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Technology is progressively gaining dominance in African nations. It is playing a significant role in the transition from being on the margin to the mainstream of the global economy. This article will expose you to how you can benefits from Savanah funds, also how startups do fund for tech in India
Africa has recorded a rise in technological innovations, tech innovation hubs, and tech-related ventures. In 2016, venture capital to African tech startups was pegged at about $608 million to $1 billion.
Investments are rising fast rising from venture capitalists (VCs), Angel investors, and the government to grow the tech industry. Savannah Funds is one of such funding for the start-ups.
About Savanah Funds
Savannah Funds, based in Nairobi, Kenya, is a venture capital fund for early-stage, high-growth technology start-ups in Sub-Saharan Africa. Started in 2012; they have made investments in about 20 Africa-focused start-ups in countries like; Kenya Uganda, Ghana, Nigeria, Zimbabwe, and South Africa. They have helped these start-ups to raise over $ 13 million in seed and venture capital funding and generated over 150 jobs.
Savannah Fund is Africa’s leading technology seed fund and accelerator; offering $25,000 to $500,000 in investments in early-stage tech start-ups. Savanah Funds says it aims to bridge the early stage of the angel and venture capital investment gap that currently exists in Africa by combining capital with mentor networks both in the region and from Silicon Valley via an accelerator program and a follow-on independent seed fund.
A key piece of the Fund’s overall strategy is to address the skills and experience gap of entrepreneurs in the region through the Accelerator Program. The accelerator program is designed to help emerging entrepreneurs build a company and launch a product. Early-stage companies participate in “cohorts” and are exposed to a program to learn from experienced locals; and high-value and reputable mentors that have built global technology brands that are also very hands-on, as would be expected by angel investors.
They have built a curated curriculum of mentors in over 2 hours sessions every week for 3 months. This is to enable start-ups to see over 12 mentors dedicated to over 30+ hours of mentoring across all the start-ups, face-to-face at the iHub, Kenya. Some of the mentors provide technical assistance and can become partners in the business to help in marketing, selling, or connecting with the right customers. They also provide links to specific resources, such as the UX design lab; to help improve the design or usability of applications.
The Fund’s Accelerator Program deploys relatively small amounts of capital ($25-30,000 to each company in exchange for a 12% equity stake) to a cohort of up to 5 start-ups at a time for 3 months.
As part of the investment, there will be a $2,500 program fee that comes out of the investment to cover expenses for incorporation, legal, and office space. So, net funding is between $22,500 – 27,500 after expenses.
In addition, if a start-up is strong enough at the end of the program, Savanah funds can fast-track applications to their partner investor; 500Startups Accelerator in Silicon Valley which qualifies for $100,000 investment and US re-incorporation.
Applicants will be chosen through an online application and interview process, but successful teams should apply with not just an idea but an initial prototype, early customers, and revenue.
You are eligible to apply for Savanah Funds if you:
- Have a product in the market with some traction and need more resources and partners to scale your ambitions for the long term and global company.
- Lack of connections, and social proof/validation to talk to tech-focused investors.
- Want to partner and learn from other entrepreneurs who have done it before and tap their networks for advice so you don’t repeat the same mistakes others have?
Currently, the application for the program has not been announced. The date for the next cohort, despite not being communicated yet can be gotten from their application portal. Simply follow the link and register for their newsletters to get updates.
To Apply or access their FAQ, click here
Funds For Tech Startups
Funding is essential for tech startups and all startups to grow and expand and reach the highest levels of income and sales.
While technology can solve many problems, it does so at a price. Therefore, the cost of assembling a technical team, including software developers, is considerable.
How Can You Get Money For Your Tech Start-Ups?
Here are thus some of the ways you might be able to get money for your tech company:
#1. Obtain Funding from Incubators and Accelerators
Get money from incubators and accelerators, and you’ll be able to go into a lot of new markets; meet many angel investors and VCs, and get a lot of help from a lot of them. Incubators and accelerators don’t usually just give money. They can also help your business in a lot of different ways.
FasterCapital is an online incubator and accelerator that helps start-ups in the tech industry by giving them technical and business advice, as well as finding angel investors who want to invest in tech startups at different stages. It also helps them find investors.
#2. Get Angel Investors For Your Tech Company.
Getting money from angel investors for your tech startup is one of the best ways to get money for your business. The best thing about getting money from angel investors is that angel investors will not only give your tech startup money, but they will also be partners and help you make decisions for your startup.
#3. Get VC Funding For Your Tech Startup.
It’s always on the to-do list for tech startups when they need money. Many Venture Capital firms are, however, interested in investing in tech start-ups because of the open opportunities and wide range of possibilities that technology-enabled solutions have to offer. So if you can find and approach the right VC the right way, getting VC funding for your tech start-up is thus a great way to get money.
#4. Get Crowdfunding For Your Tech Startup
Many tech startups have thus found crowdfunding to be a good way to raise money and pitch to angel investors. Crowdfunding investment opportunities and finding the right angel investors for your tech startup can be more likely if you use crowdfunding. Crowdfunding also helps you promote your product or service and acts as a little marketing campaign for your tech business.
Funds For Tech Startups In India
To make more money available and to encourage private investment, the government of India set up a fund worth INR 10,000 CR. This will also help the Indian startup ecosystem grow faster, too. During the Cabinet meeting in June 2016, the India Fund in India was approved as a Fund of Funds for Tech Startups (FFS). It was then set up by the Department for Promotion of Industry and Internal Trade. Financial Futures Fund (FFS) does not invest in start-ups itself. Instead, it gives money to SEBI-registered Alternate Investment Funds (AIFs), also known as “daughter funds,” which then invest in high-potential Indian startups with a lot of promise. SIDBI has thus been given the job of running the FFS through the selection of daughter funds and the disbursement of the money that was promised. The fund of funds invests in venture capital and alternative investment funds; which then invest in small businesses and start-ups, down the line. The fund has also been set up in a way that makes things move forward.
This would also allow these businesses to move up to a level where they could get money from angel investors or venture capitalists, or get loans from commercial banks or other businesses. Thus there are about 3,600 entrepreneurs who will benefit from the scheme over the next four years. It will help them through 300 incubators. There are also incubators in India that can help tech startups and businesses there get the seed funds they need.
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Savanah Funds FAQ
How do tech startups raise funding?
Here are some of the ways you might be able to get money for your tech company:
- #1. Obtain Funding from Incubators and Accelerators
- #2. Get angel investors for your tech company.
- #3. Get VC funding for your tech startup.
- #4. Get crowdfunding for your tech startup