Archives For Business

The Ones That Fail

January 30, 2013 — 4 Comments

It’s always great to look at one’s current or past successes, but what about the failures? Every entrepreneur (hell, every person person) has failed at something….even if it’s failing at being humble enough to admit it!

So here are 11 projects from the past five years that I tried to launch, either on my own or with colleagues, that failed for whatever reason.  I’ve also included the business lessons I learned from each project.

==

Afridex.net

Afridex (2008 to 2010)

The Idea: Back in 2008, there was little information about the various companies across the pan-African business sector. It also featured micro-format compatible ‘cards’ that businesses could place on their website. Definitely not one that had APIs or fancy design. So I set out to create one by modeling it after Tech Crunch’s CrunchBase. (Photo Above)

Why it failed: There was no clear business model (that I’d identified at the time) and I never came up with a strong enough data acquisition strategy – just because you say you’re going to crowdsource data doesn’t mean the crowd is going to volunteer to source the data for you!

Lesson: ‘Buzzwords’ like crowd-sourcing are usually based on a lot of hard work that is easy to overlook.

A.fricame.me (2010 to 2012)

The Idea: To create Techmeme-like destination site for information on all things tech, business, and policy related in Africa.

Why it failed: To make it sustainable, this type of project requires a lot of time on behalf of the founder. That said, I never cared about making this project profitable but I underestimated how much of my own time it would take to keep it functioning an relevant.

Lesson: Don’t take on side-projects without fully investigating how much time they will take away from your priamry proejcts.

Infostate of Africa 2009

Appfrica 1 (2008 to 2010)

The Idea: Appfrica began as a blog and long-form investigative research site all about what was going in Africa.  The goal was to be something akin to GigaOm Pro for the African audience with high-quality blog posts, market reports, infographics and the like.

Why it failed: This eventually worked in the form of other projects (Appfrica still does market research) but it takes a degree of critical mass in demand before pursuing a business model like this.  Doing it for no money was too time-consuming and draining to be sustainable. At one point I even hired a few writers, but because there was no revenue, that didn’t last long.

Lesson: Know your customer before you launch a product. And if possible, make every attempt to reach out to them to make sales as soon as (or even before) you start. This is now known as the ‘lean startup’ model, but I assure you that philosophy is as old as commerce itself.

Command Line

Appfrica 2 (2009 to 2011)

The Idea: In parallel to trying to make Appfrica a successful blog, I was also running a small developer shop in Kampala.  The idea was to follow the example of companies that earned their business from corporations in North America and Europe who wanted out-source to Asia.  Why not out-source to Africa?

Why it failed: While Appfrica had very high visibility, press, and market awareness at the time, scaling a consultancy is hard.

Lesson: Hire too many people too fast and client work may not come in fast enough to sustain your staff, resulting in your going bankrupt or having to lay off people.  If you fail to hire enough people quick enough, you’re stuck with an avalanche of projects, and no one to work on them.

Appfrica 3 (2009 to 2010)

The Idea: In ’09-’10 I wanted to find ways of offering capital to early stage African entrepreneurs. By leveraging profits from our consulting business, and partnering with experienced VCs, we could make investments, or at the very least introduce entrepreneurs to the investors.

Why it failed: Ultimately it came down to my lack of experience in the investment sector.

Lesson: Experience matters. I got better at it pretty quickly. Now Appfrica has found several ways of solving the problem of lack of access to early-stage financing.  One is through our competitive funding program Apps4Africa, the other is through our SeedCapitalAfrica fund.

images

FricaFact (2009)

The Idea: A Twitter account that tweeted one fact about Africa each day an and accompanying podcast that shared one interesting fact about Africa each episode.

Why it failed: It was actually quite popular, but my own attention for researching and producing the show is what waned.

Lesson: If you want it to last work with others.

LocaleMotive (2010 – 2011)

The Idea: An ambitious location-based edu-tech startup that aimed to use gamification and parent/peer interaction to improve the way study groups work in the U.S.

