REVENUE STREAMS AND COSTS Excluding donor funding, hubs are characterised by hybrid revenue models, including: programme implementation consulting event organisation commission on funding facilities About 42% also generate revenues by charging a membership fees, such as rent paid by tenants to use their spaces and facilities, or subscriptions paid by startups and individuals to be part of the hub’s community without necessarily using the space, giving them access to events, bulletin, network, perks, and job boards. The majority of revenues and funding is used to pay rent and wages, with facilities and programmes following closely behind (Figure 10). Energy and generator costs are also significant, especially for
hubs in Nigeria where it is estimated that 22 million small unit petrol generators are used by individuals and commercial outlets due to poor power supply. ADDITIONAL SERVICES As several hubs do not focus on funding startups, many have been exploring new realms beyond the traditional ‘tech hub’ role, growing to provide addi- tional services (Figure 11 and 12) that may not be strictly startup-focused. More and more hubs are focusing on di ff erent ways to create wider social impact and influence policy making, such as increasing literacy in technology for surrounding communities. 32% of the respondent hubs hosted and rented their space for events while a further 23% o ff ered corporate innovation programmes. Coding, IT and business classes for both adults and kids was another popular additional service the hubs o ff er.
FIGURE 10: HUB COSTS BREAKDOWN
So # ware development
0.5%
Technology equipment
4.3%
Energy and generators
Wages
26.1%
9.6%
Programmes
18.1%
Facilities (equipment; space etc.)
Rent 22.9%
18.6%
FIGURE 11 AND 12: REVENUE STREAMS AND ADDITIONAL SERVICES
Enterprise & IT Solutions
0.8%
Funder Matching Fee
Research & Consultancy
0.4%
0.8%
Other 2.8%
Commission on funding facilities
13.7%
Events 31.5%
Programme Implementation
Coding / IT / Business for kids
32.6%
18.9%
Event 22.7%
Coding / IT / Business for adults
22.0%
Corporate Innovation
Consulting
7
23.2%
30.5%
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