@faithmight, Author at FaithMight

July 21, 2023July 26, 2023

OUR INVESTMENT IN TRUEFLUTTER

As an investment company with a strong interest in the emerging markets in Africa, we continue to play our part in searching for opportunities to invest in and support startups that have a measurable impact on the lives and livelihoods of those living on the African continent. In the last 3 years, we have invested in startups in proptech, fintech, transportation, and health. And in 2022, our goal was to venture into unexplored territories and invest in startups in other industries.

We first met the the founders of Trueflutter, Dare Olatoye and Ayo Olatoye, back in 2019. It was our first meeting with a company tackling love in Africa (starting in Nigeria). Well, now, I’m old school: I like to meet guys in person. I would probably never be on a dating app if not for covid and I’m still not really on them. So Dare and Ayo had a lot of convincing to do lol. And they did. I came away from that first conversation with them really impressed with what they are building. However, we passed on investing at that time as we were concerned with their burn and ability to raise more funding. We were wrong.

Fast forward 2 years and a TrueFlutter deck came across my desk again. I was pleasantly surprised to learn that they had successfully closed that round we passed on and had gained considerably more revenue traction. Then in early in 2022, our team met with Dare and the team in Lagos for the first time. In that meeting, they gave us a breakdown of how Nigeria’s teeming youth population are in search of genuine connections. They further explained to us how most single Nigerians have to rely on western dating apps to find partners. The founders themselves had used these dating apps and shared how frustrating and exhausting their experience was. This was not necessarily because those apps were not good but because the apps weren’t configured to incorporate the unique cultural context and socioeconomic peculiarities of a country like Nigeria. Although they complained, lol, they decided to do something about the problem. And thus, TrueFlutter was born.

The Dating App sphere in Nigeria is not exactly at ground zero. Many Nigerian dating apps have been developed but there has not been any measurable impact so far. Many of the subscribers of these dating apps fall into the hands of scammers and kidnappers. And as word-of-mouth spreads, people eventually desist from using these apps and from inputting their private information, and such apps die a natural death or morph into some dark-web pseudo-porn tool. TrueFlutter, being well aware of these problems, created solution with features to address these pain points and give singles a far more superior experience.

In Q2 2022, our team began to carry out our due diligence on TrueFlutter. We scrutinized the app’s features (security, billings, design, etc.) and we concluded that Dare and Ayo were really on to something. We saw how they carefully addressed the problems faced in that space particularly security and the assessment of how real or fake a user is. The traction in monthly active users went from 0 to more than 50,000 subscribers between January to December 2021. Their user base expanded beyond Nigeria with connections happening now in Kenya, Ghana, and South Africa. Users has given positive reviews of the app. And most importantly, the company is converting users to paid customers.

In August 2022, we were glad to make an investment in TrueFlutter. We believe that this dating solution will be used by millions of Nigerians and Africans as long as they allow their purpose to guide them every step of the way. We are glad to be investing in an enterprise that is positively impacting social relationships in real-time. Go TrueFlutter!

April 20, 2022April 20, 2022

DRIVEME: Our 1st Investment in 2022

DriveMe Technologies is an EduTech startup out of Nigeria. Though they are formally classified as a EduTech company, they really are positioned to push the frontiers of the transportation and logistics sector in Nigeria, and Africa at large. Skilled drivers are a rare commodity within the transportation sector in Nigeria. Lack of driver’s education and skills is the number one reason for vehicle accidents in Nigeria. There has long been no requirement (or at the very least, little enforcement) of the requirements put in place for formal drivers’ education before obtaining a license. This has resulted in 35% of driving-related accidents in the world occurring in Africa. Drivers simply don’t know the traffic rules and they become a danger to themselves and other commuters.

Many firms in the logistics sector have to rely on under-educated drivers and when accidents happen these firms find themselves in positions where they have to cough up millions of Naira in damages and business losses. Not too mention the hit on their reputation. These organizations and business owners are in dire need of formally educated and skilled drivers but seeing that this is not their area of competency, they also find themselves struggling with what the right curriculum should be and keeping up with the driving laws. They are left with little or no choice but to hire and fire which inevitably leads to high turnover. High turnover is a huge cost to the business and it further squeezes already small profit margins. Therefore, there is a huge incentive for businesses who are reliant on drivers to find a solution to having high-quality drivers. This is where DriveMe comes in.

DriveMe uses technology to deliver high-quality, up-to-date drivers’ education in Nigeria. They are an accredited driving school educating drivers of all levels: from the novices to the veteran drivers, DriveMe covers all their drivers’ education needs. In recent months, driving laws have changed in Nigeria making drivers’ education mandatory. This is what really attracted us to DriveMe because it is not just supplying drivers’ education solutions. There is a ready demand.

