Thought I would share some exciting news with VijanaFM readers. According to a recent article in The Guardian, I/O Ventures, an angel investment fund and business incubator based in San Francisco is working with the government to setup a local incubator in Dar es Salaam.
For those unfamiliar with the concept of an incubator. These are basically programs led by venture capital (VC) firms to develop early stage companies with seed capital, mentoring, coaching as well as assistance with resources such as office space and technology infrastructure. In return firms usually get a small stake in your company. In the case of I/O ventures, this comes with access to an exclusive network of mentors including founders of Silicon Valley giants such as Youtube and MySpace.
What does this development tell us? Investors and technologists are constantly seeking new markets and fresh talent. Tanzania with its stable environment, burgeoning economy and army of fresh talented graduates is a prime feeding ground. Tanzanians need to wake up and realize that foreigners have already realized the potential of our country even if we are still dozing. So if you have a great idea, are passionate about it and have some form of a business plan, wake up and get started.
If you have an idea, don’t know how to get started or are stuck on a problem reach out to myself or any member of the VijanaFM team and we will gladly help or point you in the right direction.
Cross listed here.
Ooh this is excellent news, I have not heard about this, thanks for sharing taha. This could be the next big thing, this could boost entrepreneurship among youths.
I wish we had a serious government, ahem ahem…because the ministry or work and youths could definitely work with these people. The government can also look into including entrepreneurship as a subject like life skills, in the secondary school curriculum/ syllabus. But oh well, the education system needs to be overhauled all together anyways, oh well..we just need patriotic leaders urgently….
1. We need a 5 questions with Mbwana Ally.
2. I think this move is perfect, let the local minds polish their international marketing skills and product development. We have potential people for this, all that is required is mentorship.
But in order to create a booming nation as Bahati says, we need to revamp our educational system. You can’t expect investors to come in and start mentoring young engineers and entrepreneurs from scratch – a certain base-level of sharpness and exposure is expected. And it is sad to note that with our current education curriculum (kuanzia chekechea mpaka chuo kikuu) doesn’t prepare one for this – unless you have either studied in Kenya or abroad.
This is what is happening in the west as well now, its a “nipe nikupe”, and why not, the ventures will ask for a stake in your company for cash they put in, (duniani hakuna cha bure!), especially if your a businessman.
There is still a debate about whether entrepreneurs are made or born. I was lucky to write a paper about that.
Typical born entrepreneurs do not need formal education, they need to know few things, figures and sales, thats it.
Now UDEC and other institution including my old one IIT are taking care of that.
This is absolutely good news for entrepreneurs, there is a catch in every tempting offer.
Points to note if you are the seeking the funding:
1.Before you go for funding do your research about those “angels”, try earmark which angel which serve you best in your business.
2.Know you cashflow, figures have to balance, don’t forget you live out of that business.
3. Your business have to be operational, your sales figures have to be decent, remember your forecast sales figures for year 1 to 3.
4. Have your target marketing figures, i.e. roughly how many customers your will serve.
5. Fight you corner for the % of your company, don’t give away more than 50%, and if you request a small fund then not more than 40% of business.
6. Presentation is vital and key to secure and impress the “angels”.
Nionavyo, ningependa kujua yaliyomo ndani… Angalia kwenye makabrasha halafu unitumie.
I would look for it SN.
Itabidi niangalie kwanza kama nilipata marks nzuri au la, ama sivyo sitaki kuweka pumba hapa mkuu!
Cheers
Good to see a lively discussion.
@bahati and @joji – definitely agree on the fact that a stronger and more comprehensive educational system is essential to long lasting success of our country as well as generating more entrepreneurs.
@Nionanvyo – good points about what to look out for when dealing with investors. Theres no such thing as a free lunch as the saying goes. To add to your list
– a strong, balanced and experienced team is definitely a plus
– theres no point lying or exaggerating with VC firms, they will see right through it.