www.startupafrica.co.za
startupAFRICA July 2018
Issue no.5
AYABONGA CAWE THE LAYMAN'S ECONOMIST
HAPPY BIRTHDAY
startupAFRICA!
THE DIGITAL INDUSTRIAL REVOLUTION & AFRICA
TOUGH ECONOMIC TIMES FOR STARTUPS
TECHNOLOGY Industrial revolution in Africa
MANUFACTURING Find out more from our sneakerpreneursÂ
AGRICULTURE Leaving a day job to eradicate hunger
HOSPITALITY All things spas and relaxation
OPINION & ADVICE Navigating through tough economic times
MUSIC Providing a solution for independent artists
EDITOR'S NOTE First things first, Happy First Birthday startupAFRICA! Here's to many more years of breeding a generation of GREAT African entrepreneurs. I can recall having a conversation with one of my Maths high school teachers and he was telling me that he’s always amazed by how young people don’t realise that there’s so much opportunity to get into business and make good profit, however, many of us struggle to see this. “Take care of each cent and the Rands will take care of themselves,” he emphasised, in conclusion to a conversation about money and preserving it. These words continue to echo in my mind every time I am tempted to spend small change. This principle basically talks about being thrifty and careful in order not to squander money. So it’s simple really, if you learn to discipline yourself to the point where you refuse to carelessly spend the coins in your pockets (just because ‘they’re just coins’), automatically, you won’t touch the Rands, and as a result – you’ll be saving. While we’re on the topic of money – in preparation of this issue, I couldn’t help but to think about business aspirants who were hard at work to earn the title of “trailblazing entrepreneur” through their hard work and dedication, their long prepared business plans and the little bit of capital that they have managed to gather in an effort to kick start their businesses. How are their surviving in an ever changing economy that appears to be tricky and unpredictable in the face of the middle class? The startupAFRICA team felt that it was important to chat to the Layman’s Economist – Ayabonga Cawe, who happens to be the host of Power FM’s POWERBusiness, an economics and business show on POWER 98.7.
Ayabonga is also an Entrepreneur by profession and was eager to impart some wisdom to our readers who worry about how this economy will affect their businesses. And needless to say, the conversation was more than I bargained for. At startupAFRICA, it is important for us to continue to cheer for and support those who have a business plan and are working hard to ensure their business aspirations materialize. However, we feel that it’s also important to remind business aspirants and young entrepreneurs about how the state of the economy can and will affect their plans – and this is where Ayabonga comes in – without having to spoil it for you. Kick back and relax. I hope your coffee is as strong as your enthusiam to learn. Enjoy!
Baradi Moletsane
Balance
THE LAYMAN'S ECONOMIST
AYABONGA CAWE startupAFRICA managed to catch up with Ayabonga Cawe – entrepreneur and Power FM’s POWERBusiness, host, who was adamant (and of course on time) to school us on the fundamentals of Economics. Although the conversation was almost never ending, we managed to package just the right knowledge to fuel business aspirants and “new born” entrepreneurs with enough inspiration to take on the ever challenging economic landscape with tenacity and hope. When asked who he is, he didn’t have to think about it, he responded promptly and said: “I am a young African interested in making a contribution to the development of our country and continent. This is the legacy I wish to leave behind and what I would like to be remembered for.”
1. What do you do for a living? I am an entrepreneur working in multiple fields (advisory, research, content development and facilitation). I also host POWERBusiness, an Economics and business show on POWER 98.7 2. What does it mean to be an entrepreneur to you? Sleepless nights and the restless pursuit of one’s dreams, alongside the rewards that come with owning one’s time and playing a role in the development of others. 3. And I’m assuming you studied Economics, yes? Yes of course [grins]. I studied Economics and Finance in my undergraduate studies, and completed my postgraduate training in Development Economics, at Honours and Masters level. All of which happened at Wits University.
4. And what are your sentiments on the South African economy in general? Our economy is beset with many challenges that limit and constrain the participation of all South Africans in it. This is, in my opinion, by ‘design’. Apartheid’s intention was to create an economy that enriched a few and those left in the periphery were meant to engage as menial labourers and swell the ranks of the unemployed. This is a legacy we are still grappling with, which frames all of our policy debates. We also have an economy that is battling with internally and externally influenced structural changes – high unemployment, a youthful population, the twin-edged sword of the 4th industrial revolution and an international political economy and geopolitics that make country level sovereign decisions difficult to implement without the consideration of markets, ratings agencies inter alia.
5. We cannot end this conversation without talking about the unemployment issue here at home, right? What are your thoughts on it? It is structural. What I mean by that is that, even if the economy would grow at the levels we aspire to, you still wouldn’t get people employed, absorbed and participating in the economy. It is one of the biggest tragedies of our history of Bantu Education, that many have been structurally excluded from an economy that is biased towards high skill employment, capital intensity and all of the other things that exclude those semi-skilled and unskilled. Even our tax and non-tax incentives here, go to sectors which are very capital intensive and show very little prospects of employing the unskilled. This is our biggest challenge. 6. There are many business aspirants who are struggle to raise capital for their startups, your words of wisdom would go a long way… Before you even raise capital, refine the offering that the business provides and ensure that you are solving a problem for something that matters to your market. No amount of capital will ensure that your business survives if the fundamentals aren’t in place. If these are in place, first secure as much business as you can, and put in as much ‘skin in the game’ (your own cash) before you go to funders. This shows commitment and sends a signal to whoever will potentially invest in your company. 7. Any books you’d like to recommend for business aspirants and young entrepreneurs? I don’t read much ‘business-focused’ literature, I am more of a non-fiction, politics, biography, short stories and African novels kind of reader. I think those kind of books guide my worldview and provide a basis for how I see the ‘bigger picture’ in business. My three books would be the following: Ta Nehisi Coates – Between the World and Me Binyavanga Wainaina – One Day I will write about this place Niq Mhlongo – Affluenza 8. Who in your line of work do you look up to? A lot of people, too many to mention singularly. 9. What’s the best advice you’ve been given on saving money or money in general? Be careful to spend what you haven’t earned yet. If you do, make sure it’s on something that can generate another round of revenue. Put simply, be careful you don’t fall into debt.
10. Why is financial literacy important for the youth? Many of us don’t come from money, so t’s important to avoid the mistakes previous generations have made and to lay the basis for the transfer of wealth and positive money behaviours to subsequent generations. It’s not really about the money I’ve realised, but the power it has to unlock opportunity.
I think SA has always been open for business, but at times the political agenda of those with capital, is often a ‘race to the bottom’ (lowest wages, lowest regulation to unlock the greatest profit) and this is not the kind of mindset we should encourage 12. Name three things you believe an entrepreneur needs to succeed. Sanity, support and opportunity.
11. Do you feel that the government is doing enough to make South Africa a country that’s conduce for business to thrive? I think the government has done more than enough, and that is not to say there aren’t things that can and ought to be improved. However, I think big business in this country has not come to the party, we hear that they sit on trillions of cash balances that are not invested in the economy, and one wonders why this is the case.
