Team - Midnight Sun Innovation Accelerator (iAccelerator)

Final Deliverable November 5, 2010

Executive Summary
A robust start-up infrastructure in Kenya is required to spark
the innovation that will drive financial and other services to the bottom of the pyramid (BOP) While start-up culture in Kenya is building, key gaps remain, particularly around funding and ongoing, hands-on support The Innovation Accelerator (iAccelerator) will help stimulate the startup ecosystem to encourage and support a new generation of mobile entrepreneurs dedicated to the BOP iAccelerator will partner with emerging tech entrepreneurs focusing on the BOP and provide them with funding, mentorship, and plug and play services in exchange for approximately 20% equity. The program will nurture 30 entrepreneurs that will dramatically increase financial and other services for the BOP, as well as demonstrate the viability of this start-up space. The program will require $1.7M in funding over three years

Table of Contents Context & Background Key Takeaways from Feasibility Assessment Program Design and Business Model Implementation Plan Appendices
Target entrepreneur profiles Overview of entrepreneurs met List of meetings conducted Sandpit Team bios

CONTEXT & BACKGROUND

Mobile offers an unprecedented opportunity to reach 10 million underserved Kenyans

Rapidly expanding reach

Mobile service will soon reach 85% of Kenyan adults , thats 45% more than currently reached by all banks, MFIs, and SACCOs Mobile services reach rural markets, a gap left by banks Mobile provides the unbanked with a widespread payment platform, but it has only started to link with banks and integrate with the larger economy There is a vast opportunity to meet a full range of household finance needs including savings, insurance, and credit in addition to SME needs 5m Kenyans now access the internet over their phone, and increasing data and phone sophistication will open further channels for innovation Mobile is a lower cost channel than banks, but innovation is needed to increase utility and volume and to drive down costs even further.

Increasing utility, but a critical need for innovation

A breakthrough in transaction costs

Kenya is pioneering mobile banking, where globally 1.7 billion people will have a mobile phone but no bank account in 2012. Globally, MNOs stand to earn $7.8 billion from serving BOP clients if they can replicate payments platforms elsewhere. Innovation from Kenya can leverage these platforms. 5

But, innovation is required to meet the challenge of financial inclusion in Africa and elsewhere
GAP
Growth in clients

Idea Stage

Proof of Concept

Revenue Generation

Growth

Business Stage

MNOs are busy building the payment platform and do not prioritize innovation on financial and other BOP products The next generation of entrepreneurs is required to bring mobile financial services to its full potential and drive financial inclusion Kenya lacks the risk capital (esp. seed and angel investments) and supportive infrastructure to cultivate these entrepreneurs As a result, startups cant bring solutions to scale
6

Key success factors of the US venture industry are missing in Kenya

Silicon Valley Large potential consumer market Dense, highly energized tech entrepreneur community Kenya Market is relatively small , but increasing opportunity for Pan-Africa solutions Tech community is growing and highly energized, but lack entrepreneurial experience and business acumen

Availability of early stage capital Early-stage funding limited to friends/family and small through angels and VCs willing to competitions; investors are risk-averse and prefer take risks and provide mentorship asset-based investments (e.g. real estate), VCs coming but some offer debt only on conservative terms Open culture of sharing, trust, and collaboration Free and easy access to information on market Potential for large exits through IPO and trade acquisitions Highly supportive ecosystem w/ many service providers, incubators Little sharing due to fear of stealing ideas, but this is changing as networking and community builds Little access to information; information available is low quality and unreliable No IPOS without physical assets; Acquisitions are rare, but growing, particularly with multinational companies A few resources available, but limited and difficult to access
7

iAccelerator would support the start up ecosystem and culture necessary to rock the BOP
There are hundreds of talented mobile entrepreneurs in Kenya, yet they lack capital, critical business skills, and the supportive ecosystem to launch ventures that can scale Financial backing and a more robust ecosystem is critical for entrepreneurs to quit their day jobs to pursue start-up opportunities Without demonstration in this space, the local investor community will not address entrepreneurs needs
8

KEY TAKEAWAYS FROM FEASIBILITY ASSESSMENT

9

Our meetings confirmed the need and demand for iAccelerator

Large Market Potential & Ecosystem Underway Gap is Early Funding + Ongoing 1:1 Support
There are hundreds of tech entrepreneurs in Kenya: 2000 programmers participate in the iHub, 667 businesses applied for the ICT Board awards, 70-100 people attend Mobile Monday on a monthly basis . These entrepreneurs are extremely dynamic with tremendous growth potential but entrepreneurship culture is still nascent A number of elements of a robust, dynamic startup infrastructure already exist, particularly around networking and building the community

