Startup Istanbul Podcast

In the latest episode of the Startup Istanbul podcast, we had the privilege of discussing virtual reality (VR) and spatial content creation with Lesley Klassen, the co-founder and CEO of Flipside XR, an innovative startup making waves in the XR (extended reality) industry.

Flipside XR has developed a unique platform designed specifically for the emerging generation of creators, drawing significant attention in the industry.

During our conversation, Lesley shared insights about Flipside's technology, his entrepreneurial journey, thoughts on Canada's vibrant startup ecosystem, and the motivation driving him and his team in this dynamic field.

Here is a summary of the conversation with Lesley:

* Flipside XR is a social network designed for the next generation of creators who are growing up with VR.

* Next-generation creators intuitively understand spatial mediums like VR.

* Flipside allows creators to make motion capture recordings, referred to as "Spatial posts," that others can remix and share.

* The company was founded by a team of creators who recognized the potential of VR to disrupt traditional stage performances.

* Flipside distinguishes itself by prioritizing creator tools and asynchronous sharing over live interactions.

* The company believes in solving the problem of asynchronous spatial sharing for creators.

* Lesley Klassen, the founder, emphasizes that they are not early to the market but rather pioneers in a new content format and medium.

* The Canadian startup ecosystem is thriving, with major hubs in Toronto, Montreal, and Vancouver.

* Canada offers strong incentives and support for startups, including tax credits and grants.

* Flipside's future plans include rolling out remixing and sharing features, testing business models, and exploring opportunities in the evolving XR market, including potential collaboration with Apple's Vision Pro.

These are my questions I asked during the interview

* Lesley, thank you very much for the great beginning and starting of this conversation. So, could you give us a little bit about the technology behind that? When did it start? I mean, also, what was the problem that initiated you to start this venture?

* I mean, I know that there is quite a bit of interest in the AI and VR marketplace, let's call it XR market. What sets Flipside apart from competitors, or are there also similar models or similar applications like yours?

* Do you think that you are earlier than the market or trends or the products?

* So, I mean, you mentioned about the right team. So what is your personal journey about entrepreneurship? Is it the first time that you are building a startup? And how about the other co-founders?

* Another question I've been following up this storm. Every startup faces challenges, I mean, when it comes to funding and also revenue. How is Flipside approaching this? I mean, have you raised any funding rounds or are you going to plan to raise any funding?

* How long in a week's time do you spend time with your potential users or customers? How many times a week?

* Also, you mentioned about the ecosystem of Canada. Could you give us an overview of what the startup ecosystem looks like in Canada?

* And how do you describe the availability and quality of the talent in Canada? Is there still also a skill gap particularly in tech roles?

* How do you see, what are your plans for the next 6 to 12 months, by the way, for Flipside?

* Also, did you have an opportunity to work on Apple products, Vision Pro, or are you still also waiting for the product to come on the market?

* I mean entrepreneurship is very hard and difficult so what is your superpower to come out being in this hard environment?

* What keeps you awake at night? I mean, in these days, what are the challenges that you are facing?

* Lastly, last question. I mean, what is the fun fact about yourself? Anything that we don't know? Anything nobody knows?

I'm Burak Buyukdemir, and I'm thrilled to bring you an exclusive glimpse into my recent podcast interview with Reynolds Mungai, who serves as the co-founder and CEO of Lukhu. During our engaging conversation, Reynolds generously shared insights about Lukhu's incredible journey, their mission, and the hurdles they've faced while embarking on their mission to reshape Africa's fashion commerce landscape.

Meet Reynolds Mungai and Lukhu: Reynolds Mungai kicks things off by introducing himself as the co-founder and CEO of Lukhu, an ambitious startup on a mission to revolutionize sustainable fashion commerce in Africa. Lukhu's vision is to create digital infrastructure and offline enablement solutions, serving both fashion-conscious consumers and fashion entrepreneurs.

Lukhu's Dual Platforms: Lukhu offers two powerful platforms:

* Dukastax by Lukhu (Merchant Platform): This equips fashion entrepreneurs with comprehensive tools for growth, including storefronts, secure payments, efficient fulfillment, and assistance with production, sourcing, and financing.

* Lukhu App (Consumer Platform): Connects fashion-conscious consumers to a curated selection of clothing, footwear, and accessories, promoting circular and responsible consumption.

The Problem Lukhu Aims to Solve: Reynolds explains that the inspiration for Lukhu came from personal experiences. He and his co-founder, Benedict, had been running separate fashion businesses for over six years before discovering common challenges within Kenya's fashion market. These issues included a lack of convenient delivery options, payment infrastructure, and a dedicated platform for discovering and selling fashion. Lukhu aimed to bridge these gaps.

The Journey So Far: Lukhu was launched in 2022, and within the first year, they witnessed remarkable growth, averaging 4x. Currently, they are gearing up to launch Dukastax by Lukhu, their merchant platform, and revamp the Lukhu app to better cater to consumer preferences.

Challenges and Balance: Reynolds discusses the challenges of building trust in e-commerce within Africa's context, where trust is a significant barrier. He also emphasizes the importance of balancing technical and business expertise, with his own background being more technical and Benedict's more focused on business.

