REBOOT, RE-THINK & REGENERATE ; ENTREPRENEUR-LED POST-PANDEMIC GAME PLAN
REBOOT, RE-THINK & REGENERATE ; ENTREPRENEUR-LED POST-PANDEMIC GAME PLAN
I recently told one of my portfolio startups that I am fascinated by the future of early- stage startup companies in Botswana and the potential for leveraging global entrepreneurship resources post the pandemic.
I provided five (5) insights ;
1. 2021 has been a big year so far for technology in Africa: some entrepreneurs disrupt while others create. We have two definitions for the new type of entrepreneur that can be associated with this disruption; Mission-Driven Startups (MDS) or Innovation Driven Enterprises (IDEs). These are not like your typical SMEs- these are tech companies with exponential growth and funded with non traditional capital. The next generation of founders and startup ecosystems should be backing these type of early stage companies.
2. An army of talent has been developed but is underutilized: thats why we recommend a startup culture for new age digital entrepreneurship. Everyone has a role- startups are the new universities. The power of critical mass understanding and community support for startup culture is not just in narrative. It is in creating a trained startup talent pool at scale that any ecosystem would emerge a winner. The thesis we propose here is -As startups scale, they become universities for innovation talent.
3. Funding startups and SMEs: There is a new way to fund early stage companies…Pre-Seed, Seed, Pre-Series A, Series A… What do these labels mean in Africa? What do these mean for the local startup ecosystem? Do ecosystem drivers and funders understand this new language- the new funding language of the future companies?
4.Venture capital across Africa is on the rise: in 2015, there was less than $300m total across the continent. In 2019, before the pandemic, it reached $2b across 250 rounds, and is predicted to reach 2.5–2.8b this year- 2021. How prepared or attractive are startup ecosystems like Botswana? Overall to winner is that -startups are risky for all parties concerned — founders, employees and investors. But having a critical mass of startups helps to de-risk it. Thats why Venture Capital Funding is needed in emerging markets like Botswana. One would say- Private Equity Capital is for the old economy.
5. And to perhaps stretch the disruptive entrepreneur-led analogy : this model will create a tsunami of innovation in the years to come and maybe a winner for those who embrace the early stage- innovation ecosystem . Botswana could take the opportunity to let this be entrepreneur-led economy rebuilding post the pandemic.
Onwards… NGWANA AFRICA