Yet, key gaps remain. In particular, no one provides capital to very early stage companies. With no angel community in Kenya, businesses arent able to fill the critical need for early financing and mentorship Furthermore, existing incubators dont get their hands dirty by providing ongoing 1:1 mentorship and business support to these early stage companies

Donor Funding is Required

The lack of supportive mechanisms, especially exits, and funding to grow businesses is a key market failure Donor funding is required to stimulate the ecosystem and build start-up culture
10

Existing incubators fail to fill the gaps of early stage funding and hands-on support
Services Provided iHub Open community workspace, connections, events and networking opportunities Office space, training and certification, access to market studies, connection to investors Office space, laptop, business mentoring, technical assistance, connection to investors Capital Provided No To whom Tech community Mobile community X Fee Gap BOP focus, Business Support + Coaching, Funding BOP Focus, Business Support + Coaching, Funding BOP Focus

Mlab

No

NaiLab

No

Tech entrepreneurs

IFC SME Office space, resource library, Incubat training, mentorship, or technical assistance,

50 K500 K

SMEs

Not open to startups BOP focus, not open to start-ups

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Enablis

Networking, mentorship, technical assistance

Matching SMEs loan fund

*Equity Bank and InfoDev/DFID are also starting an incubator, but both are still in concept phase

PROGRAM DESIGN

12

iAccelerator goals and strategy

Goal
iAccelerator seeks to help stimulate a startup ecosystem in Kenya (and eventually East Africa). iAccelerator startups will be focused on the base of the pyramid (BOP) market, delivering financial and other services that make their lives better.

Strategy
iAccelerators strategy is to fill the gaps in this ecosystem by providing funding, mentoring, and plug and play (hands on services). iAccelerator will help bring 30 early-stage entrepreneurs from idea conception to successful graduation.

Impact
Demonstrate 1) its possible to leverage mobile technology to do meaningful business at the BOP; 2) entrepreneurship aimed at the BOP is a viable career choice for dynamic young people and Diaspora; 3) early-stage investment in social entrepreneurs makes sense for those with funds. Specifically , nurture 30 entrepreneurs, resulting in 8 new ventures reaching at least 1 million new clients with 8-10 new products. At least 5 new commercial investors and 10 service providers into the space to replicate our results.

What is iAccelerator?
iAccelerator is an entrepreneur and early stage business accelerator potentially co-located with mLab (TBD). Through a rigorous selection process, the iAccelerator will partner with an estimated 30 early stage businesses / entrepreneurs over a 3 year period. iAccelerator pursues a business partner approach, agreeing jointly on a milestone plan. iA will provide funding, mentorship, personalized plug and play services, and access to contacts in exchange for an estimated 20% equity stake. The milestone plan is adjusted over time as necessary depending upon progress. iAccelerator will work with VCs, local and international angels and potential acquirers to introduce and structure on-going commercial financing. Upon receipt an entrepreneur has graduated from the program. For select businesses, iAccelerator may invest in a second phase in order to bring them to VC funding (doubling down).

iAccelerator focuses on filling the needs of earlystage start-ups. . .

Focus Area
Some cos may require investment through proof of sales, doubling down

Already existing commercial capital and served by other orgs

Idea
e.g.: Jambopay, Mamakiba

Proof of Concept
e.g. MVK

Revenue Generation
e.g. Changamka, Zimele
Proof of Sales

Growth
e.g. Cellulant, PesaPal

Idea

Biz Plan

Proof of Concept

VC Funding

Funding from friends and family

Pilot

Angel Funding

Execution

Exit or Scale

. . . and provides three primary services

Sourcing

Funding
Gap: most entrepreneurs get money from friends and family, but not enough to start biz

Mentoring
Gap: Entrepreneurs lack business experience and knowhow

Plug & Play

Gap: Entrepreneurs need specific services to get their business off the ground

Offering: Funding from $10 to $50 K to bridge this gap

Offering: Business Oriented 1:1 Mentoring and Coaching

Offering: Plug & Play services to help overcome key early business challenges

Graduation

16

These three services will be tailored depending upon the maturity of the business
Focus Area
Possible partnership through proof of sales w/ select high-impact companies, doubling down

Idea
Funding Mentor Hungry, not starving Go-to-Market Strategy, Biz Plan, Team Bldg Marketing, Legal /IP , Fnc & Act Pitch Training Funding Mentor

Proof of Concept
Through pilot Strategic Advisory, Team Bldg Marketing, Legal /IP , Fnc & Act Pitch Training