13. There’s a young person who wishes to follow in your footsteps, someone who aspires to become who you are – your advice to them? Don’t follow me. I’ve made many mistakes and you can be greater than me. Commitment is key. Wake up every day, and show up, even if you don’t feel like it. Respect the process, but more importantly, don’t ever stop reading. Read. Read. Read. In this economy, which is characterised by knowledge flows, that is your biggest asset – what’s between your ears.
THE DIGITAL INDUSTRIAL REVOLUTION & AFRICA BY
RITA
KUFANDARERWA
The world has gone through a series of industrial revolutions. From the spinning jenny, the power loom, the spinning mule, the water frame and the sewing machine- inventions by man have changed the human way of life by simplifying tasks that the hand would not endure to attempt. The coming of the internet, artificial intelligence, 3D technology, apps and social media amongst a myriad of inventions has revolutionized how we connect with each other. The speed and impact of new technology is prevalent and the business minded people have built fortunes from this great tide. Telecommunications have changed the way we work but, how can Africa capitalize on the emergence of this revolution and create wealth?
Data, big data and big profits: Any business in Africa can unlock the value in data. The use of real time data is a competitive advantage that large firms like Walmart are using to improve their offerings to the consumer. Netflix is another business model that is flourishing on the use of big data. By simply capturing a user’s viewing preference, Netflix provides bespoke entertainment to its subscribers. African startups that have access to the preference data of their consumers can use it to provide the right balance of services. With a lean budget, striking the correct equilibrium between what the consumer needs and what the business can provide is profitable than producing an odd mixture of
services that the consumer does not need. Navigating through digitalization: The African digital economy is well established. When juxtaposed with other continents, the African digital economy is rising in tandem with the interconnectivity in the continent. The use of smartphones, tablets and computers to do business is undermining conventional notions about how business must be done. Businesses all over the world have reimagined the traditional boundaries and value proposition in their various industries. Taxi hailing is an example of orthodox practices that have been digitized through the use of apps like Taxify and Uber.
The continent already has businesses that can be modeled to fit in the digital economy with greater financial rewards for entrepreneurs. Customer experience: Jeff Bezos, the CEO of Amazon said improved customer experience is the key distinguishing factor that made his business a success. By coupling convenience with technology, many African businesses can provide a distinct customer experience. The African customers have evolved with the market trends, most prefer shopping online. African businesses can avail their products and services online, capture the digital savvy customers and grow exponentially. Streaming platforms, a podium for African entertainment: Never has the time been so ripe for African entertainers to put themselves in contact with their fans as it is now. Traditionally, we waited for television and radio to dish out motion pictures and music respectively. The use of digital platforms to deliver artistic content means that talented entertainers do not need to experience bureaucracy and broadcasting deals tainted with corruption. The merging of the creative and digital economy can produce a business platform with colossal monetary rewards for entertainers who have been notoriously duped by managers for years. In foresight, the African story will reach its zenith.
Upcoming content producers and custodians of our stories should ride comfortably on the wave of the digital economy. E-Learning and knowledge enhancement: As a people, our education has in many instances been used to deliver distorted information. Some facts that were presented as falsehoods were uncovered through the coming of information and technology. Lamentations to decolonize the African education can be fulfilled by using digital learning systems that this industrial revolution has brought. A partnership of African educators and technocrats will indubitably create business opportunities while solving our century long problems of being taught questionable theories. Academic exclusion, a plague that haunts most Africans should be annihilated if we take advantage of the digital revolution. Looking through the lens of future tense: What technology will sum up to in Africa depends on how we tap the opportunities that our continent presents us. The digital revolution could be the panacea to close the income gap between Africa and the rest of the world. Africa does not need a miniature Silicon Valley to benefit from the digital economy. Problems that we are grappling can be solved, one technological solution at a time. The revolution is happening at a breakneck speed but African entrepreneurs can afford to snatch millions and alleviate poverty.
Nigerian designer taking her inspiration from global travel experiences BY ADAKU OKOYE What does your company do? “Design with unique simplicity and timeless elegance”. At Bello Creations I design and create handcrafted simple yet elegant jewelllery pieces with clean lines and originality. What inspired you to start your company? My background was originally in software design but I also loved jewellery, and was intrigued by how my mum use to style her jewellery when I was young. As a result, today I always look out for unique jewellery pieces anywhere I go. My passion for jewellery developed further when I travelled to Venice some years ago and I fell in love with the Murano beads, their colours and the craftsmanship that goes into designing their jewellery.
More so my passion for design and search for unique and elegant jewellery pieces led me into taking a big leap into the world of jewellery design, making the move from the world of IT, so I retrained to study jewellery design. I started making jewellery for myself, family and friends, and I became confident enough as a designer, and that was how Bello Creations was born. Bello means ‘Beautiful ‘ in Italian. Why should anyone use your service or product? My Jewellery is made with love, and driven by passion. It evokes sophistication, a sense of beauty and uniqueness. And most of all, my pieces are all handcrafted, contemporary and exclusive, making a statement whenever they are worn.
contemporary & exclusive!
Tell us a little about your team I am a team of one at Bello Creations, with business advice from coming from my husband and design advice from my sons. Share a little about your entrepreneurial journey. And, do you come from an entrepreneurial background? I would say I started my journey officially about six years ago, and it’s been a journey of doing what gives me satisfaction as I only started with a passion for design and no business background. But with the help of my business adviser and mentor, I have learned a lot of things about running my own business. What are your future plans and aspirations for your company? I believe that making a “personal connection� is the key to creativity and the perfect design for my clients. Through personal connection my inspiration flows.
As a result, I am able to surprise and delight my clients by delivering beautifully designed pieces reflective of their personality and personal style. In the future, I am looking to expand my business by creating other fashion accessories and securing more stockists. What gives you the most satisfaction being an entrepreneur? The positive comments and reviews from my satisfied and happy customers. Also, the ability to show my creativity and passion for what I love doing, and being my own boss, which gives me the flexibility to spend time with my family. What's the biggest piece of advice you can give to other women looking to start-up? To have the passion for what you do and make sure you have a business adviser and mentors in place to guide you through the journey.
DISCIPLINE KEEP PUSHING YOURSELF...
WHERE’S THE RAMAPHORIA?
By Kevin Lings SA has a new president and some renewed optimism in the economy, but is anything actually changing? As South Africa tries to engineer an economic revival, improving the country’s growth rate is increasingly critical – and it hinges on revitalising key components of the economy. Stanlib has compiled a list of 12 key indicators to which it is paying close attention, scoring them monthly to assess if South Africa is making meaningful progress towards an economic turnaround. The ranking began in January following the election of Cyril Ramaphosa as ANC and South African president, and the ensuing “Ramaphoria”. Its 12 indicators focus on a range of variables, including political stability, policy clarity, business confidence, employment, capital expenditure, housing activity and consumer income. Every month, each indicator is scored on a scale of 1 to 10, with 10 indicating an extremely high level of vibrancy and 1 suggesting extreme underperformance. The scores are then averaged across all 12 variables to derive the overall progress level (reflected as a percentage). May analysis South Africa’s economic turnaround score for May 2018 was a disappointing 4.4 out of 10, or 44%. This compares with a score of 46% in April. The score started at 33% in January 2018 and has been improving through the months, with 40% in February and 43% in March.
