Africa - Afrikan Heroes

Pushed Against The Odds, This Entrepreneur Is Rebuilding His Life From Cryptocurrency And Blockchain Technology

June 10, 2019

When Mr. Tola Fadugbagbe relocated back to Lagos, Nigeria’s largest city for the second time in his young life, there was nothing yet like cryptocurrency or bitcoins or tokens or Blockchain technology. He could only be fused into one of the over 17.5 million people living in the city. And it appeared he was merely making up the population because it seemed the city looked too overwhelming to fit in. It didn’t take long before several months of homelessness hit him hard in the face.

‘‘For several months, I stayed in an uncompleted building. Life was nothing but hell. I was running around struggling to get funds to complete my education to university level,’’ he tells Afrikan Heroes.

Then a job stint at a highly successful real estate development company. A break-away to start up a local block making factory, and a sudden bankruptcy and closure of the facility because clients who promised to pay took delivery of his blocks but never cared to pay back, Mr. Fadugbagbe says he is still banking on his integrity, determination, cryptocurrency and blockchain technology to take him farther than he has ever thought.

‘‘ One thing I always prove to people about myself wherever I go is integrity. Anywhere I am, people always get to know me as someone with integrity. That was why I stayed longer than expected at the real estate company,’’ he said.

Mr. Tola said he learned his lessons about running his first startup the hard way:

While I was working in the real estate company, I discovered that there was a problem that needed to be solved: the quality of concrete blocks being delivered to this site. You know, the blocks they usually supplied the real estate company were not strong enough. So I thought that if I ventured into this business, I could make some future from it. So after I left the real estate company, I set up a block making factory.

When the factory was up and running, I was so happy that I was progressing. I was generous and selling on credit. But before I knew what was happening, people were withholding my money and they were telling me stories. As I’m talking to you now, these people are still owing me. I was back to square one after that nightmare: I could not even produce even though my equipment was on ground.

‘‘Till Date, It Has Been Marvelous Getting Involved in Cryptocurrency.’’

While reading about cryptocurrency and blockchain technology sometime in 2016 from two of his Facebook friends ‘who were not usually detailed about the terms and the philosophy behind the concept’, Mr. Tola got interested and began extensive studies and inquiries into what cryptocurrencies are, only to discover that cryptocurrencies suited his philosophy. Since then, he says it has been ‘‘marvelous getting involved in cryptocurrency.’’

Today, he is part of a local network in Lagos and Nigeria that hosts conferences, seminars, boot-camps, and workshops training people on what cryptocurrency is and how they can trade in it.

I believe that cryptocurrency is a big deal. Big corporations can’t stop talking about cryptocurrency. They can’t stop implementing cryptocurrency in one way or the other. Look at the CEO of JP. Morgan, Jamie Dimon, who once told his workers that if they ever got involved in bitcoin they would be fired. He called Bitcoin a fraud, a scam and an evil. Few weeks later he bought bitcoins on Poloniex. Right now, J.P Morgan is using fragments of JPM Coin, the native coin of JP Morgan Bank. I mean JP Morgan is a US banking giant that move trillions of dollars across the globe daily. Right now they want to use their own token to scale payment protocols and remittances,’’ he says.

Mr. Fadugbagbe is not far from the truth. Earlier in February 2019, J.P. Morgan became the first major U.S. bank to create its own cryptocurrency with the launch of “JPM Coin.” The digital token was designed to settle transactions between clients of its wholesale payments business, specifically for international payments and securities transactions that migrate to the blockchain.

Mr. Fadugbagbe remembers one incident about how cryptocurrency has been more than a helpful innovation in the payment system.

‘‘Someone in the US sent bitcoins to me today. I sent Naira equivalent to the person’s beneficiary in Nigeria. If they are to rely on Western Union, the fees, the delay and all that would be too much,’’ he said.

‘‘I believe that cryptocurrency has come to stay. You know, there are some people in Diaspora that find it difficult to send money back home. Now, crytopcurrency has made it a lot more easier for them because they could just create crypto accounts over there and using those accounts, they can now send bitcoins to me, and I, in turn pay off their beneficiaries in Nigeria the Naira equivalent of the bitcoins sent to me. These things happen within a space of few minutes.

He says that unlike fiat currency that government can only print more, borrow more and yet remain heavily in debt, cryptocurrency always has an edge.

‘‘You can’t inflate it. Instead you can only reduce it. This means that, with time, crypto can always gain value. The only downside of it that it that it is highly volatile. That is why people should be cautious about the type of crytocurrrency they get involved in. In fact, the crypto market is highly competitive right now. So if you lay your hands on a token doing similar things to other similar tokens in the similar same crypto market, and if the token is not highly innovative, then it would not scale,’’ he says.

‘‘Whether You Like It or Not, Everybody Will Get Involved In Cryptocurrency’’

Mr. Fadugbagbe said the only thing remaining for cryptocurrency to become widely accepted is for governments to give their nod to it. For that, he sees a huge opportunity for early investors.

”So if you look at the future of cryptocurrency, you can’t but be part of it at this early stage. Many people see Bitcoins, ethereum and cryptocurrency as the dark part of the internet because some governments are yet to approve it. Whether we like it or not government plays a major part in controlling the mindset of the citizens. Just take a look at the stories of MTN and DSTV before they became big players in their industries. We all know are they were first rejected by governments,” he says.

Why Africa is Lagging Behind In Cryptocurrency and Blockchain Technology?

Mr. Fadugbagbe says Africa is lagging behind because of the continent’s low rate of adoption of the innovation. He says anything revolutionary will be adopted quickly in any continent or any country when the government welcomes it wholeheartedly. Although he says African governments are usually ‘‘just slow in adopting something as disruptive as cryptocurrencies,’’ he has hope that Africa would get there someday.

