DEALS, DEALS, DEALS

DEALS, DEALS, DEALS

How come businesses that have been labelled “investment-ready” rarely receive an investment? How come businesses complain they perceive access to capital to be a major hurdle, whilst investors complain there is a lack of high-quality deal-flow? The day before SANKALP in Nairobi various stakeholders came together to discuss these questions. BiD Network is one of the intermediaries seeking to bridge this gap, by working with both (informal) investors and entrepreneurs simultaneously. The gap still remains here, and whilst incubators and accelerators were reflecting on how they themselves could further facilitate the connection to investors, we invited investors to join us for an investor circle to discuss how to improve good quality deal-flow. Not surprisingly, the two frequently named issues passed the revue: 1) Talent gap – there is a strong focus on “the idea,” and whilst this is important for the potential scalability of the company, initially it is more about the management team’s capacity to execute that determines scalability. 2) Financial records gap – frequently multiple books are being kept. Even when businesses have been going through the deal-making process it has happened more than once that in the final stages the investor finds out there is yet another loan they were unaware of. Investors then are forced to discontinue the deal-making process to either prevent over indebtedness or because trust has been lost. It should be mentioned that all investors underlined the importance of a holistic approach. Whilst ranking the gaps, they unanimously mentioned the absence of any of their requirements translates into the business not being considered ready for an investment. The absence of trust, transparency,...
Finding & Fixing the Gaps in the Entrepreneurial Ecosystem in Rwanda

Finding & Fixing the Gaps in the Entrepreneurial Ecosystem in Rwanda

What hampers businesses to thrive in Rwanda? That was the question that led the roundtable organized by BiD Network and Ejo Partners as part of Global Entrepreneurship Week. Entrepreneurs, Business Development Service providers and financiers came together to collaboratively discuss the problems and solutions. Equipped with post-its in different colors, all participants got to indicate their perceived problems and solutions. A recurring theme was the attitude of the entrepreneurs. The problem post-its were filled with “a lack of entrepreneurial spirit,” the solution post-its with “changing the attitude of entrepreneurs.” More specifically, below are 5 problems and 5 solutions as a result of the roundtable.   PROBLEMS The biggest problem is how to get stakeholders to collaborate more. Particularly banks are comfortable in their own space. Roundtables such as this one organized by BiD Network can only go so far. Record keeping remains challenging. Bookkeeping should be a practice incorporated from the very beginning. It aids in forming a strategy and improving access to finance. Unfortunately, many entrepreneurs only realize the necessity when they are in need of finance. Entrepreneurs like to be in charge. This is a double-edged sword. On the one hand, it is important to know what is going on in your business. On the other hand, it does undermine the ability of experts taking certain activities on. There is a disconnection between the high international product standards and the low purchasing power in Rwanda. To create products that can be exported means increasing production costs. This translates into prices that have a high likelihood of excluding the local market. Bank lending rates are sky high. In...

Impact Capital Activities during Amsterdam Capital Week

BiD Network, Crosswise Works, dutch, THNK, and Impact Hub Amsterdam will organize the following activities with a clear focus on impact entrepreneurship and impact investing. These events will fall under the Impact Capital track of the first Amsterdam Capital Week.   Impact Capital Activities BiD Network Drinks Thursday, September 24, 17:00 – 20:00 Network drink with impact investors and East African startups Join us and network with fellow investors, partners and changemakers at the BiD Network drinks. Learn about some of the most promising investment ready entrepreneurs from Uganda, Rwanda and Kenya, and meet Nairobi’s rising startups & hubs in tech, mobile and impact innovation. Apply here   Impact Investor Innovation Lab Friday, September 25, 9:00 – 12:00 Learn how & why Impact Investing is globally on the verge. Why is Impact Investment globally on the verge and about to set a solid foot on the ground in the Netherlands? Meet fellow investors, impact investors from the Impact Hub network and entrepreneurs to find out where your opportunities arise. We showcase you success stories told by both the entrepreneur and investor. We challenge you to meet promising startups and impact investors. We invite you to innovate and to take your first steps into the future of investment. Apply here   Kenya on the Rise Friday, September 25, 14:00 – 17:00 Discover the impact startup ecosystem of Nairobi Interested in the latest development of Nairobi’s startups & hubs in tech, mobile and impact innovation? Check out these Kenyan rising stars, listen to their pitches, and learn how you can invest and accelerate impact. The Impact Expedition Nairobi-Amsterdam brings you Sam...

G20 SME Finance Challenge Winners: Gathering June 24th

Today marks the beginning of a three day event that highlights the idea of “leveraging innovation” to promote access to finance to SMEs. The event starts off with a gathering of G20 SME Finance Challenge Winners that bidx and BiD Network will take part in. Our director, Hendrik van Gent, will be present alongside the founder of BiD Network and bidx, Thierry Sanders. Following the gathering of G20 SME Finance Challenge Winners on Wednesday the 24th of June, will be a two-day DFI/IFI Working Group. Co-hosted by the European Bank for Reconstruction and Development, the overarching theme of the two-day meeting will be about “leveraging innovation” to promote access to finance to SMEs. The meeting will also provide an opportunity for the international development community to share their experiences and achievements made over the past year and explore synergy and partnership, where possible, to achieve greater and more impactful outcomes. BiD Network is proud to be able to join the gathering of G20 SME Finance Challenge Winners. In November 2010, the prestigious G20 SME Finance Challenge prize was awarded to bidx. United States President Barack Obama and the then HRH princess Maxima of the Netherlands, personally congratulated founder Thierry Sanders and offered their support to start the online platform for emerging market SMEs and investors. The first to invest in bidx was Putera Sampoerna, one of Indonesia’s most successful entrepreneurs. The G20 and the Nationale Postcode Loterij followed by funding the start of the organization. As a result, bidx became independent in...

Impact Investing: a trip to Rwanda!

BiD Network strives to fulfill its mission in helping investors gain access to capital. We achieve this through our matchmaking services and different events aimed at connecting entrepreneurs with angel/impact investors. One of such events is the Impact Investment trip to Rwanda from November 8th to November 13th. Two of our Investor Matchmakers will be joined by a group of angel investors and visit several local entrepreneurs. The overarching goal of this trip is to close the physical gap between entrepreneurs in emerging markets and angel investors. For a week long, investors will be able to meet entrepreneurs in Rwanda and see what it is like to do business in East Africa. Investors will also be able to soak up the local culture and travel alongside like-minded change-makers. Rwanda: Land of Promise   Rwanda, known for its tragic recent history, has remarkably developed over the past decade and is nowadays one of the continent’s most well-developed countries. The economy has strengthened, with per-capita GDP (PPP) estimated at $1,644.310 in 2014, compared with $416 in 1994. Its breathtaking scenery, the warmth and kindness of the people and rising business opportunities make it a place worthwhile visiting. The Rwandan genocide had a major influence on the already fragile social and economic status. Thanks to large amounts of monetary aid by: western nations, the IMF, and World Bank – the post-conflict GDP growth rates have been around the 8% annually. Rwanda actually had a staggering 13% GDP growth two years after the genocide, in 1996. Why Impact Investing?   “The bottom line is that impact is being generated by the underlying operating entity. As investors,...