Below 30% Policy certainty Employment Housing activity Fixed investment activity
30%–50%
Institutional strength/SOE reform Consumer income Purchasing managers' index (PMI) Interest rate spread
50%–70% Political stability Leading economic indicator Tourism Confidence (business and consumer)
Above 70% None
NEW DAWN
Unfortunately, despite renewed optimism that the political changes in December 2017 would quickly lead to signs of an economic revival, South Africa’s gross domestic product (GDP) declined by a shock 2.2% quarter on quarter in the first quarter of 2018. The decline in activity was fairly broad-based, including sharp declines in agricultural output, mining, manufacturing, trade and construction. Equally concerning is that while some sectors of the economy recorded positive growth, the extent of this performance was extremely disappointing, with the government sectors recording the strongest growth of 1.8% quarter on quarter. The sharp improvement in consumer confidence recorded in the first quarter of the year has not been accompanied by a meaningful increase in employment, suggesting the boost in confidence might not be sustained. Instead, in recent months, the consumer has experienced an increase in taxes (including the rise of one percentage point in the value-added tax rate) and significantly higher fuel prices. This would argue that while real household income growth and the associated consumer spending are still expected to grow in 2018, they could struggle to gain meaningful traction. More positively, recent political changes have had a broadly positive impact on sentiment, helped by a good State of the Nation address in February and a reasonably disciplined national budget. There has also been a material change in the government’s approach to managing key state-owned enterprises such as Eskom and Denel. Such positive developments – including the decision by Moody’s in March 2018 to keep South Africa’s credit rating on “investment grade”, and Ramaphosa’s “new dawn” and pledge to turn the tide of corruption – have created greater optimism. However, it will take time for these developments to boost economic growth and household income levels more sustainably. A number of key policy issues remain unresolved and continue to weigh negatively on investor sentiment, including land redistribution. In recent years, the South African economy has been struggling with a fundamental lack of private sector capital expenditure, including maintenance capital expenditure. Hopefully the disappointing GDP performance will focus attention on understanding what is required to change for South Africa to achieve meaningfully higher economic growth and employment.
“The shocking decline of 2.2 percent in South Africa’s economic growth rate is indicative of the disastrous consequences of ANC policy. Voters must now get rid of the ruling party to prevent the country from falling off the economic edge as a failed state." “Statistics just released by Stats SA (SSA) on the country’s Gross Domestic Product (GDP) make it clear that President Cyril Ramaphosa has had no effect on the country’s economy." "Activity data from Statistics South Africa showed manufacturing production decreased 0.6percent in April over the previous month." "Manufacturing decreased 6.4percent in the first quarter, the biggest drop since the second quarter of 2015, and reversing from a 4.3percent gain in the prior quarter." “For the three months ending May, seasonally adjusted manufacturing production declined by 3percent compared with the preceding three months, with eight of the 10 manufacturing categories reporting negative growth rates." “Local purchasing managers' index numbers, which have seen a steady decline in the expected business conditions subcomponent, lead us to believe that the manufacturing sector will provide little in the way of growth through 2018."
Starting a small business in tough economic times By Katie Adams
- a friend who owns his or her own business - a loan officer at the bank where you do business
Starting a small business is hard work, and in a tough
- an accountant (ask for an estimate for reviewing your
economy, it can be even harder. This is partly
plan first)
because when credit markets are tight, it can be tough to get financing. That's why it's crucial for small
In addition to securing financing for your new
business owners to hone their business plans. In other
enterprise, come up with a financial back-up plan both
words, if you want a slice of the financing pie, you had
for your business and your personal finances if you fail
better work your cash projections really hard and know
to hit your initial revenue projections. You should also
your bottom line down to the penny: how much money
build up your personal cash reserves so you have
you need to put into the business, how much you will
enough to live off of for six to 12 months and budget
need to charge to meet your operating costs and,
carefully to make sure you can continue making your
hopefully, what you need to do to realize a profit. If
most crucial payments (i.e. rent/mortgage, insurance
you're thinking about making the leap into
premiums, etc.). Finally, check your gut—and your
entrepreneurship, consider the following tips to
bank balance—to make sure you're ready to start your
successfully build your business in a difficult economy.
new venture.
1. Find Financing
2. Market Smartly
Before applying for a loan, ask trusted friends or
Starting a new business when the economy is on the
professional advisors to review your business plan to
downturn takes creativity and ingenuity. Marketing is
make sure you're not overlooking anything critical or
vital to getting ahead of the game and your
making inaccurate assumptions. You could ask:
competitors. Take your business plan and really flesh out the marketing components. What exactly are you going to sell, who are your targeted customers, how will you price your products or services, and what is your plan for promoting your business?
You stand a better chance of succeeding by thinking niche. Slice and dice your original customer base to come up with smaller segments to market more strategically. For example, if you offer a professional service geared toward women, could you narrow it to target women within a specific age range, career type or geographic location? Or, alternatively, think about ways to alter your products or services to broaden your business appeal and customer base. For example, if you opened a make-your-owndinner company, could you also offer dinner delivery or premade/prepackaged dinners for customers who want grab-and-go? Remember to keep a close eye on the competition. Do ongoing competitive analysis and watch what other providers are doing and what marketing techniques they're using to build their business. Are they tweaking the product? Lowering the price? Using creative promotional tactics? You'll need to know where your competitors are so you can differentiate yourself and gain market share. For example, think about where your competitors aren't operating or which potential customers they're missing, then capture that segment of the market. 3. Start Small‌With a Plan to Expand Manage your expectations and your expenses by starting as small as possible, then plan to expand when business takes off. Review your business plan and reconsider what you need to start. For example, could you start in a smaller and less expensive location, or stay virtual by eschewing a physical office completely? After deciding the best, most affordable space for your business, think about your staffing needs. Before hiring fulltime employees think about filling needed positions with independent contractors, temporary workers or part-time staff. If you're opening a business in an area that has seen local businesses fold, you may be able to pick up some great talent for less compensation than in an positive market. Be realistic about what employee benefits you can offer and shop competitively for the best prices. It's better for your employees to offer fewer benefits upfront and add them as your profits increase than it is to offer too much right away and find out you can't afford to maintain them. 4. Use Technology to Your Advantage Technology can provide you with numerous ways to save money and increase profits. For example: = Expand your market by selling through multiple online channels. = Do email marketing instead of more expensive electronic or print advertising. = Optimize your website for search engines to keep your site coming up at the top of your customers' searches. = Produce affordable marketing vehicles like podcasts or webinars through your website.
