CHM 439 MODULE 2

DR. C.J. AJAELU

INDUSTRIAL CHEMISTRY ENTREPRENEURSHIP

• Obtaining a professional qualification in industrial chemistry, equips an individual with skills to be self-employed.

• Industrial Chemistry entrepreneurship involves the process of converting innovations on industrial chemistry into marketable products for commercial gain Oyeku, et al. (2015).

INDUSTRIAL CHEMISTRY ENTREPRENEURSHIP

• Entrepreneurship in industrial chemistry has gone beyond conducting basic research for publications in journals

• Entrepreneurship in industrial chemistry involves conducting research that can lead to products that can be patented, thus commercializing it for economic gain

• Scott P.Lockledge (a chemistry entrepreneur an founder of Tiptek) said the following:

• “Founding a company gives you the opportunity to create an enterprise, be it large or small, in which you know you are personally making a difference”

• Being an entrepreneur makes you to control your destiny

• Working for someone else makes your boss dictate your work- life and life style.

ENTREPRENEURSHIP OPPORTUNITIES FOR INDUSTRIAL CHEMISTS

• 1. Detergent manufacturing business

• 2. Soap( liquid and/or bar) making

• 3.Perfume making business

• 4. Nail paint making business

• 5.Match stick manufacturing business

• 6. Pulp and paper

• 7 . Paint production

ENTREPRENEURSHIP OPPORTUNITIES FOR CHEMISTS

• 8. Candle production • 9. Shoe polish • 10. Chemical (e.g. Oxygen, nitrogen, sulphuric acid,

hydrochloric acid, etc.) manufacturing • 11. Textile manufacturing • 12. Agrochemical Product-

– Fertilizer manufacturing – Insecticides – Herbicides – Pesticides – Fungicides

• 13. Table water production

• 14. Plastic manufacturing

– –Thermoset

– Thermoplast

• 15. Sales of goods

• 16. laboratory services

• 17. Analytical and Consultancy services

ANGEL INVESTOR

• An angel investor (also known as a private investor, seed investor , angel funder or business angels) is a high net worth individual who makes available financial support for small startups or entrepreneurs in exchange for ownership equity in the company.

ANGEL INVESTORS IN NIGERIA

• 1. Lagos Angel Network (LAN) is a ‘not for profit’ entity set up for the purpose of organising seed funders (“Business Angels”) to invest in start-up businesses. LAN is an association of committed members that provide early-stage seed funding and mentoring for start-up entrepreneurs.

ANGEL INVESTORS IN NIGERIA

• 2.Venture platform: This was established by Kola Aina and is an early-stage growth focused fund that supports entrepreneurs and help them to grow their companies around their ideas.

ANGEL INVESTORS IN NIGERIA

• 3. SPARK Capital: This was founded by Jason Njoku of Iroko TV. SPARK provides early-stage funding and support for startups with defined and scalable revenue models.

• Some other Angel Investors in Nigeria include

• Leadpath Nigeria, Growth Capital Fund, Green House capital, Green Tree investment Company, EchoVC Partners.

• Business Angels expect to earn a healthy return on their investments while supporting the development of the Nigerian economy by strengthening start-ups and helping new small business owners grow.

Major things Angel Investors look out for

• 1. The commitment, integrity, passion of the

Entrepreneur

• 2. Which market opportunity is the entrepreneur about to address and the potential for the company to become big.

• 3. A very clear plan of how the money will be used, what equity you are willing to part with or how the money will be paid back.

• .

• 4. An appropriate valuation with reasonable terms.

• 5. The viability of raising additional rounds of financing if progress is made.

Things you must have to approach an Angel investor

• A registered business name

• Have a detailed business plan

• A winning business proposal

• Protect yourself-have a legal practitioner

• Be clear about your terms

VENTURE CAPITAL

• Venture capital, also called VC, refers to the financial support given to a startup company by typically high-wealth investors who believe the business has potential to grow substantially in the long run.

• The people who invest this money are called venture capitalists (VCs).

Characteristics of Venture Capital

• High risk

• Long term horizon

• Lack of liquidity

• Equity participation and capital gain

• Venture capital investments are made in innovative projects.

Difference between Angel investor and Venture Capital

• 1. An angel investor works alone, while venture capitalists are part of a company

• 2.Range of amount invested. Angel investors invest less amount of money than Venture capitalist. Venture capital can finance the full capital required for an business.

• 3. They have different responsibilities and motivations. Angels investors are primarily there to offer financial support. Venture capitalist is interested and wants to have impute in main areas of the business such as strong product or service that holds strong competitive advantage, a talented management team and a wide potential market.

4. Angel investors only invest in early-stage companies. Venture capitalists, on the other hand, invest in early-stage companies and more developed companies, depending on the focus of the venture capital firm.

5.They differ in due diligence.

References

• Oyeku, O. M.; Oduyoye, O. O.; Elemo, G. N.; Akindoju, A. F.; Karimu, F. A. & Unuigbe, K. O. (2015). Chemistry entrepreneurship for small and medium enterprises development: A panacea for job and wealth creation. Industrial Engineering Letters, 5(4) 1-2.

• Uzezi G and Blessed D. J.(2015). Promoting Entrepreneurship Opportunities through Chemistry Education: A Path to the Empowerment of Nigerian Youths for Sustainable Development in the 21st Century. International Journal of Research and Development (IJRD), Volume 2 No 1.

References

• Chinedu S 2018. 5 best places to find Angel Investors willing to finance your business ideas. https://www.nextnaijaentrepreneur.com/places-to-find-angel-investors/

• Invoice, 2020. Top ten Early staged start-up investors and VCs in Nigeria. https://invoice.ng/blog/startup-investors-in-nigeria/

• Harrock R. 2015. 20 things all entrepreneurs should know about angel investors. https://www.forbes.com/sites/allbusiness/2015/02/05/20-things-all-entrepreneurs-should-know-about-angel-investors/#7071beffc1aa

• Jiang W. 2017. Differences between an angel investor and a venture capitalist. https://www.business.com/articles/angel-investors-vs-venture-capitalists/