[kictanet] [A message to all founders, inventors and innovators] Israel lessons on how to fund profitable start-ups

[S.M. Muraya]

Well noted Patrick.

A genuine decent firm (team) has a very specific vision about what they
want to accomplish (or provoke) in any particular society.

https://knowyourteam.com/blog/2017/07/25/what-is-company-vision-a-picture-of-a-better-place/


Ever wonder why the largest IT contracts in Kenya are almost always awarded
to offshore firms (registered outside Kenya)?

https://www.dailymaverick.co.za/article/2019-06-14-call-for-government-to-open-procurement-data-to-public-scrutiny/


On Wed, Jun 19, 2019 at 2:45 AM Patrick A. M. Maina <pmaina2000 at yahoo.com>
wrote:

> Dear Tech Founders, Inventors and Innovators,
>
> Based on what I have seen and heard in various forums, I think our
> Government has a lot of goodwill and genuinely wants to help indigenous
> tech startups and innovators to succeed and grow. This goodwill appears to
> extend to very senior levels so it is very encouraging - especially now
> that we have a digital economy blueprint to guide us.
>
> However Government cannot magically know what everyone wants so it is
> important for industry practitioners with shared interests to organize and
> speak up with one voice and with clarity.
>
> There are some crucial ecosystem mistakes that occurred in the past,
> which need to be undone and corrected as soon as possible. At some point
> within the last decade or so, shrewd corporate lobbyists took control of
> Kenya's (and Africa's) startups and innovations ecosystem agenda using
> smart influencing tactics. They exploited a *tech MSME leadership vacuum*
> that existed due to our own self-sabotaging lack of interest (and/or lack
> of understanding) of key *economic concepts* that explain exactly *how
> corporations perceive **markets, startups and innovations*.
>
> Just like you, I too was guilty of this lack of interest in economics
> (yawn) and policy (yawn++) - thinking that I could somehow overcome a bad
> system with hard work, good ideas, tech wizardry and passion - but after
> getting some eye opening experiential insights on just how bad things are
> (i.e. a business / policy climate that heavily favors corporations, while
> being generally hostile towards tech startups, MSMEs and innovators) and
> realizing that no one will speak for me if I didn't speak for myself first,
> I decided to get more interested in policy, economics and advocacy - as
> should you, if you truly want to implement your ideas in an environment
> where you have *a fair shot* at success and achieving your dreams /
> aspirations.
>
> Many of you might find this paradoxical - but it makes a lot of sense if
> you think about it for a moment: Large corporations are, and have to be,
> anti-innovation and anti-startups - and this is not out of malice, but the
> simple desire to sustain a working business model for as long as possible.
> Let's face it, it is extremely difficult to find a working business model
> (product market fit) and once you have it, and it becomes a reliable cash
> cow, the last thing any right-thinking corporate CEO or Board would want to
> entertain is some scruffy innovative startup with a disruptive idea that
> could potentially spoil a good party; an exclusive, members-only party that,
> ideally, should go on FOREVER.
>
> At some point you will realize (if not done so already) that it is normal
> and expected for startups and innovators to be perceived as (business)
> threats by corporations. They don't like you (business-wise). In reality,
> you are a troublemaker because your innovation - no matter how fabulous -
> adds *uncertainty,* increases *complexity* and compounds *risk*. I know
> this is contrary to what many of you hear or have been led to believe after
> watching a lot of ads - but don't just take my word for it, simply observe
> what corporations (and their foundations) DO when they seek to "partner" or
> "collaborate" with startups and see whether it matches with what they SAY
> over the long run. Also look at the number of partnerships (as well as
> acquisitions of local startups majority-owned by indigenous founders) over
> the last 10 years. There should be some good case studies / data online
> over the past 10-15 years by now.
>
> I worked in the corporate world for ~10 years (before I got into startups)
> and interacted with dozens of local and foreign tech (mega) corporations
> around the world (Europe, India, UK, Middle East etc) so trust me - I know
> what I'm talking about. Status quo is the *preferred scenario* for large
> corporations and that's why innovators don't last long in corporations:
> they keep rocking the boat (hence constantly clashing with their managers
> who only want to hit their KPIs, avoid trouble, avoid uncertainty and get
> their ka-nice bonus - which is already budgeted for btw, so stakes are very
> personal).
>
> Starry eyed startup founders (cough..I used to be one of them...) don't
> understand this and they see corporations as a quick path to market -
> forgetting that the corporation sees things differently: Sure, they want
> the innovation - but they certainly don't want to pay YOU for it (that is a