5. Network, Network, Network
Buying supplies from businesses
The Bottom Line
that are closing or need to reduce Get to know other people in your
inventory, particularly for big-ticket
There are unique benefits
community who can refer
items like electronics, office
associated with starting a
customers and help build your
furniture, etc.
business in a tough economy. If
business. Don't know where to
you do your homework, think
start? Find a local business
Bartering with other business
strategically and take advantage
networking group or contact your
owners. Look for business alliance
of every opportunity to minimize
chamber of commerce. Look into
possibilities and suggest offsetting
costs while maximizing the value
joining a professional association -
costs by trading products or
you add for customers, you can
either a local one where you can
services.
build a foundation for long-lasting
meet people in person or even an
business success.
online group - to tap into others'
Doing your own legal homework.
ideas.
Before shelling out big money to a lawyer for business startup costs
6. Ideas for Lowering Costs
like incorporating or obtaining a trademark, use online sources like
A gloomy economy can actually
Findlaw.com or Legalzoom.com,
disguise some great ways to save
which provide free resources and
money. Creative ideas to lower
low-cost services.
your start-up costs include: Comparison shopping for the best Using the economic situation as
deal on a business credit card.
leverage when negotiating rents,
Find the card offering the best
equipment leasing agreements.
terms, conditions, rates and benefits for your business credit needs on sites like Creditcards.com.
"A gloomy economy can actually disguise some great ways to save money"
NONALCOHOLIC!
"We are a craft – we actually craft the drink which is malt-based and not just water and artificial flavours"
Breaking norms to create a quality alcohol alternative By Ndileka Swakamisa Rather than creating another run-of-the-mill beverage company, Gladys Mawoneke used a unique approach when starting up Breva Beverages. Breva produces 100% alcoholfree craft malt beverages, which are infused with fruit flavours. The idea for creating these beverages came to Gladys when she realised that many people, like her, don't drink alcohol – but lack a
sophisticated, quality alternative. So she decided to address the gap in the market. What sets Breva products apart is that they are not alcohol-free beers. Rather, they are craft beverages with an unfermented malt base. Three years of research went into her product development.
When she couldn't secure funding for a factory, Gladys didn't give up. Instead, she approached Pick n Pay, which helped her get her products on shelves. Breva can now be found in a variety of supermarkets, such as PnP, Checkers and Shoprite.
THE VODKA THAT GETS CONSUMED AT PARTIES COUNTRYWIDE IN SOUTH AFRICA
A SOUTH AFRICAN VODKA ENTREPRENEUR WITH A FLAIR FOR MIXING SCIENCE WITH FUN
With an unquestionable flair for organizing events and parties – most of them in his backyard growing up – instead of studying event management, he went on to study analytical chemistry for his BSc degree. He then sanguinely mixed the two. Today, he makes vodka that gets consumed at parties country-wide in South Africa.
hated analytical chemistry because
By Cue Sibiya
How do you make science fun? Just ask 36-year-old vodka entrepreneur Sibusiso Sibisi.
“To be honest, I
Born and bred in Kagiso, a township not far from Krugersdorp, a mining town in the south of Johannesburg, South Africa, Sibisi launched his own brand, Distinkt Vodka, in 2016. Keen to hear his story, I head to Kagiso to meet him. It takes me 30 minutes to locate his address, using maps on my phone and eventually realizing the need to update the GPS in my car, an exercise that would have saved me a lot of time and petrol.
it did not go with who I was"
"The first time I got to sleep in my own bed was when I was 18 years old"
Outside his home, a black delivery van is parked next to his swanky MINI Cooper. Sibisi, equally sleek, in a suit, emerges, welcomes me inside, and leading me to a bar in his garage, offers a shot of his Distinkt Vodka. Sampling it with a dash of lemon and soda, it’s a good taste of the interview that is to follow. Sibisi grew up in a large household with several family members. He didn’t have a privileged upbringing; the first time he got to sleep in his own bed was when he was 18 years old, after he moved with his mother to a new house in the same area within Kagiso. After high school, he pursued a national diploma in analytical chemistry at the University of Johannesburg, a path he chose goaded on by college career counsellors who thought he had the right analytical abilities. “To be honest, I hated analytical chemistry because it did not go with who I was,” says Sibisi. His heart was elsewhere. As a student, Sibisi enjoyed organizing and hosting events, in the same house I meet him for this interview. He was popular for his, although-humble, backyard parties and for simply, having fun. When he told people he was studying chemistry, it always surprised them. But as he pursued his studies, he realized he actually liked analytical chemistry; studying how things came to be, such as vodka or even a bar of soap.
But Sibisi still struggled to acquire the diploma, dropping out after four years, as he had lost interest and wasn’t sure if he really did want to study. He called his mother and told her he wanted to work instead. But that too was to be short-lived. “I started working at a call center for a bank. [But] I realized I needed to graduate because it wasn’t nice saying the same things all day; that’s how I went back and graduated in 2008,” he says. Soon after graduating, he worked as a laboratory technician, then supervisor and manager, going through all the motions of working in a lab. Sibisi worked hard and it was recognized by his employers. “A lab is a place where you get to talk to yourself a lot because it is not active and vibrant like many industries. You are on your own and have to focus,” he says. “All this time, I was thinking I had acquired so much knowledge in university, I’m acquiring knowledge now in the field, I know how most of these things come about. [But] what am I doing about it? That is how I went into the lab and started experimenting.”
This he accomplished, using the Chemin incubator program labs at the University of KwaZulu-Natal in South Africa. He looked into the alcohol industry, researched the volume of alcohol consumed by people, especially the youth, on weekends, and the sales potential of such an opportunity.
Sibisi saw an opportunity in the vodka market and knew he had to target his own country, he says pointing his fingers to the ground.
Distinkt is made using grain and potatoes, among other things. Sibisi buys the potatoes from a farmer in the North West province of South Africa, after which he mashes them, and then boils them at high temperatures. The liquid is strained from the potatoes, and fermented.
The first beverage he developed was a beer prototype, then a brandy prototype, followed by a gin prototype.
Soon after the fermentation process, it is distilled and filtered three times for purity. He takes what’s left of it, and tastes the alcohol content.
He developed the first vodka prototype in 2012 and decided on vodka, adding that it is one of the few quality products in the market.
If it is high, he uses purified water to dilute the alcohol, if it is low, it is redistilled to have the exact desired concentration of alcohol. It is then tested again.
He also realized that this could be a revenue-spinner for South Africa, a major importer of liquor.
“This proudly South African vodka has reached most of Gauteng and other big towns in other provinces [in the country] and is selling at a faster rate than it was before,” beams Sibisi. “We are currently in a few Pick n Pay liquor outlets and Ultra liquors across South Africa and in most township bottle stores, pubs and clubs.” Distinkt is currently produced in Durban, KwaZulu-Natal and a plant in Germiston in Johannesburg. I had downed a shot of vodka and had to drive back to the office, with the GPS for company. How I wished the interview had been on a Friday afternoon.