”This is one of the reasons why we’ve been hosting seminars, workshop, bootcamps. We still need to engage the government.We just have to keep talking about this. We hope that one day, we would get the attention of the government to approve the necessary framework for cryptocurrency and blockchain technology. Just take, for instance: if you can now travel to all West African countries using Bitcoins. It would really mean that more people would get interested in bitcoins. If the government also says you can now pay your tax with bitcoins, many people would be eager to pay tax,” he says.

Mr. Fadugbagbe also finds a big problem with the way international communities see cryptocurrencies coming out of Africa.

”International communities believe that an average Nigerian or African is a scammer,’’ he says. ‘‘ Once cryptocurrencies are coming out from Africa or Nigeria, the international community doesn’t usually trust them, even when the intention is good,’’he says.

How Startups Can Leverage Crypto To Boost Their Businesses

Mr. Tola says smart startups can leverage cryptocurrencies to boost their business even without any formal partnerships with any blockchain organizations or blockchain platforms. To do this, he says African startups may consider accepting cryptocurrencies such as bitcoins, bitcoin ethereum or any other viable coins. Doing this not only boosts startups’ businesses but also gives their businesses free advert.

”Free advert because cryptocurrencies guys everywhere in the world will begin to refer your business. Take for instance, the impact of having a barbershop somewhere in Nigeria where you can now have hair cut and pay with bitcoins. In trying to convince your folks about the existence of such barbershop, you may begin to refer to such words as ‘‘look at the barbershop here. Look at its office phone number.’ The same way, you may refer to a hotel in Cameroon where you can now check into, pay with bitcoin and get discount. Or somewhere in Zambia where you can vacation to and pay with cryptocurrency. This will give startup owners free adverts. Just imagine a consumer in Nigeria, Cameroon, Senegal, South Africa, Uganda talking about your business.”

”This is why celebrities keep progressing because we keep talking about them. Who knows? But Reginal Daniels has so much been in the news and may be landing brand ambassador deals even. So this will give startups free adverts, thereby generating more leads for their businesses.”

‘’Governments Can Use Blockchain Technology To Keep Records Of The Number Of Books Received By Each Student’’

Mr. Fadugbagbe tells prospective blockchain technology investors in Africa to start submitting proposals to the government because there is a huge opportunity in that regard.

‘‘Africa needs blockchain tech the most. We can use blockchain to curtail the inefficiencies in the system. In most education ministries in Africa, for instance, books are distributed from time to time. Government can use blockchain tech to keep records of the number of these books received by each student. For every book the students receive, they can thrown in a token from their backends, using a smartphone. This is the smartest way to get feedback from Africa’s cluttered data management system. So let’s begin by sending in proposals,’’ he said.

Mr. Fadugbagbe says blockchain technology makes for more accountability and efficiency in the system, and unlike humans, data stored in blockchains cannot be tampered with.

‘‘You look at blockchain as a record that cannot be edited,” he said. ‘‘For instance, a list of items or names, or a football team. When humans are involved, they can add or remove the names at will, but with blockchain technology, the list cannot be padded. So once added, the information cannot be altered.”

Moving On

Cryptocurrency Market Cap: Source — Business Insider

For a business model that was worth over $700 billion as of January 2018, the global cryptocurrency market is booming and is not relenting. Mr. Tola Fadugbagbe does not see this ending too. No longer homeless and frustrated by bad debt, at least not in the category he once fitted in at his former startup, he has since moved on.

‘‘Right now,’’ he says, ‘‘I am living in a good and comfortable apartment. I have been reinvesting into large scale agriculture — a cocoa farm and and poultry — from the proceeds of my blockchain business. My aim is to grow them into the biggest phase they could ever be in. I like my life so simple because of what I have experienced in the past. I’m not going back to that nightmare.’’

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

A Guide On Pitching Startup Deck To Secure Venture Capital

June 9, 2019

Even for strong startups, fundraising is a marathon that requires near constant attention for 8–12 weeks. The process is punishing, and riskier than you might imagine. You need to prepare for it as seriously as you would for a race.

Prepare for rejection. A lot of it. A promising startup will get 17 or 18 “no’s” for every “yes.” These brush-offs often have less to do with the startup in question than idiosyncratic context or concerns for each VC. Still, it stings. Don’t get demoralized.

To make matters worse, the stress level will ratchet up every week as inevitable “passes” pile up. Many deals are closed sub-optimally simply because the founder is ground down by the process, slightly panicked, and wants to be done with it. You can avoid this fate!

There’s been a lot written about how to prepare a deck, less about the mechanics of running the process. Here are a few thoughts, with a special focus on how to use your current investors for leverage during this taxing time:

???? Build a list

Create a Google Sheet/Airtable. Populate it w/ all the firms you want to pitch. Then step back and ask *why* you’re pitching these firms? Do they do deals at your stage? In your space? Any portfolio conflicts? Figure out which partner would be the best fit.

✂️ Curate the list with your VCs

Founders often want to meet with celebrity VCs. An angel might push for a few friend’s funds that aren’t a logical fit. Cut these out of the list. Meetings with “bad fits” will create more work and lead to extra stress + more rejection.

???? Fixate on leads

This is very important: Don’t set up meetings with firms that don’t lead rounds. If you find a lead, you’ll have no trouble filling out a round. Conversely, a lot of lukewarm interest and no lead makes a deal seem weak and process seem endless.

???? Focus on this round — Only this round

You may feel pressure or have intros to meet with growth firms who are more likely a fit for future rounds. Accept the intro, but only with the understanding that you’ll schedule these meeting *after* you close this round.

