup stops relying exclusively on constant external inputs and begins generating its own momentum—turning customers into data, data into better products, products into stronger demand, and stronger demand into the next stage of growth.

Noha Gad

As Saudi Arabia accelerates its digital transformation agenda, artificial intelligence (AI), cloud computing, cybersecurity, and intelligent infrastructure are becoming central to the Kingdom’s economic and technological development. Its ambition to become a global technology and AI hub is creating new opportunities for organizations that can help businesses and government entities move from experimentation to secure, scalable, and commercially valuable digital solutions.

NTT DATA is playing a pivotal role in this transformation, supporting public and private organizations across Saudi Arabia with digital infrastructure, cloud adoption, data and AI solutions, cybersecurity, and managed services. 

On the sidelines of LEAP 2026, Sharikat Mubasher held an interview with Ahmad Qarout, Technology Solutions Leader at NTT DATA Saudi Arabia, to learn more about the company’s business in the Kingdom, how its solutions support organizations’ digital transformation and cloud adoption, and its long-term strategy to expand in Saudi Arabia and the broader region.

First, could you walk us through NTT DATA's business in Saudi Arabia, and explain how your solutions contribute to accelerating digital transformation and advancing the technology industry in the Kingdom?

Saudi Arabia is one of NTT DATA's most strategic markets globally, and we are proud to support public and private sector organizations across their digital transformation journeys. We help clients modernize infrastructure, accelerate cloud adoption, strengthen cybersecurity, harness data and AI, improve customer experiences, and operate complex digital environments at scale. 

As the Kingdom moves from digital transformation ambition to large-scale execution, organizations are increasingly looking for partners that can not only design and deploy technology, but also operate, secure, and continuously optimize it. This is where NTT DATA differentiates itself. We combine global expertise with strong local engagement, helping organizations turn innovation into measurable business outcomes. 

Our work directly supports Vision 2030 by enabling organizations to leverage AI, cloud, data analytics, intelligent automation, and cybersecurity to improve productivity, accelerate innovation, and develop new capabilities. We are equally committed to knowledge transfer, skills development, and building a sustainable local digital ecosystem that supports the Kingdom's long-term growth ambitions. 

NTT DATA is participating in LEAP 2026 to showcase AI-powered intelligent infrastructure and cutting-edge solutions. How do these technologies work together to create a truly intelligent ecosystem within Saudi Arabia?

A truly intelligent ecosystem requires much more than AI applications alone. It depends on the integration of data, infrastructure, networking, cloud, security, governance, and operational expertise working seamlessly together. At LEAP 2026, NTT DATA showcased how these elements combine to create an environment where AI can move from experimentation to enterprise-wide value. 

Our approach brings together AI solutions, modern digital infrastructure, advanced networking, cybersecurity, and intelligent operations to help organizations automate workflows, improve decision-making, enhance customer experiences, and unlock greater value from enterprise data. This creates a secure foundation for scaling AI responsibly and effectively. 

A key example is the new NTT DATA AI Factory Lab in Riyadh, which will provide organizations with hands-on experiences and practical demonstrations of real-world AI use cases. The lab will feature technologies including the Cisco Secure AI Factory with NVIDIA, allowing organizations to explore how AI workloads can be built, deployed, governed, and scaled on an enterprise-grade foundation while maintaining visibility, security, compliance, and operational resilience. 

How do you assess the role of premier events such as LEAP 2026 in strengthening the Kingdom's position as a global AI and technology hub?

LEAP has become one of the world's most influential technology events and plays a critical role in advancing Saudi Arabia's position as a leading global AI and innovation hub. It provides a platform that brings together technology leaders, policymakers, investors, startups, hyperscalers, and enterprise customers to exchange ideas, showcase innovation, and accelerate partnerships. 

What makes LEAP particularly important in 2026 is that it reflects the evolution of the Saudi technology market. The conversation has shifted from digital ambition to practical execution, with organizations focused on scaling AI, building resilient infrastructure, and delivering measurable outcomes. Events such as LEAP help facilitate these conversations and drive collaboration across the ecosystem. 

