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John McAfee, From Tech Pioneer to Murder Suspect

The bizarre events that have unfolded in recent days almost beggar belief: John McAfee, the tech entrepreneur who pioneered anti-virus software, has gone into hiding.

Brian Patrick Eha

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He is a wanted man in Belize, the tiny Central American nation to which he retired in 2008.

McAfee, 67, had reportedly been tangling with Belizean authorities for months when his neighbour, fellow American expatriate Gregory Faull, was found murdered at home, shot once in the back of the head. Police immediately deemed McAfee a prime suspect and launched a manhunt for the eccentric fugitive.

A brief history of McAfee’s unique life and career follows.

1987: McAfee, a former NASA programmer and private-sector software designer, founds McAfee Associates, a company designed to fix computer bugs. He decides to create the company after his computer is infected with the Pakistani Brain virus.

1989: McAfee leaves Lockheed, where he had been working, to focus full-time on his company.

He offers his VirusScan anti-virus program as shareware – individuals and companies can download a free trial of the software, but must pay for licenses and continued use.

McAfee publishes a book, Computer Viruses, Worms, Data Diddlers, Killer Programs, and Other Threats to Your System.

August 1992: McAfee incorporates his company in Delaware, forming McAfee Associates Inc. At this time the company has 26 employees.

October 1992: The company goes public, selling 2.6 million shares and raising more than $40 million.

1994: McAfee resigns from his company, possibly due to continuing controversy over his statements about the Michelangelo virus, a computer bug that caused a scare in early 1992 after McAfee told reporters it could affect as many as 5 million machines.

He cashes out his company stock, making him a millionaire many times over. He relocates from Silicon Valley to Colorado, where he builds a house on a 400-acre forest.

Later that year, he founds Tribal Voice, a company that develops PowWow, an Internet messaging program that pioneers many of the features found in later chat programs.

1999: Tribal Voice, which faced fierce competition from larger companies AOL and Yahoo, is acquired by incubator CMGI. McAfee’s stake in the company is sold for an undisclosed amount.

2003: McAfee buys 1 000 acres in Hawaii on the island of Molokai for $1.25 million.

2005: Although he had insisted that he bought the Hawaii property for his family, he sells some of the land for development for $2.85 million, ignoring protests by locals.

2008: McAfee retires to Belize, settling on Ambergris Caye, a tiny island 36 miles off the coast. He builds a fenced compound and staffs it with armed guards.

2009: The New York Times reports than McAfee’s personal fortune, much of which was tied up in real estate and stocks, has fallen to about $4 million from a high of $100 million. He is said to be selling a property in New Mexico that he bought for the purpose of flying open-cockpit planes.

He also sells his remaining property on the Hawaiian island of Molokai for $1.58 million, well below the $3.7 million asking price for the beachfront estate.

February 2010: QuorumEx, a new venture by McAfee headquartered in Belize, launches. Its purpose is to develop commercial antiobiotics.

August 2010: Intel agrees to acquire McAfee Inc., the computer security company which still bears its founder’s name, for $7.68 billion. The sale is finalised in February of the following year.

2012: One of McAfee’s properties is raided by the Belize police force’s Gang Suppression Unit and he is arrested, but not charged, on suspicion of making crystal meth and possessing unlicensed firearms. In the raid, he is reportedly pulled from the bed of his 17-year-old girlfriend.

May 2012: Joshua Davis of Wired begins an in-depth investigation into McAfee, gaining exclusive access to his residence in Belize and conducting numerous interviews with the reclusive millionaire in person and by phone. Davis’s investigation is later published as a 13-chapter ebook.

November 2012: McAfee’s neighbour, Gregory Faull, is found shot to death in his home. McAfee goes into hiding, knowing he is wanted by police for questioning in connection with Faull’s death.

He launches a website, The Hinterland, to post communications while on the lam, including an approximately USD$12 000 reward offer for anyone who can identify Faull’s killer. The blog is administered by cartoonist Chad Essley, who is creating a graphic novel of the same name about his “unusual friendship” with McAfee.

At the time of writing, McAfee, who protests that he is innocent of all charges, is still at large. His exact whereabouts are unknown.

Brian Patrick Eha is an assistant editor at Entrepreneur.com and a trustee of the New York City chapter of the Awesome Foundation. He has written for The New Yorker, The Atlantic, CNNMoney, Outside, the Los Angeles Review of Books and other publications. He holds a master's degree in journalism from Columbia University.

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5 Businesses You Should Start in 2019

Here’s the lowdown on consumer and technology opportunities in 2019 and beyond.

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Savvy entrepreneurs should keep a close watch on consumer and technology trends in 2019. This, according to Silvertree Internet Holdings Co-founder and MD, Manuel Koser. Having invested in and grown a number of highly successful South African brands (among them Faithful-to-Nature.co.za, UCOOK.co.za, Pricecheck.co.za, CompareGuru.co.za, Petheaven.co.za, Cybercellar.com, and CarZar.co.za). Silvertree’s management team sees several business opportunities set to grow exponentially over the coming decade.

