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The Decades-Long Opportunities on Digitizing African Economies

The Decades-Long Opportunities on Digitizing African Economies
We sent this note to members of Tekedia Capital Syndicate. We are seeing new patterns evolving in African markets, and we are sharing with our members at deeper levels, co-educating with them as we make decisions with Naira and US Dollars. We like patterns because you never miss opportunities if you understand them. We understand how the technology nexus shapes markets and economic systems. This morning, a startup we invested in our last cycle (July) is closing another funding at 3x valuation. I am long on Nigeria and Africa.

Greetings. We thank you for your partnership. We are writing to inform you that we are seeing new patterns in markets, and Covid-19 has drastically re-wired the architectures of economies. These changes are enabling new dimensions of opportunities across industries and territories.

Case 1: Africa seems to have found a working ecommerce model. In the last 6 months, B2B ecommerce companies like Suplias, Alerzo, TradeDepot, Omnibiz and others like them have raised $millions in Nigeria alone. And these firms are not burning money but have found extremely niche ways to capture value in markets. They provide sellers in open markets and supermarkets a means to order bulk merchandise through their apps, and they deliver to those shop owners. By doing this, the shop owners do not need to leave their shops, among other benefits.

Case 2: Portfolio company Lafiya Telehealth was originally conceived for the African market. But due to orders on its cloud hospital, the company has opened a physical sales location in the US to serve states which found it innovative to build a hospital within hours instead of days!. So, even in advanced nations, everything has changed: decentralized everything connected by technology.

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Cases….

Tekedia Capital wants to play a major role at the early stage of funding these new species of companies. Our goal here is to see that even if our members decide to exit during relative mid-tier valuation secondaries, they could have made decent returns. In other words, if bigger investors come, and decide to buy out early investors, returns will still be significant.

Our strategy is proactive: never wait for builders to come; go after them. If we keep finding them, we will be well positioned for this decades-long digitization of African economies. The potential reward is massive.

We are excited about the promises of the future. We are always here for one-on-one conversation on what we see in markets. We are here to discuss at deeper levels these patterns with relevant market cases. Thank you for your partnership.

Regards,

Tekedia Capital Team

We Welcome New Members: Use this link for Tekedia Capital Syndicate registration

For prospective investors & startups looking for funds, email [email protected]


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