For NTT DATA, LEAP is an opportunity to engage directly with customers and partners, demonstrate real-world innovation, and contribute to the development of a thriving technology ecosystem aligned with Saudi Arabia's Vision 2030 goals. 

Does NTT DATA plan to announce any strategic initiatives or partnerships during LEAP 2026?

NTT DATA continues to invest in strategic partnerships and ecosystem collaboration across Saudi Arabia and the wider region. The growing number of partnerships and MOUs reflects the direction of the Saudi market itself, where collaboration between global technology leaders, local organizations, and government stakeholders is becoming increasingly important. 

One of our key initiatives and announcements is the launch of the NTT DATA AI Factory Lab in Riyadh, which brings together NTT DATA's AI expertise with technologies from leading partners including Cisco and NVIDIA. The lab is designed to help organizations move from AI exploration to practical implementation through executive workshops, demonstrations, and real-world use case development. 

What is NTT DATA's long-term strategy for expanding its business within Saudi Arabia and the broader region?

Our long-term strategy is centered on supporting the next phase of growth in Saudi Arabia and the Middle East, where digital transformation is increasingly becoming an ongoing operational capability rather than a one-time project. We are investing in local presence, local talent, and in-country delivery capabilities to help customers manage increasingly complex and mission-critical technology environments. 

We see significant opportunities in AI, cloud, cybersecurity, intelligent infrastructure, data-driven transformation, and managed services. As organizations scale AI and modernize their operations, they require trusted partners that can help them operate securely, meet sovereignty requirements, and continuously optimize performance. 

The launch of the AI Factory Lab in Riyadh is one example of this commitment. More broadly, our goal is to help organizations across the region build resilient, secure, and future-ready digital foundations while supporting national priorities around innovation, skills development, and economic diversification. Ultimately, we want to help clients transform ambitious digital investments into sustainable business outcomes and long-term value creation. 

Ghada Ismail

Not every startup wants to become the next billion-dollar company. Some founders are less interested in chasing huge valuations and more interested in building a business that can survive when things get tough.

This is where the idea of a cockroach startup comes in.

The name may sound unusual, but the idea behind it is fairly simple. A cockroach startup is built to be resilient. It aims to keep operating through difficult markets, limited funding, changing customer needs, and unexpected setbacks.

In other words, it is a startup that focuses on staying alive and growing steadily rather than expanding as quickly as possible.

Where Does the Term Come From?

The comparison comes from the insect itself. Cockroaches have a reputation for surviving harsh conditions, which is exactly the quality the term is meant to describe in a business.

A cockroach startup is usually careful with its money, keeps its operations relatively lean, and looks for ways to generate revenue instead of depending entirely on investors.

That does not mean these companies never raise funding. They can still attract venture capital and other forms of investment. The difference is that funding is treated as a tool for growth rather than the only thing keeping the company going.

A cockroach startup also takes a more cautious approach. Instead of asking, “How quickly can we grow?” its founders may be asking, “How can we grow without running out of money?”

That difference from other startups can affect almost every part of the business, from hiring and marketing to product development and expansion plans.

For example, a startup following the cockroach model may avoid hiring a large team before there is enough revenue to support it. It may also focus more heavily on keeping existing customers rather than spending heavily to acquire new ones.

What Makes a Startup a Cockroach?

There is no fixed formula, but a few characteristics tend to stand out.

The first is financial discipline. Founders pay close attention to expenses, cash flow, and how long their available capital can support the business.

Another is an early focus on revenue. A company does not necessarily have to be profitable from the beginning, but having paying customers can give it more room to operate when fundraising becomes difficult.

Then there is adaptability. Startups rarely follow their original plans exactly. Customer demand can change, competitors can appear, or an economic downturn can force founders to rethink their strategy. A resilient startup needs to respond rather than simply stick to the original plan.

