Time For An African Valley? — Sub-Saharan Accelerators Start To Emerge

Comment

The news that i/o Ventures had launched the Savannah Fund in Africa is clearly welcome news for an emerging continent. It’s $10m fund size will be a shot in the arm for the eco-system there. But I was surprised to see that it was being described in some quarters as the “first ever” Sub-Saharan African incubator and accelerator. Because it patently is not.

“I think MEST would actually be the first model in this space,” said African tech watcher Ben White of vc4africa.biz when I asked him about this. MEST has a fund size of $20m, although it’s invested via a non-profit.

So to start getting into this, it may be that we are well over-due for a run-down of accelerators in Africa. Here’s what we’ve found so far.

There’s clearly been a proliferation of coworking spaces and tech incubators around Sub-Saharan Africa over the last 3-5 years. Accelerators linked with funds are a more recent phenomenon:

1. MEST: Meltwater Entrepreneurial School of Technology (MEST) provides training and mentoring in Accra, Ghana. Started in 2008, MEST is a not-for-profit NGO that is funded by the Meltwater Group through its non-profit Meltwater Foundation. Invests in 3-5 startups per annual programme. Fund size: $20m spread over 10 years.

2. HumanIPO (Nairobi, Kenya). Launched 2011. 88mph is their seed fund. Takes a minimum 10-15 investments per year. Has room for 25 startups in its space. Fund size: Uknown.

3. Umbono (Cape Town, South Africa). Launched 2011. This is Google’s accelerator & fund. Puts in $25k to $50k seed capital. Fund size: Unknown.

4. ActivSpaces (Buea & Douala, Cameroon) was launched in 2009 and is a co-working space linked with the Sanaga Ventures seed fund. Size: Raising $1m.

5. Mara Launchpad (Kampala, Uganda). Launched 2012. Backed by Mara Foundation. Fund size: Unknown.

6. Lastly there is the co-working space iHub (Nairobi, Kenya) launched 2010 and is now the base for the Savannah Fund as mentioned above. Fund Size: $5m, but is aiming to be $10m eventually.

The Savannah Fund is coming out of i/o co-founder Paul Bragiel and i/o entrepreneur-in-residence Mbwana Alliy along with Erik Hersman a cofounder the Ushahidi crowd sourcing platform and a cofounder of Nairobi’s iHub. Five early stage $25,000 for 15% equity and three to six months to prove themselves. Follow-on funding for the successful ones will be in the region of $100,000 to $200,000.

Savannah Fund has backing from Tim Draper, Dave McClure of 500 Startups, Yelp co-founder Russ Simmons, and Dali Kilani and Roger Dickey of Zynga, as well as local Kenyan entrepreneurs, including Karanja Macharia of Mobile Planet.

Savannah will also run an incubator like i/o in San Francisco for ten companies a year, but it appears the companies will be sourced in Nairobi with the ones showing promise being shipped over from East Africa to the US to scale up.

The consensus on the ground amongst seasoned AfricaTech watchers is that while Nigeria has the fastest growing economy it’s also pretty dangerous at the moment. Kenya also has its issues but is widely regarded as a strong hub for tech companies in Africa, and Tansania has potential, but Ghana is quickly gaining a reputation because of its relatively stable business and political environment and the English language is widespread. It’s also becoming a big airline hub because airlines prefer not to drop their staff into potentially dangerous countries.

Expect more Africa coverage from TechCrunch in due course…

More TechCrunch

Tags

Some startups choose to bootstrap from the beginning while others find themselves forced into self funding by a lack of investor interest or a business model that doesn’t fit traditional…

VCs wanted FarmboxRx to become a meal kit, the company bootstrapped instead

Uber and Lyft drivers in Minnesota will see higher pay thanks to a deal between the state and the country’s two largest ride-hailing companies. The upshot: a new law that…

Uber and Lyft’s ride-hailing deal with Minnesota comes with a cost

Andreessen Horowitz’s American Dynamism fund has established a new fellowship program aimed at introducing top engineers and technologists to venture investing, a move that could help the firm identify less…

a16z’s American Dynamism team launches program to introduce technical minds to VC

Another fintech startup, and its customers, has been gravely impacted by the implosion of banking-as-a-service startup Synapse. Copper Banking, a digital banking service aimed at teens, notified its customers on…

Teen fintech Copper had to emergency discontinue its banking, debit products

Autodesk — the 3D tools behemoth — has acquired Wonder Dynamics, a startup that lets creators quickly and easily make complex characters and visual effects using AI-powered image analysis. The…

Autodesk acquires AI-powered VFX startup Wonder Dynamics

Farcaster, a blockchain-based social protocol founded by two Coinbase alumni, announced on Tuesday that it closed a $150 million fundraise. Led by Paradigm, the platform also raised money from a16z…

Farcaster, a crypto-based social network, raised $150M with just 80K daily users

Microsoft announced on Tuesday during its annual Build conference that it’s bringing “Windows Volumetric Apps” to Meta Quest headsets. The partnership will allow Microsoft to bring Windows 365 and local…

Microsoft’s new ‘Volumetric Apps’ for Quest headsets extend Windows apps into the 3D space

The spam reached Bluesky by first crossing over two other decentralized networks: Mastodon and Nostr.