> COST and costs are very very bad) so the first thing on their mind is how
> can we get this 100% FREE - and they want EVERYTHING including the credit
> (which they see as rightly belonging to "the HoD" or if its a big enough
> idea, the CEO). So to the corporation, the innovator/founder is viewed as a
> problematic LIABILITY - despite the fact that not having the idea in the
> first place creates high opportunity costs for the corporation. Opportunity
> what?
>
> So when you see corporations scrambling to control the startup ecosystem
> agenda, recognize that they are not doing it out of warm fuzzy feelings for
> startups or innovators; look a bit closer and you will see cold blooded,
> ruthless, calculated, anti-competitive tactics in action, motivated either
> by a fear of disruption, or just greed.
>
> Stop dreaming about a corporate partnership (or even VC) short-cut. It is
> a mind carrot that is used to manipulate and exploit you so that large
> companies can save on R&D and acquisition costs. Instead, start thinking
> about *building your own corporation*. Seek validation from markets - not
> from self-appointed gatekeepers who have no clue about what the market
> wants. Once you go in that direction, you will quickly realize the value of
> having a business environment that is friendly to tech / IP-based startups;
> an environment that gives your startup breathing room to bloom, grow and
> thrive; while protecting you and your innovations from greedy
> anti-innovation goliaths who want to be the only guests at the economic
> party (forever). If you want to build a real company instead of playing
> startup *kalongolongo,* you will take an interest in policy and economics.
>
> Please understand this: Your choices have consequences. Even silence is a
> choice (it is never neutral). If you don't voice your issues, or openly
> support someone that is pushing your interests, it is assumed, by those in
> authority (*many of whom are good people who can, and genuinely want to
> help you)*, that you are 100% OK with status quo - even when that status
> quo has been corrupted so heavily that it significantly raises the odds
> that you (or 99.99% of us) will either fail or be limited to operating as a
> tiny self-employment subsistence hack in the informal economy.
>
> *Silence on policy matters works against you - guaranteed*. That's the
> reality of how things work. If the hinge doesn't squeak, it doesn't get
> greased. I don't enjoy doing this. I'm learning by trial and error (I'm not
> even an expert at this). I'd rather be busy running a business and/or
> inventing / innovating cool stuff - but I'm smart enough to know that *when
> a system is rigged against startups*, even the most diligent and sincere
> efforts will be worthless in the long run.
>
> "*If you're not at the the table, you're on the menu*" - Michael Enzi.
>
> It's time to reclaim our seat(s) at the table: Let the tech startup agenda
> be set by tech startups - not by career employees who have never known what
> it feels like to depend 100% on a business for survival - and yet somehow
> they feel qualified to be the ecosystem gatekeepers pushing a fantasy that
> they can somehow "judge" which startups are the best... really? If anyone
> had such a talent they would not be a career employee and would be a
> multi-billionaire by now; let our stories *not* be told by marketers
> pushing hidden corporate agendas or opportunistic social media influencers
> who feed off sponsorship opportunities or even predatory "incubators" that
> only use your startup as fodder to get event sponsorships (or donor funds)
> or even NGOs that use the "impact innovation" / "women in tech" agendas as
> lures to get donor funds for "big show" events  - the way Kibera slums are
> photographed to fleece donors (yet the slum problem never gets solved).
>
> Get this please: Everyone - except you - is influencing YOUR ecosystem,
> and - they're doing it *for their own benefit.* They have turned you,
> your startup and your ecosystem into *their* cash cow. Don't believe me?
> Lookup all competitions and events on the last 10-15 years - where did the
> top participants / winners go? What about the rest - does any one care
> about them? Look at startup forums / exhibitions and see where the
> photographers focus: is it on the startups and their products or is it not
> the *expert panelists who are using the event as a photo-op to boost
> their own careers*? Who gets covered by the media? The startups or the
> presenters/panelists? How come there is no mega-pullout and mega coverage
> on TV/radio of your startups and its products? Well, it's because it was
> never about you fellow founder / inventor / innovator. YOU were the
> product. YOU were the fodder. YOU were the menu. Please think hard about
> this and do research on past startup or innovation "events".
>
> Have you had enough of being a product for others to use, profit from and
> discard? Get involved in public policy and start articulating and
> supporting the founders / inventors / innovator agenda in your own words,
> and from your own perspective.
>