Revenue Generation
Funding Mentor Launch and Build Strategic Advisory

Plug & Play

Plug & Play

Plug & Play

Marketing, Pitch Training

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Sourcing

iAccelerator would find entrepreneurs through leveraging the existing infrastructure

Networking Groups:
70-100 people attend every Mobile Monday event 2000 people have applied for iHub memberships 400 members participate in the Enablis network

SExit

Competitions:
ICT Board (667 applicants) Apps4Africa (60 applicants) Human IPO 48hour challenge (100 participants) World Bank Apps for Development Enablis competitions

Training Institutions:
30 students attend Safaricom bootcamp, 2X a year 30 students received training from Africa Info Tech Initiative

We expect over 100 potential candidates in the first round; we would select 8-12 businesses to participate per year.

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Sourcing

SExit

In addition to leveraging these sources, iA would hold a Sandpit to source entrepreneurs

> 100 entrepreneurs from existing lead sources iA would also conduct an annual Sandpit to bring in people from outside the technology community. In the Sandpit, select participants build teams and generate business ideas targeting BOP. First Sandpit will focus on financial inclusion. Results in 8-12 entrepreneurs in iAccelerator per year, 30 over three years

8-12 Entrepreneurs per year

* See Appendix for more about Sandpit

Competitions

Networking

Sandpit (by iA) *

Pool of >100 Entrepreneurs

Training Centres

Sourcing

Each business receives personalized services, based on a jointly agreed plan Mentoring, Funding
Plug and Play specialized services

SExit

Contract signed
Selection
Acceleration Plan Agreed

Go-To-Market Strategy, Business Planning

ConMarketing - Positioning,
Messaging, PR Intellectual Property, Legal, Negotiations

In a physical space work space colocated w/ mLab, includes network access, server space and camaraderie

Sourcing

Entrepreneurs will receive funding . . .

SExit

The iAccelerator will Entrepreneurs will manage their partner with each business as agreed with iAccelerator at entrepreneur. As an the time of partnership, and as engaged partner, the measured by milestones. iAccelerator provides Funds are transferred to the business, funding, strategic advice and equity to iAccelerator, in tranches rd and recommends 3 based on milestones. party service providers. Sample P&L: We envision the average Participant P&L Year 1 Notes: partnership to consist of Revenue $ Idea stage, no rev Expenses a $29,000 investment Salaries $ 23,100 $550/mo, 3.5 hds over one year in Bus. Planning $ 1,000 Plug & Play Legal / IP $ 2,000 Plug & Play exchange for Marketing $ 2,000 Plug & Play approximately 20% Admin, other $ 1,000 Colo at iA, travel, etc. equity. Total Exp $ 29,100

Sourcing

. . . hands-on mentorship . . .
Strategy Mentorship is most useful when provided by a successful practitioner or high-value partner. As such, mentors ideally will be potential funders, or former or current business leaders with background relevant to the mentee. Philosophy rather than forcing structured mentoring relationships, iA will provide the foundation for relationships to develop naturally and change with the evolving needs of entrepreneurs. Mentorship Topics what it takes to be an entrepreneur, what makes a good leader, what makes an idea attractive to investors, exit planning, etc.

SExit

External Mentors iAccelerator Staff

Potential angel investors would view mentorship as a way of guaranteeing the success of their investment All entrepreneurs will meet with iAccelerator staff regularly Staff provides business advice and share their experiences as entrepreneurs
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Sourcing

. . . and Plug and Play.

SExit

In addition to mentors, entrepreneurs will receive hands-on training and support in areas key to business execution such as marketing, finance and budgeting, intellectual property protection, or how to successfully pitch potential funders. Specialized services will be provided by external organizations vetted by the iAccelerator and will be funded out of ~ $29K seed investment. Below we have identified potential service providers in each area.
Need Go To Market Strategy / Biz Planning (market landscape, customer needs, competition, execution & pilot plan) Incremental Development Marketing, Public Relations Business set up, IP Finance and accounting Representation in financing Pitch Training By Whom - Light Part of Mentorship TBD By Whom - Heavy

iHub TBD TBD TBD Open Capital Part of Mentorship

iHub Slick Advertising TBD TBD Open Capital Local VC, US entrepreneur

Sourcing

SExit

Entrepreneurs graduate when

Financially Self Sufficient Business is independently income positive and decides to not take additional equity investment at this time. iAccelerator continues relationship through partnership end date, retains equity stake.

Access to Commercial Capital Independent angel investor, venture capital group or multinational organization invests in business. Upon entrance of commercial capital, iAccelerator may either retain equity stake or agree to be bought out by incoming investor. iA may double down with coinvestors.

