Morning villagers, I come to you today with some good news. I know a lot of you have been trying to get information on alternative investment options aside from land. Suffice to say putting all your eggs in one basket is never a good idea, so if you already have several plots of land, then this is your chance to expand your investment portfolio. Villagers like @Purple and many others have expressed interest in investing in the Silicon Savannah’s tech scene. I wager a good majority of you would like to own shares in a Kenyan tech startup with a bright future trajectory. Well, today is your lucky day. I would like to present you with this opportunity to invest in a high potential, fast growth tech startup that I have been working on. I have broken down the narrative into different sections to make it easier to read. This post is meant for serious people with a mind for investment hence the placement in the business category. I therefore request Admin to moderate the comments and filter out any space wasters and derailing trolls on the thread. Lets make KenyaTalk business section something to rival the business dailies of the githeri media.
The challenge
The business revolves around an innovation in the manufacturing sector. The majority of Kenyan industries (and the developing world in general) run legacy equipment that is usually aged, out of step with current technology and manually operated. Most of the machines running in Kenyan factories are shipped in second hand from places like India, China as well as the West. A typical factory in Kenya will have a mosaic of machines from different manufacturers in different countries, all running on different programs and the only thing that these machines have in common is that they are old and need to be manually operated. This is a far cry from the industries of the developed economies which are operating at the cutting edge of technology and reaping the economic benefits that come from the technological dimension. For those not in the know, the industries in developed economies such as Asia, Europe and America are being designed and outfitted to leverage what is being called the fourth industrial revolution. This is a paradigm shift that will make industries connected, smart, exceptionally efficient and highly competitive in a more globalized marketplace. It is a revolution powered by the latest advances in information technology and it aims at maximizing industry efficiency through the use of Internet of Things(IoT), Cloud Computing and Big Data Analytics. Perhaps its most defining characteristic, is the use of Artificial Intelligence to revolutionize the management of industries.
The shift to these intelligent industries is being spearheaded by the developed world. This has traditionally been a closed group of nations that has dominated industrial production and used the same to tilt the balance of payment in their favor viz-a-viz the developing world. Their industries lead in technological advancement and they have the resources to upgrade to expensive state-of-the-art machinery and equipment required for Industry 4.0. For Africa’s industries to have any hope of survival in the coming age, they need to radically adapt and frog leap into Industry 4.0 despite their outdated equipment and technologies. You can learn more about the Fourth Industrial Revolution, also known as Industry 4.0, from the below link:
https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/
The solution
We have developed a customized solution that will propel Kenyan industries into the age of Industry 4.0. Designed specifically for developing economies with Kenya as a model, our solution navigates around all the challenges associated with bringing legacy equipment into the new age of manufacturing. The solution is composed of a sophisticated assemblage of hardware, software and data analytics systems that together work to control, oversee and automate industrial processes with an efficiency unattainable under the current regime.
Leveraging some of the latest and most powerful advancements in the fields of information communication and data processing, our solution aims to provide an alternative for those local industries that wish to move into Industry 4.0 but cannot afford to overhaul their equipment in favor of the more advanced machines propelling the same revolution in the West (and East). We have built the bridge that crosses this technical and financial divide and gives developing countries an equal chance to participate in the latest industrial revolution. In a few years, this solution will mean the difference between African industries being sustainable or being obsolete in a manufacturing world increasingly driven by technology and open markets.
The market
The financial projections for the demand of this solution in the developing world are massive. Current forecasts from independent analysts place the global market at over $13 billion USD by the year 2022. The market is predicted to grow at a cumulative annual growth rate of close to 7% for the next five years. Most of the attention of dominant players in this industry is focused on the more lucrative markets of the developed world (Europe, Asia and America). As such there is little innovation happening around developing countries. Current products are not optimized for local implementation and many barriers to entry exist for industries in developing economies. Our company aims to fill that gap by serving this ignored sub-market.
Plans for total global domination
The company plans to pilot its technology in Kenya in 2019 before disseminating it to the rest of the East African Community in 2020. Thereafter it plans to expand across the Sub-Saharan Africa market in 2021 as it builds capacity and partnerships to go global. The company plans to make forays into the Latin America and South East Asia markets between 2022 and 2023. The company is designing its technologies for the developing world and has no current plans to venture into the European and American markets. However this position may change based on future opportunities and strategic objectives that the company may spot as it goes along.
The investment details
The company is registered in Kenya with all legal documents available for review by serious investors during a one-on-one meeting with the founder. This includes the articles and memorandum of association, certificate of incorporation, as well as other company documents. The business plan, pitch deck, financial projections and other sensitive information can be shared subject to an NDA. All potential investors will be assisted in carrying out due-diligence and all subsequent financial relations with the company will be captured in legalese. This pre-seed round of funding will run until December 2018 and all investors will have their details included in the company’s records with the registrar of companies. A date and venue for an investor conference will be given to confirmed investors where the team, road map, vision and technologies of the company will be unveiled.
Disclaimer: This is not a publicly traded company and its shares are not being traded in the stock market. Inserting this here just for the record.
Share price and minimum quota
Ordinary shares in the company are priced at 5 shillings each. To manage administrative costs, we are placing a floor on the purchase of shares to a minimum of 50,000 shares.
Pre-seed Investment
This is a tech startup at a pre-seed stage of funding. The initial funds are meant to raise resources to build the company to the next stage of funding, which will be a full seed round. At this stage funds will be used to implement a proof-of-concept and begin market penetration. This pre-seed round represents an early stage entry suitable for those looking to get in early while the company shares are at their lowest price point. Subsequent rounds of investment will see the company’s shares revalued upwards increasing the value for early stage shareholders.
Risk and Reward
Startups typically have a higher risk profile compared to traditional forms of investment. Many things can go wrong in building a company from the ground up. However many things can also go right and essentially it all boils down to a risk benefit analysis. As is common in many investments, the greater the risk the greater the reward. A successful startup can have an exponentially high conversion rate for an early investor, multiplying their initial investment many times over during the course of a few years. We are putting together a motivated and talented team to take this company all the way to the stars. Those willing to share in this risk will also share in the reward.
Who can invest
Individuals, investment groups, chamas and any registered entity can buy shares at this stage. This will probably be the only round of funding open to individuals and small investors as future rounds of funding will be sourced from venture capital and institutional investors.
Exit strategy
The company plans to maintain as a going-concern in its current form for the next 5 years, after which it will exit through an acquisition or IPO. Early investors may exit the company before by selling their shares back to the company at the value they will hold by then under the buy-back scheme.
Further Queries
I will respond to all questions through Inbox for those serious about learning more.
Sande sana!