Here’s the lowdown on consumer and technology opportunities in 2019 and beyond.

1. Indigenous and ethical: Personal and home care products

2019 Sees growing potential for personal care products – ‘Those with local and indigenous ingredients, ethical sourcing which is kind to nature and the body,’ Koser explains. ‘There is a lot of room to play in the African haircare market particularly, as it’s often overlooked by the major FMCG companies.’

The Silvertree MD also sees increasing room for innovative natural home cleaners as consumers become increasingly environmentally conscious. ‘Until now, it was all about the well-known cleaning products the major chemical manufacturers put on the shelves. Now, there’s increasing space for new, exciting entrants.’

2. New beverages

‘Locally-sourced ingredients and an earth-first mindset will also play an increasing role in the consumer beverage market. Add to this the fact that major soft drink manufacturers will struggle to produce drinks for increasingly health-conscious consumers. They’re often just not quick enough to adjust to changing consumer tastes – particularly the tastes of millennials. Think less about a standard fizzy drink, but rather one that’s kind to the body, with natural ingredients. Non-alcoholic: water plus, say, cucumber, or another indigenous ingredient. The market for this will grow.’

3. Ethical snacking

Plant-based, vegan, ancient grains, ethical, protein-rich snacks – these are just some of the trends Koser sees dominating in the snack segment in 2019 and beyond. It’s about unique, tasty, functional foods that cater to the modern, time-starved consumer, Koser explains.

4. Buy, sell and compare online

In the technology space, marketplaces, e-commerce sites and classifieds will all gain momentum in 2019 and beyond. This encompasses aggregators as well as more unusual online businesses, which are increasingly able to find and reach consumers interested in niche products and services.

‘Consider an online ice-cream business. Once, something like that would have been unthinkable,’ Koser explains. ‘But as consumers demand greater choice, room for niche products like this grows.’

Yet, dabble online and seamless execution and delivery become make-or-break factors. ‘Many South African consumers use services such as Google, Amazon, Uber and Spotify daily – world-class products that function on a global scale. You can call an Uber and wait for just two minutes before getting a ride,’ Koser explains. ‘It’s quick and totally seamless. Consumers have come to expect that level of service across the board. Aligned to this is the fact that the millennial wave is currently hitting Cape Town right now, and Joburg secondarily, meaning a number of opportunities are opening up. Go after products and services in the right space and consumers will follow.’

5. Reinvent the wheel – and make it better

The final type of business entrepreneurs should keep an eye on is those that currently have low Net Promoter Scores. ‘This means that very few people like them, or the services they provide are of very poor quality,’ Koser explains. ‘Think of postal service providers or telecoms companies. With any monopolistic or oligopolistic structures, the service is often terrible because the heavyweights hold so much power. There’s a huge gap here.’

An allied approach for entrepreneurs is to assess opportunities for automation, or cutting out the middleman with technology. ‘Once, many markets – such as real estate were opaque, meaning you needed a middleman to help you transact. However, as the capabilities of technology have grown, markets have become far more transparent – making it easier for buyers to match with sellers safely. Today, a lot of this is easy to automate services – think about connecting a homeowner to a prospective renter through a digital solution where renters can be qualified, for example, in terms of their finances, personal information and criminal records. Quick and simple. And no middleman.’

The biggest opportunities here centre around where consumers spend the greatest amounts of time and money, Koser notes. ‘Housing and rent are always major costs. In terms of where consumers spend their time, on the other hand, much of it is, on a mobile phone, or PC.’

However, entrepreneurial success is never down to any one magic formula, Koser emphasises. Nor does Silvertree invest in prospective entrepreneurs solely on the basis of the product or service they offer. ‘It’s about passion, perseverance and tenacity as much as it is about the quality of the product.’

Silvertree Internet Holdings is an investment growth partner who aims to understand, grow and scale business, consumer and digital brands to unlock the brands’ exponential growth.

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What To Watch For In Tito Mboweni’s First Budget Speech

By Rob Cooper, tax expert at Sage, and chairman of the Payroll Authors Group of South Africa.

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Finance Minister, Tito Mboweni, delivers his first Budget Speech on 20 February at a difficult time for the South African economy. Even though President Cyril Ramaphosa has done much to restore business confidence in his first year in office, GDP growth remains weak, government finances are in relatively poor shape, and renewed load shedding is hurting business confidence.

Judging from his Medium-Term Budget Policy Statement in October last year, I expect Minister Mboweni — backed by the team in the National Treasury—to deliver a relatively cautious budget. Much of the focus will be on refinancing the state-owned enterprises and putting them back on to a sustainable footing.

