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PRIVILEGED AND CONFIDENTIAL

The majority of funding and focus to address climate change and livelihoods is directed towards foreign founders and institutions. However the talent who is closest to the customer and context - Africans and female - are not supported to solve them.

Climate change is unjustly impacting 1.2 billion Africans in this decade, putting the livelihoods of 61% of Africans at risk.

We believe that we can build an ecosystem of meaningful capital, operational expertise and technology around diverse founders to co-build commercial ventures faster and more effectively through a studio model.

WE ARE BUILDING A VENTURE STUDIO

To Catalyze This Opportunity

CLIMATE CHANGE WILL DISPROPORTIONATELY AFFECT

LIVELIHOODS IN SUB-SAHARAN AFRICA

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CLIMATE-RELATED TECHNOLOGY CAN IMPROVE LIVELIHOODS FOR 1.2 BILLION AFRICANS, BUT ADOPTION IN AFRICA REMAINS LOW

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Electricity Connection (% of Population)	43%	99.98%
Agricultural Productivity (Maize yield)	1.4t/ha	8.7t/ha
Affordable, Clean Mobility (% of Population)	10%	90%
Safely Managed Water (% of Population)	30%	97%

Sub-Saharan Africa

USA

Mini-grids and distributed renewables have begun to displace the grid, which is expensive and inefficient for growing cities.

Only 10% of the SSA population has access to affordable mobility ownership, while new electric motorcycles and cars can dramatically reducing emissions and lowering the cost of ownership.

In SSA agricultural productivity is 1/7th of what it is in the USA, but productive use and post-harvest loss technologies exist that can improve this dramatically.

Access to

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THE VENTURE ECOSYSTEM IS GROWING TO DEPLOY THESE SOLUTIONS, BUT IT IS STILL NASCENT, UNDERFUNDED AND EXTREMELY INEQUITABLE

2021 Venture Capital Fundraising Totals

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Fundraising amount

$200 M+

$15 M to $200 M

$5 M to $15 M

$0.5 M to $5 M

Egypt

Kenya

South Africa

Nigeria

$652 M

$571 M

$832 M

$1,799 M

Ghana

$167 M

Senegal

$353 M

<25% of funding to local founders

<7% of funding to women-led companies

<6% of funding to energy & agriculture sectors which could drive climate mitigation

Gaps

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BETTER THAN MOST MODELS, THE STUDIO MODEL CAN DE-RISK THE 5 KEY REASONS FOR START UP FAILURE, AND CATALYZE THE SPEED AND EFFICIENCY OF CREATING VENTURES

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Venture studios can bring needle-moving innovation, diverse talent, capital and other support services together to address the 5 factors - idea, timing, funding, team and business model

Business Model Comparison

Model

Statement

Resources

Generates Business Ideas

Supports Fundraising

Acts as Co-Founder

Provides Scale Up Support

Venture Studio

“we have capital and idea, and all the tools to develop it. Let’s find the right talent to work on this idea as a co-founder.”

Accelerator

“Let’s take an existing startup, accept it. Into our program, and offer them the tools to grow.”

Venture Capital Funds

“This startup has promise and we think it will 10X. Let’s put some money into it and exit in a few years.”

Capital

Support

Capital

Support

Capital

Support

De-Risks Technology

Idea

Funding

Team

Business

Timing

https://theworldwecreate.net/insights/the-venture-studio-business-model-explained

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FACTOR[e] VENTURE STUDIO

Our mission is to increase incomes and reduce the impact of climate change in Sub-Saharan Africa by building high-impact energy, agriculture, water, and mobility ventures

ENERGY

AGRICULTURE

WATER

MOBILITY

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OUR EXPERTISE ALLOWS US TO BUILD VENTURES QUICKLY AND SCALABLY

Venture studios can bring needle-moving innovation, diverse talent, capital and other support services together to address the 5 factors - idea, timing, funding, team and business model

Leveraging Factor[e]’s deep technical expertise, we adapt globally and locally sourced technologies to the needs of the customer, optimizing for commercial potential and impact.

