Despite the amount of investments that are made available for startups, it should also be noted that there’s still more need for corporates to look into the African startup ecosystem in order to invest and co-exist.
Therefore, we’ve decided to bring to you quotes from experts in the technology experts across Africa concerning how to solve this need. You’ll definitely find it interesting.
Floris Buys, Founder and Executive Director of Telkom’s new Innovation Ecosystem SpliceWorks said,”The question is how do you know what is happening in different countries and how do you absorb the innovation into a corporate environment? It is difficult because anything that comes into a well-oiled machine like the corporate environment is dispelled if it seeks to change the status quo. Traditionally, corporates have followed three approaches of funding, buying or partnering when it comes to startups, but they are really struggling to keep up as the startups innovate faster. Everybody realizes we need to tap into the startup ecosystem.”
Floris Buys questions the ability of corporates to tap into the innovative ideas emitting from startups, as this will make corporates develop even faster.
Lunga Siyo, head of e-commerce for individuals at Standard Bank SA said, “Many corporates fail dismally when they try to copy what startups are doing because they come laden with their inherent challenges like corporate politics. They then realize that they need to find a way of funding the startups. They then create an environment for supporting startups through venture capital funding, connecting them with mentors who can advise them with commercialisation and then give them a platform. About two out of ten startups the corporate hosts will succeed and then it (the corporate) will buy fifty percent of them.”
Regarding the matchmaking between African startups and corporates, another tech expert, Frank Rizzo, Technology sector leader for Africa at KPMG said, “In the fintech world there are many little startups needing to get in touch with corporates. According to their business model, Matchi gets institutions like banks signed up and then they put together a database. They then run a process to match the problems with solutions provided by some startup somewhere in the world.”
The issues tackled down by these technology minds are ones that shouldn’t be in the least ignored because in them, Africa startups and corporates will co-exist in wonderful ways.