Evolution of Lukhu: Reynolds delves into Lukhu's evolution from a singular platform to a multi-platform approach. Lukhu's primary goal is to empower fashion merchants and provide them with tools that enhance their businesses, thus indirectly benefiting consumers as well.

Funding and Future Plans: Lukhu secured its first round of funding of $50,000 in its initial year. Now, they're working on a pre-seed round to achieve product-market fit, with a goal of raising $100,000. Over the next six to 12 months, Lukhu aims to focus on market testing, revenue growth, and expanding into adjacent African markets.

Long-Term Vision: Reynolds envisions Lukhu becoming the go-to platform that empowers all aspects of fashion commerce in Africa. They aim to provide merchants with tools for success while building a thriving ecosystem that benefits both consumers and the environment.

Kenya's Thriving Startup Ecosystem: Reynolds acknowledges the growth of Kenya's startup ecosystem and mentions notable startups like Marketforce, Wasoko, and Workpay, which have expanded beyond Kenya's borders, showcasing the potential of African startups.

Investment Climate and Collaboration: Kenya's investment climate is growing steadily, with increased interest from both venture capitalists and angel investors. The startup community in Kenya is highly collaborative, with regular meetups, events, and communication channels for founders, inventors, and investors.

Lukhu's Accelerator Experience: While Lukhu hasn't directly participated in local incubators or accelerators, they have engaged with programs like Founders Institute and are exploring partnerships with accelerators focused on economic impact in Africa.

Reynolds's Superpower and Stoic Influence: Reynolds's superpower lies in his ability to identify trends effectively. He's also a fan of stoicism, which he incorporates into his daily life to remain balanced and focused.

What Keeps Reynolds Awake at Night: Reynolds is primarily concerned with whether Lukhu is providing enough value to its customers and whether they're creating a workplace where their team can thrive.

Reynolds's Musical Background: A fun fact about Reynolds is his passion for music. He used to study audio production and has recently released some of his music. He also loves writing music in his free time.

Stoicism and Blogging: Reynolds has been actively practicing stoicism and even started a blog to share his insights on navigating life and purpose through stoicism within the African context.

Future Outlook: Lukhu's long-term perspective is to become the organization that powers fashion commerce in Africa, providing tools and support for both merchants and consumers, ultimately benefiting the entire continent.

Lukhu's journey is a testament to the thriving startup ecosystem in Africa, and they're on a mission to transform the fashion industry while staying rooted in sustainability and inclusivity. Keep an eye out for Lukhu's continued growth and impact in the African fashion landscape. Check Lukhu’s pitch deck

Introducing LeaseSimple, the first banking app tailored for renters! Renting in big cities has become increasingly expensive and complex, and we aim to simplify and make it fairer for tenants.Traditional banking overlooks rent payments in your credit history, leading to a 100-point credit score gap between renters and homeowners. LeaseSimple not only allows you to pay your rent online but also connects rent payments to the financial ecosystem, positively affecting your credit score.It’s more than just paying rent; it's about saving for your future and improving your financial well-being.

Source of motivation

"Without actions, the world would still be an idea"

— General Georges Doriot Founder, INSEAD.

Startup Discovery Digest

* Kiwi Launch provides an all-in-one scheduling and online booking software for service-based businesses to easily manage their online presence and generate bookings with real-time availability. (Seed, UAE)

* Legal Karma is an embedded legal products company that provides easy, affordable and accessible legal services to customers through a white-label service offered by banks and credit unions. Their solution offers a unique value proposition with trained customer support, automation, and white-labeling that is not currently offered in the market. (Seed, Austin/US)

* Lease Simple is a platform that simplifies the finance experience of renting a home for Gen Z renters. It offers flexible rent payment plans, security deposit insurance, and credit building tools. The company is focused on consolidating the finance experience for renters and is well-positioned in a growing market. (Pre-seed, Canada)

Handling Investor Relations and Steering Through Due Diligence for Early-Stage Startups

Upon showing initial curiosity following the first discussion, I can share insights into our everyday approach for planning and executing due diligence.

Family Relationships Among Co-founders: Co-founders who are related by romantic or family relationships  can be tricky to judge. I do not necessarily consider this a red flag but a yellow sign. The team can entirely be made up of family members, or the co-founders can be a couples/significant others. However, this information should be shared during calls or meetings, as it can be difficult to extract at times and it leaves a bad taste when discovered later

Team Composition and Presentation: Early-stage startups often include all team members on a team slide, including advisors, VCs, relatives, entertainers, and interns. However, having a crowded team slide is unnecessary. As an investor, I focus on whether the product, market, and founder capabilities  are well-matched rather than the team size, whether it's two or twenty. It's not expected to have a large and excellent team in the pre-seed or seed stage. Quality is more important than quantity.

Conflicting Visions  among co-founders: Detecting disagreements or potential conflicts among co-founders, especially concerning the startup's future direction, may signal future issues or even a potential breakup.

Complicated cap table: A complex capitalization table with various share classes, differing liquidation preferences, and unclear ownership structures can make future fundraising and exits more challenging. Any non-active x-founding team member is especially a huge concern.

Overemphasis on "serial" entrepreneurs and complex structures: Startups that prioritize "serial" entrepreneurs or "advisor" figures, or involve intricate structures like tech leads and phantom shares, might focus more on superficial aspects rather than the actual business.

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