Getting Seed funding for your startup is easy but it requires a lot of planning, research and relationship building, in this article we are going share some tips to guide you through the journey of getting seed funding for your startup.
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How To Get Seed Funding For Your Startup In Africa
Are you African, innovative and a dreamer? You have a business idea; all that is left for it to kick start is funding. Your idea is top notch; it will solve an immediate problem in the society or a tension in an industry. The idea is sure to succeed, however there is a hurdle and the hurdle is nothing else but start up seed also known and referred to as seed capital or seed investment. The first step of starting a business is having a very good idea, however to bring it to market there is need for funding. This is why we are putting together this resources to give you a clear idea on how to get seed funding for your startup in Africa.
Why Seed Funding?
Seed Funding is required to get a space for office, employ staff, purchase necessary equipment and possibly make registrations in adherence to the applicable laws of the business location. Funding is required because the more funding, the more chances of expansion of capabilities, attracting customers and leads to inspire quick growth of the business. The amount of seed funding for African startups has increased for the past five years.
In Africa over the years, there are many investors interested in startups; ready to fund them and they have been doing that over the years. What it requires is possible registration, documentation and withstanding competitions, because it is highly competitive. The grants are offered to individuals, firms/company, business or corporations. Let look at some seed fund Angels that can help you with seed funding for your startup in Africa
Seed Fund Angels To consider
SeedStars is a Swiss- based private group of companies, impacting lives in emerging markets through technology and entrepreneurships. Every year between June and November the seed stars team is on the lookout for promising early-stage startups and high-growth companies active across Sub Saharan Africa.
SeedStars is actively offering SME grants in over 53 countries in the world, especially regions like Africa, Asia, Middle East and South America.
To access business grants from SeedStars, you will need to apply for the annually offered Business grant competition, a competitive grants for young business owners and emerging markets.
These business grants for entrepreneurs from Africa help to identify promising business owners, organizations and companies in need of capital to survive and grow. For More information click here
Tony Elumelu Foundation Entrepreneurship Program
The Tony Elumelu Entrepreneurship Programme is the leading champion of young entrepreneurs in Africa. They have over the years empowered men and women from different parts of Africa with great potential and ideas. Their aim is to empower those that will also transform and empower others in Africa with the belief that private sector holds the key to unlocking Africa’s economic potential.
Grant is offered by the Tony Elumelu Foundation (TEF) to the tune of $100 million to empower 10,000 African entrepreneurs over 10years. The Tony Elumelu Foundation Entrepreneurship grants Programme (TEEP), a Pan-African entrepreneurship initiative of the Tony Elumelu Foundation founded by a Nigerian billionaire investor is a multi-year programme of training, funding, and mentoring, designed to empower the next generation of African entrepreneurs.
It is highly competitive, requires rigorous preparation and a good idea to qualify for a grant.
Tshikululu Social Investments
Tshikululu Social Investments is another platform that can help you get seed funding for your startup in Africa. Tshikululu Social Investments provides wide range of social investment and business grants to Entrepreneurs in Africa. They make available fund for large and medium-sized businesses. Their work is multi-faceted; it is carried out by specialized team in different sectors such as health, education, social development and enterprises. Tshikululu provider is a South African Corporate Social Investment (CSI) manager responsible for dispensing SME Grants to Africans.
Tshikululu Social Investments over the years is managing CSI funds of different organizations like Rand Merchant Bank Fund, De Beers Fund, and many others.
The Lundin Foundation is a Canadian non-profit organization. It is supported by the Lundi Group of companies. Over the years their focus has been on giving entrepreneur opportunities that is lasting and sustainable to Africans. Their initiative is such that enable employment, nurture small business growth and support financially viable social and environmental solutions. The activities of Lundi Foundation covers four strategic areas, Education and skill training, Local supplier Development, Economic Diversification and Social and environmental innovation- all these is aimed at helping entrepreneur to grow, mature and scale their solutions into the future. Their major aim is to generate wealth and alleviate poverty on a sustained basis.
Shared interest is a fair trade financial cooperative based in the United Kingdom, formed in 1990. It makes available grants for African young entrepreneurs. Its aim basically is financing artisans, farmers and food producers in developing countries. Shard Interest has a very large investment and satellite offices in major African Countries like Ghana, Kenya, Costa Rica, Peru and some Eastern Africa countries. They provide credit and financial services to fair trade producers, retailers, importers and exporters all over the world.
