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.
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.
Joan Nwosu- helping entrepreneurs and corporate professionals create meaningful lives
Joan Nwosu is a serial entrepreneur, business consultant and career transition coach based in Toronto, Canada. She is the CEO of Joan Nwosu Coaching and My SoftLanding Canada, both birthed from a deep desire to help people, using her life and career experience over 20 years.
Born and bred in Lagos, Nigeria, where she spent the earlier part of her childhood. Upon completing high school, she moved to the United Kingdom in 1997, to pursue a Bachelor’s degree in Internet Computing at London Southbank University. Her journey as a career woman also emanated from the UK, where she spent a considerable amount of the first 35 years of her life. In those years, she shuffled between the UK and Nigeria.
Joan would say, “In the era where I grew up, the societal norm was to get educated, find a job, climb up the ranks, work till the age of 65, and then retire. I followed this trend and became an overachiever, often transitioning through different careers and industries.”
In a bid to find fulfilment, she said “I explored roles in Management, Consulting, Marketing, Communications, Business Development, Operations, and even Artist Management, amongst others, all to no avail. Although I enjoyed the human relations aspect of my career, some of these environments were toxic for me, and I was never satisfied. After working 20 jobs and making 6 career changes across 3 continents, I quit.”
While transitioning through careers, she noticed the void of dissatisfaction and lack of fulfilment in many professionals including herself, which led to the birth of her coaching business, Joan Nwosu Coaching (JNC). Founded in 2019, JNC is an organization that helps corporate professionals and independent entrepreneurs start, grow, and scale purpose-driven businesses they are passionate about. She said, “In just over a year of operation, we’ve helped hundreds of professionals. My experience in different fields plays a vital part in the execution of my role as the Lead Business Coach at JNC.”
In her words, “I have always had the entrepreneurial drive in me having ventured into entrepreneurship at the age of 19, and launched a total of six businesses since then; a bakery, lifestyle business, political consulting firm, an NGO, coaching practice, and an immigration consulting firm, of which the last two are still in operation today.”
In 2015, she moved to Canada and two years later, founded My SoftLanding Canada, an organization focused on helping new immigrants to comfortably settle in Canada. Today, My SoftLanding Canada has helped hundreds of Canadian immigrants transition safely and get good jobs quickly.
Over the years, she has embraced Public Speaking as an avenue to express herself, amplify her voice and message. Again, her vast professional experience has contributed immensely to her success in inspiring and motivating people through seminars, webinars, conferences, events, and other platforms.
Entrepreneurship fuels her desire to make a difference in the world through social impact. According to her, identifying voids, proffering solutions, and providing value is king.
Her purpose is to help people live full lives and not just exist. To live life on their terms doing only what they love while making a difference in the world. She believes everyone deserves to have this regardless of age, background, or environment, you too can have the life of your dreams.
Chynna Morgan – helping brands create memorable experiences using sound + music with GIF Out Loud
Chynna Morgan is the Founder at GIF Out Loud, an experiential technology startup that creates unique experiences and allows customers to spontaneously create and share your brand, sound and music. Chynna shares her story with Alaba Ayinuola of Business Africa Online.
As a young girl, I have always been a dreamer- dreaming of ideas that I can bring to life to help or shape the world that I live in. Somehow, I always knew I would be an entrepreneur, but never in a million years did I see myself in tech. I like to say; I didn’t look for tech, tech found me. In the middle of finishing my master’s in healthcare management, I suddenly had the idea to start my tech company (GIF Out Loud). I noticed the lack of shareable experiences that amplified a brand’s voice or sound that fans or consumers could interact with and share during events or brand activations.
As a professional actress, and coming from a family of musicians- I have always understood the importance of creating a storytelling experience, and how it connects with people on a deeper level especially using your voice or music. Since my childhood, I saw first-hand, the power and healing that music could bring to the world, just by listening and watching my family perform.
