Hi there,

A Tshwane-based associate professor in Entrepreneurship set out to explore why men are more likely to start a new business and found 5 key ways we can empower more women to become entrepreneurs.

In this Open Letter:

• No-kill burgers: The economics of high-tech protein alternatives in SA

• The price of Lego, where ministers invest & SARS’s solar conundrum.

• Startup without Devs: How to start building even if you can’t code and don’t have a team (yet).

• Choices, choices: Pros and cons of three different startup routes.

TRENDING NOW

A New Kind of Meat

Grow some steaks in time for the weekend braai

Even with interest rates going up, it doesn’t seem like food prices are calming down. Current food inflation is at rates last seen 14 years ago. With up to 70% of the food supply chain cost being logistics, OPEC reducing supply means the oil price is likely to stay in its current range or even go up, all adding pressure on food prices.

The pressure is mounting all around.

Red meat abattoirs are running at 6 to 8% gross profit and there is little margin for them to work with. So unless logistics costs come down, there is little respite for the consumers that love their protein.

While vertical farming is a mega trend (and one we will cover soon) that’s making inroads in reducing costs by reducing the supply chain for edible greens, one of the more tricky parts of our diet is getting in enough proteins. And while we haven’t figured out quite how to do vertical grazing, plant-based and cell-based proteins might be a viable solution for our growing protein needs.

• Mzanzi Meat Co, for instance, has developed meatballs and burger patties

• Mogale Meat Co made some lab-grown wildebeest.

• Sea-Stematic is exploring lab-grown seafood and going after the massive Chinese seafood market.

It’s not only about the environment

Most of the marketing speak and PR coverage of these and other similar startups focus on the environmental benefits. Whilst that might be true, the primary driver of adoption will come when these solutions become economically viable.

At that point, South Africans will be ready with 60% of South Africans keen to try it and more than half ready to buy, they have a market that’s waiting for it. And with a current market size of ±R81bn (and growing faster than inflation), capturing a small percentage of the meat industry could be very lucrative.

When will this happen?

Both Mogale Meat Co and Mzansi Meat Co believe that it will take about 10 years to get the prices to a competitive level. That’s where we find Sea-Stematic interesting. Whilst we couldn’t find any news on their progress, the focus on high-priced exotic seafood alternatives might just be the most economically viable.

With food prices on the rise and the pace of technology moving faster than ever, we think we might soon be slapping a lab-grown steak on the braai. Are you joining?

IN SHORT

📈 When former communist party members hit the markets: Pravin Gordhan is a trader! With over R3,9m spread across 59 stocks, he made declarations of interest alongside other MPs.

🌞 Solar watchdogs: With solar tax incentives having kicked in on 1 March, SARS is considering making it mandatory for solar installers to report their clients’ tax info, something only big organisations like banks and medical aids have to do. Can solar installers afford to put the systems in place to attain, store and manage such confidential info securely?

💸 Held out on paying the e-toll troll? The Inclusive Society Institute (ISI) has called the lawfulness of the proposed scrapping of e-toll debts unfair to those who have “diligently been paying their toll fees since 2013”. Reminds us of that kid in school who always reminded the teacher to hand out homework.

🏎️ Want to buy a Porsche 911 GT3 RS? You could pick up the Lego version for just R17 730. Rare and hard-to-find Lego sets are growing in popularity as the 90-year-old Danish toymaker releases more and more sets for adult builders.

💨 The price of power: Several media outlets have reported that Eskom applied for leave from environmental watchdogs to bypass pollution controls at Kusile Power Station, which the Centre for Research on Energy and Clean Air warms could kill 680 people. Indications are that Eskom is fully are of that fact, factored it into its calculations and has stated the negatives will be offset by the positives of going ahead with their plan.

🏦 The big five soon? Move over Big Four, Capitec has posted amazing growth, with a 15% increase in headline earnings for 2022/23 and, most notably, a third of South Africa now banks with it in some form or another.

THE BUILDERS CORNER

Have an Idea but no Developers (yet)?

Get going fast.

We’re often so caught up in the idea that Tech = Development Skill, that we forget many successful founders don’t know how to code themselves. Some surprisingly big players didn’t even have an in-house Tech team until pretty late in the game…

So, how do you spin up a startup with no Devs?

Tech products need an array of skills to pull off, and assembling that team can often take months (or even years). What’s more, finding the right team to all start at the same time is often an impossible task. And the biggest ideas are often time-sensitive, miss a window of opportunity and a competitor gets traction first. That’s when it can make sense to get a tech partner.

Not only is the team ready to move, they typically have experience and are comfortable working together which can make the process much smoother than otherwise.

KEen to consider this? Here are some ideas to get you going:

1. Check in with a software/dev agency, they often have special development packages/products for founders just starting up – if your idea is good enough, they can build your MVP and even help you validate your idea and prepare a pitch deck.
   

2. Think beyond the dev work: Choose a partner that’s passionate about developing the local startup space – they should have entrepreneurial-minded teams with a valuable network you can tap into. Connections to investors is a big bonus.
   

3. Think talent: Choose a partner that’s growing and actively hiring – you can benefit from their insights into how to build your own team down the line. What’s more, they often attract the best people.
   

4. There are some founders that wangle revenue-share deals with tech partners – it's not common or advertised, but it's possible. Or, with a good enough idea that attracts funding, plan on simply paying them for hours and materials for the product.

Keen to check out a tech partner? Chat with our friends at Specno.

THE THREAD

This week Renier and Bobby unpack three ways of building your startup: Solo, with a Venture Partner or in an Accelerator.

DID YOU LIKE THIS WEEK’S OPEN LETTER?

It’s our mission to add value, entertain, to delight. Did we miss the mark this week? Hit a link below and give us some feedback….please.

TELL YOUR FRIENDS

Rewarding you for sharing The Open Letter! Get your unique sharing link and rake in those referrals. For now TakeAlot vouchers, soon much more (and any referrals you get now will count towards future rewards!)

This Open Letter is brought to you by Renier Kriel, Jason Mill and Elvorne Palmer.

Did we miss something? Hit reply and tell us what trends you’d like us to explore next.

Did someone forward you this email? Sign up here.