STANDARD BANK BUSINESS DAY TV SME SUMMIT Nadia Oshry Senior - PowerPoint PPT Presentation

STANDARD BANK BUSINESS DAY TV SME SUMMIT Nadia Oshry Senior Manager: Moonshots

REDUCING POVERTY & UNEMPLOYMENT Is becoming increasingly difficult in our current economic climate GDP growth remains low and flat South African Unemployment rate 6 28 4 26 2 0 24 -2 -4 22 -6 20 -8 2008 2010 2012 2014 2016 2018 2008 2010 2012 2014 2016 2018 SOURCE: TRADINGECONOMICS.COM | STATISTICS SOUTH AFRICA SOURCE: TRADINGECONOMICS.COM | STATISTICS SOUTH AFRICA

WE KNOW INTUITIVELY That small business growth is key, but the funding landscape is a mixed bag… Venture capital investments in Africa Study of SMEs (2017): 458 • 87% self-funded 201 • 8% family • 2% angel funding 153 125 • 2% bank loans 725.6 Mn • 1% development finance institutions 185 Mn 129 Mn 203 Mn …and skills, market access 2015 2016 2017 2018 Funding Amount remain major challenges Deal Count FINFIND SME STUDY; VENTURE CAPITAL RESEARCH

BIG TECH FINTECH VS

GROWING COMPANIES HAVE A CONFLICT BETWEEN EFFICIENCY How Uber’s first self -driving car works & EMPLOYMENT With an interesting subtitle a

SO WHAT ARE CORPORATES DOING IN Set up venture funds to THE SPACE? fund FinTech Partnering with 20% 20% companies FinTech companies Acquired FinTech companies 10% Startup programs to 7% incubate Launched FinTech own FinTech 43% companies subsidiaries In SA, we focus heavily on supplier development FINEXTRA BASED ON 2016 DATA

So how are We need to invent new we thinking business models which align the incentives of corporates about this and start ups in order to help SMEs grow so that we drive space? growth and create jobs

Founders Factory UK raised £50M to build over Media Beauty FinTech Travel 225 innovative technology companies AI EdTech Retail AI Accelerator +160 startups Incubator Team of 70 +60 startups

FOUNDERS FACTORY AFRICA Scale 140 disruptive tech businesses over 5 years in Africa and enhance the start up culture in key African cities ? 4 Corporate investors ? Investor 1 Investor 2 Investor 3 UX/UI, Product Development, Engineering, Investment, Growth Full time team of 40 specialists Marketing Scale 140 businesses over 5 years 40 100

Founders Factory is but one example…with a change in mind set and through innovative new business models, large corporates can contribute to scaling start ups resulting in growth and job creation

YOU’RE GOOD TO GO