7 hard truths

  • View

  • Download

Embed Size (px)

Text of 7 hard truths

  • 1.Mentor. Accelerate. Invest Developing tech entrepreneurs in subsaharan Africa www.savannah.vc 7 Hard Truths on Africa Startups @mbwana @savannahfund

2. Savannah Fund Today 15 startups. Accelerator to Series A stage $2M revenue run rate, raised $8M, 100 full time jobs Connecting up the continent through Venture Capital. E- commerc e 39% Educatio n 11% Entertain ment 11% Financial Services 10% Logistics 9% Social/M obile 20% Rest of World 11% Ghana 19% Kenya 27% Nigeria 9% South Africa 24% Uganda 10% 3. Waterhole Resource to help bridge knowledge and experience gap in startups in Africa Fundraising in Africa UX/Design Product Engineering & Scaling Expats.... www.savannah.vc/waterhole 4. Venture Capital Course in Africa Reduce the VC process knowledge gap. $1,000 for corporates $350 for "qualifying startups" Savannah fund will sponsor 11 startups inc. Pivot East winners 5. #1You are nothing special, but have potential Startups are increasingly getting caught in the "Africa rising" hype High Valuations and availability of "soft money" lead to a distorted view We are seeing the rise of Nigeria and Ghana 6. #2 talent development, mentor networks Not enough experienced coders for growth. Especially on process. Investment in emerging platforms Facebook, Android, Web stack/Cloud Not enough awareness and utilization of product managers and UX 7. #3 Safaricom dependence is not healthy Safaricom (and every other mobile operator) wants to be the Alibaba of Kenya Startups want to reach Safaricom's mobile subscribers. Beware of Monopolistic behavior There needs a clearer strategy and options between "revenue vs growth". + Differentiation 8. #4 Need to Develop a Growth mindset Starts with deeply understanding your customers Expand competence and learning new skills Thinking multi country or multi product line expansion 9. #5 Hustle hard, otherwise it's 2 steps forward and 3 back Nothing gets done unless you do it yourself Especially business development. Knowing when to cut your losses. Find workarounds... There is always a way 10. #6 Relentless focus. not working on the same thing everyday .... Nor doing a million things at once Prioritization vs Distractions Clearly defined objectives and strategy to succeed. Dealing with Uncertainty 11. #7 problem is often you problem definition Bounding the problem taking with cultural contexts. You are often dealing with multifactorial problems. Unit economics and industry structure matter. Especially when you copy/clone from elsewhere to Africa http://savannah.vc/2014/04/16/problem-definition-problem-in-africa-solutions-for-a-diverse-continent