Eagles don't need parachutes - by Rapelang Rabana

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Eagles don't need parachutes - by Rapelang Rabana

  1. 1. Eagles don ’t need parachutes By Rapelang Rabana
  2. 2. Outline <ul><li>Why do a startup? </li></ul><ul><li>The early days of Yeigo </li></ul><ul><li>Key lessons learnt </li></ul><ul><li>Yeigo & Telfree Partnership </li></ul><ul><li>The South African Telecommunications ’ Market </li></ul><ul><li>Telfree ’s next generation network </li></ul>
  3. 3. My computer science days Acknowledgement: http://scienceblogs.com/neurotopia/2010/06/stress_anxiety.php
  4. 4. What am I supposed to do with myself?
  5. 5. Waiting for my real life to begin..
  6. 6. Illusion of Certainty Acknowledgement: http://www.barryandstuart.com/category/blog/page/3/
  7. 7. Taking the Leap
  8. 8. The Start <ul><li>Took the leap end of 2005 </li></ul><ul><li>Started immediately building a prototype </li></ul><ul><li>Started looking for funding </li></ul><ul><li>Only expenses for that first year was food, rent, laptops and internet access </li></ul><ul><li>First angel investors Sept 2006 </li></ul>
  9. 9. Facebook MSN GoogleTalk Yahoo! ICQ AIM Skype QQ
  10. 10. Key Lessons - One <ul><li>You can ’t outsource your competitive advantage and expect it </li></ul><ul><li>work out </li></ul><ul><li>Innovation is iterative </li></ul><ul><li>Complex problems require great motivation </li></ul><ul><li>Producing a demo shows commitment </li></ul><ul><li>Startup costs increase too quickly, too soon </li></ul>
  11. 11. Product = Execution != Original Idea
  12. 12. Key Lessons - Two <ul><li>The South African internet/tech funding climate: </li></ul><ul><li>Risk models often too traditional </li></ul><ul><li>A lot of barriers for foreign investors </li></ul><ul><li>Not enough second and third generation tech entrepreneurs </li></ul><ul><li>Therefore build personal relationships early on to try stumble </li></ul><ul><li>across the right people </li></ul><ul><li>Now lots of new initiatives like the Google Incubator </li></ul>
  13. 13. Key Lessons - Three <ul><li>Secrecy cannot protect your idea </li></ul><ul><li>If its simple enough to be copied, it will be copied anyway </li></ul><ul><li>What part of the value chain do you have a unique influence over? </li></ul>
  14. 14. Eagles soar when storm clouds come in
  15. 15. Problem One <ul><li>Typical problem in telecoms but specifically VoIP operators underinvested in infrastructure </li></ul><ul><li>The mobile applications required a quality telecoms infrastructure in the back-end </li></ul>
  16. 16. Problem Two <ul><li>Revenue collection via the mobile channel significantly underdeveloped market </li></ul><ul><li>Consumers must harder to collect money from than businesses </li></ul>
  17. 17. South African Telecommunications Legalized in 2005…. But did it anything change??
  18. 18. Wholesale versus Retail Rates Wholesale Interconnect Rate R 1.25 Retail Interconnect Rate R0.90 to R1 > < In Theory But in Practice… Wholesale Retail
  19. 19. Wholesale versus Retail Rates R 0.73 Less than R1 < Wholesale Retail Six years later Parliamentary pressure
  20. 21. Eagles don ’t need parachutes
  21. 22. Thank you <ul><li>www.telfree.com </li></ul><ul><li>@rapelangrabana </li></ul>

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