- Outside of access to capital, what are the common challenges for Nigerian entrepreneurs I works with?
- How has deal flow coming out of Nigeria evolved since I started Tiphub?
- Have I seen an uptick in startup activity outside of Lagos?
- Whats the balance of Venture vs. Angel capital in Nigeria?
Category: Technology
Foresight Africa viewpoint – African entrepreneurship in technology: Challenges and opportunities in 2018
I wrote a viewpoint on African entrepreneurship in Technology for Brookings Institute’s Foresight Africa 2018 Report. Here’s a link to the blog post here.
My Notes:
- My 1st published article in a major publication… ***touchdown dance***
- Updates on Fundraising in Africa from 2017: Read this CNN article here.
- After all the Black Panther fanfare, I wish I could add more information on the diaspora’s role in advancing entrepreneurship and technological advances In Africa. I believe they have a major role to play in funding, ideas exchange and actual implementation.
That’s all for now. Cheers!!
CU
My Thoughts On A Potential CVS+ Aetna Deal
Some context….We’ve seen high levels of consolidation in the healthcare industry over the last 4- 5 years….a lot having to do with ACA and inter-industry competition. Yesterday, Amazon won regulatory approval to wholesale pharmaceuticals in 12 states. While it does seem Amazon will enter the pharma sales business, the larger elephant in the room, which I think CVS Health acknowledges with this move, is pharmaceutical benefits management (PBM). PBM has been a major driver of profits and growth for CVS and a key differentiator from the Walmarts of the world. Adding aetna will re-inforce their PBM business by giving them a larger network to play with and helps with diversification to weather an Amazon entrance into the pharmaceutical space. Amazon will start by selling pharmaceutical products but will eventually use Amazon Prime as a PBM which will ultimately drive down the cost of prescriptions for Amazon prime members while they take a cut of course. Interesting time to be a consumer.
Why We Should Listen To JP Morgan's CEO About Bitcoin
Jamie Dimon had a lot to say about Bitcoin the other day.
[youtube https://www.youtube.com/watch?v=X8Sywc3ko_g?rel=0]
We should heed his warning. Just like they should have listened to Steve Ballmer, CEO of Microsoft in 2007. “The Iphone is too expensive,” he said. “It wouldn’t appeal to the business professional. Apple is the incumbent and they are going to have to play by our rules.” It’s almost 10 years to the day and Apple just released the Iphone X, a 1K+ phone.
[youtube https://www.youtube.com/watch?v=eywi0h_Y5_U?rel=0]
Here… Lets go way back on to 1946……“Television won’t be able to hold on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night.” — Darryl Zanuck, 20th Century Fox. Sorry, I couldn’t find a video for this one.
I can go on and on. If you want, here are some other random predictions here. Seems like a lot of people were just flat out wrong on Apple.
Executives, especially those who are incumbents and gatekeepers in their industry, are rarely capable of seeing disruption. Actually, the best way to foreshadow a key challenge to basic industry assumptions is to look at the industry leaders and watch them make comments like Jamie Dimon did above. While some may argue, he’s talking about bitcoin and has much respect for the technology behind it ( JP Morgan is investing a ton of money into blockchain companies), I believe his comments on bitcoin are less about the coins and more about control. A decentralized reality for a control focused financial industry is scary. It reminds me of the Blockbuster snub on Netflix. To say there would be a day when people didn’t need physical copies due to the mass adoption of the high speed internet would have been a tough pill to swallow.
The people who face the biggest threat from disruption seem to call it wrong. Sometimes its just theater. I’m sure shareholders don’t want to hear there’s a technology/platform that could fundamentally change how their industry works. There’s definitely a confidence game going on with many executives, but I believe there’s a way to be confident and realistic.
We should listen to Jamie Dimon. His comments are a prelude to a major shake up in the financial industry.
Africa Startup Ecosystems Ranks: Where does Nigeria Fall on the list?
Sometimes a conversation becomes a little more. I shared this a founder who was asking me my thoughts on where Nigeria’s startup ecosystems ranks in Africa. While I didn’t have key metrics, I did mention where I would go to look and how I would evaluate. If I had to make a real essay out of it, (which I’m seriously thinking about doing), I’d probably take a more in depth look at where Nigeria’s startup ecosystems needs to course correct to be a global competitor for talent, ideas, and capital.
So a couple of things… In the life cycle of an ecosystem, Nigeria’s startup ecosystem unfortunately is still in its nascent days. There’s leakages of opportunities for investors and startups due to resource and capital constraints. I do know that we’re heading toward the globalization part of the ecosystem life-cycle. We are seeing a more foreign money, ideas, and resources flow into the Nigerian ecosystem. Comparatively, SA had all of these first and has exits under its belt so I’d still put SA up top. Nigeria still falls in the second tier of startup ecosystems in Africa for the following reason; lack of research and development $ from government, low ease of doing business scores, quality of human capital, access to seed funding (or lack thereof), etc. I will say though, Nigeria has made significant strides in “community” through the cabals, co-working spaces and other community focused pillars that re being built. This can be accelerated by an increase in the quality of education, R&D investment, and improving the ease of doing business metrics to make it easier for startups to find talent, operate, and to make money.