Why it failed: While this is still something that I’d like to see done, it was a capital intensive project to startup.  I would have needed an angel investor almost right out the gate.

Lesson: Seeking investment isn’t bad, but if even starting your idea depends upon the benevolence of an investor, you may never get the opportunity to do anything.
Status.ug Green

Status.ug (2009 to 2010)

The Idea: A feature-phone accessible mobile-social network that leveraged mobile money for social m-commerce in Uganda.

Why it failed: Actually, this was a by-product of the ‘Appfrica 3′ experiment in angel investing. Also, I think I loved the concept more than the entrepreneur did.

Lesson: A founder needs to be a founder first.  An investor needs to be an investor first.  If those stars are misaligned, expect the worst.

Wheragi (2009 to 2010)

The Idea: Location based note-dropping and discovery. Essentially like Foursquare, but using short-codes and natural language so that it could work on feature phones. Also toyed with the idea of doing an Augmented Reality version for development aid workers using smart phones.

Why it failed: I made it too complicated to build by trying to do everything at once. Also, such an ambitious project requires one to show that they can actually execute.

Lesson: No one can ever (convincingly) argue the viability of something that is already functioning and that already has traction.  This project had a lot of interest, but I should have started small and got the basics working before looking for funding in a major way.

WeworkforFree

WeWorkForFree.com (2006 to 2008)

The Idea: Create an online community of artists and graphic designers who sell or donate their art and services to help generate money for charity.

Why it failed: Where do I start? First, artists and designers are already an exploited bunch on the web.  Now someone was asking them to compete to give their stuff away for free?  Meanwhile our site was going to then auction work, not to make a profit but to donate to charities and do projects in developing countries.

Lesson: A business that means well is not necessarily a business. It needs to mean well, do good, and sustain itself. If you’ve read anything I’ve written after 2008 now you’ll understand partly why that message has become a personal mantra of mine.

10KSpace (2010)

The Idea: To create an African Incubation hub (like ccHub, I-Hub, or ActiveSpaces) for the 16 and under demographic.

Why it failed: Too dependent upon the parents ability to afford or appreciate aftercare education for their kids. In other words, the concept though interesting, did not consider the needs of the user (the students and their parents).

Lesson: Users first. Always.

==

The ultimate lesson in all of this is failure is only a permanent condition if you let it stop you, otherwise it’s a temporary ailment. Keep trying. The horizon only looks like like the edge of the earth, if you keep heading in that direction, I’m pretty sure you won’t fall off. ;-)

So when you email me or call me to ask about how projects MetaLayer, Appfrica, Apps4Africa and/or Abayima have all been so well received, please know that none of those would have been possible without the experience gained from failing so often and and not giving up.

At DEMO young companies are offered 6 minutes to demonstrate their app’s utility, their business model and their case for investment. It’s very fast-paced and exciting for the entrepreneurs.

Keeping with the theme we’ve selected 6 photos that capture the experience of the two-day conference in Nairobi, Kenya.

Emmanuel Addai (Co-Founder, Farmerline) at DEMO Africa 2012

Emmanuel Addai (Co-Founder, Farmerline) was one of two entrepreneurs representing the Apps4Africa 2011 Winners at DEMO Africa 2012. Farmerline came in third in the 2011 Climate Challenge.

DEMO Africa 2012

DEMO Africa 2012, the Launchpad for Emerging Technology and Trends

DEMO Africa 2012

One shot at 6 minutes in front of investors, journalists, and other technologists. Would you be ready?

Demo Africa 2012 Panelists

Intermixed with the pitches were panels and real-time feedback ‘sage’ sessions from seasoned entrepreneurs and investors. Some ideas passed their test, others were shot down right away for not being investable.

DEMO Africa 2012

During the pitch sessions, the exhibition hall at DEMO Africa 2012 was relatively empty, but after, this was where deals were made and startups got their second or third chance to pitch investors one on one.