> Does fear silence you? What is stronger for you, the desire to win or the
> fear of failure? Your greatest opportunity lies just beyond your greatest
> fears. If you fear failure, entrepreneurship is not for you. Get a nice,
> safe career until you retire (or get retrenched before your 20-year
> mortgage is paid off). When the right thing has to be done, a real
> entrepreneur feels the fear, but does it anyway.
>
> Some tech founders have told me that they fear speaking up on policy
> issues because they don't want to be "blacklisted" by companies that they
> would like to work for or "partner" with. This is a self-defeatist trap and
> only allows unjust practices to take root, persist or thrive unchallenged.
> The reality is that companies need your skills (they're not hiring you as a
> favor; it's a trade where you are selling your skill-time for a monthly
> paycheck) and *they cannot blacklist everyone*. The idea of blacklisting
> is a divide and rule tactic that only works when practitioners are
> disorganized, disloyal to each other and disunited.
>
> Fellow tech founders and innovators, your talent is (intuitive)
> intelligence, so I am absolutely certain that you know deep in your heart
> that the things that I write about here are sensible, sincere and true. As
> long as corporations are shaping the startup ecosystem agenda, YOUR agenda,
> startups and innovators will not have any chance to gain traction or cause
> any disruption.
>
> I refuse to be  a pawn in a rigged game. How about you? Let's organize
> ourselves better and articulate our own agenda more clearly and with one
> voice. Let us engage positively with government and policy makers. Don't be
> afraid to make some intelligent noise against corporate bad behavior and
> other forms of injustice - otherwise it will be assumed that you are
> satisfied with status quo - and you will get nothing.
>
> Be blessed and always remember, in UNITY there is STRENGTH. Please share
> this message with all founders / inventors / innovators and tech students
> in your network.
>
> Have a wonderful day and week.
>
> Brgds,
> Patrick.
>
> Patrick A. M. Maina
> [Cross-domain Innovator | Independent Public Policy Analyst - Indigenous
> Innovations]
>
>
> On Tuesday, June 18, 2019, 3:04:29 PM GMT+3, S.M. Muraya via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>
> Dear Listers,
>
> December 2017, there was no comment on KICTANET for this article.
> Singapore vs. Israel: Who’s the better role model?
> https://www.kictanet.or.ke/?p=36145
>
> Like we have said on this list, KES 100 Bln, per annum, can do wonders in
> Kenya..  https://www.kictanet.or.ke/?p=37640
>
> Now that a foreign diplomat has spoken on how they (Israel) fuelled start
> ups, will this particular go.ke respond & provide budgetary support next
> year?
>
>
> https://www.businessdailyafrica.com/markets/marketnews/Israel-lessons-on-how-to-fund-start-ups/3815534-5156434-jvww1tz/index.html
>
>
> *Israel lessons on how to fund profitable start-ups*
> By JAMES KARIUKI, THURSDAY, JUNE 13, 2019 19:20
>
> SUMMARY
>
>
>    - Kenya must generate internal funds that startups can draw from in
>    order to thrive.
>    - Israeli is closely working with Kenya to formulate a partnership
>    deal that will see Kenyan and Israeli companies collaborate in trade.
>
> An Israeli diplomat has advised Kenya to provide seed capital to startups
> to ignite a culture of innovation.
>
> Speaking in Nairobi, Israel Embassy head of economic mission, Arnon Abel
> said Kenya must generate internal funds that startups can draw from in
> order to thrive.
>
> “In the nineties, the Israeli government injected Sh100 billion which
> helped many startups implement their ideas. In some cases, the government
> suffered losses but in other projects that succeeded, the government got
> back its money,” he said.
>
> He told a Startup Ecosystem Forum held in Nairobi that emergence of a
> vibrant startups ecosystem attracted multinational players that established
> research and development centres across Israel, which serve as incubation
> hubs for startups.
>
> Israeli is closely working with Kenya to formulate a partnership deal that
> will see Kenyan and Israeli companies collaborate in trade.
>
> “In Israel, the military, government, private businesses, academia and
> multinationals among other entities actively fund startups as a way of
> seeking new strategies to improve their businesses and be ahead of the pack.
>
> “The research and development centres (Cyberhubs) enjoy funding from
> global multinationals keen on learning firsthand how to improve their
> products or service delivery channels,” he said.
>
> Finland ambassador for innovations, Jarmo Sareva said failure of startup
> projects should not lead to despair in funding new enterprises.
>
> “Governments and companies must support startup forums to spur networking
> among innovators. Companies use the forums to present problems that
> startups spend time seeking commercial solutions,” he said.
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-- 
SMM

*"Better a patient person than a warrior, one with self-control than one
who takes a city." Prov 16:32*
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