The Root Capital is a non-profit investment fund that can help you get seed funding for your startup in Africa. They offer Business grants to empower entrepreneurs and businesses in Africa. The fund was established in 1991 to positively provide funds and impact businesses, families in rural communities and bridge social interaction with business owners. They provide financing and customized training to a diverse network of agricultural businesses. Root Capital provides farmers with fertilizer, better seed varieties and training on agricultural methods, also connect farmers to International markets.
More so, they have impacted the lives of almost 2million African men and women. Over 450 businesses have received grants worth $100million dollars within the years of business grants offered. However, the policy is a 100% payback for the Root Capital investors.
The African Leadership Academy’s Anzisha Prize provide young innovative African entrepreneurs with business grants, it is meant for founders of an established business venture. Not only business grant is given but leadership and entrepreneurial training is made available to young Africans between ages of 15 to 22 years. This is a perfect business grants for young innovative entrepreneurs in Africa be it any venture, business, and project.
Schwab Foundation For Social Entrepreneurship is a sister organization of the World Economic Forum. The foundation believes that every person has the potential and deserves the opportunity to lead a happy and productive life. In order to advance social entrepreneurs across the globe, Schwab Foundation continually seek for business owners who are social entrepreneurs in different areas such as agribusiness, tech, health and education.
The Schwab Foundation was established in 1998 as a social entrepreneurship firm situated in Geneva, Switzerland to provide business grants across Africa region with rigorous selection stages which upon selection you will receive the business grant.
MEST Africa Challenge
MEST Africa is a Pan-African training program, seed fund and incubator. It’s absolute aim is to equip the continent’s most promising tech entrepreneurs with the skills required to launch and scale globally successful software companies. Annually, aspiring entrepreneurs with interest in technology and entrepreneurship from across the continent apply and compete for spots at the fully funded 1-year training program in Accra, Ghana. They are given intensive training, expert mentorship and meet the largest network of tech startups on the continent.
The challenge is a unique search for African tech entrepreneurs and focus on giving them coaching, business capital, wide networking with other entrepreneurs and startups. It is meant for Tech entrepreneurs from Kenya, Nigeria, Ghana, Rwanda, Senegal, South Africa, Ethiopia, Cote d’ivoire and more.
The Savannah fund is another fantastic option that can help you get seed funding for your startup in Africa. The fund is a seed capital fund specializing in US $25,000- US $500,000 investments in early stage high growth technologies. It provides startup funds, business grants to African entrepreneurs. Its objective is to bridge business funding gap between ventures, capital investments, early startups and entrepreneurs in Africa. Savannah fund has recorded high number of support to entrepreneurs from African nations like Kenya, Nigeria, Ghana, South Africa and more.
She Leads Africa Accelerator Grants
She Leads Africa (SLA) accelerator program; a 3-month program is designed to identify, support and fund the next generation of Nigeria’s brightest female entrepreneurs. The prize is as high as N2, 000,000 (Two million Naira). This business grants is offered annually to female entrepreneurs between the age of 18-35 and have business already that need funding in Nigeria.
The She Leads Africa Accelerator prize will raise your profile; have access to funding, access to best business minds in the country, media attention and opportunity to pitch business to investors. The grant is meant to promote already existing business and not idea.
African Women Innovation and Entrepreneurship Forum (AWIEF)
AWIEF is an award- winning pan-African women economic empowerment organization driving women’s business leadership to support women entrepreneurship in Africa to grow and fulfill their potential. Their mission is to foster women’s economic inclusion, advancement and empowerment through entrepreneurship.. AWIE is among the entrepreneurship grant platforms that support and provide funding to innovative and creative female entrepreneurs across the African region.
Each year AWIE recognizes and support females in private non-profit businesses in Africa doing tremendous change and impacting the economic growth of Africa.
Unilever Young Entrepreneurs Award
Unilever believes that United Nations Sustainable development can only be achieved if we all work together. This believe led to the launch of the Unilever Young Entrepreneur award in 2013. The award is made to honor and support talented young innovators and help them achieve their goals. This grant is meant to support innovative entrepreneurs tackling some world challenges, specifically sustainable entrepreneurs
Unilever young entrepreneurs award can be the perfect grant for you if you are a social entrepreneur with impact in the society and needs support such as funds to scale your business or enterprises to the next level.
Are you talented, have a sustaining business idea? The above startup Seed Funding Angels have over the years created opportunity to inspire, support, train, reward and collaborate with entrepreneurs with great idea but needs funding. Accessing these funds, your business idea must be sustaining and of great impact to the society, by and for Africans. These funds are made available every year for potential business men and women of African descent who apply and show case their idea that need funding to start or grow. Linger no more, take a step and apply for any available chance for fund.