South African township-savvy entrepreneurs can now apply to a new accelerator programme, courtesy of Akro Accelerate (Pty) Ltd in partnership with Imvelo Ventures (Pty) Ltd. The digital accelerator offers to create new opportunities to black-owned and founded township startups.
“We aspire to unlock growth opportunities for both the startups in townships as well as for our partners. We look for South African businesses that embrace transformation, and we know that the townships have what we are looking for: disruptive business models, scalable businesses, and strong entrepreneurs that show resilience and leadership,” Anton Baumann Board member of Imvelo Ventures, a Johannesburg based investment company said.
Here Is What You Need To Know
Imvelo Ventures is a black-owned and black-managed VC and an approved SARS section 12J Venture Capital Company. The VC supports startups at their different stages of development, provided they hold high-growth potential.
According to the organisers of the programme, the accelerator looks out for quality startup founders who are integral to any progress for a startup. Consequently, the accelerator ensures that Founder Growth is an essential pillar to the work they do with startups.
“Entrepreneurship is a long, difficult journey that can be isolating, and we know that resilience is important — as well as knowing your own strengths and weaknesses. We cannot ignore this core element of a startup’s success or failure, whilst working on strategy, systems, and tech development.”
Akro’s motto is ‘Think Bigger, Build Better, Move Faster’ and the VC says this isintegral to everything they do and that they understand the most valuable way to move a startup forward through practical, hands-on assistance.
A Look At The Accelerator Programme And How Startups Can Apply
The accelerator programme is for South African startups and begins on 7 September 2020, and is broken down into three elements:
20 startups will join a filtered eight-week coaching and mentoring programme.
10 startups will be offered a more in-depth, high-touch intervention, which culminates in Demo Day on 6 November 2020, where each of these 10 startups has the opportunity to pitch for one of three grants to the value of R100 000. These grants will be awarded at the sole discretion of Imvelo Ventures.
After Demo Day, the 10 finalist startups will continue with ‘light touch’ assistance for a further 12 weeks.
Please note that all startups applying must have access to technology and data whereby they can access group webinars.
Applications for this progamme close on 21 August 2021. Includes a chance to win 1 of 3 R100,000 ($5.7k) in grant funding (at the sole discretion of Imvelo Ventures)
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
Efforts Carry1st, a budding Cape Town based startup with offices in Lagos and New York, to use games to build what could be Africa’s first super app has attracted a seed round of $2.5 million. The round which was led by Johannesburg based venture capital (VC) fund CRE Venture Capital had others such as Perivoli Innovations, Chandaria Capital, Lateral Capital and Transsion’s Future Hub, Kam Kronenberg III, among others.
Founded in 2018 by American Lucy Hoffman (formerly Parry) and Sierra Leonean Cordel Robbin-Coker, Carry1st also has Tinotenda Mundangepfupfu, who serves as lead engineer and who joined in January last year, now also listed as a co-founder. The latest seed round brings to $4m the total that Carry1st has raised since its inception in 2018.
In December last year, Robbin-Coker told Ventureburn that Carry1st had raised about $2-million by then from prominent angel investors in Africa and the US whom he didn’t name . The startup said in a statement released today that the investment will go to recruiting new hires, investing in platform technology, and publishing new content. Pardon Makumbe, managing partner at CRE, and Henry Lowenfels, chief product officer of One Team Partners, will join the startup’s board.
Since it launched the app last year, the startup claims to have reached over 1.5 million users across the region. Carry1st Trivia was ranked the number one free-to-play Android game in Nigeria and Kenya and was named the Best Media & Entertainment Solution for 2019.
The company plans to partner with international studios to launch multiple games in 2020 and scale its audience to over a million monthly active users. Said Robbin-Coker in the same statement: “Social gaming is the largest and fastest-growing form of mobile media, grossing more than three times all other app categories combined. Our mission is to bring this world of interactive content to Africa and likewise to connect Africa to the world’, adding that “our belief is that building a local publisher, with differentiated tech and operating capabilities across marketing, distribution, and monetisation is the way to be this bridge,” he said.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The South African government helps South African entrepreneurs and business owners through numerous business funding projects. The National Empowerment Fund is one of them.
The National Empowerment Fund which derives its powers from the National Empowerment Fund Act of 1998 is to provide black South African entrepreneurs with financial and non-financial knowledge and consultation services which are important in helping them to grow their businesses.
The National Empowerment Fund In Summary
The Fund helps South African business owners and startups find the right equity investment for their businesses, as well as offer them adequate advisory services on how they may effectively manage their businesses or their employees.
The Empowerment Fund is also a business fund that can help South African entrepreneurs make better forecasts about how the state of the South African and global economies can affect their businesses.
In summary, what the National Empowerment Fund does is to enhance and empower the various existing South African startups and businesses.
Services rendered by the NEF are structured into 4 business operational areas, namely Advisory Services; Corporate Transformation Services; Market Making Services; Group and Entrepreneurial Schemes.