Appfrica at DEMO Africa 2012

Our team was all over the place at DEMO! From left to right, Marieme Jamme of SpotOne Global and Africa Gathering, Thomas Genton of the U.S. Department of State, Barbara Birungi of HiveCoLab, Jon Gosier and Bahiyah Yasmeen Robinson of Appfrica.

On October 24th, 2012 Hillary Clinton announced the 3rd Apps4Africa competition at DEMO Africa in Nairobi, Kenya. Her pre-recorded video address to the audience was one of the many highlights of the DEMO Africa which brought investors and 40 of Africa’s finest startups together for rapid-fire 6-minute pitch sessions.

The Apps4Africa Team! From L to R: Thomas Genton (Senior Advisor, Bureau of African Affairs at U.S. Department of State), Jonathan Gosier (Founder, Appfrica), Bahiyah Robinson (Executive Director, Appfrica), Barbara Birungi (Director, HiveColab), Emmanuel Addai (Apps4Africa 2011 Winner), Marieme Jamme (CEO, SpotOne Global), Eric Mutta (Apps4Africa 2011 Winner), Thomas Debass (Director, Lions@frica)

The announcement also marks a big change in the Apps4Africa model. This year the competition is targeting startups and businesses through competitive funding, offering a non-diluting path to venture capital, mentorship and other forms of support. Our goal is to catalyze the growth of Africa’s early-stage startups to address the issue of youth unemployment across the continent. Africa needs to create at least 120 million jobs by 2012 to maintain it’s current trends of a growing middle class. Those jobs are not going to come from government mandates or multi-national corporations, they are going to come from successful startups and entrepreneurs. With Apps4Africa 2012, Appfrica and our partners at the State Department, Lions@frica, and the World Bank are demonstrating our commitment to addressing this problem now and in the future!

We’re greatly appreciative for the remarks of Mrs. Hillary Clinton and the continued support of our friends at the State Department!

One of the great things about technology hubs is the serendipitous connections that can be made and the unplanned fraternization of different groups in the space. It happens quite often, but I felt a meeting this week at HiveColab was worth highlighting.

Liz Ngonzi and her colleague Sarah Webb were visiting with HiveColab Director Barbara Birungi to discuss projects related to Barbara’s Women in Technology Uganda initiative. It was complete coincidence that I happened to be visiting the space, along with my colleagues Bahiyah (of Appfrica) and Chris Burrage (of MetaLayer).

It wasn’t long before the five of us were engaged in a number of different exciting conversations related to our respective projects and perspectives.

Liz Ngonzi

Liz Ngonzi describes herself as being born in Uganda but raised at the United Nations. She founded Amazing Taste, LLC., a US-based, consulting firm that connects nonprofit organizations with corporations, foundations and philanthropists, to jointly achieve their strategic objectives.

Sarah Webb

Sarah Webb and I had both been at the Beyond Access conference in Washington, D.C. just a few days prior, but hadn’t met there. She is the Project Manager for International Development at Syracuse University’s iSchool and is passionate about bringing libraries into the global development discussion.

It was a true pleasure to meet them both, and great to have such amazing individuals involved with Hive. I look forward to seeing what these discussions will lead to!

Jon Gosier (Founder, Appfrica)

Mara Launchpad is an exciting incubator and co-working space in Kampala, Uganda.

Following the lead of other innovation spaces across the continent, Mara Luanchpad’s mission is to create an open-ended model which allows for incubation, investment, capacity building and scale. Thus, Mara’s entrepreneurs get access to a place to work together as well as access to early stage seed funding and later stage venture capital.

Mara Launchpad Uganda

When you first visit the Launchpad, you’ll notice how densely packed the pace is with desks. These desks are paid for by entrepreneurs using Mara as their startup headquarters. Here they are given access to filing cabinets, meeting rooms, fast internet, a boardroom for meetings and other resources that might prove elusive for early-stage companies.