Historically, as an African American, music has always been a pillar of healing, whether that was bringing us through slavery or bringing us together. Because music is so powerful, I always wondered why brands were not creating full experiences to amplify their brand’s sound while simultaneously capturing analytics and data that they need, to stay in touch with their target consumer. This is why I created GIF Out Loud, we work
with brands and music artists to develop interactive, digital, and shareable experiences using music and sound during events and brand activations.
Since I started my company, we have partnered and worked with big brands such as Shell and Pennzoil, and we are currently working on some cool partnerships in the music, retail and sports industries. My goal is to partner with brands in all types of industries to create unforgettable experiences and memories that consumers would want to share using the power of sound.
When I started to immerse myself in the tech industry, I quickly realized that this space was not intended for people like me, but it was my job to be the one to help elevate this space and let our faces and brilliance be seen. I am looking forward to creating more opportunities for black people in tech and how I can tap into my heritage and create opportunities in Africa. This will help amplify Africa’s brands and most importantly, Africa’s voice all over the world.
I am more than ecstatic to be on this journey, and this only the beginning.
Visit: GIF Out Loud
Save App: Helping you share moments, send and receive distress alerts real-time
Samuel Thierry Njock is the Founder of Save, an App that helps you locate in real time, share moments, send and receive distress alerts from your family and friends. Samuel shares with Alaba Ayinuola of Business Africa Online, more about Save, what sparked the interest and the long term goals. Excerpts.
About Save App
Save App helps you locate in real time your loved ones, share moments, send and receive distress alerts.
Save is a great location sharing app for your family and friends. It’s now more easy and simple to know where the people who matter most to you are in real time, and if they are safe, even when they are far away. With Save, see in real time where your loved ones, and get easily to them, and share what you do through pictures and videos.
Save also offers health and safety features. You can:
– Display the closest hospitals and pharmacies from your location
– Send distress alerts to your loved ones in case of car crash, car breakdown, and insecurity
– Receive in real time data about health and safety issues (dangerous areas, low network in an area, other health and safety recommendations or warnings).
Since the covid19 pandemic started, we have added real time data about the spread for every country in the world, with protective measures against the virus, for users to keep them on mind all day long.
Here are your first steps on Save:
– Invite your loved ones on Save, then add them to your group
– See in real time each other’s location on the map
– Join easily each other with roads
– See live pictures and videos of your loved ones, share yours with them.
The Save project arises from the fact that Samuel works in the Northern Cameroon at the beginning of the Boko Haram crisis. His relatives are constantly worried about his safety, and his girlfriend was living in Yaoundé. There was sometimes no way of knowing in real time whether she was doing well or not, whether she was in the office or at home. Samuel then thought of creating an app, which would allow him to share his position with his relatives, publish photos and videos of what they are doing in real time, and send alerts in the event of an accident, insecurity, car breakdown.
Save has two major long-term goals:
– Allow individuals to navigate more easily and more simply towards each other, especially in the event of a perilous situation such as an accident, an insecurity problem
– Makepeopleenjoy real time location sharing: make it interesting enough for them to forget the tracking part, which most scares them as soon as they hear real time location sharing.
– Samuel Thierry Njock: Founder of Save, a 32 years old Cameroonian and holds a license degree in Management and a Masters in Finance. During his first professional experience in a brewing company, he was passionate about information systems. He is strongly influenced by Steve Jobs, who thought that technology should make it possible to do more simply what constitutes the daily life of men: to move from a place to another, to listen to music, to use a phone, etc. Samuel is great at conception and simple problem modeling, and he’s passionate about design.
– Bertrand Evina: with a master’s degree in international marketing, Bee as he is called joined Save. He attended with Samuel between 2000 and 2004. Passionate about marketing, he is at the origin of all our campaigns, and manages our online community
There are also people who intervene on an ad hoc basis, such as Thierry, the graphic designer, Jef and Stéphane, who lend a hand in development.