"The Africa mobile payments space is a multi billion dollar market, if we get 1% of the market we'll be millionaires!"
What is wrong with this statement?
Market sizing is very challenging in Africa, there is a lack of data and research in fast growing industries in tech. It costs money to get quality research that in turn is needed to convince investors of the potential of your market- there is likely an industry that will grow up around this- in the west we have research groups like Gartner and Forrester and even VCs who fill this role. In Africa, efforts like the GSMA Mobile and Development Intelligence (MDI) are helping to fill this role.
On Wednesday January 30th, 2013, Mbwana Alliy
, Managing Partner of Savannah Fund
, will go through techniques and recommendation for effective market sizing, how to do cost effective research that integrates a startup's effort in validating a market. Some of the areas covered in the session include:
- Difference between market size and Total Addressable Market
- Top down and bottom up approaches to market sizing
- Important of unit economics/operational metrics and assumption statements
- Why VCs and investors looks for large market sizes
- Non numerical factors such as Importance of Industry Structure and adoption
- Best practices and useful templates/methodologies to get you going
- Example of effective market sizing and how to incorporate into your pitch
This will bethe second installment of the 'XYZ for African Tech Startup' series, with the first one having been September's session on 'Valuation for African Startups
to attend the event.
*Image courtesy ofhttp://knowledge.wharton.upenn.edu/images/archive//011613-africa-technology.jpg