Digital innovations have shown their ability to provide quality, effective, and affordable health outcomes in the wake of the novel coronavirus. The power of the Fourth Industrial Revolution has been manifested in 3D printing technology for personal protective equipment (PPE), affordable ventilators built across the world from open-source platforms, and telemedicine, just to name a few.
In countries where innovation systems continue to remain fragile, there is a growing need to protect science, technology, and innovative products during and after COVID-19, as they have long-term implications for development strategies.
As a key ecosystem player, this is what Villgro Kenya and our incubatees are doing to contribute towards fighting the COVID-19 pandemic:
Our portfolio companies have not been left out in the fight against COVID-19:
Now more than ever, innovative startups need support to scale their products to ensure more people get access to quality healthcare. As Villgro Kenya, we continue to pledge our commitment to addressing the lack of access to quality and affordable health services and technologies in Africa.
With the COVID-19 pandemic running into the 2nd month since the first case was announced in Kenya, there has been a shift in the operations of startups and Small and Medium Enterprises. The rising cases coupled with government imposed restrictions on movement should however not spell gloom and doom to entrepreneurs.
While some businesses have been forced to shut down others have since pivoted their business models and operations to best suit the current times. The COVID-19 challenge has revealed a crop of new innovators who are designing solutions to meet the unexpected needs that have risen from the pandemic. This is a trend we can hope to see in the coming months with more innovations emerging within the healthcare, logistics, remote working solutions and productivity software sectors. For impact investors, this is an opportunity to acquire a new pipeline while continuing to provide technical assistance to entrepreneurs.
Even as the virus continues to spread startups can ensure they come out of the crisis stronger. To begin with they have to leverage their board of directors, advisors and mentors who may have been through past downturns and have seen various strategies that best work in these times. They can help the team think through various scenarios they can take to ensure the business survives.
As companies are re-evaluating their operations to reduce costs, salaries may have been the first item on the list. It is important for companies to reduce their cash-burn and increase their runway as much as possible. In the case where employees have been asked to take pay cuts, startups can consider trading cash for equity in the company. This will motivate the team as they feel they have a stake and believe in the vision for the company in the future.
Keep a lookout for opportunities your company can explore during this time. If there is a way you can pivot or change some of your core business to be part of a solution to the COVID-19 pandemic, grab the opportunity and do it. This will diversify your operations and provide a source of income. A good example is Kijenzi, a 3D printing company with a focus on hospital equipment that has taken to producing social distancing aids like touchless door openers and face shields among other PPE’s.
As you monitor the situation, there are numerous resources that are available for companies with solutions to the COVID-19 virus. Take advantage of this time to position your company as part of the solution and raise money towards fighting COVID-19. Startups can survive a time like this and if they are wise enough they can come out at the top. Ensure the safety of your employees and continue to follow government directives on social distancing and safety measures.
The novel COVID-19 pandemic is expected to create an economic recession globally, as more countries record new cases of the virus. According to the World Trade Organisation, global tradings are expected to hit a low of between 13 – 32 per cent, depending on how hard the implications of the virus will be to individual companies.
We had a conversation with Rob Beyer, co-founder and executive chairman of Villgro Kenya on how this current crisis will impact the different innovators and how they can hope to deal with it’s effects without running out of business.
What are some of the areas we expect companies to be affected/ disrupted? – we have already seen the working from home policy, supply chain distributions have also been affected, what else?
Rob: Many of the organizations, businesses or government offices that our portfolio companies would normally be engaging are now closed. This leaves revenue generation a definite challenge for large numbers of companies.
How can the incubatee companies manage those disruptions individually (on their own without outside support)
Rob: For some companies, this can be very hard. Those that engage more with the private sector have seen business opportunities close off and are now entering a “hibernation” phase, trusting that their available cash flow reserves can outlast the COVID-19 situation.
On the other hand, several of our companies are leveraging the situation to increase their exposure and services. Point of care diagnostics (specifically around correctly diagnosing COVID-19), emergency response and local manufacturing of PPE and medical supplies are a few examples.
What ways can incubators/accelerators help their portfolio companies to manage these disruptions – for example a change of strategy such as encouraging developing innovations that are Covid – centric.
