intelligent

There are currently 1,200 unicorns ( start-ups with a valuation of US $ 1 billion or more ) in the world . Seven of them are in Africa , and of those , six are in the FinTech space . However , the same BCG report points out that African start-ups seldom survive past the Series B funding round .

For a continent with such huge potential and latent innovation , there seems to be a disconnect between ideation and building a sustainable , scalable operation .

“ We know that partnering with nimble , innovative FinTechs can make all the difference to enterprises hoping to deliver exciting new products and services . Enterprises should be looking to invest in tech startups where the start-up ’ s sphere of influence will have a large impact on the enterprise ’ s revenue in key business focus areas ,” said Sergio Barbosa , CIO of enterprise software development house , Global Kinetic , and CEO of its open banking platform , FutureBank .

Barbosa said the cautious approach of enterprises often stems from business leaders worrying they could be found negligent or that their brand may be negatively impacted should the start-up fail . However , he strongly believes that investing in tech start-ups that operate in high impact areas will give the required impetus to the tech start-up to deliver on expectations .

Adopting a ‘ more ’ or ‘ better ’ approach is best

How enterprises choose to partner with start-ups has a significant impact on their chance of success . Barbosa said setting up a robust product and market

Sergio Barbosa , CIO of Global Kinetic and CEO of FutureBank

feedback loop , as well as ensuring a great talent acquisition strategy , can make all the difference .

“ There is a great industry anecdote that talks about ‘ more ’ or ‘ better ’ and how companies must focus on one or the other . In the beginning of a partnership , companies should focus on making their product or solution better , ensuring they crack the right product or market fit . Once they have achieved that , they can focus on the ‘ more ’ part and scale their sales and marketing . Once the company starts facing constraints , they should switch again to focus on the ‘ better ’. This means they once again work to improve the efficiencies , and then flip back to look at scale . And so it goes , ‘ more ’ or ‘ better ’, but always starting with better ,” he explained .

Let them be start-ups

Barbosa said another big challenge facing startups is the often unrealistic expectations placed on them by their enterprise investors and partners . He warns that what works for enterprise companies will hinder small companies . The added pressures of unnecessary governance , bureaucracy and processes that are designed for larger companies with multiple teams , focus areas and disciplines , can be crippling to a small start-up .

“ Start-ups should be allowed to leverage their nimbleness and agility . It is their greatest asset and it is easily and quickly lost as the start-up becomes successful ,” Barbosa said . �