A smaller, more focused team can help with this as well. When there are fewer layers of management, decisions can often be made faster, and resources can be directed toward what matters most.

Why Does the Model Matter?

The cockroach approach has become particularly relevant during periods when startup funding becomes harder to secure.

When investors are willing to put large amounts of money into startups, companies can afford to prioritize growth over profitability for a while. But when funding slows, businesses that have been spending heavily without generating enough revenue can quickly find themselves under pressure.

A more resilient company has a better chance of weathering that period.

It may not grow as quickly as a heavily funded competitor, but it can have more control over its future. It may also avoid having to raise money simply because it needs enough cash to keep the lights on.

Is a Cockroach Startup Better?

Not necessarily.

Some businesses genuinely need significant amounts of capital to grow. A technology company developing complex infrastructure, for example, may need substantial investment before it can generate meaningful revenue. In other markets, moving slowly can allow competitors to get ahead.

So the cockroach model is not a rule that every founder should follow.

Its real value is the mindset behind it: build a company that can survive before assuming it will always have access to more money.

A startup does not need a billion-dollar valuation to be successful. Sometimes, success simply means building a useful product, earning loyal customers, keeping the business financially healthy, and being able to make it through the next difficult period.

That may not be as flashy as a unicorn story, but for many founders, it can be a much more realistic definition of success.

Noha Gad

Businesses do not all operate the same way throughout the year. Some enjoy steady demand month after month, while others experience clear peaks and quieter periods driven by seasons, holidays, or industry cycles. Understanding these patterns is essential for owners, managers, and investors who want to plan wisely and avoid cash-flow surprises. From tourism resorts and landscaping companies to holiday retail and travel services, seasonal companies can be highly profitable when managed well; however, they also face distinct challenges in finance, staffing, and marketing. 

What are seasonal businesses?

Seasonal business refers to fluctuations in business that correspond to seasonal changes. This does not mean they operate only in one season for the most part, with a few exceptions. Key examples of seasonal businesses include alternative holiday retailers, moving services, tour guides, holiday clubs, and more. There are few steps founders and business owners must follow to start a seasonal business:

• Understand the market. As an owner, you must be sure there is enough demand for the products or services that can generate enough income during the peak season. To gain knowledge, you can conduct simple market research, asking potential customers whether they would buy from you at the prices you are considering charging.
• Develop a marketing plan. Seasonal businesses must often work harder to promote themselves, often to simply remind customers they are there. To hit the ground running, you should leave enough time for your publicity and advertising to attract customers. 
• Manage cash flow. Successful cash flow management can represent a significant challenge for seasonal businesses because they receive most of their income in a set period, but may have outgoings at other times. The temptation can be to spend too much when cash is plentiful, creating cash flow issues when revenue is down.
• Purchase essentials. You must accurately estimate demand by using your market knowledge/research. Getting favorable terms from suppliers can be more difficult when buying within a limited period, but there's no harm in trying by using your business relationship with them. 
• Diversify products. If offering discounts and holding promotions doesn't help you to make sales when sales slow down, maybe you could modify your offer to give it wider and longer-lasting appeal. 
• Improve offering and analyze results during quiet period. Use quiet periods to analyze your results and think of ways you can improve the business for when it becomes active again.  

Key challenges seasonal businesses face

Seasonal businesses share several recurring difficulties that stem from their uneven revenue patterns. These challenges affect cash flow, staffing, inventory, and overall planning.

• Cash-flow volatility: revenue concentrates in a few busy months, while many costs, such as rent, loan payments, insurance, and subscriptions, continue year-round. This mismatch can create liquidity gaps during the off-season.
• Staffing and training pressures: Owners must hire and train temporary staff quickly for peak periods, then manage layoffs or reduced hours when demand falls. High turnover and repeated onboarding can raise costs and affect service quality.
• Inventory and capacity planning risks
  Over-ordering before a slow period ties up cash in unsold stock, while under-ordering before a peak can lead to missed sales and dissatisfied customers. Balancing inventory levels with uncertain demand is a constant challenge.
• Marketing timing inefficiencies. Spending on advertising too late or too early reduces return on marketing investment. Seasonal businesses must align promotion with the demand curve to maximize impact.