???? Make one more cut

“It’s just one more meeting…” you’ll say about each less likely intro. Multiply that times ten and you’ll waste serious time and invite more demoralizing rejection. Important not to get distracted or create needless noise.

???? Prep an intro package

Write a “forwardable” email that includes:

A 1–2 paragraph teaser about your startup
5–10 bullet points about your company: traction numbers, press clips, notable milestones
A deck/Docsend link

????️ Choose the best intros

Choosing who will make the intro is important. You need to balance closeness to the target with cachet. E.g. An intro from a successful entrepreneur is better than one from your VC. But your current VC is a better intro than a service provider.

Image result for startup pitch deck — successful startup pitch decks

????️ Schedule ~10 Meetings

Send invites out in batches by order of preference & try to fill 10 slots as a first wave. Send out further tranches as you get “no’s” from potential investors. More isn’t necessarily better — it’s often worse and it can make a focused process hard.

???? Pad the schedule

You don’t want to cut a productive meeting short because you’ve got to rush out to your next appointment. Likewise, don’t create a bad first impression by being late to a meeting because of a traffic jam or your previous meeting running over.

⚾️ Practice your pitch

A middle-school production of Mary Poppins will rehearse for weeks to impress a group of parents. You won’t impress the best VCs in the world with an unpracticed pitch. Set up 2–3 dress rehearsals of your pitch with friendly investors and advisors.

???? Dress Rehearse

Treat these practice sessions seriously. Avoid “yadda-yaddaing” as you walk through the deck. Ask your VCs to bring some fresh ears to the pitch. Even practice things like talking while getting your computer connected and, of course, handling objections.

???? Sequence investors

Pick a few of your lowest ranked investors and make those your first meetings. Your first pitch shouldn’t be to your dream investor. Even with plenty of practice, nothing beats live feedback. You’ll likely need to burn a few meetings to get in sync.

???? Employ the buddy system

Impressions are subjective, so it’s helpful to have at least two co-founders at the pitch to discuss the feedback from the meeting. Make sure both of you contribute to the pitch and the vibe between you reflects the positive energy at the company.

???? Embrace “Objection Response”

Be methodical about addressing critiques of the deck. Incorporate pushback into your deck. If a point won’t fit in the main flow, build an appendix slide. Every objection should provide data that gets you closer to a “yes.”

???? Report objectively

After you’ve done a few pitches, reconvene with your current VCs. Use this opportunity to rejigger your deck/reconsider your narrative. Remember, try to provide as objective a report as possible — your VCs’ advice will only be as good as your account.

????️ Shield your team (and VCs)

Inevitable rejections will alter the way the startup is perceived by employees and investors (and even yourself). Be honest, but spare your team the ups, downs, and gory details. Stay positive. Even the best companies face tons of rejection!

????️‍♂️ Use backchannels

Ask your VCs to check-in with the investors you pitch. You’ll rarely get straight feedback, but there will typically be some actionable insight that the VC wouldn’t share directly with an entrepreneur.

???? Nurture all interest

Make every potential investor feel like a VIP, even those lowest on your list. It’s often surprising who ultimately does the deal. Nothing is worse than ghosting a VC and coming back when no one else shows interest.

????️ Race to a term sheet

This is the least helpful advice, but the most important. Once you have one term sheet, everyone is on the clock and has to make a decision. If you sense someone is close, figure out what you need to do to close the deal. However…

???? Never ever mislead …

If you tell a VC you have a term sheet or a verbal commitment, and you don’t, you can destroy credibility and the possibility of a deal — also, your broader reputation will take a major hit.

There are a million nuances and edge cases, and no tweetstorm can come close to preparing you for the exhaustion of fundraising. That’s why it’s important to have aligned VCs and to prepare as you would for any other endurance event.

The above opinion is the thought of the Managing Partner at Founder Collective, Entrepreneur and Investor Eric Paley who recently shared this in a tweetstorm. This is a dimension to all the best opinions out there on how to secure a VC for your startup. We thought this must be helpful to you. You may share with any startup you know preparing for a pitch event.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

MTN Group Launches Africa’s First Artificial Intelligence Service for Mobile Money

June 8, 2019

MTN Group is not relenting in its quest to fully utilize the power of technology to innovate. The telecommunication company has announced the launch of Africa’s first Mobile Money (MoMo) artificial intelligence service or “chatbot”. In a statement from MTN Group, the chatbot went live in Ivory Coast in May and will be rolled out across MTN’s MoMo footprint in the next few months.

What The New MTN Chatbot Looks Like

Like the Chinese WeChat bots integrated into WeChat app, that can set medical appointments, call a taxi, send money to friends, check in for a flight and many many other, MTN’s artificial intelligence mobile money “assistant” enables customers to engage with MTN’s MoMo services, including payments, on various social media platforms such as WhatsApp and Facebook Messenger, and via SMS.

The chatbot is an artificial intelligence guide that assists users to navigate MTN’s MoMo services and provide other useful information. This innovation leverages messaging and artificial intelligence to drive customer engagement and enhance their MTN MoMo experience.

The service will also be included over time, in MTN’s own newly released advanced instant messaging service “Ayoba”.

***How a Chatbot Works***: *Example of user request analysis.*

Commenting on the launch, MTN Group President and CEO, Rob Shuter said:

“We are passionate about bringing the power of our mobile money solutions to more than 60 million customers across Africa over the next few years. Harnessing modern technologies like artificial intelligence can improve in scale, how MTN interacts with customers, enabling them to reach us anytime and anywhere, through a variety of channels including social networks and messaging applications. We can also harness the power of artificial intelligence to provide our customers with the right answers to their questions at the right time.”

