Afripreneur
InvestSure: Inspired by the need for investors to manage fraud risks that can be unforeseen – Mbulelo Mpofana
From left- Ettienne Myburgh (Easy Equities), Mbulelo Mpofana, Carly Barnes (Easy Equities), Shane Curran and Ignatious Nkwinika.
Based in Johannesburg and founded by Shane Curran, Mbulelo Mpofana and Ignatious Nkwinika. InvestSure is a new insurance product that insures listed shares bought on participating trading platforms, against losses arising out of the deceptive or misleading acts of management of the company. The insurance is offered on shares listed on the Johannesburg Stock Exchange (JSE), with plans to insure shares in global markets in future. Investors can insure their shares as they buy them, as well as insure their existing portfolio. This product is a world first innovation, developed in South Africa and supported by global partners. In this interview with Alaba Ayinuola of Business Africa Online. Mbulelo Mpofana- Co-Founder & COO at InvestSure talked about the inspiration behind InvestSure, how they got funded and the future for their brand. Excerpt.
Alaba: Kindly tell us about InvestSure and the gap it’s filling.
Mbulelo: InvestSure is an insurtech startup that has developed APIs that enable share trading platforms to sell their unique insurance product. InvestSure has developed a world-first insurance product that provides shareholders protection against losses in the share price which are caused by management misleading and deceiving shareholders. The product is currently available on Easy Equities.
In the wake of the Volkswagen (VW) emissions scandal we noticed that the share price had dropped significantly, yet there was no recourse to investors who had invested in the company not knowing that VW weren’t all they made out to be. After that multiple similar events around the world prompted us to think that investors should have some kind of protection for these events. Management fraud presents a difficult to manage and asses risk for investors (even sophisticated investors). It is often caused by deception on the part of trusted managers who are much closer to the business on a daily basis.
There was simply no accessible, simple and cost effective product to allow investors to protect themselves from the risk of being blindsided by management of the companies they invest in. We also think this product can make investing more accessible by simplifying the decision process and allow people to invest with more confidence, knowing they have this “sleep easy” cover.
On the tech side InvestSure provides a set of APIs that trading platform developers can use to integrate their insurance product seamlessly into their websites and applications. Once InvestSure’s technology is added to a trading platform, it enables users to easily buy insurance on their shares with a single click. The full process from buying to insurance to settling claims is fully automated.
Alaba: What was your startup capital and how were you able to raise it?
Mbulelo: Entrepreneurs often talk about needing a bit of luck; we had our right at the beginning. We were very fortunate to partner with Hannover RE from a very early stage; the Africa region MD liked the product idea from the get go. They agreed to incubate and fund the founding team until we actually launched through their specialist insurance subsidiary Compass Insure. Compass is the insurer behind the product and is now also a shareholder in InvestSure. We also won R1-million at a pitch event run by AlphaCode, Merrill Lynch South Africa and Royal Bafokeng Holdings. The initial funding from Compass formed part of our recently announced R9.6m funding round.
Alaba: As a startup, what are the challenges and how are you overcoming them?
Mbulelo: We have been fortunate in many respects to have secured support from a multinational insurance giant at idea stage so our set of challenges are of a different nature than most innovative startups. For us the challenges included:
- Navigating the internal processes of our partner companies; these can result in long delays and take up a lot of the founders’ time.
- Linked to the above, the other big challenge was the B-2-B aspect of the business, established companies move much slower than we were able to, especially on the IT and decision making sides, and this created some frustration for us as well as increasing time to market (and cash spent before getting to market).
- Managing the at time conflicting objectives of all partners and stakeholder to make the business relationship worthwhile for all parties, especially with a unusually low cost product like ours. The insurance industry is still used to high distribution cost models.
- Client education, we’ve tried to make the product quite simple but there are still misunderstandings we find in terms of people getting what the product does, the value in it and how it’s different to things like put options.
- Awareness, spreading awareness of the product on a tight budget is always a challenge!
Alaba: What advice would you give potential entrepreneurs who intend to start a business or invest in Africa?
Mbulelo: There is a lot of advice from much smarter and successful people than me out there! I’ll stick to specifically insurtech were I have more experience and less has been said about.
Our advice for anyone trying to create a new product is to partner with an established player. This allows you the time to focus on the product design and development, rather than trying to deal with the insurance regulatory mine-field. You can always change direction once the product is established. It also allows you much easier access to flexible capital, accessing their networks and relationships, instant credibility enhancement and tapping into internal expertise to name a few. I’ve found that more and more companies are seeing value in partnerships with disruptive innovators.
Investors in South Africa are much more profit focused and will look for shorter break even time frames over and above big opportunity. It is therefore important to manage costs down.
Alaba: What’s the future for InvestSure and what steps are you taking in achieving them?
Mbulelo: There is a ton of scope for us to grow in South Africa, we are looking to do this by increasing our penetration rate on Easy Equities (our first platform partner) and we are keen on signing up other trading platforms as well which will increase our accessible market.
