George William Bakka's New Entry

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George William Bakka's New Entry: Angels Initiatives

Kampala, UgandaKampala, Uganda
Year Founded:
2011
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.

Angels Initiatives co-creates good ideas into high impact companies. We raise charitable donations and patient capital to undertake long term investments in form of seed funding, marketing and management support for our entrepreneurs to build their ideas into successful enterprises.

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

What if we could create a resourced environment that would give a chance to budding african entrepreneurs build their ideas into successful enterprises. We would create jobs, assist low income earners to escape poverty, achieve social stability & equity.
About Project

Problem: What problem is this project trying to address?

The World Bank estimates youth underemployment and poverty ratios at over 83%. To achieve stability, some 100 million new stable job would need to be created by 2020. Enterprise development is one the surest way to create jobs; and african entrepreneurs are heeding to the call. However more than 80% of them collapse for lack of tailored support in form of capital, skills gaps and market entry barriers. We aim to address this "pioneer" gap

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

Angels Initiatives works with entrepreneurs to co-create their ideas into high impact companies. We raise charitable donations and patient capital that allows us to undertake long term investments in form of seed funding, management and marketing support for them to build their ideas into successful enterprises. The infrastructural support offered by Angels Initiatives allows our entrepreneurs to overcome the start and growth barriers that dis-advantage entrepreneurs to create and grow their enterprises. We structure our investments either as equity or debt based on enterprise needs and offer management support- HR, design, operational financial systems development and marketing support to ease the path of growth.

Awards

Anzisha Prize, Young Achievers Awards Uganda, Equity Bank Socially Responsible Business Plan.
Impact: How does it Work

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

We take a 25% equity stake , a 5%-10% revenue share in the companies we co-create. This allows to have a stake in the companies growth yet allow us to become sustainable in the long term . For example, Dicson Baseke is the Founder & CEO, Cooling Solutions one of the Angels portfolio companies. CS provides heating, mechanical ventilation and air conditioning services for residential and commercial developments. Through our support,-finance, management and marketing support, In 3 months since the start, CS has generated US $ 9,000 in revenues, raised US $ 4,000 in investments from AI and created 5 jobs. His goal is to become a pan-african company employing over 100 people.

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

We started by offering a small microloan of US $ 100 to a brick-laying entrepreneur trying to raise school fees which he did and paid back our loan with interest. We then expanded this model. To date we have invested over US $ 90,000 in 11 companies, 8 thriving with 2 successful exits. Our companies have to date generated over US $ 0.3 m in revenues, raised over US $ 0.5 m in follow up funding and created 47 jobs serving more than 1000 direct customers. Our goal is to build a movement of 100 high impact companies, creating over 10,000 jobs and serving more than 1, 000, 000 customers in Africa. We believe we can be a key engine in co-creating businesses that create jobs, enable low income earners escape poverty, contribute to social economic stability and equity in Africa.

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

Our current goal is to raise US $ 500,000 in partner donations/investments to increase our average seed investments in our current and new entrepreneur companies to averagely US $ 30,000 per company and attract at least 25 new companies over the next 5 years. We are connecting and building partnerships and networks, bringing people and institutions to help us raise the bridge funding needed before sustainability, and working with schools, universities, community groups and other industry players to recommend entrepreneurs to us. We are training our team and building bigger market networks.
Sustainability

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

Angels Initiatives undertakes seed investments of between US $ 5,000- US $ 50,000 for a 25% equity stake, and a 5%-10% revenue share in the companies we co-create it. We charge a 10% revenue share until we recover our principal cash investment, and then charge a 3%-5% lifetime royalty. The model allows us to recover cash investments such that they can be invested in more companies and royalties to generate constant revenues for AI operations.

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

Unlike open 6-13 week programs from entities like Outbox, Hive Colab etc that support already launched companies, we come in at the early critical stage start-up phase and offer a long term engagement of 1-5 years that offers the critical resources entrepreneurs need: flexible capital, easing of their management processes and overcoming market entry barriers. We use a cost effective market based approach that aligns entrepreneur growth objectives and needs with the design of our model. As both the entrepreneur and us the incubator share and earn from achievement, our model sustains growth.
Team

Founding Story

I came up with idea during our Social Entrepreneurship Class under Educate! We started Angels Initiatives excited about building enterprises. Our mentor James shared with us about Opon a young microentrepreneur who needed US $ 100, to run a brick-laying enterprise to raise school fees. I realized I had 30% of what he needed, -US $ 30. I borrowed the rest from a few friends with a guarantee that I would pay in case he failed. He paid back with interest. In 2012, when we left school, we decided to expand beyond "financing" to include "building". We raised more funding, and co-created our first venture; Mara Launchpad in partnership with Mara Foundation. We replicated this model to date.

Team

We have a 5 member of Board of Directors that includes; Joel Lutamaguzi ( Stanbic Bank), Edward Kasule ( Data Fundi), James Katumba ( MCE Uganda), Pete Benhur ( Benconnolly Pejj) and Roey Rosenblith ( Village Energy). We have a founding team of three; George Bakka ( CEO), Ivan Mandela ( Co-Founder) and Joachim Ewechu ( Co-Founder). We are currently recruiting to fill up management positions to strengthen our team.
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