tiphub Africa

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tiphub Africa: Supporting innovation in African & the African Diaspora

Lagos, NigeriaWashington, United States
Year Founded:
2014
Organization type: 
hybrid
Project Stage:
Growth
Budget: 
$100,000 - $250,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

tiphub, the mentorship driven accelerator and business consultancy that develops and supports seed stage technology and social impact ventures within Africa and the African Diaspora. We provide technical and management assistance in addition to catalytic funding.

WHAT IF - Inspiration: Write one sentence that describes a way that your project dares to ask, "WHAT IF?"

What if the African startup ecosystem solved real issues & really engaged diaspora & impact investors to address the missing middle of capital?
About Project

Problem: What problem is this project trying to address?

In many African markets youth unemployment looms as a great challenge and great opportunity. Historically, harnessing the entrepreneurial spirit so common to youth in the Sub Saharan African region is stunted by the lack of funding in the $100,000 to 1 million dollar range. This remains still, even though impact investors often say investment opportunities are rare and while Diaspora remittances are a pool of capital not effectively channeled.

Solution: What is the proposed solution? Please be specific!

tiphub's solution is connecting all of these actors, consistently by being the resource that has a social and financial interest served by providing those connections. Our inherent social enterprise model and investment thesis is built upon our ability to bring these actors together, by adding capacity to high growth and high impact technology an social enterprises focused on Africa, while creating blended capital investor ecosystem. Using tiphub's founders' unique relationships in the technology, investment and development communities we are spearheading the charge for African innovators, based on the belief entrepreneurship creates employment and harnesses the youth demographic dividend.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

tiphub interviews an entrepreneur, screens them for job creating potential, social need and scalability of the enterprise and impact. tiphub matches the entrepreneur with a mentor and works with each to help the venture achieve growth milestones. Along the way, tiphub assist the entrepreneur in creating a sustainable business model and scenarios to pivot into, along with finding institutional partners. tiphub assists the company to apply for a grant and also receive additional funding from a diaspora angel investor. The entrepreneur's company grows to employ 30 local youth in jobs that pay above minimum wage.

Impact: What is the impact of the work to date? Also describe the projected future impact for the coming years.

Our current impact has been to create opportunities for entrepreneurs to meet investors through Diaspora Demo day, our angel investor mixers in Ghana and Nigeria. We hope that we can create jobs, more funding opportunities and foster stronger relationships for entrepreneurs with institutional impact investors and diaspora angels.

Spread Strategies: Moving forward, what are the main strategies for scaling impact?

Our spread strategy is based upon our growth poles. We want to increase our investments in pre-seed and seed stage companies by expanding the diaspora investor base. We conduct investor dinners and African technology weekends in multiple US cities. This will allow tiphub's impact in backing many companies, social enterprise models and learning lessons to be applied and shared. We will sometime over the next two years raise a growth stage fund to support the high growth and high impact companies our technical and management assistance creates and other companies in Sub-Saharan Africa.
Sustainability

Financial Sustainability Plan: What is this solution’s plan to ensure financial sustainability?

We have an in house technology consulting company that provide web and mobile application solutions to mission driven corporates and non profits. This company provide operating income that sustains our mission driven non fee services.

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

Other entities like VC4Africa are providing similar services, however our model utilizes more diaspora based networks for technical assistance and funding. Our model differs by providing co-investors an opportunity to be vested in our operations in addition to having access to deal flow we create. So in essence our value proposition is closer relationships a unique set of stakeholders especially with entrepreneurs and diaspora investors.
Team

Founding Story

Chika, a cofounder, and myself in an African Society Youth Advisory Committee meeting trying to parse out ways to address youth unemployment in Africa while living in the diaspora. We both agreed that the issue is using diaspora remittance flows, development dollars and expertise
About You
Organization:
World Bank Group
About You
First Name

Chinedu

Last Name

Enekwe

About Your Project
Organization Name

World Bank Group

How long has your organization been operating?

Project
Organization Country

, DC, Washington

Country where this project is creating social impact

, LA, Lagos

What awards or honors has the project received?
Funding: How is your project financial supported?

Friends and family, Individuals, Customers.

Supplemental
Awards: What awards or honors has your solution received, if any?

50 on fire in Technology in Washington DC, In The Capital

Tell us about your partnerships

Wennovation Hub - We chose Wennovation hub, not only because of my personal relationship with Michael Oluwagbemi, co-founder of the Hub, but also because of its track record of creating value and investing in the Nigerian entrepreneur ecosystem.

She Leads Africa & African Technology Foundation - These two ecosystem partners provide similar mentorship services to entrepreneurs but also extend tiphub's relationship into both female communities and also silicon valley corporates, which compliments our existing relationship with government and international financial institutions.

USAID & State Department - As a government partner and supporter of tiphub's Diaspora Demo day on November 22 in Washington DC, we chose the State Department as a partner to ensure that we stay in line with the leading development stakeholders and shape the conversation around future engagement on the continent through the several programs like African Diaspora Marketplace and LionsAfrica

Challenges: What challenges might hinder the success of your project and how do you plan to overcome them?

Challenges may arise in consistently building relationships with Diaspora angel investors and building the consistent pipeline of entrepreneurs that tiphub will support. Another challenge is consistently generating value within our subsidiaries to support the operations of our non-profit that provides technical and management assistance.

How does your idea help young people create bright futures and improve opportunities for meaningful and long-term careers?

tiphub Africa support African technology and social entrepreneurs by providing technical and management assistance to their ventures through a network of international development professionals, along with funding for concepts and seed stage ventures. Our services help young people by providing assistance securing partnerships and creating blended capital structures with diaspora investors, impact investing institutions and foundations. This provide the entrepreneurs and their communities examples of success when address local challenges and provide local employment opportunities.

Target Age Group(s): What age group(s) do(es) your solution target through it's programming?

18-35.

Intervention Focus: Identify which of the following best explain key parts of your solution

Job Creation, Entrepreneurship, Training/Skill Development, Mentorship.

Do you have separate programs or initiatives that target the following types of populations?

Other.

Impact - Reach: How many people did your project directly engage in programmatic activities in the last year?

0 to 500

Number of People Directly Employed by Your Organization

Fewer than 10

Number of Volunteers

10-100

Does your project utilize any of the innovative design principles below? Select a theme below that most applies to your work. If none of them do, no problem, you can skip this question.

Create New Industries: recognize opportunities in the marketplace to build new professions or new markets

Is your project targeted at solving any of the following key barriers? Select a theme below that most applies to your work. If none of them do, no problem, you can skip this question.

Job creation lacks adequate coordination between the government, private sector and development organizations