Women-led startups are only receiving 2% of all venture capital funding. A trend that needs to change if we are to achieve diversity in business. Muhammad Nabil, Partners and Startups Strategy Lead at Microsoft 4Afrika tackles the topic of diversity and what is needed to encourage more women to start businesses. As well as why investors need to take bigger bets on women-led startups.
Africa’s technology startup scene is vibrant – and growing fast. There are currently over 640 active technology hubs across the continent, and according to Partech Africa, startups raised $1.163 billion raised in equity funding in 2018 – a 108% year-on-year growth. Topping the list are fintech start-ups, who raised$132.75 million in 2018 – enjoying 39.7 percent of all funding.
Despite this momentum, however, there’s a concerning trend: Globally, women-led startups only receive two percent of all venture capital (VC) funding – and the picture within enterprise tech is dimmer. Additionally, of all startups, only 22 percent are founded by at least one woman. Africa-specific data is lacking, but sources suggest only nine percent of start-ups have women-leaders, and female-led South African start-ups receive only 4.5 percent of all funding.
Women-led startups are in short supply. And, where they are available, they often lack the investor backing to scale. The result is a significant loss of insight, perspectives, development and solutions, which affects us all.
African tech startups are renowned for building solutions to some of the most complex challenges. N-Frnds brings the power of digital to subsistence and small hold farmers in Africa and other emerging markets, via mobile. The N-Frnds mobile system, which started in Rwanda and since expanded dramatically, is text/sms-based and connects users without the need for data. Users receive vital crop and market information and get access to finance. Small hold farmers account for 80% of all food consumed in Africa, the Alliance for a Green Revolution in Africa estimates. Giving these farmers access to increased market opportunities establishes them as micro-enterprises, which is where the majority of economic upliftment and job opportunities still reside.
Technology like this is set to completely redefine the
way we interact with the world. But if technology is only being created by a
portion of the population, how effective will it really be? Without the input
and contribution of women, how many challenges and opportunities will go
unnoticed, or only partially met?
Innovation needs diversity
Microsoft recently partnered with Sehat Kahani, a tele-health
start-up founded by two women, Dr. Iffat Zafar and Dr. Sara Khurram, in
Pakistan. As doctors themselves, they noticed a recurring “doctor-bride” trend,
where only 23 percent of female medical graduates in Pakistan become registered
physicians. The others either move abroad, or stop practicing after marriage due
to socio-cultural pressures and household responsibilities. Yet, Pakistan is in
desperate need of doctors, with a doctor-patient ratio of 1:1200.
Sehat Kahani developed a platform that pairs these female
physicians with patients in need of healthcare. Patients receive affordable and
quality care virtually using tele-medicine, while female physicians are able to
remain active, working at home on their own hours to effectively balance family
life.
If it weren’t for these two women entrepreneurs, this challenge,
opportunity and approach could have been missed entirely.
Diversity is better for business
Investors recognise the need for diversity in the long-run, which makes the lack of early-stage funding for female startups perplexing. Studies show that startups with at least one female founder raise, over time, 21 percent more VC funding than companies with all-male teams. Similarly, research also shows that if women and men participate equally as entrepreneurs, global GDP could rise by approximately three to six percent.
Diversity in business doesn’t just yield better
innovation, but better financial results too, as mixed teams are better able to
recognise and capitalize on market opportunities.
So, the question becomes: What is needed to encourage
more women to start businesses, and investors to take bigger bets on them
earlier?
Firstly, female entrepreneurs need to be given equal access to the tools needed to succeed as their male peers, including access to finance, technology, markets, information, skills and services. Second, and as a partial solve to the first, investing in diversity starts with having a diverse team of investors. Startup mentors, investors, pitch competition judges and all ecosystem players should come from diverse backgrounds, able to recognise, relate to and see the potential in different challenges and opportunities.
Last year’s Africa Seedstars Summit had a dedicated focus on female entrepreneurship, which is a positive step forward. However, the focus should not be on women-only initiatives or women-specific conversations alone, but on initiatives and conversations centered around all start-ups, where women are considered and treated as equals. Diversity and Inclusion are not an initiative, they’re a lifestyle.
[jetpack_subscription_form show_only_email_and_button=”true” custom_background_button_color=”undefined” custom_text_button_color=”undefined” submit_button_text=”Subscribe to recieve the latest Microsoft ecosystem related updates from across Africa and the Middle East.” submit_button_classes=”undefined” show_subscribers_total=”true” ]
A home for global talent and ambitious innovators, Microsoft Reactor.
Microsoft brings its startup and developer community hubs program, Microsoft Reactor, to the United Arab Emirates. The new Microsoft Reactor will be hosted by Hub71 and located in Abu Dhabi.
Microsoft shares that like all of its reactors, it will be a center for technical learning and knowledge-sharing for developers and startup professionals. The hub will be home to the Microsoft for Startups program in the region. Supporting startups build and scale their companies. This will bring the number of reactors globally to eleven. With Tel Aviv, Israel hosting the other reactor in the Middle East and Africa Region.
“As a partner of Hub71 Abu Dhabi, we are firmly committed to the Middle East region as it continues its journey to digitally transform and innovate“. Shares Scott Guthrie, Executive VP of Microsoft’s Cloud + AI Division. “We’re helping to create a home for global talent and ambitious innovators looking to this region for opportunity“.
