PIEC Scaleup, the second phase of the Palestinian Innovation and Entrepreneurship Catalyst, has launched in Ramallah. The program aims to create a connected support pathway for Palestinian startups. Furthermore, it will cover the different stages from developing an idea to entering regional markets.

The second phase will support startups from product development and market entry through investment readiness, growth, and regional expansion.

The new phase was launched by Flow Accelerator in partnership with Flat6Labs, the Swiss Agency for Development and Cooperation, and the Swiss Representative Office in Palestine. Seedstars is also participating in the program.

The program will support startups across product development, market entry, investment readiness, growth, and regional expansion. It will also work alongside existing entrepreneurship programs to improve coordination between different parts of the ecosystem.

Why You Should Care

For Palestinian startups, moving from an early-stage idea to a company ready for investment and expansion can require support across several different areas.

PIEC Scaleup is designed to connect those stages rather than treat them as separate programs. Each stage will have criteria for moving forward, with the broader goal of maintaining support as companies develop.

The approach builds on the first phase of the program, which ran for around two years. That phase helped 37 startups reach the market, while 10 advanced companies benefited from acceleration programs. It also recorded four institutional investment deals.

Around 40% of beneficiary companies operate outside the Palestinian market, according to the program.

The Details

The second phase will place greater emphasis on improving startup quality from the early stages and supporting companies after they enter the market.

The program will also address access to capital and markets. Limited local capital remains one of the challenges considered in its design.

Flow will contribute its knowledge of the Palestinian market, local relationships, and experience in implementing entrepreneurship programs. Flat6Labs will bring regional expertise, connections to investors and markets, and experience in venture development and investment. Meanwhile, Seedstars will contribute startup development methodologies, including support during earlier stages of company building.

Together, the partners are structuring the program around a continuous startup journey. Investment readiness will not be treated solely as a step immediately before a funding round. The program will focus on building the evidence, data, and company foundations needed to engage with investors over time.

The initiative is also being launched against difficult economic conditions in Palestine. The source cites unemployment above 50%, with the rate in the West Bank at around 30%. Among people aged 19 to 29 with intermediate diplomas, unemployment stood at 38.3%. The rate among young female graduates was around 52.2%.

The second phase aims to support 202 companies toward sustainability. This is with the broader objective of strengthening their ability to grow and create employment opportunities.

The Ripple

PIEC Scaleup brings together government, development partners, investors, universities, entrepreneurship support organizations, and the private sector.

This creates a broader ecosystem around the companies participating in the program. It also connects local startup support with regional investors and markets through Flat6Labs and the wider network of participating organizations.

The first phase showed that some companies can move from local startup support into wider markets. The next phase intends to make that progression more structured, with greater emphasis on growth, investment and market access.

What to Watch

The program is structured around an eight-stage startup journey. It begins with idea generation and venture building, then moves through market entry and investment readiness before reaching growth and regional expansion.

The main measure of progress will be how companies move through these stages. That includes how many reach the market, become investment-ready, secure institutional investment, and expand into regional markets.

The program’s ability to coordinate support across these stages will also be important. Its model depends on connecting existing players in the Palestinian entrepreneurship ecosystem rather than operating as a standalone initiative.