GreenHouse Capital, a venture capital firm, has commenced the implementation process of investing $10million in 13 technology startups that have great solutions developed locally, but with global appeal and with the ability for global scale up.
Although the venture capital firm plans to invest the money in two tranches of $5 million each, it has already spent well over $3 million, spread across the 13 startups.
One of the founding partners of GreenHouse Capital, Mr. Bunmi Akinyemiju who made the disclosure, while showcasing the 13 startup companies at a technology show in Lagos, weekend, said “the future is about virtual technology and no longer oil and gas, and that is the reason we are investing in tech startups. We have invested over $3 million out of the $5 million that we planned to invest in the first tranche. In all, we plan to invest a total of $10 million in the next two years.”
Giving reasons behind the zeal to raise seed funds for tech startups, Akinyemiju said the VC firm decided to invest in them in order to support young entrepreneurs with brilliant ideas, who do not have the right funding to scale up.
The list of top global companies today by market capitalisation, is made up of technology companies like Google, Facebook, Amazon and Apple. Gone are the days when oil and gas companies used to top the list and that is the direction of the world today, so we need to guide and support Nigerian tech startups in that global direction, Akinyemiju said.
We are investing big in technology startups companies, because the financial gain is going to be exponential in the future. A VC firm like GreenHouse only needs about three successful startup companies, out of 20 sponsored companies to settle the amount of money spent promoting 20 tech companies, and still make huge turnover, Akinyemiju added.
Speaking on the vision and mission of GreenHouse Capital, its Managing Partner, Nichole Yembra said the mission is to promote and support tech entrepreneurs in Africa that have great talents but do not have the encouragement and funding to actualise their dreams.
Big entrepreneurs that are behind big brands like Uba, Google, Microsoft, among others, started as very small entrepreneurs and they got support to arrive at where they are today. So we want to replicate that kind of success out of Nigeria and Africa, Yembra said.
According to Akinyemiju, “We need to scale-up their business but all the money needed for scale-up will not come from Nigeria, because we will source for funds from outside Nigeria and Africa, from places like the US, UK, China, Hon Kong among others. But the money from these countries will not be made available unless African investors are able to support the initial funding and that is exactly what GreenHouse Capital is doing by investing in 13 technology startups.”
Among the 13 startups that were showcased at the Lagos technology show, some are into solar energy solution, financial solutions for banks, micro finance solutions, logistics solutions, and gifting solutions. The solutions were developed locally in Nigeria, but designed to scale globally.
It was however revealed that three out of the 13 tech companies that are being sponsored by GreenHouse Capital, have attracted international investors who are now investing in their solutions.
One of the tech startups, Chinedu Azodoh who manages Max Ventures with Tayo Bamiduro, said they provide logistics services for clients and help them to deliver items within three hours of purchase, using their network and locally designed technology solution.
Another startup, Ahmed Macaulay who runs AppZone, said they offer instant card issuance for banks, in order to reduce insider fraud and backlog of customers’ Automated Teller Machine (ATM) cards. SureGifts is another startup company on display, managed by Kehinde Olufunmilola and her team that provides convenience for clients and customers, by developing gift cards that could be used for shopping after funds are loaded into the cards.
Debt Management Office Releases Q1, 2022 Calendar
The Debt Management Office (DMO) will, on January 16, 2022 issue N70 billion to N80 billion, four years and 20 years Federal Government of Nigeria (FGN) bond, with an interest rate of 12.50 percent.
In its recently released calendar for the issuance of bonds for the first quarter of 2022 (Q1-2022), the DMO noted that this bond has an original tenor of 10 years and 20 years and will re-open in January 2026 and January 2042.
The DMO also revealed that it will issue three years, 11 months and 19 years, 11 months FGN bond of N70 billion to N80 billion on 16th of February.
This bond, according to the DMO, will carry an interest rate of 12.50 percent, to be re-opened in January 2026 and January 2042, and with original tenor of 10 years and 20 years.
Also on March 23, the DMO will issue three years, 10 months, and 19 years, 10 months, 70 billion to N80 billion FGN bond which would last for a period of 10 years and 2 years.
The bond has an interest rate of 12.50 percent, and will be re-opened in January 2026 and January 2042.
FGN Bonds are debt securities (liabilities) of the Federal Government of Nigeria (FGN) issued by the Debt Management Office (DMO) for and on behalf of the Federal Government.
The FGN has an obligation to pay the bondholder the principal and agreed interest as and when due. When you buy FGN Bonds, you are lending to the FGN for a specified period of time.
The FGN Bonds are considered as the safest of all investments in domestic debt market because it is backed by the ‘full faith and credit’ of the Federal Government, and as such it is classified as a risk free debt instrument.
Prior to the establishment of the Debt Management Office (DMO) in 2000, Nigeria’s public debt was managed by a myriad of Government Agencies in an uncoordinated manner.
This diffusion created systemic and structural problems that brought about serious strain on the country’s debt portfolio and economic growth.
Hence, the establishment of the DMO marked the beginning of the institutionalization and professionalization of public debt management in Nigeria.
Stanbic IBTC Enlightens Nigerians on Stockbroking
Stanbic IBTC Stockbrokers, a subsidiary of Stanbic IBTC Holdings PLC, recently hosted a virtual session to enlighten Nigerians on the potentials of investing in the stock market.