LUXURY TEA BRAND Ubuntu is the drive behind this unique African luxury brand
By Thina Bhengu The art of Africa tea goes far beyond a simple cup of Rooibos – and it’s thanks to luxury brand Yswara that these African products are getting the attention they deserve. Swaady Martin founded the luxury brand Yswara to turn Africa’s agricultural resources into gourmet goods with global appeal In fact, the company offers the world’s largest selection of fine African teas and herbal teas. What makes Yswara different from other international brands is that it’s not just about the product, but also the experience.
African heritage is rich with tea culture, such as tea rituals and special tea paraphernalia. “Our products are a symbol of the ingenuity and tradition cradled in the hearts of the African people,” Swaady says on the company’s site. Furthermore, the tea is ethically sourced from African farmers – with the aim to help create wealth on the continent. Swaady calls this concept “Luxe Ubuntu” – an inclusive luxury business model that benefits all of those in the supply chain.
STEP-BY-STEP
FOOTWEAR
The new celebrity sneaker brand By Mbali Sibiya
Entrepreneur Theo Baloyi says he wants to tell a proudly South African township story through his successful sneaker brand Bathu. Bathu, which means a shoe in township lingo, was established in 2015 and has already gained a huge following from the country’s celebrities, trendy business leaders and the ordinary folk. Baloyi, 28, from Phake near Hammanskraal is the founder and chief executive of Bathu. An accountant by profession, he says their sneakers are unique because of their attractive mesh edition design, which blows air into the wearer’s feet. The sole and rubber of the sneakers has striking bright colours resembling the happy socks trend. Baloyi says this was deliberate because when they launched the brand on September 6, 2016 with 400 pairs, the season was spring. The sneakers come in various colours including navy blue, grey, pink and light blue, and are priced from R900 up to R1200.
“Four hours after launching the brand, our website crashed because of traffic.People were curious about what this brand and what it represents,” says Baloyi, who holds an honours degree in accounting sciences from Unisa. They then partnered with an alcohol brand to manufacture 1000 more pairs, and a further 1600 pairs of the limited edition sneakers available in white. “Three months ago we offloaded a 14-ton truck and we moved to a bigger warehouse with more security and insurance,” he says, adding that they recently placed an order for 10 000 pairs. The company delivers across South Africa and in neighbouring countries including Lesotho, Swaziland, Zimbabwe, Namibia and Zambia. Baloyi says the celebrities who wear the Bathu brand are not their ambassadors but appreciates their support.
WALKING TALL
MZANZI
“I remember this other time when I was going back to Saudi Arabia, I had a 7-hour layover in Dubai. I started a conversation with a guy who owned a retail store at the airport. The brand he was selling at the store resonated with the French,” he recalls. Baloyi says he started asking himself hard questions about what Africans were doing to tell their story in the same way the French entrepreneur was doing. “That’s how I conceptualised the
“A lot of celebrities love our brand because our story resonates with them so well. They take pride in our story, hence they wear the brand with pride wherever they go. Our brand speaks to the heart,” he says, in between taking calls on his cellphone, attending to client queries. Celebrities who wear the Bathu brand include Somizi Mhlongo, a reality TV star, choreographer and
Bathu brand. I worked in the concept for 18 months, doing research development, speaking to factories and being declined 15 times and so on,” he remembers.
Idols judge, and his young fiance Mohale Motaung, and multi-millionaire forex trader Andile Mayisela, among many others.
However, his persistence paid off with 100 pairs manufactured during
Baloyi says he worked for auditing PwC for five years: two years in South
the proof of concept period.
Africa and three years in the Middle East, in Dubai and Saudi Arabia. He resigned from the company in January this year to give Bathu his undivided attention. The entrepreneurial bug hit him at the second year of his studies in Unisa, when he started selling door to door in Alexandra township. “I have always had the love for selling and for business and identifying gaps in the market and fulfilling them,” he says. During his travels to the Middle East when he worked as an accountant for PwC, he used to buy himself a lot of sneakers. “They were limited editions and were not available in South Africa, my friends loved them so much.”
Baloyi is clear about one thing: “We don’t want to be a fashion brand. We want to be a shoe retail brand.” He says they want to grow their brand as if it were a South African version of shoe companies Aldo or Spitz. “If Spitz can come here and build their brand, why can’t Bathu go to Italy and build a brand that Italians
He then identified a gap in the sneaker business but elected against importing the sneakers into the country.
could say is proudly South Africa,” says Baloyi, adding: “Africans it’s our time, let’s build our continent.”
Issue 27 | 234
USING U.S.A TREND TO START UNIQUE SNEAKER BUSINESS
LOLO NDLOVU BRINGING SNEAKER CULTURE TO THE FOREFRONT
By Mbali Sibiya Lolo Ndlovu saw America's sneaker culture growing and spreading, so he got into the game early and decided to start a business that is the first of its kind in South Africa. Sneaker Shack is South Africa's first drop-off sneaker laundry service, where customers can have their shoes professionally deep-cleaned with a 24-hour turnaround time. Lolo was aware of the growing sneaker culture around the world, especially in America. He decided to capitalise on it by implementing a unique take for a local audience. The idea for his shop was influenced by Jason Mark – an American who started a sneaker cleaning service with a boutique setting.
"I would say that South Africa is fairly new to the whole sneaker culture‌ I think a lot of movement has been made through the active lifestyle, the music lifestyle that's bringing sneaker culture to the forefront for South Africans"
BEÂ INSPIRED
DR AISHA PANDOR TURNING FRUSTRATION INTO A GOLDEN BUSINESS IDEA By Thina Bhengu Some of the best business ideas come from identifying a gap in the market. This is how Dr Aisha Pandor and her husband Alen Ribic came up with the idea for SweepSouth. In December 2013, when looking for a part-time domestic cleaner, the couple just couldn't find someone qualified at such short notice. This frustration has now been solved for people in similar situations thanks to their business.
SweepSouth connects with you trained, vetted and experienced domestic workers using their simple app or website. You simply make a booking and the company finds a qualified and suitable person to do the job. What started as a personal frustration is now an internationally expanding business with 25 000 bookings a month.
SKINNY SBU’S SOCKS
FROM LOCAL TO GLOBAL SUCCESS By Ndileka Swakamisa Sibusiso ‘Sbu’ Ngwenya’s story is the embodiment of the South African dream. Born and raised in the East Rand township of Tsakane, Sbu knew that starting his own business would be one of the few ways to secure a job in the employment-scarce community. “I had to look within my reach,” the young entrepreneur says. Armed with only R70, Sbu bought his first few pairs of socks, worked his magic and sold them for a profit. From that tiny start, he built up Skinny Sbu Socks. With the help of other entrepreneurs and his savvy use of social media, Sbu gained international attention. This eventually led to a global customer base – including celebrities such as Sir Richard Branson.
ofentse's innovative furniture business
Strangers shared skills to make their dream business Starting school in 1994, Ofentse Monyela was one of many young South Africans excited by the potential for a prosperous and successful future. But later on in life Ofentse realised that more support for local businesses is needed before prosperity becomes a reality for many South Africans.