“We are committed to improving financial inclusion with a range of solutions aimed at addressing the needs of various market segments. While MTN has made great strides in these areas, we will continue working to deliver our vision for MTN to become one of the largest Fintech players across our footprint.”

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

South African New Tax Law: What Businesses in South Africa Need to Know

Businesses in South Africa would now have to pay new taxes, thanks to the Carbon Tax and the Customs and Excise Amendment laws which will both come into effect from 1 June 2019.

Key Points About The New Laws

Both laws will work together in dealing with administrative issues surrounding the implementation of the new carbon tax.

‘Carbon tax’’ according to the new law is a tax on the carbon dioxide (CO2) equivalent of greenhouse gas emissions.

A person is a taxpayer under the Act and is therefore liable to pay an amount of carbon tax calculated in respect of a tax period if that person conducts an activity in South Africa resulting in greenhouse gas emissions above the limit allowed under the Act.

**Cyril Ramaphosa, South African President**

Under the new law, taxpayers are expected to pay R120 ($8.3) per ton of carbon dioxide according to the amount of greenhouse gas emitted by the taxpayer. This rate would be increased from R120 to any amount depending on the prevailing market inflation in South Africa, plus an additional 2% for the tax period between now and December 31 2022. After 31st December 2022, the carbon tax rate would depend on the prevailing market inflation alone.

Those given some allowance from taxation under the new law include industrial taxpayers; taxpayers engaged in activities that cannot reasonably prevent the emission of carbon dioxide; taxpayers who are exposed to carbon dioxide emission by reason of their exports or imports activities; taxpayers that have implemented measures to reduce their greenhouse gas emissions in respect of a tax period (5% tax allowance); taxpayers that operated within a city limit for carbon dioxide emission even though they emitted the gas (5% allowance).

All taxes are to pay in accordance with South Africa’s yearly environmental levy prescribed under the Customs and Excise Act, 1964 (now 2019 as amended), for every tax period. Hence, the essence of the Customs and Excise Amendment Act is that a new levy known as the environmental levy (which is the carbon tax) is now to be charged by the South African customs on goods, whether imported into or manufactured in South Africa.

Who Is Going To Feel The Impact of the New Carbon Tax?

South African Motorists

With the introduction of the Carbon Tax Act South African motorists and car owners, as well as potential car buyers, will feel the greatest impact. Already, there is a planned fuel increase of 9 cents per litre on petrol and 10 cents per litre on diesel which will start from the 5 June 2019.

The new tax will also affect any substantial drop in petrol price, with South Africa’s Central Energy Fund’s data for mid-May, 2019 showing a 5 to 7 cents per litre increase (including the tax) in the price for the month of June for these both petroleum and diesel products.

The contributions of economic sectors to global greenhouse gas emissions. Credit- From the FAO report‘Greenhouse Gas Emissions from Agriculture, Forestry and other Land Use’ 2016.

Longer Impact

South Africans should also expect ‘trickle-down taxing’ on emissions that escape by accident in the petrol and diesel value chains from oil production, transport and venting systems which will likely be passed down to consumers. The heavily hit would be industries that rely heavily on carbon dioxide.

Global carbon dioxide emissions by sector from data from FAO 2017. Credit: Our World in Data

Enforcement?

Expect the South African Tax Commissioner to go all out to implement the new Carbon Tax law. This is because, under the new law, he must annually submit to South Africa’s Energy Minister a report showing the total amount of greenhouse gas emissions reported in respect of which taxpayers are liable for the carbon tax and the amount collected as a carbon tax.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

How Mentors Help Startups To Succeed: A Comprehensive Analysis

Mentors form a critically important part of building a successful business.

According to the United States’ Small Business Administration’s Office of Advocacy survey, only half of all small businesses survive more than five years and about 10–12 percent of all employee-based firms close each year. The research also shows those small businesses that receive three or more hours of mentoring achieve higher revenues and increased business growth. This has been further confirmed by a 2014 survey by The UPS Store, that about 70 percent of small businesses that receive mentoring survive more than five years — double the survival rate of non-mentored businesses.

Aside from the United States, research conducted by the UK’s Federation of Small Businesses has shown that small businesses that have received mentorship have superior survivability rates when compared to non-mentored businesses.

Below are some of the great proven ways mentorship helps startups to scale.

Mentors Have Deep Knowledge About Their Industries:

A mentor who is in your industry and who has been in the same line of a startup as you do would help you to understand the depth of your business and the complex nature of your market. However, having a mentor who focuses on a particular niche is better than having a mentor who provides general advice which your startup may need.

Dr. Arthur Krebber shares some thoughts about why niche mentors are better than general ones.

Being a marketing magician does not make you a supply chain supremo. When placed on the throne of Mentor, you run the risk of acting like the oracle of all things startup-esque.
A dose of self-reflection is critical in this regard. What is your advisory niche — i.e. in what two to three areas can you really add value? And are those in line with what your mentee is after? Depth of advice always beats breadth of advice.

Startups Can Avoid Many Costly Mistakes With The Help Of A Mentor

With an experienced mentor, your startup can scale through several mistakes. Mentors usually do not have vested interests in your business. They, therefore, seem to say the truth the way it is. They will tell you things no one else will, even if it hurts.

Founder of IrokoTv, Jason Njoku says mentoring helped him to a great extent while growing iROKOtv.

