Ambitious Kenya: MiniMasterclass on Investments - What did we learn?
Last month the Ambitious Africa Kenya team hosted a Mini Masterclass featuring one stellar Kenyan entrepreneur, and one far-reaching Finnish investor.
As part of Ambitious Africa’s efforts to create learning and exchange opportunities between Africa and the Nordics, Claire Baker, the Head of the Africa Digital Media Foundation and a new addition to the Ambitious Africa Kenya team, moderated a mini masterclass on investments at the beginning of October. The session was hosted on Dealroom, which offers the opportunity to host panel discussions, rountables, and conferences, but also offers one-on-one meeting functionalities, so you can effectively close deals right on the platform!
The mini masterclass featured Johanna Raehalme, Investment Manager at Finnfund, a Finnish development financier, and Navalayo Osembo, Co-founder and CEO of Enda, an innovative Kenyan sportswear company. The mini masterclass took us from one side of the investment table to the other, with a first mini masterclass from Navalayo, who has successfully raised investment through family and friends, through crowdfunding, from angels, and from external investment funds. We then crossed over to the other side and heard from Johanna, who shared a mini masterclass from the point of view of the investor, and what they look for, and how to go about your investment courtship.
Some of the top lessons gleaned from this were that you need to develop an incredibly thick skin as you go out to pursue investment for your business or idea. The number of rejections you will almost certainly get before getting that wondrous ‘yes’ could cause many entrepreneurs to give up, but that is part of the journey. Navalayo also emphasised the need to seek information and insights from peers and mentors, who can be invaluable sources of help and support.
Luckily our presenters weren’t afraid to be vulnerable with our audience, and Navalayo was quick to admit that her and her cofounder have made mistakes, but it’s best to make these mistakes early, when the stakes are lower and you’re not yet dealing with big-time investors. She also revealed that she had to force herself to become more of an ‘extrovert’, and put herself out there and not be afraid to make direct asks to people!
As a development financier and investor on behalf of FinnFund, Johanna was adamant that you should just go and approach any potential investor you want to pursue, and to not be afraid. They may love your idea and want to know more, but even if they don’t, you have nothing to lose! Both speakers were upfront about the challenges involved, but insisted that everything is possible, and if you do intense research, if you’re passionate about your idea, and can justify your business case, there is room for everyone.
Finnfund sees a very low conversion rate of leads to investees, which is quite typical for a medium to large investor. Their conversion rate stands at 4%. This conversion process can take well over a year, and many fall by the wayside at the different stages of the process. But this process is also a two-way process, whereby both the investor and the investee can decide to pull out at any stage.
Despite the current travel challenges, Finnfund, and Johanna, continue to engage new potential businesses to add to their portfolio, and have simply adjusted the way they conduct due diligence.
A global audience tuned in to hear from Navalayo and Johanna and ask questions, but it’s not too late if you didn’t make it; you can catch the full recording here. Watch out for more inspiring events to get involved in from your Ambitious Kenya team.
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Many other events and learning opportunities to come from the Ambitious Kenya team including the next event happening on Thursday 26th November at 4pm EAT:
‘Blended learning and the future of education’
Has education changed or are we just finding temporary fixes to be able to continue with safe delivery of education as we await a ‘return to normality’? We hear from educators, leaders, and learners, about what they want or expect the future of education to look like and whether we’re on track to get there. If you’re involved in education, or even just know people who are still in school or university, this will be a fascinating look at how education is evolving across different continents, as we hear from panelists from Kenya and the Nordics.
Event link: https://lut.zoom.us/j/62497882470
Meeting ID: 624 9788 2470
By: Claire Baker, Ambitious Kenya Team Member