Acquisition Acquired by larger player such as Safaricom or Equity Bank. iAccelerator equity stake is cashed out at time of exit.

Exit Program No commercial capital, not net financially self sufficient, and iAccelerator does not desire to double down. At a milestone, iA or entrepreneur wishes to terminate relationship. iA preserves existing equity 24 stake and partnership is discontinued.

An entrepreneur would receive $29 K in exchange for 20% equity over a 12-month partnership
Agreed upon Acceleration Plan
$15 K, 10% equity

Phase 1
3 months

Phase 2
4 months

Phase 3
6 months

Refine Biz Plan Develop Team Product Dev. Legal Structure & IP Protection Piloting (2 total)

1 mth 2 mths
Milestone 1: Completed Biz Plan and Team=$7K, 5% equity

1 mth 2 mths 4 mths

Milestone 2: Pilot completed=$7K, 5% equity

Mrktng Strategy and Implementation Investor Identification Capital Negotiation Mentorship Ongoing

2 mths 2 mths 2 mths

25 Graduation

Impact
The greater impact of iAccelerator will be in demonstrating several things: 1. its possible to leverage mobile technology to do meaningful business at the BOP in Kenya and beyond 2. entrepreneurship aimed at the BOP is a viable career choice for dynamic young people and Diaspora 3. early-stage investment in social entrepreneurs makes sense for those with funds. More specifically, iAccelerator hopes to nurture 30 entrepreneurs resulting in 8 new ventures reaching 1 million new clients with 8-10 new products. iAccelerator also hopes to attract at least 5 new commercial investors and 10 service providers to replicate our results. 26

Success of the program will be measured in a number of ways

Program Management Indicator 1 Entrepreneur satisfaction Entrepreneurs meet 2 business milestones Entrepreneurs enter 3 program Outcomes 1 Graduation profile: Access to private capital, exit or fnc selfsustaining In process Exit program w/o capital or selfsustaining business 2 Clients served 13% 63% 25% 125,000 30% 50% 20% 500,000 33% 42% 25% 1,000,000 Year 1 72% 75% 8 Year 1 Year 2 72% 75% 10 Year 2 Year 3 Year 3 72% 75% 12 Notes Will have to develop survey, assume > 3.6 out of 5 Milestones as agreed at beginning of partnership Increasing as ecosystem develops Notes Drives conversation around + / - of program as originally envisioned (point in time, not cumulative). "Success", assume 1, 3, 4 success per year, ending with average succcess rate of 26.7% or 8 out of 30. By end of program all "in-process" will move to "exit". May have to adjust for changes to average length of partnership. Metric to ensure program is being risky enough, assume 2, 2, 3. Assume all iA businesses target BOP, avg 125,000 clients per successful graduate.

27

Risks & Mitigants

Risk Lack of exits Mitigant We assume that IPOs and acquisitions will continue to grow in the market, but will not influence this issue directly. We do hope to impact as a by-product of the program as we guide entrepreneurs and make introductions to multinational and regional organizations. We have identified high-caliber potential staff, but this will need to move quickly in order to take advantage of the opportunity. Education, practice, and community building. We believe that iHub and other networking structures, together with increasing exposure to legal issues surrounding IP, will largely address this cultural issue over time. Introduce Angels to quality entrepreneurs, educate Angels, identify advocates within Angel community, a PR plan around any great returns. We will also try to get investor groups to gamble a relatively small proportion of their fund on startups to create demonstration effect. Early stage financial support will help encourage entrepreneurs with jobs or in the Diaspora to take the risk of entrepreneurship. iHub and other networking organizations are starting to change this. We will also influence by taking a smaller equity stake than what many other investors require and educating entrepreneurs about equity.
28

Execution risk for iAccelerator IPnon willingness to share among entrepreneurs Risk aversion of angel investors

Risk aversion of entrepreneurs Unwillingness to give up control of business

Business Model Assumptions

$1.7M donor funding required ($840K for each of program management and investment fund) 30 entrepreneurs over 3 years (8, 10, 12) with average investment of $29K for estimated 20 % equity Net expected return on investments of -53 %
Of 30 entrepreneurs, 8 graduate being financial self-sufficient or receiving commercial investment (including acquisition, IPO, etc.), of those 8, 3 are very successful returning 300 % investment and 5 return 100 % investment

Program team consists of 3 full-time employees for years 1-3 and < 1 FTE in years 4 & 5 to manage on-going portfolio of investments 1 year partnerships assume the 22 entrepreneurs who exit partnership may do so in approximately 6 months, successful graduates may require additional time and support as well as additional funding double down to reach financial sustainability and or access to commercial investment, IPO, acquisition, etc. 29