I think it’s super important, irrespective of whatever industry you’re in, to try and be on friendly terms with other significant players. The VOD players above are all slightly different, across different Geo’s, yet much further ahead in terms of market development than iROKOtv. So I have A LOT to learn. Speaking with Suk [Park, Co-Founder of DramaFever.com] a few Fridays ago in NYC really made me realise how little iROKOtv had actually achieved. In the 4 hours I spent at DramaFever’s madison avenue office, I learned more than I could ever know otherwise, even if I read hundreds of books or blog articles. Their successes and challenges helped narrow my entire company’s focus and thus make necessary changes earlier rather than later. I will be circling in with Suk on a regular basis just to trade ideas, borrow some wisdom and genuinely try and re-create the greatness DramaFever has created. Ego aside. Where possible. Get a mentor. Or a friend.

Mentors Can Lend You Their Network

Having a mentor with strong connections in the industry and the ecosystem you are operating in will help you in no small ways. The mentor can help to open multiple doors. Most investors feel more comfortable and would most probably make an investment if the startup was referred to them by their network. This applies also in the most business to business engagements. For instance, it is more effective to get referred by a vendor that supplies to a large corporation than cold calling.

Michelle Shroeder, an entrepreneur, and blogger who runs the personal finance and lifestyle blog Making Sense of Cents, that turns in over $70,000 in revenue per month says that as a mentor:

“The most painful mistake I see first-time (or inexperienced) entrepreneurs make is that they see others in their industry or niche as competition. This can significantly hold you back, as you may never learn industry secrets and tips, make genuine friends, and more.”

“Don’t view others in your niche as competition. Network and build relationships.” @senseofcents

“Instead, I think you should see others in your industry or niche as colleagues and friends. You should network with others, attend conferences, reach out to people, and more.”

Shola Akinlade, Co-founder of Paystack is one of the startup owners that benefited from this network:

“I applied to YCombinator in 2007 for my first company, Precurio. We did not get in, but we kept working on the business. In 2014, I realised that so many businesses were struggling to accept payments from their customers online and so I started working on Paystack to solve the problem and make payments easy for businesses. While working on Paystack, someone told YC about me and one of the YC partners encouraged me to apply. I applied and after some back and forth, we got invited for an interview in Silicon Valley in November 2014, ” he said.

Most Mentors Are Entrepreneurs Too So They Share In The Struggle

Mentors themselves understand what it means to run a business and succeed. Entrepreneurship is hard and someone who has gone through that path can understand the various issues and guide you in the best ways. Mentors are already familiar with their areas of specialization. Learning from them can help startups wade through unclear waters. Mentors can bring in a sense of direction and balance for startups when things go awful. They can help startups spot new opportunities. A mentor who has built a company from idea to exit is an ideal being. It always helps if you are mentored by someone who has gone through the process of entrepreneurship and has been successful at it. Although having mentors from big corporates who manage large businesses is good, it is a different game when you need to validate your idea, raise money and steer the company through difficult times. This when you would require an entrepreneur who has had that experience.

See Post: How Ride-Sharing Startup SWVL plans to take over Ride-Sharing in Egypt

Mentors Are Flexible With Their Wealth of Experience

Unlike starters who are yet to have a feel of what the business terrain looks like, most visionary mentors are already looking ahead towards finding a lot of creative solutions to current problems. A great startup mentor can help you to look beyond the daily operational and tactical issues faced by your startup and help you build a bigger vision for it. In this regard, you should hope that the mentor should help you look at the evolving technology trends and changing market dynamics. The mentor should also help you build alternative revenue sources, and scale and solidify your position in the market.

Key Points About Finding The Right Mentors

A startup owner has to be careful about choosing a mentor. Usually, a single mentor may not possess all the elements listed above. In this case, it is extremely necessary that you may need two or three mentors with different levels of engagements guiding you.

Nav Athwal, founder, and CEO of RealtyShares sees mentors as a very important part of the journey for startups

As a founder, there’s a tendency to assume that your grit and hard work are sufficient to drive the success of your startup. While these things can take you far, they’re not a substitute for the experiential knowledge that comes from heading up an established company.

That’s what makes mentors and advisors such a crucial part of the equation for startups. Surrounding yourself with the right people — at the right time — can be instrumental as you grow and begin to move toward long-term sustainability.

The type of mentors and advisors that founders should associate themselves with is linked to what stage their business is in. In the early days, you might have one set of advisors that helps you find your footing, and as you move onto the next phase of growth, the people you look to for advice and insight will in turn evolve, he says.

Avoid Celebrity Mentors

Many first-time founders make the mistake of chasing celebrity mentors. While they do bring a lot to the table, it’s not necessary they are the right fit for your needs. Founders must do extensive research before signing on a mentor, because the relationship is more than temporary.

The first step in finding the right mentor is to ask what is it that you want a mentor to help with. “I help structuring my ESOP plan”, “I need to create employee policies that will help me attract and retain the right talent”, “I need to find out the best technology investments for my business”. A concrete question that the mentor can answer for you will help narrow down the list considerably, notes Inc42 BrandLabs.

Bottom Line:

Mentors are good for the growth and the eventual success of startups. However, in looking out for one, follow certain sound standards. For instance:

Don’t go for celebrity mentors. Find a tested, trusted and experienced entrepreneur or expert.
Plan specific problems you would want the mentor to help you solve and focus on them with the mentors until they are solved.
You can rely on more than one mentors based on their expertise in specific areas at a time
Don’t force yourself into the relationship; let it grow on itself.
Most times, sticking to the paid consulting type of mentorship may not be a good choice. They may lack the capacity to be open and objective for fear of losing their earnings.
Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

How Ride-Sharing Startup SWVL Plans To Take Over Ride-Sharing In Egypt

Just founded about 2 years ago, Egypt’s ride-sharing startup SWVL is on its way to displacing market shares for other Egypt’s ride-sharing startups. The startup recently signed an agreement with Ford motor company, to deploy more cars on the road.