Our team has spent decades living, working, and building businesses in Africa. We have extensive networks and strong partnerships that allow us to attract and retain top talent.

Our team consistently does field based observation, customer focus groups, and price and feature testing. Information gathered from the field is contextualized with 20+ years of venture building experience

to pivot quickly.

Technology brokering

Talent discovery

Customer discovery

Expertise 1

Expertise 3

Expertise�2

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Launch �25�ventures

>18%

NET IRR

>$250M �additional follow-on investments

>60%

African Leaders

>50%

Female Leaders

>20M

lives impacted

100M Tons CO2 Mitigated �(Equivalent of 22M cars off the road source)

*Take the equivalent of 22M cars in the US off the road for one year (

5 YEAR

IMPACT GOALS

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WE BUILD VENTURES WITH A THOUGHTFUL HIGH VELOCITY, CUSTOMER-CENTRIC VENTURE DESIGN PROCESS

Phase I:

Studio & Co-Founder

Phase 2:

Co-Founders

Phase 3:

Co-Founders & Venture Team

Stage 1: Problem & Customer Discovery
Stage 2: Venture Concept Development
Stage 3: Solution Pilot(s)
Stage 4: Business Model Canvas + Venture Build Proposal

Stage 5: Build MVP
Stage 6: Product-Pricing Market Fit
Stage 7: Business Model Design
Stage 8: Sales Tests
Stage 9: Venture Team Design
Stage 10: Plan for Spin Out & Scale

Stage 11: Raise Growth Capital
Stage 12: Spin Out & Become Fully Independent
Stage 13: Post-investment platform support
Stage 14: Scale support
Stage 15: Exit venture

IDEATE & PILOT

BUILD

SPINOUT & EXIT

We will invest $500k - $1M in successful ventures while they are in the studio

Investment Committee

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EXAMPLES OF PROBLEMS WE ARE SOLVING IN 2022

PRIVILEGED AND CONFIDENTIAL

Innovative Approaches to Gas Generator Replacement

The up front cost to replace a gas generator with a clear alternative like solar can be >10x the cost of the generator. We are exploring approaches to improve efficiency and speed adoption of cleaner energy.

Improving transportation & distribution efficiency

Exploring venture ideas to dramatically increase efficiency of transportation and distribution with data and unique technology.

Farmer Yield Variability & Climate Change

The rains have become more variable due to climate change, increasing the food insecurity of the smallholder farmer. We’re working with partners to test novel solutions to the problem that require no change in farmer behavior.

Clean Cooking

Initiatives to reduce deforestation and improve the health of women through cleaner cookstoves have had limited traction, while too much food is spoiled at farm gate. We are testing food tech approaches to solve the problems.

Energy

Agriculture

Mobility

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PROBLEM SPACES WE FOCUS ON

Inclusive Electrification

Mass Transit eVs
V2G and G2V
eV Infrastructure

Sustainable Intensification

Irrigation
Inputs
Precision Ag

Distributed Renewables

Productive Use
Advanced Control & Automation
Waste to Energy
Grid Interconnection

Smart Digital Transport

e-logistics
Monitoring & tracking
Fleet Optimization
Ag transport

Energy for Growth

Connectivity
Industrial Efficiency
Cooling
Energy Management
Carbon Basic Income

Physical/Digital Market Access

Mechanization
Food Preservation
Cold Chain

Energy

Mobility

Agriculture

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THE VENTURE STUDIO TEAM IS CURRENTLY BUILDING FIRST 3 VENTURES IN KENYA IN 2022

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FOUNDERS CHOOSE TO BUILD VENTURES WITH US BECAUSE WE BRING THE RIGHT BALANCE OF EXPERTISE AND RESOURCES TO CATALYZE GROWTH

Leverage expert support services and advisors to complement founders’ strengths.

We provide start up capital and guide founders through subsequent fundraising using best practices.

As previous operators of commercially scalable businesses in Africa, we dramatically increase founder likelihood of success and impact.

Stable monthly income as a founder for 6-18 months so they can focus on building a great company.

