Proof of Concept

Proof of concept means for us more than just “the technology is running.” In particular it has to be proven, that the business model is economically profitable. This need not necessarily be proven by the partner, but could also be proven by already existing business models. For example, looking at a company that has a running solar technology similar to “Mobisol” with some added value, we consider this running technology in combination with the success of Mobisol in making it profitable and finding investors as proof of concept. As for the technology part, we make sure together with our partners (e.g. Engineers Without Borders) that the technology is properly working and suitable for the target market.

Scalability Potential

Our focus is to find business models with huge scaling potential. Not just in the countries of their origin, but throughout the African continent. Existing issues to be solved are very similar in a lot of African countries. As a consequence there is a lot of potential to replicate successful business models. With our expertise and the local partners, we can customize the models to the needs of the different markets.

Management Team

We are looking for African entrepreneurs, who have experience in foreign countries (e.g. a degree in Europe or the US) and who understand both cultural contexts well. It is important that these individuals have on the one hand a good network and understanding of the local African market and the problem they want to solve, but on the other hand are open to knowledge transfer and advice from developed countries (i.e. from GreenTec Capital) in order to enable us to work jointly and improve business models. This way we avoid potential efficiency losses.

European companies that want to access African markets need to show a strong technological advantage (e.g. have a solution that works especially well in the African environment or provides a cheaper solution than existing ones with appropriate quality) and they have to be open minded with regards to knowledge transfer and working with other cultures. Companies that insist on the same processes they have implemented in Europe, will not succeed in developing countries.

Environmental and Social Impact

It is our strong conviction, that impactful projects will have sustainable success. Therefore, important KPI’s for us are to create social or environmental impact and to empower the local population. This impact can be direct (e.g. creating jobs, reduce CO2 emissions, enable access to clean water via technologies) but also indirect (e.g. ITC solutions that improve the access to information or offer additional revenue potential for end-users or knowledge-transfer).

Profitability Potential

We do not expect that the companies already earn “millions,” but the profit potential has to already be visible with a clear plan. We also look for “lean” companies, with very low cash burn rates, so that they can easily survive several months, in the case that revenues/investments are delayed.

Long-term Commitment and Strategy

Because we are looking for long-term investors and business partners, we expect our portfolio companies’ strategies to fit into our own. Our know-how allows us to structure our own fund vehicle with professional partners in order to provide a diversified solution for investors.