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Y Combinator Wins in Africa, Gains from Paystack Cover ALL Investments in African Startups

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Since 2014, Y Combinator, the popular U.S. based accelerator, has invested $120,000 for 7 percent equity in its companies. Paystack, the Lagos-operating fintech company which was acquired by Stripe in a deal north of $200 million, attended YC, post- 2014. If we assume that YC invested $120k for the 7%, we can conclude that Paystack was worth $1.7 million during the deal.

By looking at the multiples and the short time they created this value, Paystack is possibly the most successful Nigerian startup on value creation for investors for deals above $50 million.

With an exit of $200 million – a three digit-multiple- and considering the typical delusion, I estimate that YC will receive at least $12 million for its investment at that very early in Paystack. Yes, the Americans have turned $120k into $12 million in your neighborhood in Lagos. Sure, how you wish!!! Sorry, that is why one smart man wrote “Acres of Diamond”. That glory is everywhere if you seek it earnestly! But give it to the Americans; Paystack revenue was $1,300 when YC accepted it.

https://youtu.be/VIzhXzixENE

More so, YC has invested in about 40 African countries. If we keep the same $120k per startup, the total investments will come down to $4.8 million. For this analysis, I am discounting growth phase investments where YC joins other investors, post-graduation in its program.

Simply, YC has risked $4.8 million in all the startups, and one startup has returned at least $12 million. Yes, YC has already won in Africa.

Paystack Is The Most Successful Nigerian Tech Startup on Large Value Creation for Investors

HR People Magazine’s “HR Manager for the Year” Attending Tekedia Career Week

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He was a HR Manager for the Year from HR People Magazine Awards. He is an alumnus of Senior Management Program (SMP) at Lagos Business School (LBS), and Action Learning MBA at Business School Netherlands. He is an Associate of Chartered Institute of Personnel Management of Nigeria, Nigeria Institute of Training & Development, Nigeria Institute of Management (NIM), Institute of Business Management & Policy Development Nigeria, Learning & Development Institute, Nigeria and Project Management Institute (PMI).

An ex-Head of Human Resources – Commercial Business Group at Lafarge Africa Plc, he now serves as the COO of  Emerald Zone, a HR consulting and advisory firm. Oladapo Akinloye, a Tekedia Institute Faculty, will teach and speak during Tekedia Career Week Nov 2-7, 2020) on Career Planning within the theme, Nurturing Innovators.   This career week is not designed for finding jobs. Rather, it is structured to TRANSFORM professionals into business leaders and champions of innovation in their companies.

All past and current Tekedia Mini-MBA members, including those who have registered for Edition 4 (Feb 8 – May 3, 2021) attend free. We have 13 courses, videos, cases, etc on how we can plan our careers during this time of disruption. 

Join Dapo and other other Faculty.

Tekedia 2020 Career Week Is Set For Next Week

The MultiChoice (DStv, GOtv) Customer Service Lesson

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DSTv court

On Thursday, MultiChoice (DStv, GOtv) informed its customers thus: “Please be informed that Multichoice offices are undergoing a system upgrade from 11 pm Saturday October 17 to 4pm Monday, October 19, 2020.” Then, from October 17, many started writing that the DStv system had been hacked because most channels became available to everyone. Interestingly, Multichoice made a decision as the upgrade process would prevent some subscribers to temporarily NOT have access to their paid channels. In order to avoid that, the company opened all the channels to mostly everyone.

I recall the day we were doing an upgrade in the Tekedia payment system. The database migration possibly could prevent subscribers from not having access to the premium contents. I asked our team to make everything open even though non subscribers could have access. The real goal was to make sure that paid subscribers were never affected during the process. When the migration was completed, we switched back the paywall.

For these two scenarios, would you have approached the issues differently?

Comment on LinkedIn Feed

I think we need to learn from Telecom companies. I’m curious, how do they do it? Do they also open up their server so that everyone and anyone both subscribed and unsubscribed can have access to the pool of their data subscription and airtime?

I personally think if they go down this route, the debt they will accrue over that short space of time will be more than enough to set the company on a survival trajectory.

So, how do they get it done? Anyone with exact and factual details should help with that.

My Response: Actually, telcos do open up during some upgrades. There have been cases when people harvested bundles by luck. The key is making that call between annoying the paid users and t hoping the freebies will not break you. Yet, the real deal is to make sure you never have to make such calls. But some default to open especially when the risk is small over dealing with customer complaints on Twitter and Facebook.

The World Waits As China Unveils A New Five-Year Plan; Lesson for Nigeria

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The world is on pause (literally) as everyone waits for the details of China’s 14th five-year plan. With massive global dislocation triggered by Covid-19, China can exploit many comparative advantages to accelerate its ascension at a rate the world has not witnessed before. So, watch out how China begins to build an economy that does not need the world to thrive but would be indispensable for the world. As the world’s largest exporter, the world runs on China and this new five-year plan could push the equilibrium more to China’s favour.

