Savannah Fund Accelerator: Call for 2nd Round

The Savannah Fund has been in operation about 8 months now, and has done 5 investments. One at $200k+, one at $75k and three at the accelerator level of $25k each.

We’re accepting applications through the end of this week, and we’re looking for 5 quality startups to begin the accelerator program in August. Fill out this form to apply.

What is the Savannah Accelerator Fund?

Last month we put together a short video to better explain the Savannah Fund, and why it’s important for tech entrepreneurs in the region.

In short, it’s not just the $25k, which is useful but not the reason why you should be applying, it’s all of the other connections, training and access to people that bring the real value.

Mbwana has written a post on some of the lessons learned along the way, well worth reading:

“Some of the sessions included Max Ventilla who sold his startup Aardvark to Google, Carey Eaton of Africa One Media (best known for Cheki), Eran Feinstein of 3G Direct Pay a leading credit card and payment processor in East Africa, and investors including Khosla Impact. We also focused heavily on digital marketing by bringing technical experts such as Agnes Sokol who continues to advise some of the startups. In the next accelerator we will add additional resources including collaborating with iHub Research and UX Design Lab.”

Here’s Ahonya, one of the Savannah Fund accelerator companies describes how startups can benefit from accelerator programmes.

Launching the Savannah Fund in East Africa

I’m happy to finally be able to publicly announce the Savannah Fund, an accelerator fund focused on finding and investing in East Africa’s highest potential pre-revenue startups. It’s a partnership between Mbwana Alliy, Paul Bragiel and myself – along with a great list of limited partners (LPs) who are investing in the fund.

The idea is to bring the Silicon Valley-style accelerator model to Africa, seeing what needs to be tweaked to make it work for our region. It’s a small fund at $10m, with most of the activity focused on classes of 5 startups at a time being brought on board and invested in. They’ll get $25,000 for 15% equity, and have 3-6 months to prove themselves. Those who fail either pivot or leave, those who gain traction have a chance at follow-on funding. A portion of the fund will be invested at the $100-200k range where we’ll look at follow-on funding for the startups in our program, and also at other high-growth tech companies in the region.

We’ll be looking throughout the region for these investments, from Rwanda and Tanzania to Uganda, South Sudan and Kenya. You can put in an application now, though the first cohort will not be accepted into the program until the end of the Summer (Aug/Sept timeframe).

At this stage we’ve raised half of the fund, which allows us to get moving. 35% of the fund has been raised from local investors, such as Karanja Macharia from Mobile Planet. We also have big US names on board, such as Yelp co-founder Russ Simmons, Tim Draper, Dave McClure, and Roger Dickey and Dali Kilani of Zynga.

Why I’m involved

The reason I’m involved with Savannah Fund is very simple, I’m focused on getting the foundation of our technology future in place. In East Africa, we don’t have enough mid-cap investment opportunities in tech, and the only way to change that is increase the size of the base of that success pyramid.

Some history. Over a year ago I met with Ben Matranga from the Soros Economic Development Fund who noted that there were a number of interesting small startups, but they were too small for them to invest in. If there was a smaller fund, someone focused on this space, they’d be interested in using them as a vector to stir up the bottom and help uncover more successful companies over the next 3-5 years. At Pivot 25 last year I met up with Mbwana and we started to discuss the fact that most startups here aren’t ready for VC fund and how we might be the right people to create the needed vehicle.

Fast forward to September 2011 and Paul, Mbwana and I decided to go ahead and do it. Hours and months of due diligence, pitching and phone calls later we finally are getting it off the ground.

  • My role is to help find the new companies and to connect them to the businesses in the area.
  • Mbwana’s role is to manage the fund and the startups in it.
  • Paul’s role is to connect the Savannah Fund startups to Silicon Valley businesses and investors.

As Mbwana says, “We’re a fund for entrepreneurs by entrepreneurs”. We’re here for the small guy and our goal is to find those risky tech startups with hungry, passionate founders that will do the hard work it takes to become a successful company.

Find us on Twitter at @SavannahFund