OgaVenue raises $45k from Spark and Hotels.ng


#32

A distraction to you maybe.

If the business dies, we all learn and infer whether it was due to management spending the money lau lau, or strategy that did not work for marketing or user adoption, it ultimately lies with the team, Again they play in a field that well never dies but may get reduced, they havent covered even half of the hotels in Lagos not to talk of Nigeria and beyond, its left for the team to fail.

Like Jason said investment is a gamble, it may or may not work, if it doesnt u learn, if it works u earn, thats the game.


#33

How do you gain from an assumption,that isn’t backed with fact/data? Probably sit in the comfort of your room and judge a company,without any knowledge about their numbers?
We learn from other peoples experiences,however if we were all to infer,like you have suggested :no one will learn anything.


#34

Funding and its announcement isn’t peculiar to Nigeria alone. I’m sure if you follow tech sites like Venturebeat, Techcrunch and so on you’ll see it’s a similar trend. It’s a harsh reality that a lot of these startups, including the well-funded and publicized ones with initial promising numbers, end up losing their breath. That doesn’t mean startups who really need funding and low-cost or free publicity shouldn’t get it. In addition, something like the OgaVenue startup is what, with the right publicity, can go a long way to gain massive traction and retention among potential customers, at least based on a background work-based statistics given by the founders, which I read somewhere, Nigerians spend hundreds of millions of dollars on events and the likes annually, 25% of which is channelled towards getting the venue for such events. With data becoming cheaper, and more people becoming aware of how stress-free things like booking the right venue for their events could be with their mobile phones, I think these dudes can go a long way if they play the game right, and the publicity, most importantly, from this funding will give them every reason to work much harder.


#35

LOL, well thats where both of us differ.

A company crashed, its a small community, we would know user rates and adoption even if they dont release the numbers, people talk, we would deal with the facts.

I dont see why this should even be a concern to you, its their money let them do as they see fit please.

We can ask for more Numbers be published by Privately held firms as a Transparency campaign which i would join in but the Dont Announce six or eight or 1 figure deal will not fly.


#36

Its a small community?That’s cause you assume every tech outfit will turn out on Radar?
And his do you miraculously know the numbers,when you are not an insider at the said entity.
I rest my case.


#37

LOL like i said earlier, we are different folks and we get data differently and i would live it like that :slight_smile:


#38

@mauri don’t compare building a startup to the olympics. :worried: Getting to the olympics is hard but Building a startup is brutal. It’s 24/7, sometimes a lifetime. The pressure is crazy. Only founders understand. Dont know OgaVenue, but I do imagine if they got funding from @Jason_Igwe_Njoku and @mark , the numbers probably make sense. (But Mr @Jason_Igwe_Njoku , we Radarians would love to get numbers)
Turning an idea into a functioning startup business in sub saharan Africa is harder than winning a gold medal in the olympics.


#39

We are two different people, and I can state here you haven’t got access to data like I have…I deal with data every minute of my life, its my job.You are probably just a programmer/software engineer.


#40

And I guess you have won an Olympic medal before?


#41

State away, im not here for popularity contest, Google is your friend if you want to know about me than jumping into conclusion very wrongly.

If you deal with data everyday as you claimed , Good for you, i know where i get my Data, direct from the Owners themselves.

Anyway this is pointless.

Bye


#42

@mauri and @Freshboi_Ekundayo Fight! Fight!! Fight!!! :smile:

By the way, ogavenue.com is a great “business”. The founder is a very smart person also, and armed with an incredible team.

Now his investors publicized the deal but if you noticed, he (Andrew) didn’t. Baba is busy iterating and optimizing his conversation funnel and we are here arguing… lol.

I bet Andrew’s numbers are good and the margins are just ridiculous. But he doesn’t owe anyone anything especially for the fact that he is not publicizing this deal.

“Data Lords” please rest this case.

… bye


#43

Well CEO @mark, once again I want to thank you for taking the time to reply to my curiosity/questions. I appreciate your patience. I understand better now. Ideas is one thing but the business as well as the execution itself are different things entirely. Plus it’s something you might need/want so whether they blow or don’t blow you can always buy or acquihire them. You are sort of, not exactly, but basically doing what Google does by thinking ahead and playing the game of chess while everybody else is playing checkers. Plus relationships is very important when doing business/investing. Thanks again for your time.

@mauri & @Okaychukwu As far as the name Oga goes, it might just be me, but I love startup names that have a max of 3 syllables. If I can pronounce your startup name in 2 syllables then I really like that because it is easier to remember and easier for me to come back for more service. If OgaVenue could do and just become Oga like how RapGenius became just Genius, it would really be nice. I think the domain name is on sale as of now. From there the conglomerate could be Oga while they have different businesses like OgaVenue or OgaHotel or OgaCab and so on and so forth.

@mauri & @Freshboi_Ekundayo, for some reason I see both of you as two different sides of the same coin. I might be wrong in that assumption but I think both of you are right. I think providing the numbers of customers/downloads will give a clearer picture of what’s going on within the business (although businesses/companies/startups don’t have to do that), but announcing a fund/investment/raise does good things for business/company/startups’ image as well. Still let’s not forget that no matter how long we talk about it, they are the ones getting and using the money. Not us.