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WE IDENTIFY DIVERSE, EXPERIENCED, ENTREPRENEURIAL CO-FOUNDERS TO LEAD VENTURES FROM PROBLEM TO SPIN-OUT

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They’ve built a company before and exited or failed.
They’ve developed a strong network.
They can’t wait to strap back into the rollercoaster and build better.
They’ve applied to YC but they want more hands on support.

Sample Profile

Entrepreneur

They were an early employee at a high-growth startup.
They saw how difficult it was for the CEO to scale the business.
Their contributions were critical to the organisation’s success.

Sample Profile

Entrepreneur

For years they’ve been working as a VP or Director at a big corporation. They’re tired of stifled innovation, long meetings, and business as usual.
They have built entrepreneurial ventures in parallel with your career.
They’re ready to strike out and build a meaningful legacy.

Sample Profile

Entrepreneur

We work with entrepreneurial African and female co-founders who understand the customer

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FACTOR[E] HAS BUILT A SUCCESSFUL PORTFOLIO OF 23 TECHNOLOGY ENABLED VENTURES IN AFRICA & INDIA

Factor[e] Ventures is a Africa focused venture development firm founded in 2013 dedicated to building and investing in high impact, commercially scalable ventures in energy, agriculture, water and mobility that are addressing some of Sub-Saharan Africa’s (SSA) greatest income inequality and climate challenges.

$30M+

Current portfolio of 23 early stage investments

AUM

$323M+

Additional capital into portfolio companies as part of or after our investment

Follow-on funding

22%

Assumes conversion of debt and valuations based on priced rounds or draft term sheets

IRR

Companies we’ve invested in:

Companies the team has co-developed or built:

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THE FACTOR[E] VENTURE STUDIO TEAM HAS BUILT OR INVESTED IN OVER 50 COMPANIES IN OUR TARGET MARKETS

Thesis

The commoditization of microgrid projects allows the formation of a new and investable infrastructure asset class.

Engagement

Conceptualized in house at Factor[e] and co-built by Entrepreneur in Residence and Factor[e] partners

Impact

50+ countries
1,200+ developers
$900M+ facilitated into distributed energy

Factor[e] Build:

Odyssey

Factor[e] Build:

Apollo Agriculture

Core Team Experience:

Fenix Intl

Thesis

Satellite imagery, mobile data collection, and cloud AI can help provide higher quality inputs to smallholder farmers on credit at lower cost to improve farmer yields.

Engagement

Conceptualized in house at Factor[e] and co-built by Entrepreneur in Residence and Factor[e] partners

Success Metrics

Over 100,000 farmers served since inception
$40M USD raised in Series B led by Softbank

Summary

Fenix International was a fully vertically integrated pay as you go solar home system company founded in 2010 and headquartered in Kampala, Uganda.

Acquisition

ENGIE purchased Fenix in an industry first acquisition, providing returns to all Fenix investors

Impact

Operations in 6 African countries
Over 500,000 solar home systems sold
100% of employees received payout at acquisition

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CURRENT FACTOR[E] VENTURE STUDIO CORE TEAM

Rodney Carew

Platform Director

Over a decade of experience in strategy consulting supporting businesses in North America and Africa to scale. Most recently launched and led Open Capital Advisors’ Southern Africa office.

Lyndsay Handler

Partner

20 years of leadership, operations and startup experience growing ventures across Africa, most recently as CEO of Fenix International through to its acquisition by ENGIE.

Nikita Smeshko

Strategy & Research Director

Experienced operations, finance, and strategy leader. Most recently co-founded Mozambican PAYGO SHS subsidiary and grew it to 60,000 sales and 150 employees in 2 years.

Payan Ole-MoiMoi

Product & Industrial Design Director

10 years of product development experience in agriculture, energy, and sanitation in Africa, having led more than 20 projects for private sector and international development clients.

Terry Obel

Venture Co-Founder

Over 10 years of experience as an entrepreneur & intrapreneur building products in the energy, software, agriculture, and FMCG sectors in Africa.