By Zanel e Mt het hwa "I felt that there was a responsibility that we have to actually start sustainable businesses that are going to have integrity...and that are going to be really well-run."
This is what inspired her to partner with other local entrepreneurs to create a successful furniture business. Setters Contemporary Furniture initially started as a side-project and trial partnership. It was run via a Facebook page to keep costs low.
G N I H T EVERY YOU WANT IS E D I S T U O YOUR T R O F M CO ZONE
MUSIC
Sunkambe, flipping the music industry on its head Record labels and independent artists will be able to create profiles on the platform for free.
Ramulifho, who founded the Joburgbased company last year, likens his platform — which he is aiming at ordinary investors, major record labels, savings and investment groups — to the “workings of the Johannesburg Stock Exchange”. “We turn artists into real businesses that are then listed for investors to invest into. The investors become shareholders in that particular artist future potential revenue for 18 months. Any revenue that occur within that 18 months is shared between investors and the artist,” Ramulifho said. Upon investing, investors will be sent a digital certificate which will serve as proof of ownership of the respective artist’s music rights. Sunkambe will also enable investors to listen to, vote for and invest in artists. Sunkambe will take a 15% commission on capital raised on the platform. In addition, users of the platform will be able to view artists bookings revenue, upcoming events and financials based on similar artist comparison data on the app.
By Zanele Mthethwa Recording, launching and distributing an album can typically cost an artist tens of thousands of rands — money many new and upcoming musicians often don’t have. Added to that, artists, much like startups, face a near impossible task financing their projects from banks.
Enter Sunkambe, a platform that allows artists to crowd fund the distribution and recording of an album in return for allowing investors a share of their royalties. The platform is set to launch "very soon". The startup’s founder and CEO Shaka Ramulifho (pictured above, right) says he knows “very well the challenges of accessing finance from private and traditional banking institutions”.
In April 2018 Sunkambe was one of 25 startups from around the world selected to pitch at Seedstars World Summit’s startup garden in Lausanne, Switzerland. In the same month the startup received R50 000 grant funding and business support from the Innovation Hub.
Sunkambe “We selected 18 months, after
model over that of tried and tested
we took into account data around
donations-based crowdfunding
the rate of change of music in
platforms such as Kickstarter or
general and activity spikes in
its local equivalent
terms of sales and booking
Thundafund.com.
revenue between the launch of an album and 24 months later. We
He says his company sampled the
found during our research that it
views of ordinary people in
is most rewarding between one
Braamfontein and Sunnyside,
and 18 months,” explains
Pretoria and on the whole most
Ramulifho.
weren’t aware of donation-based crowdfunding. The general
Record labels and independent
sentiment, he added, is that
artists will be able to create
“people want something back”.
profiles on the platform for free.
From Ramulifho’s explanation,
Ramulifho says an approval
Sunkambe sounds a lot like an
committee — composed of
If the decision is not positive, the artist
equity crowdfunding platform —
industry experts “that have the
may be offered a place at our incubation
which is not yet legal in South
expertise and experience to know
programme for six or 12 months in order
Africa.
what sells in the music industry”
to address recommendations suggested
— will select campaigns that will
by our algorithm,” he says.
be open to investment based on
Asked if he had approached the Financial Services Board (FSB) to
artists motivation, sound, traction,
Should the campaign fail to meet its
get the green light to go ahead.
and social media sentiment.
target, artists will have the option to
He said he had a “walk-in
extend the campaign for a second round,
session” to determine if
or take whatever has been raised.
Sunkambe would fall under the
“It is important to note that our approval committee invests their
regulator’s radar but pointed out
own money in artists they
Ramulifho is convinced that music fans
that he had not been given any
approve.
and investors will favour his platform’s
“negative feedback” from the authority.
He cautions that investments on the platform may “gain or lose value and there is always risk of financial loss inherent in such products”. However, he pointed out that Sunkambe has put in place three measures that will ensure returns are paid to investors. These measures include Sunkambe managing all revenue for artists on the platform, half-yearly investor reviews on artists which “will impact future campaigns”, and investment fraud cover which he says the startup is looking to implement once it secures an insurance partner. The startup might be on to something, along with being selected to pitch at Seedstars World Summit’s startup garden in April, the company was last year among five entertainment tech startups selected to join SA telecoms company Liquid Telecom’s Liquid Launchpad. This subsequently led to the investment platform pitching at AfriCom. In addition, the startup has been incubated at Tshimologong Digital Precinct and also won last year’s MIT Global Startup Programme and was top seven in the 2017 Standard Bank Innovation Challenge. However, despite all this success the startup — which employs four staff and has an advisory board of six experts in finance, legal, marketing, music and app development — is yet to raise any venture capital or angel investment funding. Ramulifho said instead he has drawn on his personal savings and loans from family and friends to fund the development of the platform. He adds that finding partners has been “particularly tough”, as has been customer awareness. “We came close with a Sweden based venture capitalist firm we met through Seedstars, but we couldn’t agree on the equity ask. We are having a lot of coffees with VC firms at the moment,” says Ramulifho. And the startup plans to launch an “Invest with a Service” feature in the next two months which will allow artists to list services they require, like legal representation. “This allows companies to invest in artists with a service in exchange for future potential revenue for 18 months,” he explained. In addition, the Ramulifho has further plans to launch a live music rights exchange “where music rights will be traded with a daily value”. So, is will Sunkambe become a JSE for musicians and help artists to source the funding they need to launch their career? This then remains the big question.
KOBELA MOKGOHLOA
Choosing farming over flying By Mbali Sibiya
Still recovering from running his first Comrades Marathon which he narrowly finished at 11:48:40, entrepreneur Kobela Mokgohloa says he’s a bit disappointed in himself and could have performed better at the gruelling ultramarathon. However, Mokgohloa, 30, from Pretoria is not disappointed in himself for having dumped his private pilot's licence (PPL) for a lucrative career in agriculture. He is the operations manager of Korema Farms in Winterveldt, where they farm English cucumbers, peppers and tomatoes, among other vegetables. The farm turned over R8 million last year. Mokgohloa matriculated from Potchefstroom High School for Boys in 2005 and went on to work for five years at aircraft manufacturer Global Composite Solutions (GCS) at Wonderboom Airport. His boss Errol van Rensburg taught him how to fly during his lunch breaks. He obtained his PPL in 2008 through an aviation school in Pretoria, allowing him to fly private charters without being paid. However, all the passion he had for flying was put on hold after he won the SAB KickStart entrepreneurship programme in 2009/2010.
