The Costs

2016 Institute overview  >  Our Results  >  Selection Process  >  The Cost  >  Eligibility  >  Apply

Costs to Attend

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A small fee upfront + the rest as you grow

Companies participating in the 2016 Unreasonable East Africa Institute will have three payment options to choose from with a combination of an upfront fee and a revenue share agreement with a money back guarantee. See the tuition options below:

  • OPTION A: $3000 upfront + $12,000 (2% Revenue share)
  • OPTION B: $2000 upfront + $13,000 (2% Revenue share)
  • OPTION C: $1500 upfront + $15,000 (3% Revenue share)

Here is how it works:

Upfront payment.  Based on the tuition option selected, companies will pay a total of either $3,000, $2,000 or $1,500 by April 15 to participate in our 2016 program. To make this payment, companies will have the option to:

  • Pay the fee out of pocket OR
  • Raise the fee on the Unreasonable Marketplace, a customised crowdfunding platform.

Revenue Share. Companies will then agree to a revenue share agreement with Unreasonable East Africa based on the tuition option selected where they will pay a percentage of their gross revenues annually from all sources (excluding funds raised) until they pay Unreasonable East Africa an accumulated total of the balance of the tuition.  In this case, companies will either pay:

  • 2% of gross annual revenues until an accumulated total of $12,000 for tuition option A
  • 2% of gross annual revenues until an accumulated total of $13,000 for tuition option B
  • 3% of gross annual revenues until an accumulated total of $15,000 for tuition option C

Please note that we have incentives to discount the revenue share fees if the full tuition is paid off in a short period of time. We can discuss this at the point when we select you.

Floor based on a previous financial year’s revenues. The percent of annual revenue share will not be charged on the company’s’ annual revenue earned in the financial year preceding acceptance to Unreasonable East Africa. We will only charge the percent on the difference between the revenues after the Institute and revenues before the Institute. Please see more about the terms in the FAQs below.

Guarantee. We are very confident in what Unreasonable East Africa offers but if for any reason you do not feel like you gained any value from the experience after going through the program,  you have the option to renegotiate the revenue share terms in the last 3 days of the program. Read more about the guarantee below.

We do not want the cost of our program to be a deterrent to the best entrepreneurs to apply to our program. As a result, we would love to hear from you especially if you have any questions and/or concerns. Just send a quick note to our CEO, Joachim Ewechu at joakim(at)unreasonableeastafrica.org. We are here to help you!! Read more about the tuition terms below.

FAQs

  1. How is the revenue share calculated?
  2. What are the other terms for the revenue share agreement?
  3. Why this option is beneficial to you
  4. But why charge a revenue-share agreement? Why not a flat fee? Why not equity?
  5. Why the increase in tuition from the 2015 program?
  6. What is the Unreasonable marketplace?
  7. I’m not sure how I feel about a revenue share agreement. This is scary.
  8. What does the cost of attending the program cover?
  9. What does support after the 5-week program look like?
  10. What other costs are there?
  11. What if my company is a non-profit? Can I still apply?
  12. I’m still not convinced that Unreasonable East Africa is worth it.
  13. I still have a ton of questions here.


1. How is the revenue share calculated?

Assuming that your company generates an annual revenue of $Y in the financial year before your company is selected to the 2016 Unreasonable East Africa Institute and an annual revenue of $X in the financial year after the 2016 Unreasonable East Africa Institute.

If you choose tuition option A

You will have to pay 2% of the positive difference between $X and $Y until an accumulated total of $12,000. In this case:

2% of $(X-Y) every year until the annual payments collectively total $12,000. You will not pay any figure of the value $(X-Y) is a negative.

For example:

  • If X is $60,000 and Y is $50,000, you will have to pay 2% of ($60,000-$50,000). This amounts to $200 paid to Unreasonable East Africa that year.
  • If X is $20,000 and Y is $30,000, you will have to pay 2% of ($20,000-$30,000). This amounts to -$200. This means you will not have to make any payment to Unreasonable East Africa that year.

This arrangement continues until the positive collective payments, made annually total $12,000. Meaning Rev Yr 1+Rev Yr 2+…=$12,000.

If you choose tuition option B

You will have to pay 2% of the positive difference between $X and $Y. In this case:

2% of $(X-Y) every year until the annual payments collectively total $13,000. You will not pay any figure of the value $(X-Y) is a negative.

For example:

  • If X is $60,000 and Y is $50,000, you will have to pay 2% of ($60,000-$50,000). This amounts to $200 paid to Unreasonable East Africa that year.
  • If X is $20,000 and Y is $30,000, you will have to pay 2% of ($20,000-$30,000). This amounts to -$200. This means you will not have to make any payment to Unreasonable East Africa that year.

This arrangement continues until the positive collective payments, made annually total $13,000. Meaning Rev Yr 1+Rev Yr 2+…=$13,000.

If you choose tuition option C

You will have to pay 3% of the positive difference between $X and $Y. In this case:

3% of $(X-Y) every year until the annual payments collectively total $15,000. You will not pay any figure of the value $(X-Y) is a negative.

For example:

  • If X is $60,000 and Y is $50,000, you will have to pay 3% of ($60,000-$50,000). This amounts to $300 paid to Unreasonable East Africa that year.
  • If X is $20,000 and Y is $30,000, you will have to pay 3% of ($20,000-$30,000). This amounts to -$300. This means you will not have to make any payment to Unreasonable East Africa that year.

This arrangement continues until the positive collective payments, made annually total $15,000. Meaning Rev Yr 1+Rev Yr 2+…=$15,000.

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2. What are the other terms for the revenue share agreement?