Business Model Summary

Donor Capital Fund Program Total Donor Capital Raise Cummulative Donor Capital Raise Fund Economics Donor Capital * Investment Returns Interest Fees to Support Program Team $ $ $ $ 2011 250,000 $ 290,000 $ 2012 320,000 $ 275,000 $ 2013 270,000 $ 275,000 $ 2014 $ $ 2015 Total $ 840,000 $ 840,000

540,000 $ 595,000 $ 545,000 $ - $ 540,000 $ 1,135,000 $ 1,680,000 $ 1,680,000 $ 1,680,000 2011 250,000 15,000 2012 320,000 120 26,700 2013 270,000 108,267 257 33,300 2014 $ $ $ $ 135,333 146 25,200 $ $ $ $ 2015 162,400 157 25,200 $ $ $ $ Total 840,000 406,000 679 125,400

$ $ $ $

$ $ $ $

$ $ $ $

Loss on invested $870K (30 co's @ $29K) -53% * Donor capital is less than $870K, as we would recycle some investment returns in 2013 to fund new entrepreneurs

Total donor capital raise of $1.7m over 3 years The investment fund and program management team are treated as separate entities. The investment fund depletes over time with distributions from the fund to help off-set expenses of the program management team. There may be surplus funds in years 4 & 5 to be returned to donors. 30

IMPLEMENTATION PLAN

31

High-Level Implementation Plan*

Funders identified
Deadline: Key Milestones: Set up Program After 2 Months
2 staff identified to launch program for first 3-6 months (complete) Complete financial, administrative, and legal set up duties

Bring in First Cohort After 3 months

Further due diligence on existing entrepreneurs in pipeline

Bring in Second Cohort After 6 months

Established program
After 12 months

Additional pipeline Program builds, generated through bringing in total of 8 leveraging other entrepreneurs; sources served by 4 staff

32

Due diligence Sandpit is conducted 3-4 businesses completed on to generate commit to the additional pipeline additional interest program and develop pipeline Finalize office 4-5 additional space (likely Begin businesses commit Robust network of through comentoring to the program service providers is location) built Preliminary Begin building Begin process of identification of investor Angel and VC recruiting service community community are permanent staff providers negotiating potential 3 permanent staff investments and on board engaged in program *See Excel Implementation Plan for more detailed workplan as mentors

First Year Staffing Requirements

First 3 Months: 2 staff
General Manager hired (50% time) Senior executive with network and connections. We have identified a potential candidate Start-up Manager (Sr. Program Manager) hired (100% time). Tech and business background, ability to implement on the ground We have identified a potential candidate

3-6 Months: 3 staff

General Manager (50%) Permanent Sr. Program Manager is hired Entrepreneurial experience, ability to find, mentor, and support entrepreneurs in program Admin support hired

6-12 Months: 4 staff

General Manager (50%) Sr. Program Manager Admin Additional Program Manager identified and hired Marketing experience preferred Ability to find, mentor, and support entrepreneurs in program

33

We have identified 3 businesses to be considered in the pipeline for the program

Mamakiba Idea 3-person team with exp in tech & health A patient-facing SMS savings calculator and prepayment tracking tool specifically designed to help lowincome women save and prepay for their maternal health needs such as ante-natal care and clinical delivery Won 3rd place ($2 K) in Apps for Africa Award See detailed profile in appendix Media Edge Idea 2-person team with exp in tech & business A mobile banking and mobile services transaction platform for farmers to access financial services Won ICT Board Award ($50K) See detailed profile in appendix Open Tracking System Idea 2-person team with exp in tech An open tracking system to monitor the temperature of medicine and facilitate bulk purchases, and map where medicine is currently available

34

A number of long-term partners also exist

Equity Foundation
Launching Innovation and Leadership Center with the University of Waterloo Center will identify, house, and commercialize innovative businesses Likely launch in 2012 Interested in collaboration once launched

InfoDev Incubator
Mission is supporting SMEs in ICT space, through focusing on 6 pillars: Markets, Biz Networks, Biz Skills, Tech Skills, Finance, and Regulation Currently developing recommendation to InfoDev, likely launch 2012 Our program would serve as demonstration effect, could eventually roll into their program

ICT Board Task Force

Pursuing two work streams: 1) Intermediation of Domestic Capital 2) Business Incubation and Business Angels 2nd workstream will look at how to facilitate business angel groups (E. African and US) Currently convening working group to develop recommendations; likely launch second half 2011
35