The ‘vote Trump’ spam that hit Bluesky in May came from decentralized rival Nostr

Welcome to TechCrunch Fintech! This week, we’re looking at the continued fallout from Synapse’s bankruptcy, how Layer wants to disrupt SMB accounting, and much more! To get a roundup of…

There’s a real appetite for a fintech alternative to QuickBooks

The company is hoping to produce electricity at $13 per megawatt hour, which would be more than 50% cheaper than traditional onshore wind.

Bill Gates-backed wind startup AirLoom is raising $12M, filings reveal

Generative AI makes stuff up. It can be biased. Sometimes it spits out toxic text. So can it be “safe”? Rick Caccia, the CEO of WitnessAI, believes it can. “Securing…

WitnessAI is building guardrails for generative AI models

It’s not often that you hear about a seed round above $10 million. H, a startup based in Paris and previously known as Holistic AI, has announced a $220 million…

French AI startup H raises $220M seed round

Hey there, Series A to B startups with $35 million or less in funding — we’ve got an exciting opportunity that’s tailor-made for your growth journey! If you’re looking to…

Boost your startup’s growth with a ScaleUp package at TC Disrupt 2024

TikTok is pulling out all the stops to prevent its impending ban in the United States. Aside from initiating legal action against the U.S. government, that means shaping up its…

As a US ban looms, TikTok announces a $1M program for socially driven creators

Microsoft wants to put its Copilot everywhere. It’s only a matter of time before Microsoft renames its annual Build developer conference to Microsoft Copilot. Hopefully, some of those upcoming events…

Microsoft’s Power Automate no-code platform adds AI flows

Build is Microsoft’s largest developer conference and of course, it’s all about AI this year. So it’s no surprise that GitHub’s Copilot, GitHub’s “AI pair programming tool,” is taking center…

GitHub Copilot gets extensions

Microsoft wants to make its brand of generative AI more useful for teams — specifically teams across corporations and large enterprise organizations. This morning at its annual Build dev conference,…

Microsoft intros a Copilot for teams

Microsoft’s big focus at this year’s Build conference is generative AI. And to that end, the tech giant announced a series of updates to its platforms for building generative AI-powered…

Microsoft upgrades its AI app-building platforms

The U.K.’s data protection watchdog has closed an almost year-long investigation of Snap’s AI chatbot, My AI — saying it’s satisfied the social media firm has addressed concerns about risks…

UK data protection watchdog ends privacy probe of Snap’s GenAI chatbot, but warns industry

U.S. cell carrier Patriot Mobile experienced a data breach that included subscribers’ personal information, including full names, email addresses, home ZIP codes and account PINs, TechCrunch has learned. Patriot Mobile,…

Conservative cell carrier Patriot Mobile hit by data breach

It’s been three years since Spotify acquired live audio startup Betty Labs, and yet the music streaming service isn’t leveraging the technology to its fullest potential — at least not…

Spotify’s ‘Listening Party’ feature falls short of expectations

Alchemist Accelerator has a new pile of AI-forward companies demoing their wares today, if you care to watch, and the program itself is making some international moves into Tokyo and…

Alchemist’s latest batch puts AI to work as accelerator expands to Tokyo, Doha

“Late Pledge” allows campaign creators to continue collecting money even after the campaign has closed.

Kickstarter now lets you pledge after a campaign closes

Stack AI’s co-founders, Antoni Rosinol and Bernardo Aceituno, were PhD students at MIT wrapping up their degrees in 2022 just as large language models were becoming more mainstream. ChatGPT would…

Stack AI wants to make it easier to build AI-fueled workflows

Pinecone, the vector database startup founded by Edo Liberty, the former head of Amazon’s AI Labs, has long been at the forefront of helping businesses augment large language models (LLMs)…

Pinecone launches its serverless vector database out of preview

Young geothermal energy wells can be like budding prodigies, each brimming with potential to outshine their peers. But like people, most decline with age. In California, for example, the amount…

Special mud helps XGS Energy get more power out of geothermal wells

Featured Article

Sonos finally made some headphones

The market play is clear from the outset: The $449 headphones are firmly targeted at an audience that would otherwise be purchasing the Bose QC Ultra or Apple AirPods Max.

8 hours ago
Sonos finally made some headphones

Adobe says the feature is up to the task, regardless of how complex of a background the object is set against.

Adobe brings Firefly AI-powered Generative Remove to Lightroom

All cars suffer when the mercury drops, but electric vehicles suffer more than most as heaters draw more power and batteries charge more slowly as the liquid electrolyte inside thickens.…

Porsche Ventures invests in battery startup South 8 to boost cold-weather EV performance

Scale AI has raised a $1 billion Series F round from a slew of big-name institutional and corporate investors including Amazon and Meta.

Data-labeling startup Scale AI raises $1B as valuation doubles to $13.8B