[kictanet] KENYA’S TECH START UPS AND FLUFF

Tue Jan 13 12:27:26 EAT 2015

Fluff or no fluff, we forgot one very important factor here. What is our
Kenyan economy like? How many of the startups being indicated among the
"fluff" align themselves with the economy stalwarts in Kenya (Agriculture,
tourism. transport, finance, Human resource et al)?

I wonder whether focus on things people do not necessarily need while there
are huge gaps on the value chains and other places the economy needs fixing
(See great solutions like Mfarm, iCow, Wezatele) was going to yield more
than just fluff.

The conversation was good in getting us back on the ground and we can do a
self-check to see where we can pick up and grow. You realize that it's not
all that bad, anywhere in business, especially startups, even a 10% success
rate is worth the effort. What needs to happen is make this a part of
research that future innovators an business-people can use when getting on
to the next one.

Only the resilient remain in the chase, and the best way to pick out the
winners from pretenders is out in the field. We should consider this part
of the journey. A wise investor will consider this a highlight of the
market perspective, not what's bad with the market.

Martin Gicheru,
Techweez.com

On Tue, Jan 13, 2015 at 11:55 AM, Ali Hussein via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> Great response from Nikolai.
>
> On the issue of 'Fluff' I suspect every market has its share of it
> (Starting with Silicon Valley itself).
>
> The rule of thumb in Technology Investing in Start ups is that less than
> 10% make it to become successful companies. So 'Fluff' is part of the
> ecosystem.
>
> *Ali Hussein*
>
>
>
>
>
> Tel: +254 770 906375/ 713 601113
>
> Twitter: @AliHKassim
>
> Skype: abu-jomo
>
> LinkedIn: http://ke.linkedin.com/in/alihkassim
> <http://ke.linkedin.com/in/alihkassim>
>
> Blog: www.alyhussein.com
>
>
> Any information of a personal nature expressed in this email are purely
> mine and do not necessarily reflect the official positions of the
> organizations that I work with.
>
> On Tue, Jan 13, 2015 at 11:11 AM, Josiah Mugambi via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>> Nikolai (88mph) has a useful response and some clarifications on Becky's
>> blog as well:
>>
>> See it directly:
>>
>>
>> http://www.wanjiku.co.ke/2015/01/kenyas-tech-start-ups-and-fluff/#comment-7689
>>
>>
>>
>>
>>
>>
>>
>> On Tue, Jan 13, 2015 at 9:11 AM, Ngigi Waithaka via kictanet <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>>> I like her analysis.
>>>
>>> If other VC's have the same attitude, then we're slowly and surely
>>> getting to the root cause of the 'fluff'.
>>>
>>> And almost right on cue, this dropped by my Inbox today. Useful
>>> comparisons.
>>>
>>> http://www.quora.com/Why-is-Israel-so-big-in-high-tech
>>>
>>> Waithaka Ngigi
>>>
>>> Alliance Technologies
>>> Nairobi, Kenya
>>>
>>> www.A1.io
>>> On 12 Jan 2015 19:18, "Grace Githaiga via kictanet" <
>>> kictanet at lists.kictanet.or.ke> wrote:
>>>
>>>> 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 at lists.kictanet.or.ke
>>>> To: ggithaiga at 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 at 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 at 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-budget-as-tech-spending-increases
>>>>
>>>> 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 at 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 at lists.kictanet.or.ke>
>>>> *To:* jwalu at 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?).
>>>>
>>>> David
>>>>
>>>>
>>>> This 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 at 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 etc
>>>>
>>>> Having 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.
>>>>
>>>> Regards
>>>> Ngigi Waithaka
>>>> A1.iO <http://a1.io/>
>>>>
>>>> On Tue, Jan 6, 2015 at 2:46 AM, Eric Osiakwan via kictanet <
>>>> kictanet at lists.kictanet.or.ke> wrote:
>>>>
>>>> .....you are very far from wrong, actually too close to right.
>>>>
>>>> HNY.
>>>>
>>>> Eric here
>>>>
>>>> Sent from my iPhone
>>>>
>>>> On Jan 5, 2015, at 17:40, John Kieti via kictanet <
>>>> kictanet at 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 story
>>>>
>>>> I 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 regards
>>>>
>>>> On Sun, Jan 4, 2015 at 9:44 PM, Sean Moro
>>>>
>>>> On Sun, Jan 4, 2015 at 10:52 AM, Ali Hussein via kictanet <
>>>> kictanet at lists.kictanet.or.ke> wrote:
>>>>
>>>> Listers
>>>>
>>>> A 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-leaves-investors-cold/-/539550/2574220/-/13qkohy/-/index.html
>>>>
>>>>
>>>> http://www.gsmaentrepreneurshipkenya.com/GSMA_KENYA-AR2014-060214-WEB-SINGLE-PGS.pdf
>>>>
>>>>
>>>> *Ali Hussein*
>>>>
>>>> +254 770 906375 / 0713 601113
>>>>
>>>> Twitter: @AliHKassim
>>>> Skype: abu-jomo
>>>> LinkedIn: http://ke.linkedin.com/in/alihkassim
>>>> <http://ke.linkedin.com/in/alihkassim>
>>>> Blog: www.alyhussein.com
>>>>
>>>> "I fear the day technology will surpass human interaction. The world
>>>> will have a generation of idiots".  ~ Albert Einstein
>>>>
>>>> Sent from my iPad
>>>>
>>>> _______________________________________________
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>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
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>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>
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>>>>
>>>>
>>>>
>>>> --
>>>> My Blog - www.gmeltdown.com
>>>> '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
>>>> The ordinary just won't do
>>>>
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>>>> for people and institutions interested and involved in ICT policy and
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>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>
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>>>> _______________________________________________
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>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>>>> for people and institutions interested and involved in ICT policy and
>>>> regulation. The network aims to act as a catalyst for reform in the ICT
>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>
>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>>> online that you follow in real life: respect people's times and bandwidth,
