The Not So New Idea

So what's the idea I am currently working on? It's a mobile dating service focused on connecting Africans locally and abroad. Nothing unique in the service in fact there are currently sms based services in Kenya and South Africa. However, there is an opportunity to take it to the next level.

I also believe there is a need being addressed here. I have a close African family friend in the US who is well educated and can't find a US mate. She is willing to date one of the many well educated African brothers back home. There just hasn't been an easy to use service that provides the filtering and recommendation features required. She is only looking to connect with someone with a similar social background who comes recommended. She is basically looking for a husband and would be willing to pay to connect to one. Anecdotal evidence in India suggests that people are willing to pay more to find love than for any other mobile service. There are questions however, about the size of the opportunity. Even if we amass an extensive user base in Africa, the spending power doesn't compare to that of US consumers.

I have a meeting later on this week with someone who has shown an interest in the idea. The only issue maybe that we have similar business backgrounds. We need that tech guru. So I am also looking for someone in the US/India with mobile application development experience to join the team as the subject matter expert. Since the idea is not unique, execution is everything. I am willing to make the commitment and take on the responsibility as well as risk. I believe very much in open collaboration so welcome tips on how to make this a reality.

Thorn Birds Exist

The Thorn Bird: There is a legend about a bird which sings just once in its life, more sweetly than any other creature on the face of the earth. From the moment it leaves the nest it searches for a thorn tree, and does not rest until it has found one. Then, singing among the savage branches, it impales itself upon the longest, sharpest spine. And, dying, it rises above its own agony to out-carol the lark and the nightingale. One superlative song, existence the price. But the whole world stills to listen, and God in His heaven smiles. For the best is only bought at the cost of great pain.... Or so says the legend.

Source: THE THORN BIRDS. Colleen McCullough. Great Britain. 1980.

I was driving today and thinking to myself why do I want to start another business again? Am I a Thorn Bird? Do I just enjoy pain? I know there is joy and fulfilment in starting a business but there's also a whole lot of pain. Moreso for those around you. I still regret the personal cost of my first venture. My mom is no longer here and during that time I could have spent so much more time with her. Today it's time away from my wife and kids that I have to be worried about. I also have a fairly stable gig. Some would say isn't that enough. Why risk it all.

Only time will tell if I'm a Thorn Bird but I'm drawn inexplicably to the thorn tree in the name of building a global business and making a difference.

The What, The Where, and The How

I ask my self, What exactly is the business I want to go into? The ideas I have to date can be found easily on a Google search. I know in many cases it's who gets to market first with a solution, that is then adopted, that wins. So that takes me to the Where question. If It's the African market then the odds are better that I can be one of the few in the market. I generalize though as Africa is a large discontiguos market. In that case I'm left with the How question. In an early conversation with a software guru friend, it is obvious that any of the solutions I am considering can be easily built with a "little money". I figure this is a cheaper option than offering founders equity to bring on board a tech guru. I don't mind having partners but no one is really jumping at the idea of a business focused on Africa at this point.

Back to the Where question. Even if the business is focused on Africa it has to be based in the US. It will be easier from a legal and contract enforcement perspective. I don't think it makes a difference from a fundraising perspective. If i'm going to get any funding it'll be from African investors. No matter the experience of the team, robustness of the idea, or validation of customer demand, US VCs are not interested. I once spoke with a Partner at a VC firm in California who said "VCs in California are not keen on taking flights to the East Coast to monitor investments talk less of investing in Emerging Markets". Of course this was 3 years ago before the major emerging markets became cool again. I have to say Africa is considered more of a frontier market. I digress.

I've got to get back to figuring out what it'll take to execute on the idea. Whichever one it is.

Catching Big Fish

HBS Working Knowledge writes on China's New Entrepreneurs: There is a saying in Chinese: "You can catch big fish in murky water." That means that the big fish are hiding when the water is clear, or they have already been eaten. Translation: There are big opportunities in times of change, chaos, ambiguity, adversity, and unclarity...

Africa's Band of Angels

At some point for early stage technology firms to blossom in Africa, Angel investors have to get into the game. By Angel investors I don't mean your uncle the "Government Contractor". The one who wants an immediate return on his investment. I assure you uncle will not understand that you had a bad quarter. The Angel investors I am talking about are sophisticated investors that have an interest in building entrepreneurial companies that can take on the world.

Today these potential african entrepreneurs/investors are to be found in the US and Europe. India has made the transition. There is an interesting article in GigaOm on the emergence of India's Band of Angels.

GigaOM writes:

After the dot-com bust and IT slowdown nearly crushed the startup he co-founded, entrepreneur Alok Mittal realized India’s business environment had a major shortcoming. There was no money for early stage companies. He survived–selling the startup he co-founded, jobsahead.com2, to Monster.com3 for $9 million in 2004—but his five-year roller coaster ride gave him another idea.

With even venture capitalists looking to invest as much as $1 million-$3 million, Indian entrepreneurs badly needed angel investors willing to commit smaller amounts in, and more importantly, provide guidance to, very early stage, pre-revenue companies...

Dating Reinvented

I saw this article on TechCrunch about YesNoMayB.com, a South African based dating site. Great to see this kind of innovation coming out of Africa. The business model is also interesting. I've been "thinking" a lot about developing a mobile content business targeting Africa. The question has been how do you monetize the business or get a decent valuation. Africa is not China or India. So the VCs are not falling over themselves to invest in African businesses. That may change someday but I'm not holding my breath.

Kudos to YesNoMayB.com.

Juicy Toads

There's an old African Proverb that says if you must eat a toad, eat a fat and juicy toad. My take on this is that there is no point in doing things in small measures. I for one have always wanted to make a difference. My thoughts, focus, passion are all geared towards developing and building a global business. However, my reality couldn't be more different. I am currently deep in the quagmire that is middle management. I don't want to be on the bench. I want to play in the game. I see so many talented managers here forced to wait in line for a turn that may never come.

Time to go back to Africa. I'm definitely passionate about taking the entrepreneurial path. What I am lacking is the super talented programmer to build a niche technology solution. I can do the product mgmt, sales/marketing, and strategy. I worked on 2 entrepreneurial ventures in the past. 1 in Africa and 1 in the US. The US venture was easy to setup but very hard to get funding. The African venture was more difficult to setup but was ultimately successful. Of course not on the scale of a US startup. What i found was that in Africa I had the support of friends and family. This allowed the business to stay afloat while my partner and I figured out the model. In the US I didn't have that luxury.

I'm not going to spend much time dwelling on my last 2 ventures. Right now i'm looking to build a team that can execute on my next venture. My interest is in emerging market opportunities particularly in Africa. A lot of folks in the diaspora talk a lot about doing something back home but most times talk is all it is. So i'm giving myself the next 9mths to get a venture off the ground. The clock is ticking!