12 Aug

An InvestRoot founder doing an elevator pitch at #Frideation.

The Friday of August 8 at C4DLab culminated in a focus-shifting #Frideation moment when InvestRoot, a company much recently founded by a pair of ambitious UoN Actuarial Science students, was pitching.

Their idea ‘Hedging’, a term they defined as “making investments either single or multiple to reduce the risk of adverse price movements in an asset”, is what InvestRoot banks on to, among other things, reduce over-reliance on insurance.

In other words, they said Hedging “is more like a company taking an offsetting position in a related security”, which InvestRoot in effect promises potential investors.

#Frideation_InvestRoot-8

A keen audience at the interactive session.

Thus, InvestRoot’s investment avenues will be open in horticulture, gems and gold, and the stock market. Elaborately laid out, in horticulture, the young company will venture out in managing only greenhouse tomato farming investments.

And here’s the statistical evidence for the bold move: that the returns on tomatoes are comparatively higher, and given the current shortage in Kenya, the returns are expected to be even higher.

The other reason cited was reliable studies having  shown that there is a high risk of loss on the growth of tomatoes when grown elsewhere apart from a greenhouse, which, the speakers revealed, ” has reduced this risk to a very small percentage.”

Greenhouses also save on a lot of space as they require a small piece of land to grow, with the only minor costs incurred being initial start-up and maintenance.

Moreover, investing in a single green house of 240 square meters is only up to Kshs 500, 000 a year,  maintenance cost inclusive. Yet the output expected from this is nothing less than 2 million, a turnover of 1.5 million yearly.

#Frideation_InvestRoot-10

The duo of InvestRoot reacting to questions from members.

However, this delicious discourse would only serve as the appetizer for what was to be devoured by the hungry and ambitious minds at the gathering: it was  investing in gold and gems, which was the other reason for stunned reactions at the meetup.

Yet even with the prices of gold have been known to fluctuate over time, InvestRoot will “hold off at its lowest” and later sell the investors’ gold at the highest prices possible. And they are encouraged to venture in the business by the fact that the current price is not that bad, with only an ounce going at 1317.36$.

Further, the ‘investment management organization’ is prepared to do the following with the stock exchange investors’ savings: for a fact, InvestRoot will manage shares from the Nairobi Securities Exchange (NSE), buy and sell securities to other investors for much higher returns. To cap it all, interestingly, all the perceived risks would go to this philanthropic-like company.

Nevertheless, before all was said and done, the InvestRoot duo had to tentatively satisfy the curious minds which at that time had certain reasonable doubts concerning the whole glittering affair.

#Frideation_InvestRoot-13

A member actively participates at the meeting of minds.

Interested in pitching or attending a session of #Frideation?Kindly write an email to hello@c4dlab.ac.ke.

About the writer

Moses Omusolo is the Social Media Manager, C4DLab.