Terms:  A percent of the company’s gross revenues from all sources, excluding funds raised, loans, sales of securities, insurance claims, litigation settlements, customer refunds or reimbursements, write-off, and non-cash revenue from partners or joint ventures, delivered to Unreasonable East Africa in half yearly payments

Initial Payment: Initial payment begins in the next financial year of the company. We will work with each of our companies to establish when this is.

Guarantee: The company will have 3 business days within completion of Unreasonable East Africa’s program to lower or eliminate owed royalty payments to Unreasonable East Africa, depending on satisfaction with the program. If the company exercises this option, it will be required to provide extensive feedback to Unreasonable East Africa as to why it chooses to exercise this option.

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3. Why this option is beneficial to you

  • You get to pay your full tuition over time. It is easier on your business with our flexible payment terms where you pay as you grow.
  • We are invested into your company and our support(incentives) is aligned with your success. The more revenues you generate, the more revenue we make meaning the more support we provide you over time, aimed to help you and your business grow.
  • You have a guarantee that our program will be effective. In this case, you have a guarantee where in the last 3 days of the program,  you can lower or eliminate the terms of the Revenue Share agreement depending on satisfaction with the program.  If the company exercises this option, it will be required to provide extensive feedback to Unreasonable East Africa as to why it chooses to exercise this option.

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4. But why charge a revenue-share agreement? Why not a flat fee? Why not equity?

We are doing this because:

  • Early-stage entrepreneurs do not have free cash, and charging a high upfront fee deters many applicants.
  • Some of our companies have exit potential, in which case, they tend to prefer to keep equity and ownership in their company for founders, funders, and employees. Equity is also very hard for our companies from Uganda, Kenya and Tanzania to give to a Uganda legal entity.
  • Some of our companies don’t have exit potential or  alternatively are not planning to exit. Equity in these companies doesn’t make a lot of sense.

We believe that revenue share holds Unreasonable East Africa accountable to delivering value to our ventures over the long-haul. Please see here what we offer our entrepreneurs (at no additional cost beyond the revenue share)

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5. Why the increase in tuition from the 2015 program?

For our 2015 program, we charged $3,000 upfront + $10,000(2% revenue share). This only covered about 35%  of our budget. This meant that we had to fundraise to make up the other 65% of our budget! Because we are moving toward sustainability (just like you, our entrepreneurs!), we are aiming to charge entrepreneurs a fee that will enable us to cover a bigger percentage  of our budget so that we can become fully sustainable over the next 5 years.

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6. What is the Unreasonable Marketplace?

The Unreasonable Marketplace is a customised crowdfunding platform that we have to help our entrepreneurs raise a part or all of their tuition. The marketplace is open for 30 days during which time companies reach out to their network and we at Unreasonable East Africa reach out to our network to get the funds needed to attend. In the past year, 14 of our 21 selected companies managed to raise all of their tuition from the Unreasonable Marketplace.  Learn more about the Unreasonable Marketplace here.

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7. I’m not sure how I feel about a revenue share agreement. This is scary.

We don’t blame you. That’s why we have a guarantee in this agreement. Some entrepreneurs who have come through Unreasonable East Africa have been skeptical of the value of Unreasonable East Africa beforehand. We fully understand. So we’ll take the risk out of it for you. We will only receive royalties on the amount of revenue you make after our institute, as your company grows. You pay only a small amount to us upfront. It’s our job to help you drive those revenues and raise the funding you need to grow the company. We become active supporters in your future. This means we only receive payments when you generate more revenues.

A big reason we’re providing this guarantee is that we’re confident in our value. We have run two programs in East Africa so far and are learning a great deal from our partners, the Unreasonable Institute in Boulder, Colorado who have achieved these results.

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8. What does the cost of attending the program cover?

  • Our team costs before, during and after the Institute.
  • Your food and housing (meaning you’ll have zero expenses at the Institute itself)
  • Airfare, food, and housing for all visiting mentors and capital partners
  • An in-house chef and ingredients for fresh, delicious meals every day
  • Staffing our Institute team during the 5 weeks
  • Events like the Unreasonable Launchpad (where you’ll share your story in front of hundreds of people to garner even more resources!)
  • Ongoing Alumni Support and maintaining the Unreasonable Network.

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9. What does support after the 5-week program look like?

We actively continue supporting our entrepreneurs after our 5-week program. We continue matching you with mentors as the needs of your company evolve over time and funders as you keep fundraising as you grow. You also become part of  an East African family of over 21 companies, 80+ mentors, hundreds of funders all working to solve East Africa’s greatest challenges.  Please click here to learn more.

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10. What other costs are there?

If  you are accepted to Unreasonable East Africa, you’ll have to pay for your flight/transportation to Unreasonable East Africa in Kampala, Uganda.

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11. What if my company is a non-profit? Can I still apply?

Yes! We care about impact at the end of the day, and non-profits, like any company, need to have a financial engine to sustain their impact. Non-profits can still participate in our revenue share agreement, whether it’s through providing us a percent of earned revenue or a percent of external funds raised.

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12. I’m still not convinced that Unreasonable East Africa is worth it.  

That’s okay. Apply anyway. You only get charged a small fee upfront with most of it as you grow. For that amount as well, we have the Guarantee that you can read more about above.

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13. I still have a ton of questions here.

Still have questions? Feel free to reach out directly to our CEO Joachim Ewechu at joakim[at]unreasonableeastafrica.org who will happily answer any questions that you may have about our cost structure for 2015.

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Don’t Take Our Word for It!

Check out what some of the entrepreneurs who attended Unreasonable East Africa in 2014 have to say about their experience, and whether the cost and time are worth it:

Click hear to see our results and read testimonials

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