Theo Sutherland

Founder Finder

10+ years of developing leaders and building companies across Africa with the African Leadership Group. Advisor to investors including a billion dollar VC, and founders including Echoing Green Fellows on turnarounds and strategy.

Bernard Kiprop

Associate

5 years of strategy and research experience in agriculture and social development, working on a mix of management consulting and analytics support to inform expansion, repayment, and staff training strategy.

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JOIN US

How to get involved:

If you are passionate about our mission and are interested in:

Becoming a Venture Builder
Joining the Team
Partnering With Us
Becoming an Investor

Or if you just want to learn more, email us at:

venturestudio@factore.com

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Founding Funders

Founding Partners

Coming Soon Nigeria

London,

Fort Collins,

Colorado USA

Nairobi, Kenya - HQ

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QUESTIONS

Question 1: What feedback do you have on our Venture Studio Vision and Strategy?

Question 2: Do you know any great people who would be a good fit for our Co-Founders, Venture Studio team or ventures we build?

Question 3: Would you like to invest in the venture studio?

Question 4: What problems within the agriculture, clean energy, mobility, and water space should we look into solving? What ideas do you have to solve them?

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OUR HYPOTHESIS: VENTURE STUDIOS CAN REDUCE THE RISK & INCREASE SPEED TO MARKET OF VENTURE BUILDING IN AFRICA

PIPELINE RISK

Venture studios can build ventures where there are gaps in the market or a lack of investible companies.

TECHNOLOGY RISK

A venture studio can de risk technologies with the right team, skill sets and processes in place. Factor[e] has been a leader in this for over 10 years; we will bring this experience into the Venture Studio and build repeatable processes to scale this expertise.

TEAM RISK

Venture studios can recruit experienced, entrepreneurial leadership teams to run the companies they build and then provide ongoing, hands-on support to these leaders especially through the launch phase of the venture.

BUSINESS MODEL RISK

Studios deploy rigorous, iterative and repeatable processes from research to prototyping, and apply rigorous decision making around what ideas to shut down or advance, and hence validate business models and products quickly.

CAPITAL RISK

Venture studios are uniquely positioned to raise, structure and deploy blended finance in their chosen verticals and because they typically have sector expertise, come with financing relationships and credibility as well.

EXITS

Studio startups have higher returns & chances of exits due to the experience, services, capital and networks that the studio provides.

How Venture Studios Can Address This Challenge

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INSIGHTS FROM GLOBAL STUDIO LANDSCAPE

Insight	Implication
Venture studios typically do a range of things especially corporate innovation consulting and corporate venture building to generate enough revenue while waiting for venture exits. The challenge with corporate studios revenues is that strategic value for the corporate is not always aligned with studio vision of building commercial ventures that can scale beyond 1st client, and complexity in bureaucracy and decision making.	We will stay focused on building a pure venture studio and not build for corporates as a customer but they are a viable exit option for our ventures.
Studios are starting to get attached to VCs. A studio connected to a fund is highly advantageous to all parties. It provides early access to deals for the fund as the market gets more competitive, and helps the entrepreneur spend more time building than fundraising.	We made the strategic decision to align our studio with the FactorE platform not just for the financing alignment but also the shared vision, industry relevant expertise and opportunity to create a flywheel of investing and operating strengths.
Co-Development Studios are involving entrepreneurs earlier in ideation process to deepen buy in for the idea instead of just hiring a professional CEO. They are simultaneously struggling with founders who are attached to failing ideas and dont cut ventures fast enough and move onto more viable options.	We re-align incentives and help entrepreneurs de-risk their personal upside by giving them equity in both the venture they are building as well as the studio which we hypothesize will help us and then cut unsuitable venture ideas faster.

Insight

Implication

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GLOBAL STUDIO STAKEHOLDERS HAVE REALISED UNPRECEDENTED GROWTH FROM THIS MODEL

Studios allow corporate innovation teams to chart their paths forward. These are some companies that are leading innovations internally & externally via the studio model.

These are examples of fast-growing startups that have come out of venture studios.

Notable investors are actively investing in the venture studio model.

