[kictanet] KENYA’S TECH START UPS AND FLUFF

12 Jan 2015

      http://www.wanjiku.co.ke/2015/01/kenyas-tech-start-ups-and-fluff/

Date: Mon, 12 Jan 2015 18:05:55 +0300
Subject: Re: [kictanet] Kenya's Tech Startup scene leaves investors	underwhelmed
From: kictanet@lists.kictanet.or.ke
To: ggithaiga@hotmail.com

According to Robert Yawe: https://t.co/pJfVm9ffxi______________________
Mwendwa Kivuva, Nairobi, Kenya

"There are some men who lift the age they inhabit, till all men walk on higher ground in that lifetime." - Maxwell Anderson

On 12 January 2015 at 16:21, Phares Kariuki via kictanet <kictanet@lists.kictanet.or.ke> wrote:
http://www.wanjiku.co.ke/2015/01/kenyas-tech-start-ups-and-fluff/

Wanjiku's take
On Sun, Jan 11, 2015 at 1:44 PM, S.M. Muraya via kictanet <kictanet@lists.kictanet.or.ke> wrote:
@walu @makali
Automation varies e.g. systems (infrastructure) automation vs Business Process Automation.
Business Process automation is big in societies which favor efficiency/hospitality over fraud. 
http://www.computerweekly.com/news/2240237777/Forrester-IT-maintenance-saps-...

For business automation, locals get along better with locals, and do much better than expatriates.
Smart expatriate entrepreneurs/investors focus more on infrastructure automation/management.
Business automation involves understanding how an organization or society needs/wants to work.

As the Reuters article noted (GSMA research), local investors (which must include public officials) are not well informed.Regards
Murigi / Stanley Muraya
"Better a patient person than a warrior, one with self-control than one who takes a city." Prov 16:32

On Wed, Jan 7, 2015 at 8:38 PM, Walubengo J via kictanet <kictanet@lists.kictanet.or.ke> wrote:
@David,
sounds like a good topic.  Investment in the ICT arena.  I would imagine that high-capital investments are done and dusted i.e. setting up mobile networks, setting up media and broadcasting houses, laying fiber, etc.
The remaining area of ICT investment is in the low-capital investment area a.k.a innovations. Software based Innovations along the spirit of FB, Twitter, MPESA, Google, etc.  Essentially Kenya lacks investors in this space.  Local banks only fund the traditional, tried and tested business models like opening up a bakery, building flats for sale/rent, land transactions, etc but have not time to invest in "ideas".
So you would probably need to schedule 2 talks/sessions around.
1. Why and how to fund/investment  in ICT ideas/research (get  someone from Govt, Commission for Sci, Tech & Innovation (??) , get someone from Academia, (Dr. Ndemo?) , from Industry ((Joe/Veronica of 
Safcom Innovation Directorate))
2. Why Kenyan investors dont 
fund ideas/innovations (get one fellow from Industry(Joe/Veronica of 
Safcom Innovation Directorate), Govt (Victor, ICTA) , Investment 
banker/Venture Capitalist (e.g. ????)
You can pay me 2Chickens for the advise...IEBC type Chicken not your local luhyia rooster :-)
walu.

        From: David Makali via kictanet <kictanet@lists.kictanet.or.ke>
 To: jwalu@yahoo.com 
 Sent: Wednesday, January 7, 2015 4:32 PM
 Subject: Re: [kictanet] Kenya's Tech Startup scene leaves investors	underwhelmed

Folks: I would like to frame a discussion on citizen tv breakfast show around this issue: IT or ICT as an area of investment and econ growth and her competitiveness of our investment environment. What should the topic be and who are the 2 critical people that should form part of that panel. And why.Last year, I tried in vain to get my friend and member of this network, Catherine Adeya, then CEO of Konza city, to come on air for an exploration of the subject but...  Doesn't mirror much the robust discussions I see here (behind the curtains?).DavidThis is official mail. If you doubt the content, call back on +254722517540.