APPENDIX

36

Target Entrepreneur Profile: Mamakiba

Type of business A patient-facing SMS savings calculator and prepayment tracking tool specifically designed to help low-income women save and prepay for their maternal health needs such as ante-natal care and clinical delivery Targets pregnant women in peri-urban areas (e.g. E. Nairobi) who have cell phones linked to Mpesa accounts Have partnership with Jacaranda Health, a startup social venture for maternal health with mobile units and ground clinics Idea and application created by Jane del Sur (public health), John Wesonga (mobile health) and Geoffrey Mimano (tech) Idea phase, prototype of application has been developed, but unclear about business plan and team to take this forward Apps4Africa Award--$2 K Funded out of own pocket to date Ability to quit day job and focus on this; Mentorshipboth business and tech; Business plan and revenue stream modeling; Advice on strategic partnerships, Building Team Likely revenue generation, potential acquisition
37

Organization Overview Stage Current Funding Key Needs

Exit opt

Target Entrepreneur Profile: Media Edge Communications

Type of business Promote use of ICT oriented apps in agriculture. First product is mobile banking & mobile services transaction platform that provides mobile/web based solution for SACCOs and farmers to access financial services. Solution would allow unbanked farmers to create credit assets and access credit facilities based on delivery quantity. Part of consultancy that was formed in 2007, Virtual City is client. Lucy (CEO) has background in supply chain mngmnt and biz modeling. Philip (part-time) is programmer. They met at 3Mice. Prototype of product, some funding, pre-pilot Tandaa Grant (ICT Board Awards)-$50 K Funded out of own pocket with proceeds from consulting biz Ability to quit day job and focus on this, time to test out tech; Mentorshipboth business and tech; Business modeling; Advice on strategic partnerships; Legal IP; Marketing; Building Team Likely revenue generation, potential acquisition
38

Organization Overview

Desired Impact 4000 dairy farmers in first phase of project, 100 K after 3 years Stage Current Funding Key Needs Estimated $100 K Exit opt

Overview of Entrepreneurs MetIdea Stage

Name of Org Idea Mamakiba Overview SMS savings calculator and prepayment tracking tool for pregnant women Mobile banking and transaction platform for dairy farmers A voice-based mobile application that helps farmers track the estrus stages of their cows An open tracking system to monitor the temperature of medicine and facilitate bulk purchases, and map where medicine is currently available Contact Jane del Sur, John Wesonga, Geoffrey Mimano, soyfactor@gmail.com Lucy Kirui, CEO lkirui@edgegroupafrica.com Su Kahumbu, kahumbu.su@gmail.com; Charles Kithika, charles@greendreams.co.ke Geoffrey Mimano, soyfactor@gmail.com Ahmed Maawy, ultimateprogrammer@gmail.c om

Media Edge iCow

Open Tracking System

39

Overview of Entre. MetProof of Concept Stage

Name of Org Proof of Concept Mobile Ventures Kenya Krosspay Overview Tests and scales new mobile services tailored to the needs and habits of low-income and poorly served customers Enables financial deepening and sustainability through mobile tech. Offers financial management applications and universal MMT delivered via cloud computing. Software and mobile solutions including mobile websites, data services over IP, apps store platform, etc. Online payment system that allows shoppers and sellers to make and receive payments purchases over the internet through websites that use JamboPay as a payment option Contact Jesse Moore, MD jmoore@signalpointpartners. com Michael Asola, CEO mikeasola@krosspay.com; Oscar Ahere Products Mngr oahere@krosspay.com Michael Makahe, Director michael@shujaa.co.ke Kipchumba Koimett, Director kipchumba@shujaa.co.ke Danson Muchemi, CEO dmuchemi@webtribe.co.ke

Shujaa Solutions

Jambopay

40

Overview of Entrepreneurs MetBuild Stage

Name of Org Revenue Generation Changamka Microhealth Limited Overview Mhealth initiative that leverages mobile tech to deliver affordable, quality healthcare. Offer pre-paid health care smart cards that can be used at networked health clinics for subsidized rates. Currently 8000 clients, 1000 have topped up cards (and generate revenue).~20 staff. Currently raising funding for growth. Asset Management Company that offers pension fund management and administration. Started in 1998. Launched new product that offers savings to BOP with 8.5% return through mutual fund. Deposits made using mPesa. 1300 savers current, from 400 in Jan 2010. Contact Samuel Agutu sagutu@changamka.co.ke Zack Rombo zoloo@changamka.co.ke

