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.
Global Deal Activity Down by 4.5% in October 2020
A total of 6,304 deals were announced globally during October 2020, which is a decrease of 4.5% over the 6,598 deals announced during September, according to GlobalData, a leading data, and analytics company. An analysis of GlobalData’s Financial Deals Database revealed that the deal volume during October remained below the monthly average of Q3 2020.
Aurojyoti Bose, the Lead Analyst at GlobalData, comments: “After demonstrating growth for four consecutive months, the deal volume shrank in October. The decline in deal activity could be attributed to inconsistencies across different regions. The APAC region remained a weak spot, while deal activity remained mostly flat in North America, and the Middle East and Africa (MEA) region witnessed growth in deal activity.”
North America attracted the highest number of investments, followed by APAC, Europe, the MEA, and South, and Central America.
The uncertain global economic landscape lowered the deal volume in October for major markets such as the US, Germany, Australia, France, India, and China compared to the previous month. On the contrary, the UK, Japan, South Korea, and Canada saw growth of 15.6%,14.9%, 3.8%, and 2.2%, respectively, in October as compared to September’s deal volume.
Bose continued: “Most of the deal types witnessed a decline in volume during October compared to the previous month. Private equity, equity offerings, venture financing, debt offerings, and partnership deals volume decreased by a respective 2.4%, 9.1%, 9.8%, 14.6%, and 24.6% – while the deal volume for mergers and acquisitions (M&A) increased by 7.2%.”
Japaul to Invest in Chinese Firm H&H to Deepen Mining and Exploration Business
Japaul Gold & Ventures Plc (Japaul), formerly known as Japaul Oil and Maritime Services Plc, announced it has gotten approval in principle from H&H Mines Limited to invest in or acquire shares in the company once it concluded its fundraising exercise.
According to a statement released through the Nigerian Stock Exchange (NSE), H&H Mines Limited has several licenses, which include two major Mining Leases for 25 years renewable.
The statement noted that extensive exploration has been done on the Mining properties and the last lap of the exploration works is core drilling. This, it said will allow Japaul knows the measured Minerals Reserve contained in the Mine, which it claimed contain Gold, Silver, Lead, Zinc, etc.
Japaul further explained that the need to get the drilling done was what led H&H Mining to engage the services of Xiang Hui International Mining Company Nigeria.
“Since Japaul will eventually be part of H&H Mines Limited, it was necessary that Japaul is carried along on the kind of Contract of Drilling to be entered into, and that was why the signing of the Drilling Contract between the Chinese Company and H&H Mines Limited was concluded at Japaul’s Head Office,” the company stated.
The drilling is expected to be concluded in the next 12 months and within this time, Japaul is expected to have concluded the Fund Raising and formalise her involvement in the Mining.
The company added that Canadian reports revealed that there are huge gold, silver, lead, etc deposits, but it is drilling that will show the actual reserve.
Africa Investment Forum (AIF) Rescheduled to Hold in 2021 – AfDB
Investment Forum to Now Hold in 2021 in a Bid to Curb Possible Second Wave of COVID-19
The Africa Investment Forum scheduled to hold in November 2020 in Johannesburg, South Africa has been rescheduled to hold in2021 as a result of the ongoing global health pandemic.
This announcement was made in a statement by AfDB on Wednesday. The African Development Bank (AfDB) and the Africa Investment Forum founding partners agreed to the postponement of the annual three-day investment market place.
Considering the negative effect of Covid-19 on the global economy, agreement by the two bodies was made after a careful assessment of the impact of COVID-19 on global travels, investments, observing the social distancing rules and curbing the likely possible risk of a second wave.
In the statement, the bank stated that through the forum innovative digital platforms, it would track investments, source for new deals, progress on financial closure of transactions and other existing deals.
“At the 2019 Africa Investment Forum, 57 deals valued at $67.7bn were tabled for discussions. Fifty-two deals worth $40.1bn secured investment interest.
“In July this year, the AIF Founding partners pledged to strengthen strategic partnership engagement and commitments for Africa Investment Forum Market Days 2021, to help ‘reboot investments in Africa.’ They underscored the need to boost local manufacturing while leveraging the continent’s vast resources to unlock investment.”
In the statement, Africa Investment Forum objectives are achieved through the forum’s four pillars; Closing, Connecting, Engaging and Investment Tracking.
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