Looking at the demand side, drivers are able to list their services on the DriveMe platform. They have the benefit of being educated on the platform while also having exposure to potential clients and employers who are in search of high-quality drivers. In that respect, DriveMe also acts as a matching platform that provides job opportunities for drivers.

*Another perk of onsite due diligence is SWAG!!*

DriveMe is one of the first investments that I was fortunate enough to visit onsite (physically) in Nigeria during our Due Diligence process. It is not uncommon for angel investors to deploy capital into startups/companies we have not “physically” met. In this age of teleconferencing, physical on-site meetings have become less of a requirement in order to make a good investment decision. However, nothing can replace a physical meeting and it was a pleasure to meet Dami and Charlotte Odunlade at the DriveMe offices in Lekki, Lagos. We got to meet some of their students and spend time with their staff. We spoke with Dami and Charlotte in their offices discussing their long-term vision and current operational successes and challenges. Dayo and I walked away from that meeting confident that investors should make the investment in DriveMe. Even as virtual conferencing explodes all over the world, there will always be a place for in-person onsite meetings during Due Diligence and even post-check. In person meetings remain invaluable.

We are glad to make the DriveMe investment. We trust the DriveMe team will continue to grow the business and exceed their near term milestones!

January 24, 2022January 24, 2022

OUR INVESTMENT IN HAIRTELLIGENCE

It was a busy year for us as at FM Capital Group in 2021. From an investment perspective, it was our busiest year to date for our small team of investors. We saw many more investment opportunities than we had in the past which let us put money to work at a faster clip than in 2020. Hairtelligence was one of those few that we selected for investment. You will soon understand why.

I met the women of Hairtelligence a bit skeptical of the business. They manufacture wigs using artificial intelligence (AI). Ok. But what I couldn’t appreciate from reading the deck initially is the economics involved when AI is introduced to the manufacturing value chain. The costs are reduced so dramatically in an industry that has seen very little price disruption in the supply chain. They can deliver high-end, custom wigs to anyone at mass retail prices. The use of AI to disrupt the market with custom wigs starts with the customer experience. Customers can get a custom fit using the Hairtelligence online application. Long term, using AI throughout the customer experience positions Hairtelligence as a serious player in datasets of diverse women.

Isoken Igbinedion, Ifueko Igbinedion, Marlyse Reeves, Simone Kendle

Led by the formidable Isoken Igbinedion, the founders are leading the way in disrupting an age-old business. The hair business has had human capital at the heart of its manufacture for centuries. From sourcing the hair to threading the wig to styling and installation, the hair business has human hands involved. By removing as many of those hands as possible, the cost to make the wig drops pretty dramatically. Now it becomes possible for more women to access high-quality hair options. And this is big business. Hair is a $100 billion business globally and Black women are the #1 consumer spending 9 times more on hair care than any other demographic. Who is better positioned to manufacture wigs than the very consumers of those wigs?

Our ability to see the innovation for what it is before it was built speaks to the quality of investors that we work with. We moved quickly once our discussions made the opportunity very clear for us. It took 3 discussions with the team and 2 discussions amongst ourselves to get us through due diligence. We closed in September and our first investor update informed us that Serena had followed us with a subsequent investor. To say that Serena Williams and I are co-investors is kind of dope. And when she wears that hair at Wimbledon, don’t be surprised if its one from Hairtelligence. The product launched in December and customers are raving about it. Follow @hairtelligence to see the products and hear testimonials from a growing cadre of satisfied customers. This investment was our last of 2021 but it has already given us the most upside appreciation in that short time. I look forward to the future, helping them break into more markets beyond the US.

Great work Hairtelligence Team!

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get venture capital in your portfolio? Schedule a meeting with us here.

December 17, 2021December 17, 2021

Our Investment in Truesoil

It’s been a busy year for us as at FM Capital Group. From an investment perspective, it has been our busiest year to date for our small team of investors. For the remainder of the year, I will highlight each of our 2021 investments and talk up the wonderful, important, and impactful work each of these companies are doing in Africa.

In April of this year, I traveled to Uganda to finally visit my portfolio company, Raintree Farms. Raintree is my first angel investment on the continent and actually my first proper vc investment. While I had met founder TMS Ruge plenty of times before, it would be my first time seeing the Farm. They say great founders know other great founders. Teddy is no exception. He is THE most connected founder in Uganda. He knows all the players, particularly the younger founders with startups solving big challenges in Uganda that have the potential to scale out to wider Africa. So it was Teddy that introduced me to Zachary Mugabi Haavaldsen, co-founder of Truesoil.

The establishment and security of land rights is critically important to the growth of an economy and wealth of its citizens. 70% of the world’s population lacks proof of land rights. This places individuals and families at risk of losing their homes and land property. More importantly, this discourages people from acquiring land for agriculture, construction, or investment. In Africa, the lack of and false documentation is a major challenge. False documentation creates overlapping rights which leads to legal conflicts between neighbors, tenants, landowners, and government. A complete lack of documentation makes it very difficult for heirs to inherit property or landlords to collect their rental income. Governments need modern systems to not only better track property rights but to also collect their own tax revenue as well.