The virtual event themed: “You Don’t Know About Stocks? Come On Now,” featured stockbroking experts: Afolabi Gbenro, Head, Sales Trading and Benjamin Jesumuyiwa, Head, Mandate and Settlements, both of Stanbic IBTC Stockbrokers with Tosin Olaseinde, founder of Money Africa, Jennifer Awirigwe, Certified Financial Educator and Solafunmi Oyeneye of Wealth Motley, a Personal Finance Educator as panelists.
The goal of the session was to acquaint individuals new to the stock market with basic stockbroking terms, useful tips for stock trading and how to use the Stanbic IBTC stockbroking app.
Afolabi stated the importance of diversifying investments in stocks. He listed factors that affect the prices of stocks which include supply, demand, news, and investor sentiments. The benefits of investing include dividend yield, capital appreciation, equity share holder privileges and utilising investments as collateral. He stressed the importance of research and advised Nigerians to conduct their own research and evaluate companies before investing.
On considerations before entering the stock market, he said, “You would need capital, investment objective, and risk profile assessment to determine the kind of investment you should venture into. You would also need to stay abreast of market updates.”
Benjamin Jesumuyiwa, Head, Mandate and Settlements, Stanbic IBTC Stockbrokers, urged Nigerians to invest in stocks to reap long term rewards. He said: “The stock market makes it easy to buy shares of companies and they can be purchased through a broker or via online platforms. Stanbic IBTC Stockbrokers offers a discounted rate of 0.7% on brokerage fees. Once you have set up an account, stocks can be purchased in minutes.”
Benjamin talked about the ease of using the Stanbic IBTC web and mobile applications platforms, stating that the platforms have been designed to allow customers sign up themselves, with direct access to the market.
Tosin Olaseinde commended Stanbic IBTC for making stock trading accessible and affordable for Nigerians, as individuals can open a stockbroking account with zero naira. She advised beginners to invest while gaining knowledge about the stock market and recommended Exchange Traded Funds (ETFs) as an entry point especially for people who have an aversion to high-risk investments. She said: “As a beginner, the best place to start is the Exchange Traded Funds (ETFs). It is a mixture of different equities in one stock. It offers you the opportunity to participate in a couple of stocks without buying everything individually.”
Solafunmi Oyeneye mentioned liquidity and dividends over a long period of time as advantages of trading stocks, encouraging beginners to access the Stanbic IBTC stockbroking app through their smartphones for convenience and less paperwork.
Jennifer opined that the stock market is a good place to invest because it is highly regulated, and the risks can be easily assessed. She also recommended the Stanbic IBTC Stockbroking app for trading stocks for ease of use and speed.
The stockbroking investment series by Stanbic IBTC further reaffirms the commitment of the financial institution to equip individuals with essential information required to make informed investment decisions.
Why Every Investor Should Now Include ESG: deVere CEO
Every investor needs exposure to environmental, social and governance (ESG) investments to build wealth over the long-term, says the CEO of one of the world’s largest independent financial advisory organisations.
The observation from deVere Group’s Nigel Green, a long-term advocate of impactful investing, comes as it is revealed that global sustainable fund assets almost doubled in the six months through to September.
Global ESG assets are on track to exceed $53 trillion by 2025, according to Bloomberg Intelligence, representing more than a third of the $140.5 trillion in projected total assets under management.
Mr Green says: “In January 2020, we identified that ESG would be this decade’s ultimate investment megatrend.
“Of course, that was before the pandemic that has acted as a catalyst for the sustainable investing boom.
“The health of our planet and how it affects human health which, in turn, affects the way we all live, interact and do business, dramatically came to the fore.”
He continues: “Previously, ESG investments were often considered a ‘quirk’ or ‘nice to have.”
“But now we believe that they should be a part of everyone’s investment portfolio for several key reasons.
“First, they typically deliver a legitimate diversification tool – which is how investors can seize opportunities and mitigate risk, especially during periods of higher volatility.
“Second, funds investing in entities with robust ESG credentials have outperformed their benchmarks over recent years. From a risk management point of view, including these companies in your portfolio is, clearly, a sensible decision to take.
“Third, ESG represents a revolution of investment strategy itself. A seismic shift has occurred in corporate behaviour. How firms approach ESG factors and the value they place on them compared to other considerations has already changed forever. The ESG themes are already embedded in the global economy as this is only set to grow in the years to come – and, of course, investors should embrace the concept of having early advantage.
“And fourth, the last 18 months have underscored how we have a moral obligation to back and fund entities that support the wellbeing of the planet and society”
In October, deVere announced that it will double its commitment to position $2 bn of assets under advisement into ESG investments.
This follows a similar announcement earlier this year when it said it would aim to have $1bn in socially responsible investment vehicles within five years.
As well as its commitment, deVere is one of 18 founding signatories of the UN-backed Net Zero initiative, the international alliance of finance powerhouses that will help accelerate the transition to a net-zero financial system. Its membership means it is committed to “aligning all relevant products and services to achieve net-zero greenhouse gases by 2050 and to set meaningful interim targets for 2025.
Other founding signatories include BDO, Bloomberg, Campbell Lutyens, Deloitte, EY, Grant Thornton, KPMG, The London Stock Exchange Group, Minerva Analytics, Moody’s, Morningstar, MSCI, PwC, SGX, Solactive, S&P Global and SSE.
Mr Green concludes: “The case for now having exposure to ESG in your investment portfolio is undeniable.
“We believe that a failure not to seek profits with purpose could negatively impact your long-term accumulation of wealth.”
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