How The Terms of This Agreement Would Be A Game Changer for SWVL

The agreement will combine the brilliance of the Ford Motor Transit, world’s best-selling van brand, with an app-based mass transit system that enables commuters in Egypt’s major cities to enjoy an affordable, convenient, safe and reliable alternative to existing transportation services.

Ford Transit, which the startup intends to use is already the third best selling van of all times. SWVL is already in possession of about 100 Ford Transits. Hazem Taher, SWVL’s Head Marketing Manager, said the vans were ready to go and they’re excited to push them on SWVL’s routes.

This agreement not only gives SWVL an advantage within the Egyptian private transport market. It also, by some distance, allows it to broaden its reach in the MENA (the Middle East and North Africa) market.

The timing is more than excellent for SWVL. Egypt hosts this year’s TOTAL African cup of Nations (AFCON), with commuters expected to quadruple in major Egyptian cities where matches will be played.

From Alexandria to Cairo, to any place in Egypt, SWVL provides commuters in Egypt’s major cities with cheaper alternatives to existing transportation services.

SWVL’s goal is to make it easier for Egypt’s residents to book bus rides at a fixed rate on existing routes. Users schedule trips, pay online or in cash and are given virtual boarding passes.

Even with fierce competition from the likes of Buseet and Uber vying into premium public transport service, SWVL’s application has been downloaded for well over 360,000 times on Google play store and Apple iStore.

See Post: Zimbabwean Startup Law Basket hopes to change Legal Service Businesses in Zimbabwe and Africa

The platform completes 100,000 rides monthly.

It was the first company to introduce the service in Egypt in 2017 before Careem and Uber joined the sector late last year.

What SWVL Is Doing Differently

SWVL is different from its competitors because of its series of partnership deals, including the current one. The startup’s credit facility agreements with Nasser Social Bank and EFG Hermes Bank, and after-sales support and maintenance services with Ford-trained technicians are some of these moves. What SWVL users think about the startup is its priority on affordability, comfort, and safety.

How This Partnership Will Help SWVL

SWVL founders are convinced this partnership will help it take the next big step forward.

“SWVL was created to help improve people’s lives by revolutionizing the transport scene in Egypt with a smart solution that helps ease the commute. We’re proud of the results we’ve achieved in such a short period of time, and the work that Ford has put in to help elevate the levels of service we offer our customers,” CEO, Moustafa Kandil said.

I think we are in uncharted territory when it comes to expansion when it comes to growth for an Egyptian startup. We feel that this is our responsibility, and we are committed to bringing what we have done in Egypt, scaling it even further and bringing it to the rest of the emerging markets.

Speaking at the announcement in Cairo, Ford North Africa MD Achraf El-Boustani said,

“We are thrilled to bring Ford Transit to Egypt, debuting in such a prominent and important role through this partnership with SWVL. The key to Ford Transit’s success as a mobility platform is its reputation for dependability, versatility and capability, and we’re confident that Swvl operators here will soon learn just why thousands of people around the world rely on the Ford Transit to get the job done.”

SWVL’s domestic competition includes Uber and Careem, who are sometimes the same company. But SWVL has the momentum right now, raising all the funds, signing all the partnerships, expanding into major African cities, many of which are clogged by chugs of traffic and would represent ready markets for SWVL’s deft ride-sharing system.

SWVL was founded in 2017 by three young Egyptian entrepreneurs — Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh. As noted on its website, the company is “a revolutionary idea born from passion, loyalty, and persistence to face all challenges on the table …not just a means to facilitate commuting, but a hunger to strive for solutions, encourage the contribution of youth in innovation and inspire change.” So far, they appear to be doing just that.

Of the total amount of about $686.4 million raised by African tech startups last year, Egypt got a share of $68 million. SWVL got about $38 million out of Egypt’s share, making the startup the most-funded Egyptian startup. The startup has expanded to Nairobi, Kenya, with plans for Manila, Jakarta, and Dakar.

In February this year, SWVL entered the Ugandan market, registering a presence in Kampala.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Zimbabwean Startup LawBasket Intends To Transform Legal Service Businesses In Zimbabwe and Africa With Its New Launch

LawBasket is, well, bringing law to the basket of what can be purchased online in Zimbabwe and across Africa. The startup was just founded in December of 2018 by a team of entrepreneurs that includes two lawyers. In what was supposed to be a huge thrill for the startup, it secured signups from legal professionals from more than 25 African countries on this launch.

The Law Startup Business Model Is Simple

The startup believes you can shop all legal services online the way you shop for clothing and other wares. The startup calls itself an online legal services marketplace for small businesses and startups, which bring together hundreds of lawyers in over 200 practice areas to deliver quality and affordable legal services online. The startup also offers client relationship management technology and payment processing services for lawyers.

The startup exists for both lawyers and clients.

The client can get to hire lawyers for their job from a wide range of lawyers on the platform, with expertise in various areas. They can either post a job and let lawyers bid based on expertise and client’s budget, or they can simply search for services, find lawyers and invite them to do their cases.

The startup is also giving legal clients the power to manage jobs from anywhere in the world, using their dashboard. With an integrated mailbox on the dashboard, the client can send emails to their lawyers quickly and follow up on their cases. They can also monitor proposal for posted jobs or manage their payments to lawyers for work done. Lawyers are only paid when the job is done. Through LawBasket Payments, the startup also simplifies the process of creating and managing bills for lawyers and provides a simple portal to process multi-jurisdictional payments for legal services.