The Startup Areas That Attract The National Empowerment Funding:
NEF offers its financial and non-financial services across different business areas, especially as it concerns the popular businesses carried out by most South African black community members.
These areas include businesses related to:
Food-related
Transportation
Energy
Food and Beverages
Information and Computer Technology
Financial Services
Engineering
Energy
Construction and Materials
Chemicals and Pharmaceuticals
Agro-Processing
Wood and Paper
Industry Manufacturing
Media
Mining Services
Motor Industry
Printing Services
Property Retail
Textile Industry Services
Transportation Tourism and Entertainment
Others
Startups In South Africa Can Get Funding Under The National Empowerment Fund Using Any of These Five Schemes
Startups which are just planning or starting off their ventures may use this scheme. For entrepreneurs who wish to make equity investment or offer expansion capital support to startups, they may find new or existing startups to invest in under this scheme.
What the iMbewu Fund does is to provide financial support either through loans, purchase of equity in these startups or existing business enterprises. Funds that can be procured under the iMbewu Fund range from R250, 000 as the minimum amount and R10 million as the maximum amount.
What the uMnotho Fund does is to help black business owners in South Africa have more access to Black Economic Empowerment (BEE) capital, which is meant to support black businesses in South Africa.
Funds may be procured under the uMnotho Fund for acquisition of other businesses; to aid expansion projects of most businesses; to assist startups and black-owned businesses to have more funds to invest in their capital markets fund operations as well as for the running of their warehouses.
Hence, for instance, black entrepreneurs who are starting new businesses, expanding their existing enterprises, or Black Economic Empowerment (BEE) enterprises that are in the process of listing on the Johannesburg Stock Exchange may get funding under this scheme.
This funding is meant for cooperative societies in the rural communities of South Africa which can show evidence that they are running sustainable businesses.
Hence, the fund helps black South African communities to engage in large-scale economic transactions. The aid or funding here is extended to the acquisition of more businesses, expansion of businesses, financing of money-consuming capital projects , whether for New Ventures, Start-up or Greenfields. It can give for as low as R1 million funding to this group of businesses. The highest available fund is R50 million.
South African government here focuses on projects that promoteindustrial development. It does this through the Department of Trade Industries National Industrial Policy Framework. The fund is also dependent on the report by the Industrial Policy Action Plans (IPAP) of the South African government, coupled with the government’s growth plan strategy.
Startups in South Africa interested in tourism may go through this fund. In June 2018 the Department of Tourism (NDT) signed an agreement with the NEF to establish the Tourism Transformation Fund (TTF) which focuses exclusively on the transformation of the South African tourism sector.
According to this agreement the NDT will transfer a total of R120 million to the NEF over a 3-year period to be applied as grant funding for the benefit of qualifying enterprises that meet the funding eligibility criteria as set out by the two institutions. To date, the NDT has transferred a total of R80 million towards the TTF.
The NEF finances the loan and shareholder loan portions of the transactions and NDT funds are applied as grant funding through the TTF. The fund provides a maximum grant of R5 million or 30% of the total project funding requirement to each eligible transaction.
The Best Way To Apply For The National Empowerment Fund
To secure the support of the NEF for your startups in South Africa:
Obtain and fill the NEF application form. The aim of this is to enable the officials to go through your business case and make the necessary assessments concerning the NEF criteria.
Work on your startup’s business proposal or plan. This should contain certain comprehensive data that test or explain the commercial viability and the financial status of your business. The NEF application form is usually equipped with simple business plan guidelines that will provide you with necessary information concerning the vital topics and sections that you should cover before submitting your business proposal.
Submit your business application form to the NEF.
The Fund and its partner agencies, such as South African Department of Tourism for the Tourism Transformation Fund, will vet your application and then make approval and order funds to be released to help you proceed with the next phase of your business.
Checklists of Document and Information For NEF Funding
NEF application form
Deviant form from the available company/business members confirming the acknowledgment of the provided NEF application form details Three years.
Audited financial records of the business transactions.
Business projections for five years.
Current management accounts.
Applicant personal statements that include both assets and liabilities of all the current company members that are inclusive of the married members with their spouses.
Business bank statements (past 12 months).
Both certificate and Identification cards (ID) copies of all the business members.
CK 1/ CK 2.
CM1 attached with memorandum and articles of association.
Franchisers detailed profile if available .
In-depth information on why your business is on sale .
Sales agreement (where applicable) .
The CV of Principal Applicant .
Proof of residence through Fica compliance .
Historical financial records of business-related franchisers .
Information concerning the lease agreement pertaining to the new company
NEF Contact Information
Physical Address:
187 Rivonia Road,
Morningside, Sandton, 2076
Postal Address P.O. Box 31,
Melrose Arch, Melrose North, 2076
The dti call center: 0861 843 384 Tel: 011 305 8000 Fax: 011 305 8001 General inquiries: Email: info@nefcorp.co.za
Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.