We probably won’t see much in the way of radical thinking since the room for manoeuvre is so limited. Click each header below for an indepth video on the upcoming topics.

National Health Insurance (NHI)

Renewal of the country’s public healthcare system with a mandatory health insurance fund and free healthcare at the point of need has been the ANC government’s policy for years, but progress has been slow to date. There isn’t much money in the country’s coffers to fund something as ambitious as NHI, yet the government will want to show that it is advancing the concept ahead of the elections.

With an NHI bill to be tabled in Parliament soon, we could learn more about how NHI will be funded in this year’s Budget Speech — it’s still not clear whether we will pay for it through payroll taxes, VAT increases or other fundraising measures. As an initial step, we could see medical aid tax credits reduced (or at least not adjusted for inflation) to free up some funding for the NHI.

The Employment Tax Incentive (ETI)

The ETI Act came into effect on 1 January 2014; as a fan of this incentive, I was delighted that President Ramaphosa announced that it will be extended for 10 years another decade in his state of the nation address. However, I have also long argued that the scheme is not performing to its true potential because it is so complex for payroll managers to administer.

The introduction of the national minimum wage adds even more complexity— until and unless the ETI Act is amended, SARS is of the opinion that the National Minimum Wage will not qualify as a “wage regulating measure”. I hope the Budget Speech will announce steps to align the ETI with the national minimum wage and take other measures to simplify administration.

Tax hikes

I don’t expect any major increases to corporate or personal income tax this year since the taxpayer doesn’t have much more to give. I think the top 45% rate will remain unchanged, while tax bracket creep relief (to compensate for inflation) will be limited to lower income earners. It seems unlikely that the Minister will increase VAT again this year, given last year’s increase.

That means the Minister is likely to look at ‘moral’ taxes (sin and sugar taxes) to raise more money; we can expect another steep increase in the fuel levy. Perhaps we’ll also hear about efforts to improve SARS’ revenue collection after several years of under-performance. The agency seems ripe for a turnaround strategy, with high-powered team looking for a permanent chief to take the reins at SARS.

Follow us on @SageGroupZA on 20 February 2019 for LIVE expert insights from the annual Budget Speech.

For more information about Sage’s annual tax seminars, please visit: https://get.sage.com/PRL_19Q1_C4L_ZA_EVCU_NPS_AnnualPayrollTaxSeminar2019

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Top SA Entrepreneurial Competition Praises Sector Optimism And Calls For 2019 Entries

Entrepreneurs interested in entering the competition can enter online here.

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Even in the face of ongoing sluggish growth, exacerbated by widespread allegations of corruption and muted domestic economic activity, South African entrepreneurs remain overwhelmingly optimistic. This was revealed in the Real State of Entrepreneurship Survey 2018, which found that the vast majority of over 1000 business owners surveyed feel very positive about the business climate and outlook for the 12 months ahead.

It is these resilient individuals who will have their deserved time to shine in the 2019 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, says Kobus Engelbrecht, spokesperson for the competition, who says entries for the renowned competition – now in its 31st year – are officially open.

Entrepreneurial competitions of this nature, however, serve a greater purpose than just celebrating South Africa’s spirited self-starters, notes Engelbrecht.

“Credible platforms such as the Entrepreneur of the Year® competition also act to inspire the next generation of budding entrepreneurs, who have the potential to drive real economic growth at a time where the country needs it most.”

Engelbrecht refers to the World Bank’s recent downward revision of South Africa’s projections for economic growth in 2019 to just 1.3% – 0.6% lower than the South African Reserve Bank’s earlier prediction of 1.9% in November.

“Despite these challenging economic conditions, year on year we still find exceptional entrepreneurs who continue to identify gaps in the market and transform these into viable businesses.

“It is our aim, through this long-standing competition platform, to continually recognise, encourage and support the hard-working entrepreneurs who continue to do well despite the challenges they are faced with. We use the competition to convey our appreciation for the role they play in inspiring others to venture into the world of business,” he says.

In addition to offering valuable mentorship support, networking opportunities and national media exposure, Engelbrecht says that the2019 Entrepreneur of the Year® competition, sponsored by Sanlam and BUSINESS/PARTNERS, offers prizes valued at over R 2 million, which includes cash prizes of R 70 000 for each main category winner, and R200 000 for the overall winner.

“All South African businesses are eligible to enter this competition, and prizes will be awarded across six categories, namely: Overall Entrepreneur of the Year®; Emerging Business Entrepreneur of the Year®; Small Business Entrepreneur of the Year®; Medium Business Entrepreneur of the Year®; Job Creator of the Year; and Innovator of the Year.”

Entrepreneurs interested in entering the competition can download entry forms online at www.eoy.co.za as well as interact with fellow entrepreneurs and entrants on the competition’s social media platforms www.twitter.com/@EOY_SA and www.facebook.com/EOY.SA. The closing date for the competition is 31 May 2019.

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