#44

Well…Jolly good for him, i think you should have addressed this to the person who has had issues with the announcement, i dont.

But i would sha like to know the numbers though, MoM, QoQ, YoY, User adoption and bottlenecks, seeing as he’s an approachable guy, who knows :slight_smile:


#45

There’s HotelOga. :slight_smile:


#46

The motive for funding OgaVenue could mostly be the synergy or alignment between the two businesses. Even though the other start ups you pitched may look so good technically. OgaVenue seems to be readily conditioned to the Nigerian social scene. I see it gaining a lot of visits with minimal marketing.


#47

Wow, @mauri …I think you need to take things a little easy. Calm down, make your points, and don’t resort to ad hominem. It’s just Radar, you know?

PS Not saying you’re wrong or right, just that you need to be a bit more… Tactful


#48

They wanna see the industry celebrate raising capital more than we celebrate profitability.


#49

I always ask for the numbers, because that’s what it should be about.

It would make so much more sense if I read an article about the funding and it had a paragraph like, Oga Venue just raised a round of seed funding bla bla… In the last two years, the company has listed x million event centres and processed x no of bookings. They have also built strategic partnerships with… and more insightful data on the company.

I know people will say they are not obliged to share any data or info, so I just let it go


#50

I am a big fan of the startup business, primarily because I have interest in investing in a few businesses. I have also followed startup stories for quite a long time and I barely see or hear about companies that get funded without any evidence that shows insights into why it got funded. However, most companies (or founders) I know that got funded have some sort of domain expertise within the field of Tech, so even if their startups isn’t profitable yet, an investor would gladly put their money down.

I understand this isn’t my business to discuss but since conversation is ongoing, I might as well share my thoughts. To be frank, just like everyone, I was quite perplexed when I heard OgaVenue got funded without any numbers. At least, when Mark got funded by Spark, he said something along the line…hotels.ng generated about $250k thereabout. That alone can be used as the basis of data analysis. Actually, I don’t think this announcement should be the bone of contention. It should be considered a good thing when a company gets funded, at least, it has created a mix vibe within the community. However, having read the story line…I’ve few comments for Andrew (and I hope he gets to see this):

  1. “I currently send our monthly metrics to a few investors and I would need your permission…” – Andrew, this isn’t right. Are you trying to build a business for investors? Well, it is a little bit too late now but for future reference your vision and mission should lead you. Some KPI’s are better kept secret. A better approach could have been a bi-annual report or perhaps a sponsored post through Tech Blogs.

  2. “I received the email from Andrew 9th July. I met him 13th July. We had a deal negotiated 14th July. “

In 6 days, you negotiated (and perhaps agree to sign?) an agreement worth $45k for X number of percentage share in a crazy profitable company? I don’t know what percentage you gave up but I hope you know how these stuffs really work? I believe you are very smart and I sincerely hope that you haven’t given your life away? I don’t mean to belittle your ability, you are a very young man and you need to be informed: Entrepreneurship is also a full time position that might take a chunk of the good time. Your share within the company can become so small that you will start questioning if the business is worth your effort. Creating a venue booking platform isn’t rocket science. There is no proprietary, license or USP for this type of business. In addition, I hope you understand that the demand for Event Venues is perfectly elastic. I don’t think first movers advantage will pay off much so while expanding…B’aware of the wolfs.

  1. “He was crazy profitable”

Seriously? I had to go on the website and I did a few calculations for potential revenue. Venue with the highest price available for rent was about ~ N1, 000,000. A 5% booking charge should be about 50K. Conservatively, two bookings at least every week, four weekends per month…400K. Other venues (800K, 400K, 200K, 80K venues) can easily generate 10 to 20 bookings a month with an average revenue of about 20K each. Not bad, about 1M a month maybe more (excluding the cost of operation and management of course) is actually crazy for a new startup.

My question is, if you send these numbers to a number of investors on a monthly basis, why didn’t they call you up? In addition, why didn’t you see the business opportunity with hotels.ng the other way round? You have an edge because you book a venue for a large number of audiences. What stops you from creating a low key secondary monetization for hotel bookings and referrals for guests of the event instead of going directly to your potential competitor?

In summary, I don’t mean to challenge your competencies, my points emphasized on the need for good advisor (lawyer, mentor…), better business philosophy and ultimately a strategic business developer. I believe you have these stuffs…?

Ultimately, I wish you the best.


#51

Congrats to Andrew and the OgaVenue team. I have asked myself the point of the investment then came to the conclusion that it makes an incredible and strategic sense to combine HotelsNG, OgaVenue, ToLetNG. … and drinksNG in an ecosystem. The target market in most cases are complementary and a smart investor noticed that.

Talking about the numbers which we are not privy to see nor entitled to, I am confident that the potential to 10X the numbers by leveraging the existing network that Spark/HotelsNG have is worth the investment.

(To drive home the point of our non-entitlement to other people’s data, can someone ask @lordbanks and @seyitaylor what their size of LAN’s investment is and also BigCabal’s quarterly growth ? I don’t expect to get these numbers on a platter of gold, neither should you; just saying the truth.