See Post: Fintech Startup Pyitup Raises $13 million in New Funding, Zimbabwe

For lawyers, they can search for cases that tickle their fancy, and send proposals to clients based on their expertise that suits the case, and at the same time search jobs at any time.

The startup is also giving lawyers a dashboard and a mailbox to manage their work from anywhere in the world.

According to the startup’s co-founder and head of marketing Nyasha Makamba in a recent interview, the platform presented a credible alternative to traditional law firms, providing a cost-certain solution to getting legal help for small businesses across Africa.

“In terms of the competition, and although the company is not a law firm, the firm broadly competes with traditional law firms, as well as other consultancy companies that provide technology-driven legal solutions. LawBasket is different from traditional law firms both in size and reach, as well as its approach to pricing legal services,” said Makamba.

How Law Basket Expects To Make Its Profit

Although LawBasket has been funded by its founders, Makamba said it had a “clear path to revenue generation and profitability in 12 months”, with revenue expected from commissions on LawBasket jobs, premium membership, and payment processing fees through LawBasket Payments.

Already, the startup has gained traction with over 153 lawyers from more than 25 African countries registering on its platform.

“It is almost 10 times bigger than the largest law firm in Zimbabwe, and is less than 40 lawyers away from surpassing the largest law firm by lawyer number in South Africa and Nigeria,” Makamba said.

Law Basket is also getting a hit from potential clients from more than 15 countries. Its client base is already over 106, ranging from small businesses and startups.

“With these demographics, this means that the legal services payment processing aspect of the business is operative in 25 countries in Africa, including South Africa, Nigeria, Zimbabwe, Kenya, Zambia, Botswana, Senegal amongst other countries,” Makamba said.

“We plan to increase user numbers both on the client side and the lawyer side in the current markets, with plans to introduce more lawyers from the Francophone and Lusophone markets within 12 months.”

Globally, the legal technology industry is still growing, but the industry has quietly built up a number of emerging categories over the last few years. As of 2017, legal tech companies raised just $739M in aggregate funding since 2011. However, there is still a lot of opportunities to improve processes within the legal industry still attached to manual and paper-based processes.

The least popular areas in legal tech in 2018 are e-Billing and intellectual property, where machine learning is widely used. These areas are represented by three companies on each side. In 2018, only one of them has raised investments, a company which is developing an IP-solution.

On the other hand, e-Discovery is one of the most popular destinations in the whole legal tech industry. e-Discovery, mostly used in common law countries is an electronic service for finding relevant information about lawsuits and investigations. In common law countries, e-Discovery does provide great help to lawyers, saving them time and improving the accuracy of finding suitable court cases.

In 2016, $224 million was invested in the industry; in 2017, $233 million was invested. Investors were eyeing a fairly young business area and refrained from large transactions.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Foreign Investors In South Africa Buy Most Of Their Shares From These Companies

May 21, 2019

That the Johannesburg Stock Exchange is the largest in Africa doesn’t mean it says one thing and means the other. Recent data from the Bank of America Merrill Lynch Global Research shows that more foreigners own shares on the Johannesburg Stock Exchange than South Africans themselves. To be precise, about 52% of the shares on the Johannesburg Stock Exchange are owned by foreigners.

Again, latest numbers from the JSE indicate that foreigners resell most of their South African shares. The amount resold from the start of April to the first week of May, 2019 stood at R5 billion. In fact, foreigners resold about R3 billion shares in the three days before the national and provincial elections alone.

What Areas The Foreigners Are Going To Most

Mining

Some 62% of mining shares on the JSE are now in foreign hands, and overseas investors have increased their mining holdings over the past year, particularly in platinum and gold companies, except for Harmony.

Financial And Industrial Shares

The percentage of foreigners who go for local financial shares is 37% and industrial is 54%.

Foreigners also bought Clicks shares — but sold Woolworths, Massmart, Foschini, Truworths, Dis-Chem, Shoprite and Spar.

Also See: South African Franchise Mug & Bean Launches ‘A Move Thru’ Strategy that Allows Cars Move Through Their Stores

Foreigners were also net buyers of of Reunert and Reinet, the property shares Resilient and Intu, and added to holdings in Capitec.

Telecom and Retail Shares

Foreigners have also been selling their stakes in South African-focused companies over the past year, particularly telecom and retail shares.

The report shows that foreign investors sold Vodacom and MTN, but were net buyers of Telkom in the past year.

Source: BofA Merrill Lynch South Africa Strategy

The Top Foreign-owned Stocks

The top five foreign-owned stocks are now Richemont, BHP, Gold Fields, Harmony, and Anglo Gold.

The domestic names foreigners are going after are Clicks, Lewis, Tiger Brands, Discovery and Telkom which have the highest foreign holdings.

Foreign holdings in Naspers — which represents a fifth of the Stock Exchange — has fallen from 65% in 2016 to 62%.

The report found that if shares listed on other exchanges — like BHP Billiton and Richemont — are excluded, foreign investors owned only 46% of domestic shares, down from 48% last year.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

NEW REPORT: Funds Raised By African Tech Startups in 2018 Surpass Some Countries GDP

May 18, 2019

Tech startups in Africa are having a field day. In fact, the amount raised through funding, by tech startups in Africa is two and a half times larger than the GDP of Sao Tome and Principe, an island nation off the coast of Central Africa.

The Afrobytes and Viva Tech conferences in Paris this week are providing an opportunity to analyse the growth of tech startups in Africa. Fund-raising is one of the key growth areas. Partech Africa, a venture capital firm, hinted that 146 startups in 19 African countries raised $1.16 billion for African digital entrepreneurs in 2018.

Image result for Tech funding Africa 2018

Key Analysis

Kenya, Nigeria and South Africa in all saw a 78% of the total funding, with Egypt close behind.

