The Harambeans Prosperity Fund, an initiative of the Harambe Entrepreneur Alliance’s network of notable families and organizations, has invested $100,000 in Kenya’s retail platform, which provides entire functional solutions to consumers.
P1 Ventures, Y Combinator, Launch Africa, V8 Capital, Future Africa, GreenHouse Capital, Rebel Fund, and Remapped Ventures were among the investors who contributed to the distribution platform’s $2 million pre-series A round last month.
Founder Tesh Mbaabu expressed his joy at the investment from the Harambeans Prosperity Fund during the funding round.
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He was accepted into the investor’s 2020 cohort, joining a group of entrepreneurs working hard to ensure Africa’s long-term viability.
The Harambeans Prosperity Fund — organised through the Harambe Entrepreneurship Alliance network of prominent families and corporations — has the target to provide $1 million in funding to its African networks affected by the economic downturn. This funding will be made available to a group of diverse and impactful African innovators who have been admitted to the Harambe Entrepreneur Alliance.
“As the pandemic metastasizes into an economic and financial crisis, entrepreneurs throughout Africa’s developing startup landscape face an unprecedented threat,” says Okendo Lewis-Gayle, executive chairman of the Harambe Entrepreneurship Alliance.
Here Is What You Need To Know
- Since 2008, more than 300 Harambeans have developed high impact ventures in Africa with lasting social and economic impact. Collectively, Harambeans have generated over 3000 jobs and raised over $500m from Google Ventures, Chan Zuckerberg Initiative and Alibaba.
- Given the widespread impact of the pandemic on the continent’s entrepreneurial ecosystem, African startups are finding that their business models have been disrupted, capital markets have frozen and consumer habits are changing — a formula that may result in 50% of Harambean enterprises expecting the financial impact of Covid-19 to become critical within the next three months.
- In addition, over 75% of Harambean enterprises have indicated a need to raise up to $100,000 to sustain business activities, as well as a need for coaching and mentoring from investors and operational experts, explains Okendo Lewis-Gayle, executive chairman of the Harambe Entrepreneurship Alliance.
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The Harambeans Prosperity Fund is a rules-based co-investment vehicle that leverages Harambe’s investment network to increase capital flows to Harambean-led ventures. In response to Covid-19 the Harambeans Prosperity Fund is allocating $1 million to provide low interest loans and equity investments to ventures with sound business models, proven traction and demonstrated adaptability.
What The Fund Gives To Entrepreneurs
The Harambeans Prosperity Fund will make capital available to entrepreneurs who have repositioned their ventures, or had proven business models prior to the pandemic, and are likely to thrive in the new norm but are unable to access capital markets.
The following funding is available:
- $25,000 for applicants who have revenues of at least $5 000 per month over a six-month timeframe within a 12-month period.
- $50,000 for ventures that have raised $250,000 (in debt or equity) within a reasonably recent time period.
- $100,000 for enterprises leading a fundraising round of at least $1million (in debt or equity) within a 12-month period.
The funding is open to any entrepreneur within the Harambean network. Entrepreneurs who are not members of the network are invited to apply to become Harambeans at www.harambeans.com/become-a-harambean
how Harambeans Prosperity Fund works how Harambeans Prosperity Fund works
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer