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Active Investor #2 – TLcom Capital

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This daily series focuses on active investors who are investing on African entrepreneurs and their startups/businesses. To qualify, the investor must have done a deal within the last 24 months in continental Africa. The daily entries are archived here.


Business Name: TLcom Capital Partners

Business Description: TLcom Capital LLP is a Lagos, Nairobi and London based Venture Capital firm focuse on Tech enabled companies across Sub Saharan Africa. TLcom has been investing across Europe, Israel and the US investing since 1999, with more the $300m under management. In July of 2017 TLcom held the first close of its new TLcom TIDE Africa fund, targeting $100m to invest into tech start-up across Africa, focused on acceptability, fintech, commerce, consumer services (from health and education to energy and media) and services for corporates and SMEs.

Business Focus: Multi-sector

Location: Lagos, Nairobi

Selected Recent African Deals: mSurvey, Terragon Group, Andela

Website: www.tlcomcapital.com

Contact: info @ tlcomcapital.com

Factor:Nigeria’s former minister of Communication Technology, Omobola Johnson works here.

Active Investor #1 – CRE Venture Capital

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This daily series focuses on active investors who are investing on African entrepreneurs and their startups/businesses. To qualify, the investor must have done a deal within the last 24 months in continental Africa. The daily entries are archived here.


Business Name: CRE Venture Capital

Business Description: CRE Venture Capital partners with visionary entrepreneurs building category-defining tech companies in Africa. We bring the full arsenal of our capital, relationships, and experience to position the teams we work with for outsized success. They bring the full arsenal of our capital, global relationships, and experience to position the teams they work with for outsized success.

Business Focus: Multi-sector

Location: South Africa

Selected Recent African Deals: Andela, Flutterwave, PrepClass

Websitehttps://www.cre.vc/

Contact: info @ cre.vc

Factor: This company lead the recent $40 million Andela round

Launch of Today’s Active Investor Series

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We are launching a new series on Tekedia. It is titled Today’s Active Investor. Daily, we will share profiles of ACTIVE investors who are investing on African entrepreneurs and their startups/businesses. To qualify, the investor must have done a deal within the last 12 months in continental Africa.

 All the daily entries will be archived here.

[To make this easier for my team, please share suggestions to tekedia@fasmicro.com. Thanks]

The President for the Knowledge Century

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In 2019, I am looking for that President that will “restore the dignity of man” (and woman) [thanks UNN] with the “fierce urgency of now”: Unimpeachable, diligent, pragmatic, intelligent and visionary with traits of decency, honor and service. With him/her, Nigerians will rise to the mountain-top, experiencing the unbounded promise of Oct 1 1960 as the first mounting of the Green White Green even as Union Jack [British flag] was lowered.  We yearn: The President for the Knowledge Century.


Our world is changing rapidly. Across the globe, many events, including the unexpected election of Donald Trump as American president, point to a world where nations are looking for fresh ideas to overcome severe economic crises and survive the onslaught of global competition driven by the advent of information and communication technologies. The evolution of knowledge workers (or brain workers) is changing many national policies, as countries device strategies to manage the impacts of globalization by developing infrastructures on education, industry, health and energy. It is a new world where nations that fail to develop or learn, acquire and adapt technologies will remain poor. The emergence of China, and the continuous threats to many established industries by new ones, enabled primarily by brainpower, are showing that this is a ‘knowledge century’.

Knowledge will rule modern man and this knowledge is new, fresh and combative. Since Adam Smith’s ‘Wealth of Nations’, there has never been a more urgent time in the history of man where innovative economic and political leadership is required of leaders. The reason is simple; globalization makes it difficult to control factors like trade and labour, which hitherto, could be easily controlled to the advantages of nations.

Indeed, a world of unbounded and unconstrained markets with internet as the center of new business models, enabling platforms which have become more powerful than some nations. These platforms are restructuring the very elements which have held economies for decades. And they are just starting with new disruptions and dislocations coming.

From American Wall Street to Nigerian Broad Street, leaders have come to realize that new ideas are needed because many old economics are falling. New ideas that accommodate emerging variants that technology has enabled in both the political and economic national models. Models based on the theme that every nation has a limit to national wealth without science and technology. It is an understanding that the era where natural resources dominate international trade is giving way to that of knowledge resources. Natural resources are still important, but unfortunately, the most stable and prosperous nations are those that create ideas with army of knowledge workers.

A vision of new Nigeria is very important for the future of our nation. Our educational system needs immediate improvement. The advancement of any modern superpower has been fuelled by its educational infrastructures. And the collapse of any great nation has always been preceded by the decay in its education. The old Greece was known for its fine philosophers, the Babylon known for its wisdom and the old Egypt, where civilization began was known for its knowledge.

In its age, Egypt was admired for knowledge as the land of pharaoh had some of the best thinkers. Moses of the Bible was highly respected partially because of his Egyptian education, which was better than his Israelite’s comrades. During the British industrial revolution, their education was the best, as no school on earth could be compared to Oxford and Cambridge. Today’s dominance of the United States is attributed to its education, which remains its best industry, at least at the university level. The schools drive the researches that translate to new technologies, which subsequently diffuse into the economy. America has the finest labs in the world and continues to dominate the roll call of Nobel laureates. It is believed that if America loses its educational superiority, it would lose its dominance in the world’s political and economic scenes.

How can Nigeria prepare for this century? We need leadership and fundamental changes in policies to modernize our education and industry. From electricity to road networks, Nigeria has the capacity to provide and sustain them; we are smart, ingenious and optimists. But our problem has been lack of 21st century level leadership.

Nigeria needs a leader with capacity to rally the nation in honesty, hard work and raise our imaginations beyond where we are today, and move us to believe in ourselves, and create the tools to make us build our nation. It must be a leader whose goals will not just be to keep government running, but one who can help the nation dream a bigger, larger and glorious vision that generations of Nigerians will unite for. A leader that besides running the nation will transform it.

A leader that can create a society to engage our brightest minds in government by evolving a new political system designed to seriously solve problems. A person who can engineer Nigeria into rebirth and restoration to offer a prosperous nation that is colorful, fluidic, vibrant and open for change. Yes, a person of immense intelligence, competence, pragmatism, and unimpeachable. A person of integrity, broad knowledge, enormous vision and solid experience; one that can stimulate more vibrancy in the private sector and move the public sector out of its stasis. With that leadership, Nigeria will witness changes in trade, education and commerce as battalion of knowledge workers emerges to give us the needed clout in the global arena.

Finally, Nigeria and indeed the whole world are faced with enormous challenges and opportunities. For Nigeria, the challenge is fundamentally developing the system to enable the emergence of new class of workers, the knowledge workers, and providing the economic environment where they can flourish. The opportunity comes by using the skills of these workers to grow the economy by diversifying the petroleum-based economy and move millions of our citizens out of poverty.

We yearn: The President for the Knowledge Century.

Business Idea #9: Multi-Vendor, Location-Agnostic Claim Aggregator for Insurance Sector

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This daily series focuses on business ideas for those looking to launch new ventures in Nigeria (and Africa in general). The short ideas are archived here.


The Problem

The Nigerian insurance sector is on paralysis. Unlike banking, it continues to struggle to permeate into the lives of average Nigerians. Even the people that sell the products do not use them. That tells you the scale of the industry problem [ask any insurance worker if he has home insurance for his village house; the answer is possibly NO]. But there is always someone to blame: the customers do not support insurance as though there is anything like that. No one wakes up in the morning looking for a business to support. Rather, people look for businesses to solve their personal and commercial frictions. Any business that delivers solutions for those frictions would get paid. With low penetration and poor value proposition, the insurance problem is huge.

 

The Opportunity

Interestingly, because the sector has not been redesigned means that opportunities abound. Though an insurance license is required to actually effect many changes, there are ways tech entrepreneurs can help insurance companies to use technology to improve service and advance the sector. By reducing the claim processing time even when improving the overall experience, insurers can make many people believers. Banks did that and got many people into the sector.

Claim assessment takes more than 12% of the global auto insurance premium, according to Fintech Collective. By using technology in that space, the insurers can easily evaluate the damages and pay timely. This will help its value proposition and possibly make it more appealing to customers. Today, insurance claims in Nigeria take months and customers just give up. Technology can speed up that process and help bring confidence in the industry.

Action Roadmap

Create a product I will call FasLoci to make it easier to explain.

Name of project: FasLoci

Description of technology:  FasLoci is a high-end geo-location data collection and management suite which encompasses a mobile application for crowdsourcing geo-location data, remote datacenters for data repository and a web service for content management. It will work in any location and can be configured to support any insurance company.

Application: What FasLoci does is to aggregate photos as they are being taken, tag them with GPS location, and then send them to a repository server where they can be sorted. It offers to clients a technology that will help them associate any photo with its GPS location.  The applications are enormous – retailing logistics, insurance claims investigations, trust system in farming, etc.

Take for example an insurance company asking its clients to download the apps and use that to take photos after accidents. They take the photos from their phones which immediately are synchronized to the insurance server. The insurer will look at the photos and compare the report from the Police where available. If they match the location where the Police have described, the insurer will know the photos are legitimate. They do not have to travel from Port Harcourt to Opopo just to gather data.  [This is the idea which I explained in details with technical features and structure here].