Startups in Kenya can now laugh last, courtesy of Safaricom ’s Spark Fund which has announced allocation of Ksh 540 million ($4.9 million) to fund local tech startups as part of its initiative to invest in startups that align with Safaricom’s purpose, as well as support high potential tech ventures in the country.

“The fund will support startups through a combination of investment, business development support, and technical assistance leveraging on Safaricom’s unique capabilities, assets, and market positioning,” said Safaricom in a statement.

Here Is What You Need To Know

• Under the new fund, Kenyan startups will receive support in the form of investments, business development support, and technical assistance from the fund seeking to grow strategically aligned tech-enabled startups for either a Safaricom Partnership or acquisition.
• Even though the fund is meant to benefit Kenyan startups generally, Safaricom is looking for startups that complement its offering.
• Spark Fund’s target is also to invest in late seed and early growth stage ventures in education, healthcare, and agriculture.
• The fund’s average ticket size is $500k but access to Safaricom’s new fund will be treated on a on a case-by-case basis, with the possibility of larger amounts, preference had over startups that offer local solutions to their communities. 
• In 2014, the inception of the Spark Fund, Safaricom allocated Ksh 108 million ($1m) to grow startups, leveraging on the company’s unique capabilities, assets, and market position. 
• The first round of the fund benefitted startups like Sendy, Lynk, Ajua, iProcure, Farmidrive and Eneza between 2015 and 2017, investing an average of Ksh 18.9 million ($174k) for every startup.

Read also: Africa-focused Startup SparkMeter Secures $12 million Investment From Goodwell Investment

What Qualifies A Startup To Access The Fund?

• Interested Kenyan startups must have a Kenyan presence, and must prove that they have commercially viable business models. 
• The startups must also have refined working mobile-based products or services with an active user base. 
• Interested ventures should be generating revenues and sign a partnership with Safaricom. 
• Eligible startups should be either late seed or early growth stage tech-driven ventures.
• The Spark Fund urges applicants to protect their ideas 0or prototypes before submitting their applications.
• A strong team will also be an added advantage. 
• Fund Manager S&B Ventures will identify and select successful applicants, and later present shortlisted ventures to Safaricom’s Investment Committee and the Board of Trustees for approval for funding. 
• Safaricom will then appoint an internal deal team to offer post-investment support after disbursing the funds.

How Startups May Apply

The Fund Manager is S&B Ventures, based in Kenya, who will source deals, perform due diligence and recommend the investments.

Contact the fund manager through spark@africatechventures.co

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