Prof Ibidapo-Obe tasks tech start-ups to emulate Kong strategy - ITREALMS

ITREALMS:

Former Vice-Chancellor of the University of Lagos, Prof. Oye Ibidapo-Obe, has advised tech startups to emulate the new Konga strategy, reports ITREALMS.

He gave this charge in a recent engagement with budding entrepreneurs, business owners and other Ph.D. students in Lagos.

According to Prof. Ibidapo-Obe, Konga has sprung a surprise in the last six months, noting that the impact of the new owners of the business has been felt in the e-commerce landscape.

“The new Konga is a very good case study for tech start-up to emulate as it is obvious that there is a clear plan by the new investors. If we consider their omni channel strategy which is quite expensive, only a few Nigerian banks can match the fusion of online power with the number of stores being rolled out across the country, mostly in Lagos as I have seen.

“What we can learn from this is that, apart from strategy, planning and tact is very critical in the Third World. I am sure the former owners of the business will be amazed at the transformation the business had undergone within the last six months. A company like Konga has proven that Nigerians have the capacity to make things happen and though I am not sure what their figures look like today, I am sure it must have appreciated over 200 per cent,” he said.

Continuing, the Professor of Systems Engineering and Fellow of the African Academy of Science cautioned that startups must be seen to deliver on their promises and not just raising funds or using investor capital to fund flamboyant lifestyles.

“The Konga example shows that African entrepreneurs can hold their own and succeed. It is very important, however, for budding entrepreneurs or startups to go through an incubation period and excite their investors to inject more funds rather than being on negative and still asking for more funds. It has become fashionable for startups to keep looking to raise money without looking at the book balance while unconsciously signing off their equity.

“When entrepreneurs gradually liquidate equity, they must see a bigger future even as they continue to dissolve their shares. Modern investors are very smart and when they see that they are gradually getting a foothold in the business, they can see that you are gradually liquidating and their funds is at risk. This is why there is a high failure rate among startups as investors must, at a point, take a business decision not to put in more money because the owner has reduced his stake substantially that he has nothing to lose anymore.”

While noting the difficulty in gathering accurate statistics in Nigeria, Prof. Ibidapo-Obe observed that a lot of business decisions are based on assumptions. He, however, disclosed that the image of the new Nigeria will be built by the new breed of young Nigerian whiz-kids, irrespective of the current harsh economic climate.

“You must not be discouraged by the current economic and political situation in the country. Every country goes through it and Nigeria is no exception. Most importantly is the fact that, the country will emerge stronger from it and young, smart entrepreneurs will own the country in future and will create even more wealth in a short space of time than the present set of entrepreneurs,” he concluded.

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Zone Tech Park debuts, offers free space to start-ups for B2B - ITREALMS

ITREALMS:

A venture builder for start-ups, Zone Tech Park has formally debut in the Gbagada area of Lagos State, offering free space to start-ups, reports ITRealms.

Speaking at the launch on Wednesday, the chief executive officer of Zone Tech Park, Mr. Toro Orero, told ITRealms, said they are were established to turn great ideas into products and services quickly, efficiently and profitably.

He also said that the park is unique among tech hubs in Africa in several ways including the provision for start-ups at all stages in their life cycle.

“From those that are a great idea on paper to those with customers already on-board,” he said.

In addition, he said Zone Tech Park offers a co-working free space for start-ups, which entails that they are not charged for acces to tech hub’s multitude of services and advisers.

Orero equally said that the park plugs its start-ups into a network of more than 400 corporations, giving them direct access to market, helping them to avoid bottles.

“Zone Tech Park supports its start-ups in preparing for funding rounds by giving access to a network of potential investors, accelerator programmes, and eco-system architects,” he said.

At Zone Tech Park, he said, they have experienced in-house engineering team of over 20 software developers and designers, promising that the entire finance, legal, marketing, sales and fundraising teams, all experts in their field are ready to start work with Zone Tech’s start-ups.

“Zone Tech Park has five meeting rooms that can accommodate up to 100 people; a 650-seater event and and conference hall; and parking for 150 cars,” he said.

As said by him, prior to the official launch, Zone Tech ran a small pilot programme and has built two products so far, namely the Peerless, a learning management system that already has 10,000+ users and revenues of 100,000 USD; and Outwork, a staff on-demand solution with 7,000+ users.

Earlier in his remarks, the Founder of Zone Tech Park and Chief executive Officer, The WorkForce Group, Mr. Bolaji Olagunju, said that Nigeria likewise African countries have to be globally competitive to drive the kind of development required at this age.

Chuks Egbune/GEE

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Top 20 African start-ups enter residency @World Bank Group Digital Acceleration Programme

ITREALMS:

Twenty of the most promising African digital start-ups have been selected to take part in the XL Africa residency, the flagship initiative of the business accelerator launched last April by the World Bank Group’s infoDev programme, reports ITRealms. The entrepreneurs, ITRealms gathered would tomorrow commence with the residency in Cape Town, South Africa, till November 17 to learn from their mentors and peers, as well as increase their regional visibility, and get access to potential corporate partners and investors. The top 20, ITRealms gathered were selected from a pool of over 900 applicants; these start-ups specialize in digital solutions for the African market, including fin-tech, transportation, health care, education, human resources, and business-to-business (B2B). The residency will conclude with the XL Africa Venture Showcase, a regional event organized in association with the African Angel Investor Summit, in which the entrepreneurs will present their business models to a select audience of corporations and investors. With support from African investment groups, XL Africa will help the start-ups attract early stage capital between US$250,000 and US$1.5 million. Selected from a pool of over 900 applicants, these start-ups specialize in digital solutions for the African market, including fin-tech, transportation, health care, education, human resources, and B2B. All companies provide a digital product or service currently available in one or more African markets and show potential to scale across the region. “We are pleased by the interest infoDev and XL Africa generated across the continent in just a few months,” said Klaus Tilmes, Director of the Trade & Competitiveness Global Practice at the World Bank Group. “XL Africa attracted firms with high-growth potential; many have female co-founders, have already raised early stage investment, and have demonstrated significant market traction. The number and quality of applications received are a clear testament to the competitiveness of African start-ups and the key role they play in Africa’s growing digital economy.” The selection for XL Africa was conducted by a panel of industry experts from the International Finance Corporation (IFC); implementing partners IMC Worldwide, Koltai & Co, and Venture Capital for Africa (VC4A); as well as investors from prominent African funds, including Knife Capital, 4Di Capital LLP, Singularity Investments, TLcom Capital LLP, Goodwell Investments, Nest Africa, and Africa Tech Ventures. “We encountered very strong companies, particularly in the transportation, HR, and data analytics sectors,” said Danai Musandu, investment associate at Goodwell Investments. “We also observed signals of a nascent pipeline of digital companies beyond the traditional hot spots of Nigeria, Kenya, and South Africa. These talented entrepreneurs are among those who are going to drive innovation on the continent and offer great opportunities for investors looking at African markets.” The selected start-ups participating in the event are: Aerobotics (Data, South Africa)         Asoko Insight (Data, Kenya, Ethiopia, Ghana, United Kingdom, and Nigeria)       Coin Afrique (Marketplace, Senegal and Benin) Edgepoint Digital (Jamii) (FinTech - Insurance, Tanzania)    Electronic Settlement Limited (FinTech, Nigeria) Lynk Jobs Ltd. (HR, Kenya) MAX (Transport, Nigeria) ogaVenue (Venue Platform, Nigeria) Ongair (SME Services, Kenya) Pesabazaar.com (FinTech, Kenya)      Prepclass (EdTech, Nigeria) Printivo (Printing, Nigeria) Rasello Company Ltd. (SME Services, Tanzania) Rensource (Energy, Nigeria) Sendy Ltd. (Delivery, Kenya) Snapplify (Publishing, South Africa and Kenya) Sokowatch (Delivery, Kenya) TalentBase (HR, Nigeria) Timbuktu (Travel, South Africa) Tizeti Network Ltd. (Connectivity, Nigeria) XL Africa is funded by the governments of Finland, Norway, and Sweden, and administered by the World Bank Group with implementation support from IMC Worldwide, VC4A, and Koltai & Co. Ayo Midele/GEE

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20 African digital start-ups to benefit from World Bank

ITRealms:

Twenty African digital start-ups will benefit from the World Bank Group under its XL Africa initiative attracting early stage capital between $250,000 and $1.5 million, reports ITRealms.

The programme, ITRealms gathered is a five-month business acceleration scheme designed to support the 20 most promising digital start-ups from Sub-Saharan Africa.

Start-ups, ITRealms also gathered will receive mentoring from global and local experts, learn through a tailor-made curriculum, increase their regional visibility, and get access to potential corporate partners and investors.

Vice President, Africa Region at the World Bank, Makhtar Diop, said that digital start-ups are important drivers of innovation in Africa.

“To scale and spread new technologies and services beyond borders, they need an integrated ecosystem that provides access to regional markets and global finance; pan-African initiatives like XL Africa play a critical role by linking local start-ups with corporations and investors across the continent,” he said.

In addition, ITRealms gathered that the programme, comes at a time of increasing interest in the African digital sector.

According to a recent report by Disrupt Africa, in 2016, the number of tech start-ups that secured funding increased by 16.8 per cent compared to 2015.

Director of the Trade & Competitiveness Global Practice at the World Bank Group, Klaus Tilmes, said that XL Africa aims to put a spotlight on the continent’s growing digital economy by scouting for and supporting the most innovative tech start-ups.

“The success of these ventures will create a demonstration effect that can attract much-needed growth investment in the sector and catalyze scaling of transnational businesses in the region,” he said.

Further, ITRealms reports that the programme’s flagship activity includes a two-week residency in Cape Town, South Africa, where the ventures will have the opportunity to interact with and learn from their mentors, peers, and local partners. The Cape Town residency will conclude with the Venture Showcase, a regional event in which the entrepreneurs will present their business models to a select audience of corporations and investors. 

“The program’s unique combination of targeted mentorship and access to investors represents a vital resource for digital ventures ready to grow,” said Lexi Novitske, Principal Investment Officer for Singularity Investments, a venture group based in Lagos, Nigeria. “By connecting innovative business ideas with the knowledge and resources available in the ecosystem, XL Africa will create a pipeline of investment-ready companies, unlocking better investment opportunities for regional and global investors,” he said.

The program will collaborate with prominent African investment groups, including the African Business Angel Network (ABAN), AngelHub Ventures, Goodwell Investments, Knife Capital, Nest Africa, Silvertree Capital, Singularity Investments, South African Business Angel Network (SABAN), TLcom Capital, Zephyr Acorn and 4Di Capital, and corporate partners, such as Orange, .Eco, Ringier, and Thomson Reuters.

ITRealms reveals that interested companies can apply online on the XL Africa website www.XL-Africa.com by Monday, June 12, 2017.

XL Africa is funded by the governments of Finland, Norway, and Sweden, and administered by the World Bank Group with implementation support from IMC Worldwide, VC4A, and Koltai & Co.

Chuks Egbune/GEE

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