Showing posts with label Enke. Show all posts
Showing posts with label Enke. Show all posts

4.03.2011

Managing the Tech Startups Series - Social Dilemma

"Social start-ups" vs. "Social start-ups"
Upon returning from South Africa four weeks ago, many things have changed; it has been a hell of four weeks. Geopolitically Middle East is revamping and redefining; economically the world is trying its best to crawl out of the hole, there are corporate merges, new startups popping everywhere; we have earthquakes, tsunamis, nuclear meltdowns, revolutions, riots, old wars, new wars and yet, life continues every day.

And interestingly, in these modern times of almost instant news, “prosumer” wiki-content, where technology has become an enabler, and mobility + social networks had led to changes in the mindsets of people across the globe, we take too little time to value the real important things.

Through a series of really remarkable guest speakers, a group of few MBA students, we have been given the opportunity and privilege of listening first hand from the experience of a tremendous group of entrepreneurs (thanks to Enrique Dans). And it’s my firm belief that with this unique opportunity responsibility comes to share the knowledge and try to use it to better the life of people.

Efforts to solve some of the issues that affect people (e.g.ducation, improving housing, ending hunger, curing diseases and lifting people out of poverty) in the most challenging parts of the world are critical. Those who venture are special and indispensible. Sadly, by design, they are seen as philanthropic options.
 
Colors app. They got $ 41-million dollars from Sequia Capital. They are a “social start –up” based on the premise their app builds a platform for sharing photos with anyone that has the app within a radius of 150-feet. It’s fine, kudos to Color Labs Inc. But the sad part is that “social start – up” will remain a term for geeky (side note: I'm quite geeky) technological innovation, rather than social-minded innovators working to solve issues of the world.

Yet after hearing the likes of Julio Alonso, Iñaki Arrola and Gabriel Aldamiz-echevarría, all successful entrepreneurs but most importantly, conscious leaders, I have the impression that valuable lessons can be taught to “social start – up’s" (please read: social impact entrepreneurship).

The issue of scale and funding

Scalability is the name of the game. Investors will be looking for realistic business plans that scale up. And since all funds like to support specific projects (based on scope and mission) rather than organizational structure, it is important to create business plans that consider the development of organizational capacity. Thus scalable. 

Social impact entrepreneurship needs to learn from tech start-ups. Rare is a project that generates enough revenue to attract VC’s. Odd case: Greylock and Draper, Fisher and Jurvetson that have social entrepreneurship in their portfolio. Or the likes of Ashoka and Tshikululu.

So there’s the first lesson that real "social startups" like Enke and Emzingo should learn from the best practices in tech startups. Build business models that scale and are for profit.

3.22.2011

Managing the Tech Startups Series - No.2 Jorge Mata

Well, well, well. Here we are again., the infamous"Managing the Tech Startup series". This entry might be a little different because it is written at two different times and then all mashed up. The first part was written on the AVE on the way to Valencia (Friday), and the second part after an interesting session with Jorge Mata (Tuesday).

Who is Jorge Mata? slight cough, according to some "a professional fundraiser" a potential investor, but he calls himself a successful entrepreneur.  (Just added: Daniel Couto offers a very comprehensive look of Jorge Mata’s profile in his blog)

In this session we discussed various aspects of fund-raising. From entrepreneurship and watermelons (yes, the fruit); luncheons with wine and tapas, or (warning, stereotype coming) sandwiches & a coke Palo Alto-style (for the record, Nicolai enjoys nice luncheons and he's American); cultural & ego clashes; the importance of foodiesquare.com on our lives; to the relevance of tuning your message to suit your investor. Jorge was very keen to stress out the importance of building trust & reputation with your investor, using pertinent and timely communication. And that money is always green.

Well, from that conversation with Jorge Mata here are 5 points I consider relevant either for a tech start-up or a social-entrepreneurship for-profit start-up.

  1. Ego matters. Entrepreneurship is a matter of ego in the end. Either making a lot of money, or doing something people will talk about or change things. Achtung! Social entrepreneurs: “business angels” also look to satisfy their “do-good” ego. For-profits are a not a fad.
  2. First valuation is critical. It is very important to have a correct first valuation when you are looking to sell the company. You don’t want to sell cheap or sell a “big chunk” & end up working for $500,000 nothing.
  3. Look for synergies. Have your ego in-check. Yes, your ego is important but sometimes you have to put it aside and find synergies, partnerships and bring people on-board that will add expertise., knowledge and reputation. Leverage your relationships. Bring “gray hairs” to the table.
  4. Scalability is the name of the game. Investors are looking for growth opportunities. And in the words of Jorge: “I don’t want ideas to invest, I’m looking for companies to invest”. 
  5. Learn how to gauge right-timing. A classmate (if someone knows who was, please let me know) wrote: “Luck is when preparation meets opportunity”. Well, in that sense Jorge said: “if a VC asks for your money it’s not a good sign. You are looking for a partner willing to take the risk”. So don’t rush things!

This post is dedicated to my South African friends of Enke: Make your mark

3.20.2011

Deconstructing The Social Enterprise Dilemma

 
“Globally social enterprise has grown from sporadic innovation in isolated organisations to a recognised cutting-edge field with its own body of knowledge and best practices”. 


Follow my Enke friend Tafirei Mangezi's take on a HBR article "Can you help Solve these Social Entrepreneurs Challenges?"

Preparing for the Social Enterprise World Forum this year in Johannesburg. "The discussions around enterprise development and social entrepreneurship haven’t  been nearly as accessible as they could be, so how bout challenging all these so called big thinkers to simplify the message for the masses." Follow the link...

3.08.2011

Great minds think differently

From Ruth Orbach of Enke. Make your mark

After an amazing brain storming session with our Enke friends.

Great minds think differently