Rob: As Villgro Kenya specifically focuses on healthcare companies, this COVID-19 situation provides an opportunity to expand the portfolio and look for those companies/innovators who can make a tangible impact on improving the situation in the country. We have reached out to our network of impact investors and funders who are now seriously evaluating their ability to increase access to capital which we will leverage to the portfolio.
This is not the time for incubators or accelerators to hibernate, this is the time to take a leadership role and bring hope to entrepreneurs that funding is available and they can be part of the solution.
The most important thing right now is to have Incubators and accelerators offer their portfolio companies resources and guidance while encouraging them to re-evaluate their operations to help reduce costs and increase runway
The Coronavirus disease outbreak (COVID-19) which began in China in December 2019, has now spread to over 190 countries, including those in sub-Saharan Africa. Kenya has also recorded a growing number of cases and, like many African countries, is rushing to stem the tide through a public health response including social distancing, travel restrictions and mandatory quarantine for all returning citizens and residents.
As Villgro Kenya we are doing our part to keep safe and in response to the COVID -19 pandemic here are the few measures we are taking
Working from home – Our staff will be working from home for the foreseeable future until then our office remains closed. If you would like to reach us you can do so via email.
Meetings – We will do our best to ensure our meetings with the various stakeholder are not disrupted. In line with the social distancing directive meetings will be held via teleconferencing. We have limited non-essential travels and trips. In the even that video calls are not applicable, meetings will be held in well venilated rooms and spaces.
Application for Incubation – We welcome applications from startups looking for incubation support, our portal is open for applications which will be vetted accordingly.
For most people living in low-income areas insurance is seen as a service that is a preserve of the rich. clinicPesa, however, changing the narrative through their product which is convenient and affordable compared to traditional health insurance.
Their digital micro-savings and loan platform helps users set aside dedicated healthcare funds used to offset medical bills and purchase drugs in times of need at any registered clinic, hospital or pharmacy.
Sharon Anyango, Co-founder and Chief Operations Officer of clinicPesa shares with us her passion to make a difference in the lives of the uninsured in Uganda. The 28-year-old mother of one is a Quantity Surveyor by profession with 7 years’ experience in governance, strategy, operations, and budgeting.
What inspired you to Co-found clinicPesa
Growing up it has always been a challenge when it comes to paying for healthcare, sometimes skipping medication due to unprepared for medical bills. clinicPesa was an opportunity for me to not only make a difference in the lives of many uninsured citizens, mothers and children but also give back to the community through my experience and knowledge. This gives me an in-depth satisfaction.
What role do you play working with clinicPesa to ensuring those in low-income areas have access to healthcare without having to break the bank
It’s a very dynamic and fulfilling role. As the Chief Operations Officer, I always say I am everywhere, right from management to Strategy, Finance, Marketing, Customer value delivery and acquisition to Human Resource and so times am tempted to understand a few Technical flows in order to push the technical team on missing gaps. It is my role to implement the growth strategy of the company created by the board.
What is that one moment that shaped your journey as the co-founder and COO of clinicPesa
I attended an acceleration programme and while going through that first phase of product analysis. It opened my eyes to the true potential of clinicPesa and at that point, I made a vow to myself that clinicPesa had to succeed no matter the challenges ahead and I have never looked back.
You recently received the Female Founders FinTech Award which was organized by QuesnayInc. Tell us more about that.
Quesnay Inc was founded to help young companies find ways to work with market leaders in disrupted industries. We each had very knowledgeable mentors from Valley Bank, Wells Fargo, Discover Financial Services, Shearman and Sterling. We were honoured to have the event at Nasdaq Marketsite in NewYork city. I was amazed by the great innovations female Founders are doing out there to make the world a better place, and I believe with such opportunities many female founders will be empowered to build sustainable empires. We were 5 female founders from HomeZada, TomoCredit, Stratify, Agriledger, and clinicPesa. clinicPesa emerged third runner up for the Female Founders in Tech 2019.
Why is it increasingly important to recognize and highlight the achievements of outstanding women in various fields?
Female Founders are coming up with amazing world-changing ideas and businesses, highlighting their efforts empowers many others to start and also exposes them to potential investors, partners, mentors, and organizations that could support their initiatives. I must say, it’s important to change the access to investment funds to Female founders.
What is one piece of advice you would give to any woman looking to start a social enterprise?
I would tell them to combine their passion with discipline and hard work, there is no room for giving up.