Zimele

Sammy Muvelah, sammym@zimele.net

41

Overview of Entrepreneurs MetBuild Stage contd

Name of Org Revenue Generation Symbiotic Overview Offer various mobile business platforms, including mobile social network, content aggregation and distribution, advertising platforms, and knowledge transfer. Developed Moka mobile payments system, plan to expand across E. Africa using Kenswitch API. 3 people currently. Contact Mbugua Njihia, CEO mbugua@symbiotic.co.ke Idd Salim, CTO iddsalim@symbiotic.co.k e

Kilimo Salama

Index-based weather insurance, part Rose Goslinga, of (and funded by) Syngenta rose.goslinga@syngenta.c Foundation. Partner with agri dealers om that sells insurance to farmers using camera phone and scanning technology. Focus on seeds now, outputs in future. They pay out automatically via Mpesa based on weather station data. 12,000 farmers currently insured 42

Overview of Entrepreneurs MetBuild Stage contd

Name of Org Revenue Generation KACE Overview Contact Agricultural commodity exchange. Adrian Wekulo Mukhebi Has SMS-based system to collect and amukhebi@kacekenya.co .ke provide market information to agricultural buyers and sellers (farmers) using mobile phones. Allows relevant and timely marketing information as well as transparent market price discovery. Eventually wants to grow this to a full ecommerce platform. Currently serving 15,000 farmers. Micro-pension plan for the unbanked, laborer segment delivered via mobile in partnership with Zain, Safaricom, and the government. Has now reached 20,000 clients, demonstrating demand for mobile based products. Muindi Do, muindi2003@hotmail.co m Elizabeth

Juakali

43

Overview of Entrepreneurs MetGrowth Stage

Name of Org Growth Pesa Pal Overview Online mobile payments system used by vendors as well as for school fees, insurance, and brokerage accounts. Hoping to go intl. Has funding from eVa Fund as well as sister company, Verviant Consulting Supply Chain Automation, now focusing on using mobile to automate buying processes in agriculture. Recently won $1 mill from Nokia. Looking to expand internationally Af & Lat Am. Started 2004 with ring tone business, now doing mobile micropayments service, Goal of 100 million customers, pan-Africa. Will look at BOP to get those customers. Started in 2001. Write applications for mobile devices with right of first refusal from Safaricom. 22 people. Pan-East Africa. Interested in BOP as market share. Contact Liko Agosta, likoa@verviant. com

Virtual City

John Waibochi, CEO jwaibochi@virt ualcity.co.ke Ken Njoroge, CEO ken@cellulant.c om Kigen Kandie, CCO kigen@mobilep lanet.co.ke 44

Cellulant

Mobile Planet

List of Meetings Conducted

Tech Community
Africa Information Technology Initiative: Michael Gordon eMobilis Tech Training Academy: Ken Mwenda Google Africa: Joe Mucheru ICT Board: Paul Kukubo and Kaburo Kobia iHub: Jessica Colaco Mobile Monday: John Wesonga, Ushahidi: Erik Hersman Professor Henry Thairu, Inoorero Univ. Dr. Ndemo, Permanent Secreatry, Ministry of Information and Communications

Entrepreneurs

MNOs

Investors
AfricInvest: George Odo Cassia Capital Partners: Francis Ogutu, Imtiaz Khan EACP: Richard Bell eVa Fund: Vincent Kouwenhoven GroFin: Rosemary Mulwa In Return: Steven Otto KSiX: Anzetse Were Open Capital: Andreas Zeller, Annie Roberts, Walter Lamberson TBL Mirror: Eline Blaauboer

Cellulant: Ken Njoroge Orange: Snehar Shah Changamka : Samuel Agutu, Safaricom: Pauline Vaughn Zack Rombo Safaricom Foundation: Focus Group with Sanda Ojiambo Strathmore students Zain: Sieka Gapabki HR MIS: David Kimani Juakali: Muindi Do Financial KACE, Adrian Mukhebi Services Kilimo Salama, Rose Equity Bank: James Goslinga Mwangi KrossPay: Michael Asola, Oscar Ahere, Kimani Kabogo Equity Bank Foundation: James Wanjohi Mamakiba: Geoffrey Family Bank: Kevin Mimano Kihara Media Edge: Lucy Kirui Mobile Planet: Kigen Kandie Krep: Kimanthi Mutua MVK: Jesse Moore Incubators OBTF: Amos Kibe Pesa Pal, Liko Agosta Enablis: Moses Mwaura, Shujaa Solutions, Michael Palmer Thambu Wakahe, Kipchumba Koimett Excelsior: Lauren Symbiotic, Mbugua Njihia Rawlings Virtual City: John Waibochi IFC SME Incubator: Zimele: Sammy Muvelah Kiragu Maina Nailab: Sam Gichuru , Tonee Dungu