“They gave me R100 000 towards a concept I had presented to them on feedlotting cattle,” he recalls. “This forced me to leave aviation to pursue my career in agriculture at our family farm in Winterveldt.” As fate would have it, the high maize prices of 2012, where a ton sold for over R5000, forced Mokgohloa out of the feedlot business. His father acquired him three greenhouses to grow all sorts of vegetables in the 16ha farm including lettuce and tomatoes. “We have a small library at home, so I read a lot of books on how to grow cucumbers, peppers and tomatoes. I focused on how I could generate some money. I was focusing on the bottom line,” says Mokgohloa. When asked about why he put much focus on farming cucumbers, Mokgohloa says: “There is a bit of a niche market in farming cucumbers, it’s still very white dominated. There are too many whites growing cucumbers.”
19
“I decided i wanted to go into this industry, see how I can penetrate it and make some money off of it. Look, I’m very money focused. I believe passion will come once one has made enough money.” Mokgohloa is involved in the whole agro-processing value chain, as they chop and dice the vegetables to the customer’s specifications, at the farm’s packhouse, which then get distributed through their channels. He easily admits: “We are among the largest black cucumber producers in the country.” Their clients are the Tshwane and Johannesburg Fresh Produce Markets. The farm has previously supplied Massmart stores such as Game, Cambridge and Makro with vegetables but stopped, say Mokgohloa, because Massmart didn’t want them to brand the veggies. Mokgohloa says their plans to expand operations include manufacturing their own greenhouses. “Agriculture is a volume driven business, to make money you have to grow more.”
“Branding is a very crucial element of growing our business" He says they are also aiming for a higher turnover this year. “In 2017 we hovered over R9m. Let’s see where things go this year. In 2015/2016 the national Department of Agriculture, Forestry and Fisheries took notice of Mokgohloa and toured China with him where his agricultural skills were sharpened. Despite his successes in the back-breaking agriculture sector, Mokgohloa says his passion for flying is not lost to him. He says he has been applying for a job at the SA Police Service airwing division in Pretoria for a few years now. “I would like to represent my country in the police airwing division in order to get my pride as a South African.”
Entrepreneur helping farmers become more productive in Zimbabwe By Cue Sibiya
Tatenda Ndambakuwa What does your company do? Shiri ensures agricultural information and resources are in one place and accessible for anyone on the African continent. The Shiri mobile phone app allows African farmers to better manage the food production system, through sharing equipment, knowledge, and marketplaces. It also seeks to optimize production, sale, and distribution for small-scale farmers. We are optimistic that Shiri, a comprehensive data sciencebased farming app, will grow to make farming more productive and successful. Currently, it is only available in Zimbabwe. What inspired you to start your company? The issue of figuring out how to provide adequate nutrition for future populations needs urgent attention, making agricultural technology the next opportunity for disruption.
"Hunger must be eradicated in my lifetime" What inspired you to start your company? The issue of figuring out how to provide adequate nutrition for future populations needs urgent attention, making agricultural technology the next opportunity for disruption. By 2050, Africa’s population will double, with 1 billion projected to be under 18 years old, and many other regions will experience similar trends. How will we feed this growing population? How will we shape the future of food and agriculture? Already malnutrition is rampant on the continent and 233 million people in sub-Saharan Africa were hungry/undernourished in 2014-6. It is my crazy idea and my most meaningful commitment to make sure hunger is eradicated in my lifetime. After experiencing food shortages of historic proportions in 2008 Zimbabwe I resolved to work on food security which entails also working on agriculture. Why should anyone use your service or product? As a farmer, you get access to agricultural information and resources - market information available to you helps reduce postharvest spoilage. As a consumer, you get fresh produce at an affordable price. As an agricultural stakeholder (seed companies, agrochemical companies, food processing plants etc) you have access to a platform to engage farmers. Agricultural science students and researchers can connect with farmers in various regions. Finally, drivers can earn money by delivering products and transporting farmers to markets. Tell us a little about your team Currently, our team is made up of an agricultural scientist, a software developer, and a geospatial and data scientist. The team is made up of women from Zimbabwe, Bangladesh, and the United States.
Share a little about your entrepreneurial journey. And, do you come from an entrepreneurial background? I am a mathematician and urban planner by training. Entrepreneurship is something I got a kick out of as I tried to solve the problems I see around me. I then wanted my problem-solving methods to be sustainable, and as a result, became a social entrepreneur. I was fortunate to have cheerleaders and support systems that helped me advance my ideas. I have had a fair share of challenges. The team I started with was not competent, then I had battles surrounding my intellectual property being stolen, but the most important thing is I have learned many lessons that will be valuable as Shiri expands. What are your future plans and aspirations for your company? We hope to make sure our services are available to more countries on the African continent and Bangladesh. We want to expand our team with full-time staff. We are hopeful that we will bring the farming community closer together and help towards making farming more attractive and food security a reality. Eventually, we hope to be the largest agricultural resource hub.
What gives you the most satisfaction being an entrepreneur? Solving problems I see. Making products that help our consumers in a life-changing manner. Bringing ideas to life. Turning my passions and beliefs into a business. Providing a comfortable workspace for employees. What's the biggest piece of advice you can give to other women looking to start-up? Find your passion and seize every opportunity related to it. Do lots of research around the industry you want to break into. Focus on the things you can control and perfect the details. Cultivate a network of trusted mentors and colleagues. Choose the right teammates. Above all shoot high, the most important thing is to get up and keep trying, never give up on something you believe in. PS: don't forget to shatter glass ceilings!
 "We hope to be the largest agricultural resource hub"
TRADITIONAL WEAR FOR ALL OCCASIONS By Mbali Sibiya What does your company do? At Ezakwantu Sewing Co-op, we manufacture traditional wear for every occasion. What inspired you to start your company? The inspiration to become an entrepreneur started with my family. It’s a story that my mother used to tell me about how she started the business. When she first launched the family business, she said it was a real struggle in the early days. I wanted to make sure that her business did not die and instead could thrive in the future. Why should anyone use your service or product? At Ezakwantu Sewing Co-op, our customers can be confident that we deliver on time. We also work closely with our customers, giving them advice on what to wear or what not to wear. We design our garments for our customers and that is what makes each product unique and different from what must people do. Tell us a little about your team In my team we are five members - 4 women and 1 man. We took the decision to run it as a family business because I was realizing my mother’s dream of what she had already created.
Share a little about your entrepreneurial journey. And, do you come from an entrepreneurial background? My journey was not really easy when I first started out because my mother was just doing business to put food on the table, so even if I was coming from an entrepreneurial background and I had many of the same challenges. This made me even more determined to succeed, and due to the story that my mother used to tell me, it made me pull up my socks, work hard, and continue to realize the vision for the business, taking it to where it is today.
"WE TOOK THE DECISION TO RUN IT AS A FAMILY BUSINESS" What are your future plans and aspirations for your company? It is to see thousands of employees, especially the youth of today that are not fully qualified, to get the same jobs and opportunities to succeed in life. What gives you the most satisfaction being an entrepreneur? My mother and her story and wanting to show the youth of today that we can do it ourselves as entrepreneurs. If you see there is no job, you need to stand up and create something for you and others. What's the biggest piece of advice you can give to other women looking to start-up? Follow your heart and always have a plan for your life. Be talkative, be easy to talk to about your business, and meet friends in life and business.