On Jan 6, 2015, at 9:38 AM, Ngigi Waithaka via kictanet <kictanet@lists.kictanet.or.ke> wrote:Listers,My 2 cents on this issue.Kenya Technology scene, is actually quite old; I know a few firms that were founded in the 90s, some even earlier, and that are still going strong. If anything, firms founded around the late 90s and early 200s have had a lot more success than in later years, IMO. If you doubt me, check firms like Virtual City, Craft Silicon, AT, SevenSeas, 3Mice, Cellulant, Verve, ReelForge, Turnkey Africa, Lantech, AfricaOnline, Wananchi etcHaving being involved in this sector over the last 20 years, I think that the article is quite fair in that in recent times, there has been a lot of hulabaloo of a new IT Startup which in no time bites the dust, leaving investors obviously, licking their wounds.But this didn't just happen overnight. Sometime around 2007, there was a general drift towards mobile technology. There were very nice sound bites, that, if you built a mobile application, and got 1% of the world to buy it, you would be best pals with the likes of Facebook, Twitter, Google Founders who would probably be calling you up to borrow your yacht.This excitement was quickly followed by the "...build it they will come mantra...", and besides, a new city technology city, Konza!This had the quick effect of churning a lot of money into these startups to the point where what traditionally we would call "functions" in an application, was being touted as a full application. These were quickly showcased in the next mobile competition, and the winners of these parlayed across the media as the true technology champions of Kenya.And with the success of Mpesa (that Kenyan application that is not built in Kenya), Kenya had arrived in the technology scene. But this could not have been further from the truth!I have argued before, that if we are to build a local technology scene, it has to first cater for the current needs in the market. The Kenyan Technology scene is heavily dominated by procurement of enterprise applications & technologies. Put together, GoK, Safaricom, Airtel, KPLC, KenGen, KRA, KCB, Equity etc spend not less than Ksh 200B every year in IT purchases.If we ought to make a serious push for technology, then we need to first address the market where local firms are already buying into, instead of concentrating on developing functions wrapped as mobile applications for a market that at most cannot even hit Ksh 100M.This is what every one of those firms that I have listed before did and its no wonder 20 years later, they are still here.And this is the fundamental difference between the Kenya & 
Nigerian startup scene. There are countless Nigerian firms that are 
already in Kenya pushing their Nigerian built core Banking, Insurance, 
Manufacturing and Public Sector solutions. Solid firms that are making applications that the market is already paying for.So, lets not shoot the messenger. Lets reserve our vitriol and energy for the ICT policy makers and ask them to build a policy that leads to self-sustaining ICT growth.RegardsNgigi WaithakaA1.iOOn Tue, Jan 6, 2015 at 2:46 AM, Eric Osiakwan via kictanet <kictanet@lists.kictanet.or.ke> wrote:.....you are very far from wrong, actually too close to right.HNY.Eric here Sent from my iPhoneOn Jan 5, 2015, at 17:40, John Kieti via kictanet <kictanet@lists.kictanet.or.ke> wrote:Dear Ali, and other listers,Once in a while, we read articles in media, especially international media carrying very misleading headings on the Kenyan startup scene. The piece you share Ali is one such misleading storyI would easily dismiss such an article, not only for it simply "re-tweeting" old unfounded stereotypes but for two other reasons as follows :-1. The story is built solely on the investment philosophy of one investor - not that its a wrong investment philosophy but that its not the only investment philosophy relevant for a young ecosystem like ours. Even in other advanced ecosystems there's many competing investors with diverse investment strategies. 2. The story fails to capture sentiments of local founders seeking capital and the challenges they face - from a startups perspective. Considering that local startups have perceptions such as existence of "vulture capital" and  "racial capital preferences", it is fair to expect that closing even the simplest of deals, or even attracting the requisite pipeline is not for faint hearted or non-committed investors. The writer could have gone under the hood to explore these at the very least.At the very least I would ask myself this when faced with such an article; Can anyone really fairly compare our five year old ecosystem with mature (decades old) ecosystems such as Silicon Valley or Tel Aviv? What yardsticks would be fair across the board?That said, our startup ecosystem still experiences the usual challenges expected at these formative stages. For instance (a) There's still too many parallel entrepreneurs (for justified reasons) running startups sub-optimally (b) we continue to experience a gap in local angel funding (or traction proof funding) which cannot be replaced by foreign capital. (c) Players and commentators in the ecosystem continue to assess startup growth and performance with the same yardsticks applied to consultancies and lifestyle businesses (d) The local market has sustained this uncanny tendency to favor the presence of a non-local when a sales pitch party is granted - if at all such is granted to a startup. (e) In the legal, PR/marketing, accounting and other supporting professions, available skills sets and professional approach are for the most part inflexibly corporate minded  - neither customized nor conducive for working with startups. These to me are new issues below the surface that a writer should be exploring rather than repeating the usual rhetoric damning the fledgling ecosystem - which I find unfounded.I may be entirely wrong, but I could be right in my observations.Best regardsOn Sun, Jan 4, 2015 at 9:44 PM, Sean MoroOn Sun, Jan 4, 2015 at 10:52 AM, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> wrote:ListersA lot of discussions in this area over the last few years. Are the chickens coming home to roost?Have we focused too much on competitions, donor funded money and shared spaces and a lot less on commercially viable ideas/nurturing what is there towards commercial exploitation? My sense is that we now need to move to 3.0 to enable realize the potential of our startups. Read on:-http://www.businessdailyafrica.com/Corporate-News/Kenya-s-technology-push-le... Hussein+254 770 906375 / 0713 601113Twitter: @AliHKassimSkype: abu-jomoLinkedIn: http://ke.linkedin.com/in/alihkassimBlog: www.alyhussein.com"I fear the day technology will surpass human interaction. The world will have a generation of idiots".  ~ Albert EinsteinSent from my iPad_______________________________________________
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