French speaking countries are not way behind:Senegal is the leading tech ecosystem among them with a total of $22 million raised in four deals so far.

Forty Senegalese startups last November secured a total of $2 million in government funding alone.

Side by side with their Anglophone peers, African Francophone countries, Partech noted, operate in smaller markets, and lack capital and mentors.

With African population expected to reach 1.4 billion by 2021, and with over 1 billion smartphones on the continent, Africa looks like the a promising center for the world’s leading high-tech and telecom companies.

What Speakers At Both Conferences Said

Marieme Diop, a venture capital investor at Orange Digital Ventures, said that ‘unfortunately in Francophone Africa, it is not in our DNA. People who succeed in business or in electing positions do not necessarily reach back to help their peers to show them how to be successful. In the Anglophone world, it is a must for anyone who wants to start something: seeking advice. So the gap is not only financial’ between the regions. Africa is seen by many as the next frontier for venture capital, with its booming population and mobile-first economy. That’s why Google, Facebook and PayPal participated in Paris in Afrobytes 2019.’

We do not want people globally to see African high-tech as an exotic stuff,’ said Afrobytes CEO Ammin Youssouf. ‘We want to be heard and talk about AI, blockchain, what is happening in Silicon Valley, because it has an impact on us. We already have brilliant minds in Africa, especially in tech, to have those conversations.’Unlike the global trend, where men dominate the high-tech industry, women are leading the movement in Africa.’

Women Are Becoming A Large Part of the Tech Revolution

Ben White, chief executive officer of venture capital platform VC4Africa, who has been supporting startups on the continent for more than 10 years analysed this situation:

‘‘Actually, what we see in the statistics is that women’s involvement and participation on in the African continent is much higher than what you would find in New York, for example, or San Francisco. I think it is an advantage. It also means having women investors who are very sensitive to gender-related questions and can also ensure that the system we are building is inclusive.’’

Can Government Help Tech Startups By Way Of Funding?

Government in startups? That is a two-way risk:

Kenza Lahlou, co-founder and managing partner at Outlierz Ventures, said the public sector ‘should not invest [in startups].To him, governments simply don’t have the skills needed to pick good investments. However, government can bring support by way of legislation, and policy support.

Morocco, for instance, already has InnovInvest, which it is doing in partnership with the World Bank to invest in local venture capitalist funds, to lower the risk for local funds.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

CarePay: Kenyan Startup Looks To Disrupt Health Care Payment In Africa With £40 Million Expansion Fund

May 16, 2019

There are still so much unexploited opportunities in the African health payment market. This is what the Amsterdam and Nairobi-based startup, CarePay International is looking to tap into. With £40 Million in new funding, the startup is trying to expand to more territories.

Key Analyses

The startup is smarter here. It is choosing to expand more on its investment in Nigeria with a population of 200 million people (and which had the value of transactions conducted through mobile devices rise by 56 per cent in the first nine months of 2018 alone to N216bn from the 2017 figure of N138bn (about $600 million).

And it is also choosing Tanzania,the sixth most populous country in Africa ( which had the value of Mobile Money Transactions reaching TZS 50 Trillion ( about $22 billion) in 2016–17) as the starting point of its investment targets.

With the latest funding of £40 million, CarePay is already one of the most funded startups in the whole of Africa, in the rank of Andela, others.

The startup is going to Health tech in the countries and it plans to digitally connect health players including insurers, users, and providers on a single mobile platform, so that they can communicate and make transactions in real-time.

The startup was also strategic with this round of fund raising as it targeted a pool of investors from different investing backgrounds, in order to give the startup a two-sided look: that of generating a social outlook for the startup and bringing back financial returns. Dutch private equity funds IFHA-II, impact investor ELMA Investments, Dutch Ministry of Foreign Affairs which invested through the PharmAccess Group are some of the mixture of investors for this round.

In 2015 alone, investors poured over 14 billion USD into fintech companies globally while African fintech startups have attracted almost 30% of the total VC investments into the continent, which amounts to nearly $50 million.

By December 2017, 49.1 per cent (338.4 million) global mobile money accounts were in Sub-Saharan Africa. Within the region, East Africa had 56.4 per cent of the accounts, followed by West Africa at 30.9 per cent. In Eastern Africa, 66 per cent of the adult population of Kenya, Rwanda, Tanzania and Uganda combined actively used mobile money.

Although health insurance coverage is still low in many countries in Sub-Saharan Africa, mobile money use may have increased access to it. Kenya’s social health insurance, the National Hospital Insurance Fund (NHIF), for instance, experienced a 500 per cent increase in voluntary payment subscribers between 2009 and 2017 after the organisation started receiving payments via M-PESA

Also See: Kenyan e-Health Startup Raises $3m For Expansion

CarePay International was launched in 2015.

“The mobile phone allows you to reach everyone at almost no extra cost, this creates unprecedented opportunities for health insurance schemes,” said Onno Schellekens, CEO of CarePay International.

“Universal health coverage in Africa will only be possible if governments and their citizens can provide and access health services from both the public and private sectors through seamless and efficient mechanisms, CarePay brings that ambitious vision within the realm of possibility,” said Tom McPartland, a Board member of ELMA Investments.

“The current health insurance model excludes huge parts of the African population as the administrative costs are too high, there is not enough data and outpatient costs cannot be controlled,” said Max Coppoolse, IFHA-II’s Managing Partner. “CarePay’s mobile technology addresses all these elements and in addition offers cross-sale opportunities and other significant growth prospects for insurers.”

CarePay International works with private and public health payers, connecting millions of people to its platform that are currently excluded from quality healthcare services in Africa.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.