Hey guys, I assume many of us have been following the local tech scene long enough to witness the rise and fall of many promising start ups. Put in yourself in the shoes of as VC, which startup do you think is “crushing it” in Kenya? Who would you bet your money/time on with the goal of maximum return on investment?
I think Ongair would be a an awesome startup to invest in for a couple of reasons.
They have an interesting product that is highly scalable, hence them branching out to Asia
They seem really committed to their product which means they would do a lot to make it better as they grow. That kind of commitment and dedication is key for any business to really pull through I think. That is the kind of business to back.
Clad Light. I hope they get patents for their products as the model can be replicated all over the world. I also think its about time we begun investing in hardware startups in Kenya away from software
I strongly agree about investing in hardware. If you think about it, really consumers (In the kenyan context) are not willing to pay for software (Apps). An enterpreneuer is forced to come up with some complicated business model for a pure software play but hardware is a different story. The business model for hardware is preety much straight foward. Build a compelling device, sell it for profit. the market has already shown great appetite for hardware (think smartphone sales, & related accesories). Personally I think the first kenyan “unicorn” (Not funding but revenue) will come from a hardware play. Why do you think people are not that intrested in hardware?
I think finance is a big thing in local markets. I would definately put my money in abacus.co.ke. Disclaimer I used to work there. But enabling ease of access to Africa securities exchanges like Bloomberg does in foreign markets is a very big untapped market where there has no been clear winner in Africa.
The other business I would put my money in would be microlending technologies. Mkopo Rahisi is just but an example. This is because returns can be realised way more quickly since you make money from interest on loans hence you will break even way faster than any business. There is also no big success story in this industry hence it would be a nice place to play in. Not even considering that all Kenyans want credit
I listened to Safaricom’s Brian Mungei talk last Saturday and he said this exact same thing.