Other
Angela Gachui, HR Consultant APA: Pete Ondeng FSD Kenya: James Kashengaki Legal Services: Leonard Aloo Navraj Ghataura, 45 Entrepreneur

Sandpit
The Sandpit model is an interesting approach that the team recommends integrating into iAccelerator as a means of identifying and selecting new entrepreneurs, and focusing potential entrepreneurs on the BOP market. Sandpit is an interactive workshop over 5 days involving 20-30 participants, often resulting in unique and innovative output. With the goal of inspiring more innovative and multi-disciplinary proposals, the Sandpit was conceived by the Engineering and Physical Sciences Research Council (EPSRC) in 2003. Previous Sandpits have included topics such as ensuring digital privacy and consent, understanding uncertainty in climate predictions, and detecting terrorist activity, to name only a few. Sandpits are facilitated by Instant Brainstorm, contact Tim Dunne at tim@instantbrainstorm.com 46

Team Bios
Brigit Helms is a leading development professional with more than 25 years experience pioneering innovative approaches to access to finance and seeking enterprise- and market-based solutions to poverty. She formerly led Unitus as CEO, where she worked with staff to develop a new strategy. Prior to Unitus, Brigit spent four years with the International Finance Corporation in East Asia, most recently as the Head of Advisory Services for Indonesia, where she led a large team to develop and deliver on a strategy that spanned across access to finance, agriculture, forestry, and renewable energy. Brigit was also a founding member of CGAP, where she as a key member of the management team she focused on a number of path-breaking topics relevant for access to finance over an 11 year period. Earlier experiences included work with the International Fund for Agricultural Development, the US Department of Commerce, and independent consulting. Brigit holds a PhD in Economic and Agricultural Development from Stanford University as well as a Masters from Johns Hopkins School for Advanced International Studies. She has lived or worked in more than 35 countries in Africa, Asia, and Latin America and speaks Spanish, French, Italian, and Bahasa Indonesian. Mark Wensley expanded the global portfolio of microfinance partners for Unitus a microfinance accelerator providing catalytic capital and advisory to high-growth microfinance institutions in India, South East Asia and East Africa for 7 years. As Global Selection Manager, Mark managed pipeline development, due diligence and consulting to partner institutions. Mark holds a Master of Economics of Development with Distinction from the Australian National University, and a Bachelor of Commerce from McGill University, Canada.
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Michael Mithika is a leading independent financial services consultant, committed entrepreneur and Principal & CEO of J.M. Mantle & Co. Limited, a finance and advisory firm that he co-founded in 1997. JM Mantle provides specialist consulting services to financial institutions and users of capital in subSahara Africa, specifically in development finance focusing on building inclusive financial systems. In 2005 Michael founded the School of Applied Microfinance which later became FrontFin Training Ltd, an international executive training program serving more than 600 professionals from over 35 countries. Michael began his career in investment-banking in 1994 as a Finance Analyst in corporate finance in Kenya and later became an Associate in regional investment-banking firm Loita Capital Partners in South Africa. He graduated magna cum laude with a BSc. Business Administration Finance and Accounting from the United States International University Africa, in 1994. Sandra Winters is a founding partner of the International Business Strategy Group (IBSG) where she helps clients design innovative programs and go-to-market strategies. Prior to IBSG, Sandra was responsible for strategic partnerships at Unitus. She spent more than 10 years in leadership roles in corporate strategy and marketing in the Seattle-area technology industry with Microsoft, RealNetworks and venture funded start-up technology companies. Sandra began her career in the Privatization and Private Sector Development Group at The World Bank and holds an M.B.A. from Georgetown University. Windy Wilkins brings 7 years of experience in international development. She spent 4 years at Unitus, an international nonprofit devoted to accelerating the growth of microfinance. At Unitus, she served as East Africa Operations Manager, running the Unitus Nairobi office as well as the Africa Microfinance Growth Centre, a leadership development program for microfinance CEOs. She also served at Unitus as Global Network Manager. In this role, she developed and executed an integrated program of tools and services to drive peer-to-peer learning across the Unitus Network of 24 microfinance organizations. Prior to Unitus, Windy worked as a Project Coordinator at the RAND Corporation. Windy is a Fulbright scholar, and spent a year in Peru working with grassroots economic development organizations. She holds an M.A. in International Policy Studies from Stanford University, and a B.A. in 48 International Relations from Pomona College.