Vc&pe roundtable deck march


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i/o ventures in Africa and Technology opportunities in East Africa

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  • 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
  • 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 Africa’s Massmart Holdings Ltd., with plans to use the discount retailer as a foothold for continental expansion.
  • 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
  • Consultative Group to Assist the Poor41% is traditionally informal25% of Kenya’s 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
  • Bridge is funded by Omiydar networkSafaricom as one of the biggest IPOs in SubSaharan Africa
  • 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 President’s OfficeRussell Simmons, Cofounder of Yelp, first engineer at paypal.Bakhresa Group- $300M revenue company in East Africa
  • 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 capital”
  • 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
  • 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…
  • 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?
  • EGG is the “netflix of batteries” a mesh business for the last mile of connectivity for the urban areas.
  • Vc&pe roundtable deck march

    1. 1. Opportunities in East Africa <br />Paul Bragiel: Partner<br />Mbwana Alliy: Africa Lead<br />
    2. 2. i/o ventures<br />Angel Investment firm founded in 2009/2010 <br />Heavy on mentorship with a great network <br />A funky space in the Mission district, San Francisco<br />Paul BragielAber Whitcomb AshwinNavin Jim Young<br />“Backed by I/O Ventures, the San Francisco café houses startups that get seed money, mentoring, four months of office space—and discounts on all the goodies”<br />
    3. 3. i/o ventures Accelerator (2010)<br />$25,000 for 8%, 4-6 month program<br />All secured follow on financing, 2 acquired.<br />
    4. 4. What does this have to do with Africa?<br />Talent exists everywhere: The Silicon Valley Link<br />International scope<br />Singapore (Oct 2010)<br />Brazil Trip (Nov 2010)<br />Tanzania, Kenya (Aug & Dec 2010)<br />Source: WSJ interactive series Jan 2011<br />
    5. 5. Africa Economic Picture (2008)<br />
    6. 6. East Africa Tech Overview<br />Market: 150M, Over 60M mobile users in the regions with about 5M+ internet users. (EAC union)<br />Talent: Raw engineers and students<br />Lack of Expertise: Inexperienced entrepreneurs, A serious lack of Angel investing despite VC/PE presence<br />
    7. 7. Mobile Financial Services as a foundation for formalizing the economy<br />
    8. 8. Mobile Money<br />Over 15M mobile banking users in Kenya alone and spreading across Tanzania, Uganda, Rwanda<br /><br />
    9. 9. Kenya as the regional innovator<br />Significant pool of engineering talent and the region’s first open incubator workspace<br />Leader in Mobile banking  transformative and force in sectors not limited to Financial Services<br />Education<br />Healthcare<br />
    10. 10. Tanzania: Meet& Mentor<br />Meet Govt officials at the highest levels<br />Successful Businesses<br />Mentoring students & entrepreneurs <br />Local press generates awareness & excitement for tech<br />
    11. 11. Tanzania Plans & i/o ventures <br />Dar Teknohama Incubator (May 2011)- Govt subsidized/PPP.<br />Incubator support<br />Mentoring & “Capacity Building”<br />Accelerator program & Seed Fund<br />Tech Park + Outsourcing (2012+)<br />Data Center (2012+)<br /><br />
    12. 12. Tanzania: local partners<br />Commission for Tech & Economic Advisor to the president<br />InfoDev /World bank: Funded over 80 incubators worldwide<br />Finland is a major Donor<br />€3M/year in technology<br />Nokia innovation lab<br />
    13. 13. Key Opportunities<br />Mobile Applications on emerging platforms <br />Emerging web services in key verticals and proven business models to scale across emerging middle class across East Africa<br />Emerging Ecommerce (marketplaces, key services)<br />Social Media, Content Inc. advertising (Mobile Web & SMS)<br />Entertainment (local)<br />Small business SaaS<br />Bottom of the Pyramid (BOP) + Leapfrog<br />Payments and remittance services<br />Crowdsourcing<br />eLearning and Education<br />mHealth<br />Energy & Cleantech<br />
    14. 14.
    15. 15. Energy & Cleantech<br />10-15% of the population in East Africa does have access to electricity… but it will grow<br />Billions needed to fix legacy infrastructure and benefits won’t flow to emerging lower/middle class <br />Leapfrog opportunities & new consumption models<br />