To sum up, seasonal businesses can deliver strong profits, but only when owners plan for the full annual cycle, not just the busy months. Success depends on understanding demand patterns, preparing a focused marketing plan, and, above all, managing cash flow so that peak-season earnings cover off-season costs.

The main challenges, such as cash-flow volatility, staffing swings, inventory risks, and mistimed marketing, are predictable and manageable with the right discipline. Founders who research their market, negotiate smartly with suppliers, diversify offerings, and use quiet periods to analyze results and improve operations are better positioned to turn seasonality from a risk into a strategic advantage.

Ghada Ismail

When people talk about venture capital and private equity, two terms appear repeatedly: Limited Partners (LPs) and General Partners (GPs). While both are essential to an investment fund, they play very different roles.

In simple words, LPs provide the capital, while GPs manage and invest it. Understanding this relationship is key to understanding how venture capital and private equity funds work.

What is a Limited Partner?

A Limited Partner is an investor who commits money to an investment fund but generally does not participate in its day-to-day management.

LPs can include pension funds, sovereign wealth funds, family offices, insurance companies, endowments, banks, and high-net-worth individuals. In the venture capital ecosystem, they provide the majority of the capital that funds use to invest in startups.

LPs typically commit a specific amount to a fund, but they do not necessarily transfer the entire amount upfront. Instead, the GP can make capital calls when investments or other fund expenses require funding.

In return, LPs receive a share of the fund's returns. Their potential liability is generally limited to the amount they have committed to the fund, which explains the term "limited" partner.

What is a General Partner?

General Partners are responsible for running the investment fund.

The GP is typically the venture capital or private equity firm managing the fund. Its responsibilities include identifying investment opportunities, conducting due diligence, negotiating deals, supporting portfolio companies, and deciding when to exit investments.

GPs also manage the fund's relationship with LPs, provide performance updates, and oversee the fund's overall strategy.

Unlike LPs, GPs are actively involved in investment decisions and typically commit some of their own capital to the fund.

The basic financial structure behind LP and GP partnerships

LPs and GPs usually make money in two main ways: management fees and carried interest.

GPs typically charge a management fee to cover the costs of running the fund, such as salaries, office expenses, and other operating costs. They can also earn carried interest, or “carry,” which is a share of the profits made from the fund’s investments.

For example, if a venture capital fund invests in several startups and those investments become highly successful, the GP can receive a percentage of the profits once certain conditions are met.

LPs receive most of the profits generated by the fund after management fees and carried interest are deducted. In simple terms, LPs provide most of the capital, while GPs manage the fund and earn fees plus a share of the profits if the investments perform well.

LP vs. GP: The Key Difference

The easiest way to remember the distinction is:

LP = supplies capital
GP = manages capital

LPs typically do not choose individual startups or companies for investment. Instead, they select funds based on factors such as the GP's track record, investment strategy, team, geographic focus, and expected returns.

GPs then deploy the capital according to the fund's investment strategy.

Why the Relationship is Important

A strong LP-GP relationship can be critical to a fund's success.

LPs want GPs to generate attractive returns while managing risk responsibly. GPs, meanwhile, rely on LPs for the capital needed to execute their investment strategy and often seek to build long-term relationships that can support future funds.

For startups, this relationship may seem distant, but it can have a direct impact. A well-capitalized VC fund has the resources to back promising startups through multiple funding rounds and potentially provide additional support as they scale.

To Wrap Things Up…

LPs and GPs are two sides of the same investment structure. LPs provide the financial firepower, while GPs provide the investment expertise and management.

The model allows institutions, family offices, and other investors to gain exposure to private markets without managing individual investments themselves, while giving professional fund managers the capital needed to identify and build the next generation of companies.

For anyone looking to understand how venture capital works, knowing the difference between LPs and GPs is one of the best places to start.