>>>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>>>> not spam, do not market your wares or qualifications.
>>>>
>>>>
>>>>
>>>>
>>>> --
>>>> *Regards,*
>>>>
>>>> *Wait**haka Ngigi*
>>>> Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod
>>>> Building
>>>> T + 254 (0) 20 2333 471 |Office Mobile: +254 786 28 28 28 | M + 254
>>>> 737 811 000
>>>> www.at.co.ke
>>>>
>>>>
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>>>> for people and institutions interested and involved in ICT policy and
>>>> regulation. The network aims to act as a catalyst for reform in the ICT
>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>
>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>>> online that you follow in real life: respect people's times and bandwidth,
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>>>>
>>>> _______________________________________________
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>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>>>> for people and institutions interested and involved in ICT policy and
>>>> regulation. The network aims to act as a catalyst for reform in the ICT
>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>
>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>>> online that you follow in real life: respect people's times and bandwidth,
>>>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>>>> not spam, do not market your wares or qualifications.
>>>>
>>>>
>>>>
>>>> _______________________________________________
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>>>> for people and institutions interested and involved in ICT policy and
>>>> regulation. The network aims to act as a catalyst for reform in the ICT
>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>
>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>>> online that you follow in real life: respect people's times and bandwidth,
>>>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>>>> not spam, do not market your wares or qualifications.
>>>>
>>>>
>>>>
>>>> _______________________________________________
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>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>>>> for people and institutions interested and involved in ICT policy and
>>>> regulation. The network aims to act as a catalyst for reform in the ICT
>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>
>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>>> online that you follow in real life: respect people's times and bandwidth,
>>>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>>>> not spam, do not market your wares or qualifications.
>>>>
>>>>
>>>>
>>>>
>>>> --
>>>> Warm Regards,
>>>>
>>>> Phares Kariuki
>>>>
>>>> *E*: pkariuki at gmail.com | *Twitter*: kaboro | *B*: http://www.angani.co
>>>> <http://t.signaletre.com/e1t/c/5/f18dQhb0S7lC8dDMPbW2n0x6l2B9nMJW7t5XX45wvF6bW1q0NWF5vMtkRW2zWM_W56dMYnf6-jr-d02?t=http://www.angani.co/&si=4935941909643264&pi=8f9156d5-1f3e-4775-e689-bcd797842132> |
>>>> Angani Limited
>>>>
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>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>>>> for people and institutions interested and involved in ICT policy and
>>>> regulation. The network aims to act as a catalyst for reform in the ICT
>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>
>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>>> online that you follow in real life: respect people's times and bandwidth,
>>>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>>>> not spam, do not market your wares or qualifications.
>>>>
>>>>
>>>>
>>>> _______________________________________________ kictanet mailing list
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>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for
>>>> people and institutions interested and involved in ICT policy and
>>>> regulation. The network aims to act as a catalyst for reform in the ICT
>>>> sector in support of the national aim of ICT enabled growth and
>>>> development. KICTANetiquette : Adhere to the same standards of acceptable
>>>> behaviors online that you follow in real life: respect people's times and
>>>> bandwidth, share knowledge, don't flame or abuse or personalize, respect
>>>> privacy, do not spam, do not market your wares or qualifications.
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>>>> _______________________________________________
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>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>>>> for people and institutions interested and involved in ICT policy and
>>>> regulation. The network aims to act as a catalyst for reform in the ICT
>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>
>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>>> online that you follow in real life: respect people's times and bandwidth,
>>>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>>>> not spam, do not market your wares or qualifications.
>>>>
>>>
>>> _______________________________________________
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>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>>> for people and institutions interested and involved in ICT policy and
>>> regulation. The network aims to act as a catalyst for reform in the ICT
>>> sector in support of the national aim of ICT enabled growth and development.
>>>
>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>> online that you follow in real life: respect people's times and bandwidth,
>>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>>> not spam, do not market your wares or qualifications.
>>>
>>
>>
>>
>> --
>> Josiah Mugambi
>>
>> _______________________________________________
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>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>> for people and institutions interested and involved in ICT policy and
>> regulation. The network aims to act as a catalyst for reform in the ICT
>> sector in support of the national aim of ICT enabled growth and development.
>>
>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>> online that you follow in real life: respect people's times and bandwidth,
>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>> not spam, do not market your wares or qualifications.
>>
>
>
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> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>
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