Presentation done at the 3rd Making Finance Work for Africa conference in Dakar on June 11th. www.mfw4a.com

1. CTIC Dakar
Why and How to invest in Tech SMEs in Africa ?

2. Pionnier & Ambitieux
1er Incubateur
TIC du Sénégal
et d’Afrique
Francophone
Lancé en Avril 2011
Modèle
économique viable
« Entrepreneurs for
Entrepreneurs »
Entrepreneur & Innovant
Initié par l’expertise
d’InfoDev, IFC (World Bank)
et OPTIC et soutenu par
Orange-Sonatel, GIZ,
CDE, ADIE, ARTP, SCA…
Org. à but non-lucratif de
la Fondation des Incubateurs
du Sénégal (FICTIS), menée
par le secteur privé (OPTIC)
avec le soutien du
Gouvernement
Partenaires locaux &
internationauxPartenariat Public Privé
Public
Privé

3. Why Technology in Africa ?
 10% internet penetration rate = 1% GDP
Growth
 Impact all sectors of the economy
 Finance crucial to develop local high growth
SME >>technology independence

4. 1. Stop thinking about banks or MFI…
• R&D = Human Resources mostly
• No Revenue before 1 or 2 years
…to finance innovation

5. 2. Adapt Business Model
• Hybrid models between services and product
 250% revenue growth for CTIC Companies
 All have one Flagship product (which bring no
money)
• Donors cash is risky for you model

6. 3. Adapt Equity Model
• Entrepreneurs not “pro-equity” and even less
“pro-exit”
 More revenue sharing or dividends rather than
exit at 5 or 7 year
• Almost no exit market anyway (M&A, IPO)

7. 4. Solutions
• Public Funding for R&D (research grants)
 Ex: ARTP-FDSUT – $200,000 Seed Fund for startups
• Co-matching Funds for VC and Business Angels
 Ex: in Israel, Mexico, etc.
• Structure Business Angels Community
 Ex: Nigerian Ghana and Senegal
 Need training and outside expertise

8. 5. Key Role of Intermediaries / trust partners
• Incubators, Accelerators
 Never 100% public !
 Make them Sustainable
 Local Governance is crucial
• Network organizations
 AVCA
 VC4Africa
 Afrilabs, etc

9. Yann LE BEUX
Catalyst
Yann.lebeux@cticdakar.com
+221 33 889 93 62
Merci.
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