Vc&pe roundtable deck march
Download as PPTX, PDF
0 likes991 views
This document discusses opportunities for investment and startup growth in East Africa, particularly in Kenya and Tanzania. It notes the large population and growing mobile phone and internet user bases in East Africa as promising markets. While there is raw engineering talent, there is a lack of experienced entrepreneurs and angel investment. Mobile money has been transformative in Kenya and is spreading across the region. Tanzania is looking to partner with venture funds and build new incubators and tech parks to support its growing tech sector and entrepreneurship. The document outlines several sectors like mobile apps, ecommerce, education and healthcare as having opportunities to build businesses that can scale across East Africa.
Vc&pe roundtable deck march
- 1. Opportunities in East Africa Paul Bragiel: PartnerMbwana Alliy: Africa Lead
- 2. i/o venturesAngel Investment firm founded in 2009/2010 Heavy on mentorship with a great network A funky space in the Mission district, San FranciscoPaul BragielAber Whitcomb AshwinNavin Jim YoungBacked by I/O Ventures, the San Francisco caf辿 houses startups that get seed money, mentoring, four months of office spaceand discounts on all the goodies
- 3. i/o ventures Accelerator (2010)$25,000 for 8%, 4-6 month programAll secured follow on financing, 2 acquired.
- 4. What does this have to do with Africa?Talent exists everywhere: The Silicon Valley LinkInternational scopeSingapore (Oct 2010)Brazil Trip (Nov 2010)Tanzania, Kenya (Aug & Dec 2010)Source: WSJ interactive series Jan 2011
- 5. Africa Economic Picture (2008)
- 6. East Africa Tech OverviewMarket: 150M, Over 60M mobile users in the regions with about 5M+ internet users. (EAC union)Talent: Raw engineers and studentsLack of Expertise: Inexperienced entrepreneurs, A serious lack of Angel investing despite VC/PE presence
- 7. Mobile Financial Services as a foundation for formalizing the economy
- 8. Mobile MoneyOver 15M mobile banking users in Kenya alone and spreading across Tanzania, Uganda, Rwandahttp://www.slideshare.net/mpayconnect
- 9. Kenya as the regional innovatorSignificant pool of engineering talent and the regions first open incubator workspaceLeader in Mobile banking transformative and force in sectors not limited to Financial ServicesEducationHealthcare
- 10. Tanzania: Meet& MentorMeet Govt officials at the highest levelsSuccessful BusinessesMentoring students & entrepreneurs Local press generates awareness & excitement for tech
- 11. Tanzania Plans & i/o ventures Dar Teknohama Incubator (May 2011)- Govt subsidized/PPP.Incubator supportMentoring & Capacity BuildingAccelerator program & Seed FundTech Park + Outsourcing (2012+)Data Center (2012+)http://www.datacentermap.com/
- 12. Tanzania: local partnersCommission for Tech & Economic Advisor to the presidentInfoDev /World bank: Funded over 80 incubators worldwideFinland is a major Donor3M/year in technologyNokia innovation lab
- 13. Key OpportunitiesMobile Applications on emerging platforms Emerging web services in key verticals and proven business models to scale across emerging middle class across East AfricaEmerging Ecommerce (marketplaces, key services)Social Media, Content Inc. advertising (Mobile Web & SMS)Entertainment (local)Small business SaaSBottom of the Pyramid (BOP) + LeapfrogPayments and remittance servicesCrowdsourcingeLearning and EducationmHealthEnergy & Cleantech
- 15. Energy & Cleantech10-15% of the population in East Africa does have access to electricity but it will growBillions needed to fix legacy infrastructure and benefits wont flow to emerging lower/middle class Leapfrog opportunities & new consumption models
Editor's Notes
- #5: We believe the next big tech companies may not necessarily come from Silicon ValleySingapore Spring ProgramStartup Chile20% of all tweets originate from BrazilTalk about Brazilian dude who ended up coming to SF to intern on an iPad now and is now an engineer at Uber- just raised $11M 2 weeks ago- get a quoteRovio
- #6: A number of countries in East Africa are diversifying and in transition with a growing middle class. Over 35M in East Africa with monthly incomes over $350Wal-Mart Stores Inc. has agreed to pay nearly $2.5 billion to buy 51% of South Africas Massmart Holdings Ltd., with plans to use the discount retailer as a foothold for continental expansion.
- #7: Mobile gap will close and turn those subscribers into the mobile web/mobile appsAirtel acquisition of ZAIN- $10.7B in 2010.EACP- $100M, Fanisi Capital $50M
- #8: Consultative Group to Assist the Poor41% is traditionally informal25% of Kenyas GDP slows through m-bankingMobile banking acts as a defacto Identity system1M out of 45M in Tanzania have bank accounts, 20M have phonesBetter tax collection by Governments
- #9: http://www.slideshare.net/mpayconnect
- #10: Bridge is funded by Omiydar networkSafaricom as one of the biggest IPOs in SubSaharan Africa
- #11: Press generated trust and even brought out diaspora working all parts of the world including silicon valley- key talent to tap later on.2ndMobileMonday, 100+ attendanceHelps limit corruption anything fishy gets escalated to the Presidents OfficeRussell Simmons, Cofounder of Yelp, first engineer at paypal.Bakhresa Group- $300M revenue company in East Africa
- #12: More mentor trips.Help build a sustainable incubator run by the private sector.Fill the gap in Angel investing & mentoring across the regionAttract the best regional companies in East Africa to Dar es Salaam incubatorBuild Managerial and Technical CapacityRaise a $5-10M first seed fund (i/o ventures)Replicate the Accelerator Program locally with more patient capitalhttp://www.datacentermap.com/
- #13: Nokia sells 80M handsets a year in Middle East & Africa.Atleast 5 incubators in Africa (Senegal, Mozambique, South Africa, Tanzania, Kenya)Samsung is growing dramatically across all category of devices from HDTVs to phones (20% share)- opened an engineering school In South Africa
- #14: Things that have been denied or out of reach for reasons more than income but infrastructure Mobile health has massive potential to be bigger in Africa due to legacy/leapfrogging issues. Less regulation (HIPPA) etc
- #15: Public Private Partnership helps with initial incubation tax break, regulation & future scaling post pilotLeapfrogging trend in mobile to accelerate service delivery cost effectively at scaleRemote learning, training and management Information & Supply Chain systems critical to success SMS for Life program targeting data collection to reduce pharmaceutical stock-outs for anti- malaria drugs..reporting of inventory & motivating data submitters through a proto- currency of airtime, the six-month trial reduced stock-out rates from 95% to 6%- serving extra 300,000 patientsThe surgeon is taking advantage of a growing mobile-banking industry, using his cell phone to send money [for Transport] via SMS to Tanzanian women suffering from fistula- CNNLocalizedSaaS and app offeringsHosted on a Govt cloud?
- #16: EGG is the netflix of batteries a mesh business for the last mile of connectivity for the urban areas.