The initiative is in collaboration with Hub71, Mubadala Investment Company, SoftBank Vision Fund and Abu Dhabi Global Market.
Hub71 and Startups
Microsoft will provide a curriculum to startup residents of Hub71. Strengthening expertise around emerging topics such as cloud services and Artificial Intelligence.
Seventeen new startups, emerging as recent winners of the Hub71 Incentive Program will benefit from the program. Hub71 will now have a total of 35 startups in its ecosystem.
We are thrilled to open a Microsoft Reactor within Hub71 says Jeana Jorgensen, General Manager, Cloud and AI Division at Microsoft. “Built to support the Gulf’s unprecedented rate of digital transformation, Microsoft recently invested in two datacenters in the UAE. The concentration of globally minded startups, investors and industry, represents an enormous opportunity. We believe bringing these elements together with Mubadala and Hub71 will be a catalyst for the region“.
[jetpack_subscription_form show_only_email_and_button=”true” custom_background_button_color=”undefined” custom_text_button_color=”undefined” submit_button_text=”To get the latest from the Microsoft ecosystem in the Middle East and Africa region, kindly subscribe.” submit_button_classes=”undefined” show_subscribers_total=”true” ]
Chris Lwanga, Microsoft Senior Director, Software Partnership shared Microsoft’s desire to empower Africa’s youth, developers and startups to excel. He shared this as a keynote speaker at MEST Africa Summit 2019 and MEST Africa Challenge in Nairobi, Kenya.
Speaking to the audience he highlighted the need to focus on the youth and empower them to make an impact. Chris says “Microsoft’s doors are open to students, developers and startups”, an iteration of projects like Head Start.
Microsoft also led sessions on Digital Transformation, Artificial Intelligence and expounded on the Microsoft cloud.
OZE(Ghana), Snode Technologies(South Africa) and Wayawaya Ltd(Kenya) tied to win the MEST Africa Challenge. They will each receive $50K in equity investment from MEST Africa and $25K in credit from Microsoft.
The fourth edition of MEST Africa Summit will be in collaboration with Microsoft. This year Microsoft partners with MEST in the event as platinum sponsors. The summit will explore the latest innovations in the African tech ecosystem. Mest Africa Summit 2019 will take place in Nairobi, Kenya from June 10th to the 12th.
The 3 day Pan-African Tech Summit will have keynotes, fireside chats, panel discussions and workshops. It will look to discuss key topics impacting entrepreneurs and investors in Africa’s technology space. Conversations will range from the impact of AI and machine learning on Africa’s workforce, the role of tech in cultivating a more energy-efficient Africa, ways data is being used to enable financial inclusion on the continent, how key sectors and innovations are contributing to the ecosystem, etc.
“At Microsoft we believe in empowering every organization and person to do more. The work that MEST does with innovators in Africa aligns perfectly with our mission to transform people’s lives through technology engagement.” – Chris Lwanga, Senior Director Software Partnerships, Microsoft
“As we gear up for this year’s Summit, we’re excited to welcome some of Africa’s most engaging entrepreneurs, partners, corporate leaders and ecosystem facilitators. We’re thrilled to partner with Microsoft, whose entrepreneur toolkit is helping developers across the continent more easily build impactful solutions. We look forward to diving deep into discussions around the innovations and solutions that are rapidly driving change on the continent.” – Aaron Fu, Managing Director, MEST
2019 MEST AFRICA CHALLENGE
MEST Africa Summit 2019 will also host the Mest Africa Challenge finals. Competing regional finalist will pitch to win the grand price of $50K in equity investment and the chance to join the MEST community. Finalist teams are from Ghana(OZE), Nigeria(Ampz_TV), South Africa(Snode Technologies), Kenya(Wayawaya Ltd) and Cote d’Ivoire(Seekewa).
Microsoft will give the Egypt startup technical and business support in new partnership.
Digital recruitment solutions company HireHunt announces partnership with Microsoft. The collaboration through Microsoft 4Afrika will see HireHunt recieve leads from Microsoft’s network. Microsoft will also provide them with technical and go-to market resources.
Sherif Aziz, Partners and Start-ups Lead, Microsoft 4Afrika said this about the collaboration.
“As we strive with our customers towards digital transformation, HireHunt makes that possible on a recruitment level. A clear example of how technology can enable companies to hunt for the best most suitable talents. Microsoft 4Afrika is very excited to partner with HireHunt where we will support them on both technical and business level.”
About the Startup
HireHunt is a digital recruitment solution startup based in Egypt bringing the right employers and talents together. Providing a talent platform where applicants showcase their skills, expertise and personalities through interactive job applications.
For employers the platform handles the time consuming tasks faster, so they can focus on filling positions with higher accuracy. With their mantra “Do less, hire faster”.
How HireHunt works.
“On HireHunt, applicants can show who they are and what they can do by answering interesting questions about themselves and their work experience to attract the attention of employers. Questions can be answered by text or recording voice. You can solve games to earn badges and get more visibility from positive interactions with employers. Every interaction gives them feedback about their capabilities. Helps them explore new career paths and discover their next opportunity at the same time. Employers now have access to a ‘swiss army knife of recruitment technology’ to help them hire the right people faster. Using Artificial Intelligence and interactive screening, high-growth companies can cut up to 80% of their hiring time by automating the dull parts of sourcing, screening and tracking so they can focus on what’s important. 82% of employers identify their next hire within 2 weeks using our sourcing campaigns powered by machine learning.”