We are also keen to take advantage of the uniqueness of the product by taking it to other markets; initially we are looking at Australia and the UK as markets with similar regulation and business culture as SA.
Alaba: How is your business contributing to the development of Africa?
Mbulelo: We are embracing the idea of “community” in the startup scene and engaging with many other founders as well as people who are interested. We have also actively sought to use our network to create opportunities for other startups e.g. at least one other startup has secured funding from our shareholders through our initial intro; quite a few others are in talks with them.
Alaba: What’s your view on the development of Africa InsurTech ecosystem?
Mbulelo: I think it’s small but high quality even compared to the US and UK. I see a lot of innovation around the intersection of hardware/devices and insurance in Africa and I think we can be a player in that space. I also think it’s growing especially as more corporate become open to collaborating and funding insurtech startups. Insurance has a very bad image and many insurtech’s are creating a fairer and more transparent version of doing things which I think will appeal to consumers more and more over time.
Alaba: How do you feel as an African entrepreneur?
Mbulelo: I’ve always wanted to be an entrepreneur so this is a dream for me. From an African perspective, I’m proud we could create something that has surprised even the global executives of a company like Hannover Re and bring a new insurance product to the global insurance market. Africans continue to innovate and create value though new products and business models so it shouldn’t be a surprise to people but for some reason it still is! Hannover Re South Africa itself is seen as the innovation sub for the group which is testament to the unique thinking and creativity in Africa.
Alaba: How do you and partners relax and what books do you read?
Mbulelo: Sports is a consistent passion across the team for sports, I more watch than play these days but Shane plays soccer like 2 or 3 times a week. We also like to travel and spend time with family. We tend to read a lot of business related books. I also like to read about politics and historical figures.
Alaba: Please teach us one word in your home language and your favorite local dish?
Mbulelo: Nkululeko- which means freedom in isiZulu, Freedom Day in SA is coming up on Saturday 27 April. Can’t pick an outright favorite but will mention two- Putu with Amasi and I also love Biltong.
Alaba: What’s your favorite holiday spot in your country?
Mbulelo: It changes over time but current would say rural KZN around the town of Port Shepstone and further down the coast. It’s really beautiful and still quite natural in parts. I also have family around those parts.
Also Read SMEs: Before you sign that deed of guarantee | Morenike Okebu
Bio’s:
Shane Curran- Co-Founder & MD
Shane is a Chartered Accountant (CA(SA)) who originally saw the opportunity to approach Hannover Re Group Africa with an idea for a new insurance product. He believes that investing in shares is crucial to enhancing one’s wealth over the long term, but that certain risks could seriously harm that long term wealth growth. In his personal time he enjoys soccer, reading, holidays and spending time with friends and family.
Mbulelo Mpofana- Co-Founder & COO
Mbulelo teamed up with Shane to develop this unique insurance idea after gaining 6 years insurance experience, covering most technical areas of the industry including actuarial, capital management and risk management. Mbulelo has an enthusiasm for entrepreneurship and loves finding pragmatic and practical solutions to challenging problems.
Ignatious Nkwinika- Co-Founder & CTO
Before designing and building InvestSure’s tech from scratch, Iggy gained over 14 years of experience as an IT Solutions Architect including over 6 years in insurance. He is passionate about technology development and finding innovative solutions within the insurance industry.
As part of Veuve Clicquot’s ongoing commitment to supporting and celebrating women in business, the Maison has created the Bold International Barometer in 2019 to shed light on and provide meaningful insights into the evolution of female entrepreneurship. Now in its 3rd year, the Barometer continues to lead the conversation around women and their presence in business, offering a deep dive into the data on female entrepreneurship in South Africa.
In 2023, over 49,000 women and men from 25 countries were surveyed. Encouragingly, South Africa’s data results speak to a robust female-led industry. The survey, which was self-administered online, asked respondents to give their views on several statements relating to the nuances of being a business owner and entrepreneur. Taking a global look first, the survey suggests that the rate of female entrepreneurship has slowed and is even diminishing in some countries. In some cases, this is due to both external—such as ongoing geopolitical crises—and internal factors, like striking a fair work-life balance.
This, however, is not the case in South Africa, where the data suggests a dynamic environment for women, fueled by a contagious desire among them to become entrepreneurs. Amanda Dambuza, Founder and CEO of Uyandiswa and the 2017 winner of the International Businesswoman Award by Veuve Clicquot says, “I am forever impressed by the spirit of South African female entrepreneurs. Despite the many challenges they face, they get up and back themselves to ‘bring home the bacon’. Next to Nigeria, we stand shoulders above the rest with high numbers of females identifying as entrepreneurs.”
In short, female entrepreneurship in South Africa is flourishing. South Africa stood out as one of the global leaders in female entrepreneurship where, currently, 61% of women self-identify as entrepreneurs (primarily aged between 20 to 29). According to the survey, they tend to be better educated and have higher incomes than their male counterparts. Yet they remain concentrated in lower-income sectors like beauty, food, retail, and fashion, while men dominate tech. However, in industries such as transportation, finance, and real estate, there is relatively equal representation, suggesting there could be potential for more women to succeed in these fields, should they want to diversify.