Tip Toes Beauty Spa BY NDILEKA SWAKAMISA
Thato Molaba, founder of TipToes Beauty Spa based in Dobsonville Soweto is a young enthusiast that inspires women by providing beauty training classes and by offering a variety of beauty treatments to individuals. Q: Which kind of services does TipToes Beauty Spa render to its clients? A: TipToes Beauty Spa is known for serving refreshments and fresh nibbles while clients are being pampered with beauty treatments such as eyebrow tinting, insertion of eyelashes, male and female pedicure, manicure, shoulder massages & foot scrubs.
Q: What was the motivation behind the name ‘TipToes'? A: I work on toes and tips on a daily basis so I decided to combine the two and create a working concept. Q: What would you say is Tiptoes long term goal or objective ? A: The long term goal is to increase the client base, to send out ‘thank you' gifts & to diversify by having other TipToe branches across Soweto and to provide other services which we currently do not have such as tattoos, hairdressing and Jacuzzi treatments.
Q: Where would you like to see your business in the next coming years? A: I would like to see TipToes expanding into other countries and being able to uplift the youth into becoming entrepreneurs and to offer beauty training in rural areas. Q: Give me a brief description about the events you host. A: The pop up session was an event that grows collaborative business networks of like-minded entrepreneurs, enabling them to come together to create opportunities for small businesses and to create market share. Pop up sessions are platforms that businesses use to interact with its consumers. The pop up sessions take place at 17940 Main road Ndingiliza at Dobsonville. Q: What makes TipToes Beauty Spa different from other Spa's? A: What makes TipToes different is that it always has a new product line-up, the service and techniques are unique, it is one of the most well-known hang out spots in Dobsonville not because of the friendly staff and massages but because of being able to unwind with a glass of wine, sharing enjoyable topics and laughter.
STRENGTH
GAME CHANGERS
Steph Curry’s Tech Startup
Slyce By Gideon Chiyangwa Steph Curry gained fame as the basketball star for the Golden Gate Warriors, but he holds another accomplishment: He is the co-founder of Slyce, a Bay Area startup that aims to change how celebrities use social media and improve how athletes and influencers communicate with fans on social media. Curry and former Nike employees Bryant Barr and Jason Mayden launched Slyce together. The idea occurred after Curry’s social media activity declined after reaching a certain number of followers. In August, Curry was a co-host at the first-ever Players Technology Summit, where top leaders in technology, venture capital, and sports communities discussed ideas and shared expertise in a forum.
"PLAYERS ARE NOW TAKING MORE OWNERSHIP OVER DECISION-MAKING WHEN IT COMES TO THEIR INVESTMENTS" Curry discussed his experiences in the tech industry since cofounding Slyce. “Whether you’re thinking about your first move into entrepreneurship or investing, or perhaps already a veteran in the space, it’s about surrounding yourself with the right team and putting in the work to always be improving as a professional,” Curry said.
ROBERT SMITH How the Wealthiest African-American Conquered Tech And Wall Street
Richer than Oprah By Nathan Vardy It’s a Saturday afternoon, at the height of vacation season, in one of South Beach’s hottest hotels, and Robert Smith, the founder of Vista Equity Partners, is dressed like exactly no one within a 100-mile radius of Miami: in a three-piece suit.
He’s gathered dozens of CEOs from his portfolio companies, software firms all, for a semiannual weekend off-site to drill them in the ways he expects his companies to operate. It’s not just the suit that’s unusual. Private equity firms almost never treat their portfolio companies, transactional chits by design, like an organic cohort. And until recently, PE, a field built on borrowing against cash-generating assets, wouldn’t touch software firms, which offer little that’s tangible to collateralize. Yet Smith has invested only in software over Vista’s 18-year history, as evidenced by the CEOs, like Andre Durand of the security-software maker Ping Identity and Hardeep Gulati of the educationmanagement software company PowerSchool, who have been summoned to Miami Beach, waiting to swap insights about artificial intelligence and other pressing topics. And Smith deploys more than 100 full-time consultants to improve his companies. “Nobody ever taught these guys the blocking and tackling of running a software company,” says Smith, an engineer by training, as he takes a lunch break at South Beach’s 1 Hotel to nibble on a plant-based burger. “And we do it better than any other institution on the planet.”
His signature outfit–today, it’s gray plaid, accented by an indigo tie and a pink paisley pocket square– apparently doesn’t take a day off, and Smith isn’t taking one now either.
"Nobody ever taught these guys the blocking and tackling of running a software company" Smith includes the likes of Oracle and Microsoft in that boast, and his numbers back up the braggadocio. Since the Austin-based firm's inception in 2000, Vista's private equity funds have returned 22% net of fees annually to limited partners, according to PitchBook data. Smith's annual realized returns, which reflect exits, stand at a staggering 31% net. His funds have already made distributions of $14 billion, including $4 billion in the last year alone. Not surprisingly given those numbers, Vista has become America's fastest-growing private equity firm, managing $31 billion across a range of buyout, credit and hedge funds. Smith is putting all that money to work at a breakneck pace, with 204 software acquisitions since 2010, more than any tech company or financial firm in the world.
After finishing an $11 billion fundraising for its latest flagship buyout fund last year, Smith has already deployed more than half of it, focusing as usual on business-to-business software. "They recognize it's a kind of central nervous system," says Michael Milken, whose bond-market innovations basically birthed the modern private equity industry and who has been a co-investor in two Vista deals. Taken together, Vista's portfolio, with 55,000 employees and more than $15 billion in revenue, ranks as the fourth-largest enterprise software company in the world. Smith deploys quickly for a simple reason: While the rest of private equity basically relies on identifying and rectifying inefficient companies, Vista bets that it can improve the operations of even well-run firms--and claims that it's never lost money on a buyout transaction in its 18-year history. "I am most proud of our system being a loss-prevention mechanism," Smith says. Perpetual wins translate into mammoth personal gains. With an estimated net worth of $4.4 billion, Smith has now eclipsed Oprah Winfrey as the nation's wealthiest black person.
Vista has created another billionaire, Brian Sheth, the firm's 42-year-old president and dealmaker extraordinaire, who has a fortune estimated at $2 billion. Ever since Forbes outed Smith as a billionaire in 2015, there has been a steady stream of press about him, from the lowestbrow (tabloid interest in his marriage to a former Playboy playmate) to the highest (coverage of his philanthropy, including his Giving Pledge commitment and his stint as the chairman of Carnegie Hall). But neither Smith nor Sheth has ever before delved into Vista's secret formula, which has as many or more lessons for entrepreneurs and operators as it does for financiers. "We do something no one else does," Smith says. On paper, Robert Smith's journey was a textbook American success story: A fourthgeneration Coloradan, he was the son of two Ph.D.'s who became Denver school principals and put education first at home.
happy first birthday startupAFRICA