With a population of close to 60 million people, a housing backlog of more than 2.5 million housing units, representing over 12 million people who are currently without adequate housing, smart startups in the South African Real Estate sector who are quick to innovate are cashing out big time. While other entrepreneurs are yet to know about this, a new wave of real estate entrepreneurs in South Africa is transforming the property industry through spell-binding innovation that have changed the way homes are bought, sold and rented in South Africa. Here is how the game has been changed.
Using Crowdfunding To Grow Real Estate
Real estate crowdfunding has grown exponentially since 2012 and is disrupting the real estate market in terms of raising capital. In 2015, over $34.4 billion was raised by individuals on crowdfunding platforms. While real estate crowdfunding statistics are not that common since it is a fairly new concept, trends show that it will continue growing. A property crowdfunding platform usually offers a diversified portfolio of projects. Projects can be short term projects like residential developments for selling or long term projects such as rental properties or tourist accommodations. Projects can also include full development as well as refurbishment projects or asset finance on existing properties, with the right business case. Through crowdfunding, you can contribute towards the development of any property, no matter how small. Once, developed, you are paid returns on your investment unlike donation-based crowdfunding where you not investing for returns.
The size of projects on the platform also varies from $ 200 000 to several million dollars. The success of the project depends entirely on the business case, the attractiveness of the project, and how the interest of the investor can be captured.
The high flexibility and customization of real estate crowdfunding has made it a popular option for real estate in South Africa. Websites like Realestatecrowdfunding.co.za, Reimag.za and RealtyAfrica.comoffer a wide range of crowdfunding options. In South Africa, these crowdfunding websites are changing how consumers react to commercial real estate and are also supporting new developers to grow.
Using Virtual Property Agents to Grow Real Estate.
Virtual property agents are eliminating physical real estate agents and middlemen, by providing cost-effective and meaningful information about properties. You can get information about potential client, homeowner’s contact details and other deep personal information about them. Online Virtual Agent will also allow you to search valuable company details such as directorships, property ownership, contact details and addresses where companies are involved because the more you know, the more you sell! You can also get past or current ownership data, dwelling sizes, title deeds numbers, attorney files and more! It is the fastest way of finding property sellers and buyers in South Africa. According to Dan Hughes, CEO of Alpha Property Insight explains, “the average agent spends 80% of their business day doing admin and marketing their product, not negotiating and closing deals. (Virtual) Technology allows us to invert that statistic so that 80% of a professional’s time is spent negotiating and closing deals and only 20% is spent on administrative tasks.”
Most of these online Virtual Agents in South Africa are using 3D modeling and VR tools for virtual viewing of the property. This VR tools are already moving beyond pictures to offer 360-degree video in virtual property “tours”. A major advantage here is that VR can facilitate viewings 24 hours a day, 7 days a week, and will permit buyers to view multiple homes efficiently from the comfort of their own home or wherever they may be. This broadens the prospective viewings available to buyers and means that they might just find a home they didn’t initially ask to see. South African companies such as TheVirtualAgent.za, Gumtree.za and Steeple. are already leveraging this Proptech solution.
Using Cloud Computing and Social Media.
Real estate startups in South Africa are changing the style with the use of many digital channels and social media tools. Buyers and sellers now communicate with each other directly without middlemen, bypassing agents. Potential purchasers and sales teams can share a common view of property information as an interactive map, with administrators having access to detailed user analytics highlighting which units or sectors receive the most interest. The digital tools also provide certain functionality and interface, sometimes defining the property sales process from start to finish, and ensuring that every stage of the deal is measurable and available to all parties at any given time, regardless of geographic location. This is not only cost-effective, but provides real-time availability of property information. This has also reduced barriers to entry for newer and smaller companies to enter the real estate tech of South Africa. Companies like REDi, Propdata, are some of the companies leading this cause.
Startups in South Africa are also leveraging the power of technology to make site inspection easier. For instance, Imfuna offers a range of mobile apps for digital inspection by construction inspectors, residential and commercial property inspectors, and rental property inspectors. For example, the Imfuna Construction Inspector’s web and app software for iPhone and Android dramatically enhance the construction site inspection process to give builders technology they can depend on. The Imfuna Construction Inspector can be used to observe and record multiple types of data about a property or building site’s condition, then produce a high-quality, branded PDF construction report that can be shared online.
In all, the real estate industry in South Africa is fast changing and smart startups can leverage this opportunity. Consumers are constantly looking out for cost-effective, easier ways of buying and selling property online.
Here is how one reviewer, captures the experience he had on PropertyFox‘(It is) The new “Uber” of buying and selling Property.I am fortunate to both buy and sell a property through PropertyFox. A remarkably modern way of doing business saving you thousands of rands. I saved almost R135,000 on the sale of my property…’’
South Africans and entrepreneurs elsewhere can leverage these opportunities to explore the fast-revolutionizing real estate business.
Charles Rapulu Udoh
Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.