WHAT’S MOTIVATING WOMEN TO BECOME ENTREPRENEURS?
According to the data, 39% of female respondents said ‘that being your own boss’ was the biggest driver for becoming an entrepreneur. Despite this, most women and half of men agree that it is more difficult for women to become entrepreneurs. Further to this, most women concur that securing business funding is easier for men, a view that remains consistent with previous years.
“This finding resonates deeply with me,” says Morongwe Mokone, the 2024 Bold Woman Award by Veuve Clicquot winner and Co-Founder of Mo’s Crib.
“It highlights the persistent gender and structural barriers that women face.” She continues by commenting on the need for strong role models among respondents, with most women and men agreeing on their importance. This emphasizes the need for female visibility and representation,” Morongwe adds. 72% of aspiring South African female entrepreneurs can name a successful woman they admire, surpassing the global average.
Refilwe Sebothoma, 2024 Bold Future Award winner and Founder of Hakem Energies adds, “It remains our responsibility to keep forging a way for those who come after us. In this way, success doesn’t become a too far-fetched idea but a reality which can be attained by fellow women entrepreneurs.”
However, as glowing as some of these statistics may be, women still face challenges that, in many cases, their male counterparts don’t experience. In addition to difficulties accessing funding, women also must navigate balancing work and family, with 63% of women and 56% of men agreeing this is harder for female entrepreneurs. Further to that, since the conversation about working women can’t happen without mentioning their families, half of the female respondents believe that female entrepreneurship disrupts family life, compared to only 25% who feel the same about male entrepreneurship.
“Women must know without a shadow of a doubt that despite cultural and family pressures, they deserve to pursue their dreams of entrepreneurship,” says Amanda.
Further to this, two-thirds of women say that managing entrepreneurship with family life is harder for women, and about half say that working full-time affects family life. This indicates that while entrepreneurship is thriving amongst women in South Africa, there is still much work to be done to support women getting into business, as well as helping them stay there. “It is encouraging to see the growth and resilience of women in this field despite economic challenges,” says Morongwe. “However, it is essential to focus on breaking down the barriers that limit women’s participation in higher-revenue sectors and ensure equal access to funding opportunities. By addressing these issues and promoting diverse role models, we can further empower women and drive sustainable economic growth.”
“Authenticity, resilience, and just being ourselves is very important. As women, we need to keep making a difference, no matter how insignificant we think it is because when that impact is replicated, women will change the world,” concludes Refilwe.
Balladjigui FOFANA, a young Franco-Malian entrepreneur based in France. Passionate about law for several years, he is a lawyer and founder of MYJOBHELP.FR, a platform specializing in international recruitment, international mobility and the completion of administrative formalities for the employment of foreign employees.
Balladjigui has always believed that talent has no borders, and that it should be within everyone’s reach, no matter where they are in the world. In terms of training, he holds a Master 2 in Corporate Law and another in Management and Human Resources Management. He has had several experiences including at the Mutualité Française, then at Couleurs de Tollens and TGS France.
Driven by an entrepreneurial soul and a desire to impact his community, he decided to launch his own company: “MyJobHelp” in October 2022. Convinced that he had found his way, he decided 2 years later (in July 2024) to focus 100% on his career as an entrepreneur.
MyJobHelp makes it possible to secure the recruitment of foreign workers to offer French and international companies access to competent profiles from all walks of life. Work permits, changes of status, visas, residence permits, recruitment, expatriation… MyJobHelp takes care of everything! From now on, don’t worry about paperwork. By trusting MyJobHelp, you are choosing to work in complete serenity and security.
Brown T is a family business launched by two women, sisters, Soraya and Melissa Saidi, and afro-feminists. Born and raised in France in an environment where black/mixed-race women were underrepresented. Having both had the same educational background, they progressed in the world of nursing in order to help and safeguard the health of their neighbors.
However, Soraya and Melissa have always known that they had a mission within their community. To participate in its elevation, particularly with the emancipation of women in all its forms. Their background has allowed them to acquire skills in terms of listening and analyzing the needs of the population and they have therefore decided to use them in the world of marketing to meet the needs of Afro-descendant women.
Brown T wants to encourage the upliftment of black women from an economic, social and cultural perspective. To do this, Brown T is committed to exclusively highlighting Afro-descendant women designers. By giving them exclusive visibility, Brown T wants to be a pillar in the circular economy within the Afro community.
In addition, Brown T is socially engaged by focusing on creating a caring Afro-centered and feminine community that aims to help women on a daily basis feel better about themselves, accept themselves and embrace their differences and their history. Brown T aims to become the benchmark marketplace that offers a solution adapted to the specific needs of Afro women while favoring healthier products that are respectful of the environment and promote overall well-being and self-confidence.
Brown T marketplace offers more than just hair and body products; it provides a holistic experience that values health, natural beauty, Afro entrepreneurship, and sustainability. The brand provides opportunities for Afro women to care for themselves holistically, with a focus on their health, well-being and cultural identity.