Enter Truesoil. Truesoil is a digital solution to help both tenants and property owners establish their land rights in African markets. The company is headquartered in Kampala, Uganda. We believe that Truesoil is well positioned to transform property management and real estate in Africa. And that’s why we invested in them. Gradually, Truesoil is changing the land ownership scene in Africa as it makes negotiations simple and personal, helps tenants and landowners reach balanced agreements by connecting them, and facilitates transactions in a transparent and traceable manner. Keep up the great work Truesoil team!

Follow Truesoil on Twitter, Facebook, and Instagram!

Landlords ranked payment problems as their top concern, even above fraud. With Truesoil, you will be able to decrease late rent payments with payment options and reminders, See rent payment statuses in real-time and Streamline Property management operations.#propertymanagement pic.twitter.com/jLnOAnPrJo
— Truesoil (@Truesoil_uganda) September 29, 2021

Some of these ideas are in our clients’ portfolios. To understand which ones can work for you or for help to invest for your own wealth, talk to our advisors at FM Capital Group. Would you like more information on Investment Advisory, Portfolio Services, and VC? Schedule a meeting with us here.

December 1, 2021December 1, 2021

Our Investment in Recoplast Congo

In December 2020, Eric Casinga, the founder of Recoplast Congo, reached out to me seeking investment. While it was still in the midst of the pandemic, we had just made our first covid investment so investors were thawing out and ready to make more. So I was keen to meet Eric and learn more about Recoplast. And when I did, the business resonated with me immediately. Because when my siblings and I met up and went to Nigeria together in 2016, the plastic waste there was an eye sore in which we actually saw opportunity. We wondered how to start and operate a recycling company to combat the plastic waste that littered the, otherwise, beautiful environment. To learn that Eric had done just that in the Democratic Republic of Congo with his own patented process, I was very impressed and eager to share this investment opportunity with investors.

This startup was born out of a passion to fight against plastic pollution and deforestation by presenting a “perfect alternative” to ordinary wood. This type of upcycling creates a material called “Ecowood” that can be used to make more durable and affordable chairs, tables, pallets, and really anything that ordinary wood can make. The upcycled material is also used to create plastic products too. By paying for the plastic waste that ordinary people collect themselves, Recoplast is also providing opportunity for Congolese citizens, many of whom are women, to have a means of earning an income and providing for themselves and their families. Our angel investors saw and agreed that this was an opportunity that must be seized. We invested in this startup, finally closing the investment in July 2021. We have been busy since supporting Recoplast’s growth plans and look to do more investments in the cleantech sector in the coming year 2022.

We celebrate the Recoplast team for their efforts, grit, and innovation. Check out the video below to witness the waste transformation process. Follow Recoplast on Facebook, Instagram, and Twitter. Please reach out to Eric if you are also interested in investing. Let him know we sent you!

This particular investment is in our clients’ portfolios. To understand how you can invest in venture capital opportunities with us for your own portfolio, talk to our advisors at FM Capital Group. Schedule a meeting with us here. It’s free to chat!

November 15, 2021November 15, 2021

ON THE AIR with ForexAnalytix

I had a great time with Dale Pinkert over at F.A.C.E. a couple weeks ago. It has been awhile since I have shared my thoughts with an audience in that way. Dale and I go way back so we gist a bit but the chat kept us on topic LOL. You can see the highlights on Instagram already if you follow us there.

Jump to the 24:40 mark to hear my thoughts on:

$EURGBP in a failing rally that is still playing out this week
$GBPJPY buy opportunity
How the almighty dollar has been a both a winner AND a loser
And, venture capital in Africa. I’m grateful to Dale for honoring my growth into other asset classes and his willingness to learn about them all. This is why investors and traders, alike, love to speak with Dale.

August 9, 2021August 9, 2021

CONFESSIONS OF A FUND MANAGER

Yes, it’s true. In the midst of a global pandemic and during shelters in place, I kicked off my efforts to raise a vc fund in May 2020. Because I know the road is long to eventually work with institutional investors, I decided that with folks much more willing to take a video call, the pandemic was a good time, ironically, to forge those relationships. I kept having conversations and those conversations led to multiple meetings. I can no longer say that I hate networking. The pandemic made me love it. I joined Lunchclub, Clubhouse, and 100 Women in Finance. I learned a ton. Now 15 months later, I am doing my first first close! As I reflect on the process to prepare for the second close, I am basking in this milestone. It’s a huge moment in my career but it is an even bigger win for Africa.