Mara is conveniently located directly across the street from Makerere University which makes it prime real-estate for student entrepreneurs who need a quiet, professional space to work along or in teams. The space is called the ‘Launchpad’ because of the perfect storm of resources available to participants seeking to ‘launch’ their projects or businesses in a friendly environment.

Appfrica visits Mara Launchpad

Appfrica Executive Director Bahiyah Yasmeen Robinson and Director of Advocacy Jon Gosier met with Mara Foundation Director Nigel Ball to discuss a number of opportunities for collaboration (between Appfrica and Mara Foundation), as well as their respective hubs (HiveColab and the Launchpad, respectively).

Despite what might exist as a perception of being a nascent tech community, Uganda’s Mara and Hive are only two of the many resources available to Uganda’s technology entrepreneurs and enthusiasts. By working together, the Ugandan incubator and investment community hopes to spawn a friendly competitive environment that allows all the various initiatives (and perhaps more importantly the entrepreneurs themselves) to thrive.

Apiyo Oweka of Mara Foundation

Apiyo Oweka (of Mara Foundation) and Daniel Stern (co-founder of Hive and Director of UConnect) also met with Appfrica to discuss the need the need to for more cohesion amongst business owners in Kampala’s growing market. Needless to say these conversations have spawned a number of new ideas, and will lead to many new great things for all involved!

Photos: Jon Gosier

Listen to the Interview

Cheetah Trailer 45 from Jon Gos on Vimeo.

Why aren’t there more of a focus in books or film, about African innovations in business?

Not about its colonial history, its artists and musicians, its Dictators and tribes, its poverty and wars, its animals and wildlife…but work simply about doing business in Africa?

That was the question I asked myself before undertaking THE CHEETAH CODE. After spending several years living and working in the continent, it dawned on me that there were few resources available to those interested in doing business in, or with, the continent.

THE CHEETAH CODE is the culmination of several years of research in my time as a technologist, small investor, and activist. The book is about Africa’s young creative class, its expanding technical capacity, and entrepreneurs.

It is not a about philanthropy, poverty, or scapegoating foreign corporations. It is about contemporary business, economics, societal trends, and technology that happens to be told from the African perspective. It will be made available as a documentary film, and book.

==

If you find the above concept compelling, you can help make this project a reality by backing it on KickStarter.com! Those of you interested in the project who live abroad, email me privately at j.gosier@appfrica.org

BACK THE CHEETAH CODE

This great graphic by the guys at Mhealth Africa illustrates where innovation hubs are popping up across the continent.

African Innovation Hubs

Barbara Birungi

Barbara Birungi, Director of Uganda’s innovation hub HiveColab, wrote this great piece for the BBC last week…

I believe that when you educate a woman, you educate a nation – because that one woman will share what she has learnt with other women and pass it on to the generations below hers.

This is why it’s so important that women are taught how to integrate technology into their businesses if the businesswomen of the future are to follow suit.

Women in Africa are taking to business in a big way, and playing a crucial part in the economic development of their countries

Read The Article

The following is an excerpt from a recent interview I conducted with StartupFestival.com discussing business, entrepreneurship and opportunity in developing countries.

The International Startup Festival is a 3-day event July 11-13, all about the business of Startups. Held in the historic Old Port of Montreal, Canada, the event brings together industry veterans and fresh new faces, creative thinkers, experienced entrepreneurs and technologists from around the world. This year’s speakers include people like Dave McClure (500Startups), Liza Kindred (Third Wave Fashion), Cindy Gallop (IfWeRanTheWorld.com), Graham Hill (TreeHugger.com) and many more.

I’ll be speaking at Startup Fest giving an inside glimpse into how data platforms are changing nations, and how this vision of human and machine collaboration is driving a new generation of tools to cope with today’s information flood.


READ THE ARTICLE