The Start-up Mixer was the culmination of what was an exciting UP start-up issue (March). Featuring founders of successful local start-up companies and businesses, the event was held at the trendy 88mph offices at Piedmont Plaza. The minimalist, clean cut décor, modern open plan office reflects the fun, edgy and innovative ethos of the staff of 88mph and Mdundo who share the space. The event kicked off just after 7:00 p.m. with all guests seated with refreshments in hand. UP moderator: Jakob Nielsen, led the conversation between the panelists: Mdundo’s Martin Nielsen, Muthoni MDQ and the Odipo Dev duo; Samer Ahmed and Odanga Madung. The night was charged with words of wisdom, struggle and dabs of humor.
Spurred by Motivation
The first topic was on motivation and Martin begun by saying that for Mdundo, it was after concluding via extensive market research that there was a “lack of channels for music distribution” and that with the support from 88mph, he had the passion to “do what no one else is doing.” For Muthoni MDQ, there was no backing of musicians and quality exposure. This spurred her to want to create the platform they never had.
Odipo Dev’s story of loss and leaving a legacy for their friend Odipo, who their company is named after moved the audience. Odipo, whose resilient spirit saw him complete his KCSE examinations at Strathmore School amidst a struggle with AIDs. Regardless of his condition, he sold pans door-to-door and even had ambitions of being a rugby player. The actuarial science and engineering students decided to commemorate Odipo’s life in their start up. They tried selling T-shirts which was not very successful but found a turn of luck when they focused on consultancy based on data analysis. An impressive feat was predicting the outcome of the 2013 elections before the results were announced using social media and being cited by the Guardian.
Overcoming Challenges
The four entrepreneurs shared difficulties they faced starting up. Fortunately for Mdundo, it had financial backing from 88mph. However, there had to be adequate customer research to establish how to go about putting a value on music. “I just wanted to prove that Kenyans will play for music,” says Martin. Mdundo introduced music scratch cards with codes with which you could download music onto your phone. The rate is KES. 100 for unlimited Kenyan music downloads for one month. “Good product, good service,” he quips.
For Muthoni, her challenge was to create a unique music experience. She realized that to succeed she had to “do the opposite of what was not working; instead of a night gig, we would make it a day time show, instead of it being held close to the CBD, we did it where people would go a distance for it, I made it a family day, and just reversed the order of entertainment.” Her plan was successful and Blankets & Wine is one of the largest music festivals in Kenya. “The price also says something about the product,” she says.
The nature of Odipo Dev’s business is providing informed predictions by data analysis. One challenge faced capitalizing on the conclusive predictions. For instance, Samer says, “We managed to successfully predict the outcome of the general election by analyzing data on twitter. It actually cost us to do that and no one was paying for it. On the other hand, we got a lot of publicity because of it.”
Dealing with fear and throwing in the towel
In advising budding entrepreneurs on sacrifice when balancing investment in the start-up and costs of living Martin says, “To manage the fear of not paying rent I think you should manage your expectations of how high your rent can be when you’re just starting out. You go and sleep on a friends couch and when he kicks you out you find another friends couch.”
Having invested KES. 350,000 of her savings, Muthoni admits that there are times the passion wanes. “Sometimes I say f*** it! Whose world am I changing anyway? You find yourself going through an existential crisis. When this happens, I take a break, if it’s raining and the event is cancelled, I just take a deep breath.” Then suddenly, she says, “someone reminds you we sell happiness.” Muthoni tackles her fears by learning to trust herself more. She says, “The more you do it the more you bargain with yourself. You realize that you have people who rely on you. They are also investing their life in you.” She realizes however that a dose of fear is good, “it keeps us hungry.”
Samer and Odanga had to face lecturers not understanding their commitments to their company. They retell of the difficulty in balancing exams and Odipo Dev commitments. Odanga spoke of growing thick skin and a sense of maturity to combat any fear or doubt.
What next ?
Martin predicts with caution because the markets and investment scenarios change almost every day. “The African market is interesting,” he says, “we could work with Spotify in the future.” With their three million users that increase by 500 people, there is no limit to Mdundo’s future.
With Blankets & Wine taking Uganda by storm, Muthoni has her eyes set on Tanzania. She also does not limit herself to just the expansion of Blankets & Wine. “I want to introduce new concepts. Bringing in solutions is the key. Together with serving others, you then solve a demand. This is a training ground in every version of my life I see music as the gateway drug. I love problem solving. This is useful with anything I do.”
Both Samer and Odunga are excited about future prospects. Samer’s passion is in electronic coding and he intends to pursue it and Odipo Dev at the same time. “Out of all data online, only 1% has been analysed!” exclaims Odunga. He hopes to see growth of data investment in the future. Their ambition is admirable as they look to conquering the future.
By Amal Mohamed-http://www.upnairobi.com/dt_portfolio/ups-start-up-mixer-at-88mph-a-review/