Now by 2021, I had been in a lot of meetings by global pandemic standards. One of those meetings was with The Afropreneur himself, Idris Bello. I’ve followed Idris for a long time on Twitter. I knew his work. But I knew his partners, Marsha Wulff and Michael Oluwagbemi, a little bit better. I wanted to make an introduction to LoftyInc and they told me that I needed to speak with Idris. So I did. A couple months later, I find myself in Abuja to meet Michael at the LoftyInc office discussing an opportunity to join them with their new Fund.

Even though I was born in California, Nigeria was always called home. I always knew that I would invest there. That call has become more possible with FM Capital Group and the small checks we are able to deploy. But LoftyInc is one of the most prolific investors on the continent. They’ve been investing in Africa since 2009. They started one of the first tech hubs in Nigeria, Wennovation Hub in 2011. I did my first investment in Uganda in 2012. The Partners have been together for over 11 years. I’ve been a solopreneur for 6 years now. So when they gave me the opportunity to join a TEAM, and THIS is the team I get to join?!? I literally get to learn from the trailblazers. It was a no-brainer. In fact, it is an honor and a privilege.

I’ve been working with LoftyInc for 4 months now on the LoftyInc Afropreneurs Fund 3. I can’t wait to talk more about it, especially from an operations perspective. What a journey it has been! And this is only the beginning…

December 16, 2020December 16, 2020

QUICK TAKE: EUR/GBP

There are times when markets just move so beautifully. Using the Fibonacci retracement and Fibonacci extension levels, we identified our entry point and our target and entered a short when price moved into the 38.2% Fibonacci level at 0.9116.

Starting the new trading week dropping from the 0.9230 highs of last week, the strong momentum evidenced in the RSI signaled to me that the strong rally had, indeed, ended. Instead of chasing the move lower, I took advantage of the correction higher when price bounced from 0.9045. With the risk clearly defined by the Fibonacci levels, I was comfortable with the short. Plus, the market seemed to believe that despite the hard negotiations the UK will get a favorable deal from Brexit.

Since then, the $EURGBP continued its descent towards the 123% Fibonacci extension level where I had my target. Price fell to that level before finding support this morning on the back of a economic double whammy of strong EU PMI data and weak UK CPI.

I wanted to show this trade as a learning example of how to read charts and use a few indicators to make good trading decisions. If you are interested in learning how to do fundamental analysis and find levels in your trading, please check out the CHARTS101 course. Read the charts for yourself so you can trade what you see and not what I think.

Pound rises on reports of Brexit-deal progress (MarketWatch)

December 8, 2020December 12, 2020

VC Is Just an Asset Class

Do you have venture capital in your portfolio? A lot of my work is getting investors to understand that venture capital is just another asset class. Because of the rock star status that venture capital-backed companies have and the multi-billion dollar deals that get all the headlines, many folks feel intimidated by the asset class. But it is simply investing. And it doesn’t have to require or involve billions of dollars to participate.

Honestly, if you have the risk tolerance to trade forex, you have the risk tolerance to invest in venture capital. Both asset classes run the risk of losing your entire investment. In fact, forex is probably MORE risky because the leverage required to trade in the forex markets can open up an investor to losing MORE than their principal investment. So you can actually lose more money than you started with when trading in the forex market. That’s not even possible in the private markets. And strangely, no one is scared of that possibility!

So if you are considering venture capital, the best opportunities lay in Africa and Latin America. There are a number of reasons why, which I won’t get into here. But if you are interested, I compiled a report, “Investing in The Global South”, to outline the opportunity in the region. You can reach out to me for a copy. While I have been investing in Africa for over 8 years, the opportunity is still early. And it is still even earlier in Latin America, which I have been actively sourcing for deals in the past 2 years. Which of the cities do you have in your portfolio?

Infographic of the top startup cities in Africa

Infographic of the top startup countries in Latin America — Click on article below to see the top cities in these countries

SEC Allows More to Invest in Venture Capital

This August, the SEC finally came around to update its definition of an accredited investor. The old definition, while meant to protect small, individual investors, also locked many more folks out of venture capital and other alternative asset classes. These asset classes are also the most lucrative investments an investor can make. So when we talk about the wage gap, in any society quite frankly, the key differentiator is the ownership of business assets.

So I have been a huge advocate of individuals adding venture capital to their portfolio. Now I’m not advocating for blind investing. Never that. Even in the stock market, an investor should know why and what investment they are making with their money. But if you are, for example, a single individual with a net worth over $500,000, you can afford to consider even a single-digit allocation of your portfolio towards high risk, high reward alternatives.

No, the updated definition hardly opens up the floodgates for any ordinary investor. But it does allow more participation in the venture capital space, especially for people of color and young adults. And I believe that is a great thing for narrowing the wage gap. This policy change is a step in the right direction.

The new rule goes into effect this month. Find out if it makes sense for you and get invested!

Author: @faithmight