China has churned out five-year plans since the 1950s, borrowing from the former Soviet Union. Accompanying subsidies have given direction to the economy, businesses, officials and investors. Over the decades, the plans have helped develop agriculture and industry. Technology didn’t figure prominently. In the 12th plan, which ran from 2011 through 2015, the economic growth mix changed as the break-neck pace slowed from the years after accession to the World Trade Organisation. The current one mentions “innovation” more than 200 times and pushes Made in China 2025, a policy that became a sticking point in the trade spat with the US Programs and projects range from high-end manufacturing, big data and smart grids to cyberspace security. These are all sectors that are top of mind for global leaders and are faced with increasing protectionism.

What is Your China Strategy?

But as that happens, Nigeria is working on Agenda 2050, a new developmental initiative for the nation. Because 2050 seems like an eternity considering the rapid changes in our world as a result of technologies, breaking things into five years or at most ten years may be more strategic. The effectiveness of China’s five-year plan is iconic; Nigeria can learn from it, over our typical decades-long roadmaps which are usually abandoned. Of course, it goes beyond plans – we need to also execute!

AGENDA 2050: PRESIDENT BUHARI INAUGURATES NATIONAL STEERING COMMITTEE, SAYS NEW DEVELOPMENT PLAN WILL LIFT 100 MILLION NIGERIANS OUT POVERTY BY 2030

President Muhammadu Buhari Wednesday in Abuja inaugurated the National Steering Committee to oversee the development of the Nigeria Agenda 2050 and Medium-Term National Development Plan (MTNDP) to succeed Vision 20:2020 and the Economic Recovery and Growth Plan (ERGP) 2017 – 2020.

The National Steering Committee for the development of Successor Plans to Vision 20:2020 and ERGP will be jointly chaired by Atedo Peterside and Zainab Ahmed, the Minister of Finance, Budget and National Planning.

What is it that Nigeria wants to accomplish in the next five years? If you have no clue on that, do you think telling you a 2050 plan makes sense?

Effective Ways to Reform the Nigerian Police

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The need for the reformation of the Nigerian police is long overdue. People have been asking the government to do something about the police but, as usual, the government is slow in responding. The poor welfare of these officers and the wrong management of the system have led to a lot of decay. What we face today is not just extortion and brutality, but also perpetuation of crime by these officers and their use by different Nigerians as private servants and personal security. It is actually time to call for a change.

If you ask twenty Nigerians what they think should be done to bring positive changes to the Nigeria Police Force (NPF), they will tell you twenty different things. But among the things they will say are salary increase, recruitment of graduates, training, psychological tests, dismissal of corrupt officials, and so on. All these are good but not all of them are necessary. For instance, I don’t think a person’s level of education should determine his ability to police well. Yes I know that we cherish degree certificates in Nigeria but not all men of integrity passed through the walls of higher institutions. Furthermore, we have seen PhD holders that lack integrity. So asking for university graduates to be the only police officers we have in Nigeria may not be necessary.

However, in addition to suggestions proffered by well-meaning Nigerians, I have the following to add:

  • Duration of Assignment

I don’t know how the police force works but I know that being in a position or a location for a long time may cause more harm than good. For instance, if these SARS officials were transferred out of their locations of service, or transferred from one unit to another within a short frame of time, they will not have become this bad. When a person stays long in a position or location, he is bound to see himself as indispensable, or as a god. NPF should make it a point of duty not to leave officers in a location or unit for more than a year or even less. Let these officers know that their stay is temporary wherever they are.

  • Background Check

Like I said earlier, I don’t know how the system truly works but I doubt if the background of our officers were truly checked before they entered service and even while they are on service. If it is done, well it needs to be intensified. The officers’ lives in the past, friends, family, hometown and what have you should be checked and deemed satisfactory.

  • Supervision of Bank Accounts

This becomes necessary because of the way our officers extort money from people. These people’s accounts need to be checked regularly. There should be an independent unit that should take charge of this issue to avoid being compromised. Of course, when a certain amount of money is seen in an officer’s account(s), he will be asked to explain. Thank God BVN is there to make it easier to trace and monitor these people’s accounts.

  • Provision of Police Barracks and Other Incentives

The least the government should do is build barracks for these officers. Even if they have to pay rent, let it be minimal. I know a lot of people will kick against police officers paying for rents in barracks. But rather than these officers living in those kinds of barracks that look like where pigs are reared, let them have good ones and then pay reduced rents.

  • Ban from Serving Private Individuals and Organisations

Today, if you have money in Nigeria, police officers will be attached to you. They will follow you around and even be your chauffeur. They will run errands for you and do some house chores for you as well. And of course, if that man you are owing comes to ask for his money, your police minions will beat the living daylight out of him. And parents like this say they support youths in their #ENDSARS protest. That’s hypocrisy at its peak. Well, let ‘Big Men’ go and hire security personnel from private organisations. They don’t have to scare their ‘enemies’ away with men with guns. If they insist on their personal security details holding guns, they can arrange with the government to give license to some companies to provide people like that. But let our officers stop being house-helps for Big Men.

As for recruitment of officers by private organisations, I think the NPF needs to spell out which organisation is more likely to be attacked by armed bandits and robbers and which is not. Let it not be that even hospitals, filling stations, schools, supermarkets and what have you will have heavily armed MOPOL sent to them because they can afford to ‘pay for them’. The problem with our police force is actually enormous.

All the same, Rome wasn’t built in a day; and so our police force won’t be reformed all of a sudden. But like the ripple created by a drop of water, a little move in the right direction can bring the positive changes we all crave for.