CORPORATES

STUDIO STARTUPS

INVESTORS

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OUR STUDIO WILL BUILD A BROAD PORTFOLIO OF CAMELS AND CAMELCORNS NOT A LIMITED NUMBER OF UNICORNS

Invest in multiple competing companies within a theme to find the one big winner
Focus on cyclical trends instead of solving essential problems
Expect to lose on 9 out of 10 investments
Expect to gain big on the one remaining winner

Invest in resilient and customer-need focused companies
Focus on unit economics, lean development, and customer traction early on, with sustainable growth in mind
Invest in a portfolio with a higher number of profitable, successful companies
Build companies that can be sold or exited in 3-5 years through strategic acquisitions or secondaries

UNICORN

INVESTORS

CAMEL

INVESTORS

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WHAT WE DON’T DO

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We will not::

Act as an accelerator for entrepreneurs	There are many accelerators already and they do not solve many of the challenges we seek to address.	We will build partnerships with accelerators and venture studios globally and seek out opportunities to license and adapt their technologies to our markets.
Conduct deep R&D for novel technologies in-house	Deep R&D takes many years and many millions of dollars. Our focus is on existing technologies that can be brokered or minimally adapted to work well in the African context.	Our foundation and social impact partners have sometimes identified solutions that can be adapted to African markets, but where that adaptation will require deep R&D and a long time horizon. We will work with those partners to identify research institutions that can do that adaptation, work to secure grants, and provide oversight and the voice of the customer and market to those R&D efforts. We then test the technologies in Africa when they are business ready.
Consult for corporates or foundations	Consulting will deviate from our ability to focus on building multiple high impact ventures and supporting our venture teams as they go through the process of customer discovery.	We will partner with world class consultants that have strong expertise in Africa to both support companies within the Factor[e] portfolio and to externalize consulting services when they are needed by our partners.

Why?

As An Alternative

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FACTOR[E] GROUP

Our shared mission is to build high-impact energy, agriculture, water, and mobility ventures that address the greatest income inequality & climate challenges in emerging markets.

Focus	Test & build new ventures with diverse teams close to the customer	Early-stage seed investor into global technology adapted for developing markets	Commercial capital to scale up technology ventures from post-seed to series B
Year Created	2021	2013	First Close 2022
Venture Stage at Entry	Concept still in ideation, no team in place	Technology or business model innovation, No/minimal revenue, product or technology in development, pilot stage, team primarily founders	Degree of product-market fit and market traction, revenue and/or real customers, path to breakeven, senior team beyond founders, formalized governance
Investment	Business co-creation & team development from idea to external capital raise, up to $1M invested	$200-$750k + hands on support	$2-4m + hands on support
Geography	Sub-Saharan Africa	Global	Sub-Saharan Africa

GROUP

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FACTOR[E] GROUP TEAM

Morgan DeFoort

Partner

Decades of deep technology experience focused on clean tech in Emerging Markets through his experience as the Founder of Factor[e] Ventures and the MD at CSU’s Energy Institute.

Jamie Doyen

Chief Financial Officer

Experience as the Director of Finance for a technology startup, the Associate Director of Finance for a communications conglomerate, and an Audit Associate at Deloitte & Touche.

Nijhad Jamal

Partner

Over 15 years of investment experience from funds such as Acumen, BlackRock and Moja Capital bridging impact and traditional commercial VC across multiple sectors with a primary focus on Africa.

Joel Wanjohi

Director

Over 17 years of experience in investment and financial management, focusing on innovative business models within agribusiness, mobility, logistics, financial inclusion, and clean energy.

Nick Goddard

Venture Partner

Career focused on environmental and sustainable technologies for deployment in the developing world. Nick has a Master of the Arts in Physics from Cambridge University and a Ph.D. in Engineering from Imperial College London.

Michael Emmerson

Associate

Formerly a product manager in the Solar Home System sector, validating new products and taking them to market across East and West Africa. Holds a First Class Honours BEng degree in Mechanical Engineering and an MEng degree in Geological Engineering.

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