A local seed fund is looking for 30 innovative ideas into which it will invest as much as R100 000 each in a bid to find tomorrow's next big concept.
Seed Engine is offering successful entrants R100 000 each, and a place in a 13-week boot camp, for 10 companies or entrepreneurs with new and disruptive concepts. The programme, which recently opened for applications, will run three times a year.
Marc Elias, founder and CEO of Seed Engine, says the Seed Engine Business Accelerator is looking for innovative and disruptive ideas that are at 'seed' funding stage. He explains that this means the fund is willing to invest at idea level.
There are no qualification criteria to apply for the fund, which is looking at ventures it can accelerate, says Elias. He explains Seed Engine is seeking ideas that are smart and have not been seen before.
Elias expects the concepts to emanate mostly from the technology space. "We look for stand out ideas, tomorrow's Facebook, tomorrow's LinkedIn," he says.
Accelerated process
Elias says the "search is now on to find the 10 best distinctive and disruptive business concepts that deserve a chance at success. We are looking for early stage entrepreneurs who have a big dream to fulfil."
Seed Engine opened for applications almost six weeks ago and has seen applications "flying in", says Elias. Once the final selection has been made, 10 teams of entrepreneurs will go through a 13-week accelerator boot camp where they will each be given R100 000 start-up capital to convert their ideas into practical business plans ready for launch.
The accelerator is a business and personal boot camp for entrepreneurs. The concept of accelerators has become a global phenomenon, driven by successful entrepreneurs and investors.
Mitigating risk
During the boot camp, entrepreneurs will be offered coaching, mentorship, work space and support and an opportunity to grow their concept into a business. Once they have completed the course, they will be introduced to potential investors via a presentation day so that they can attract additional funding.
It is anticipated that the entrepreneurs will raise between R200 000 and R2 million for next-round funding.
The boot camp aims to take concepts to the point where they can attract investor interest, which is a "lot of work" to undertake in a 13-week process, says Elias. He says the boot camp seeks to mitigate a lot of risks that investors are wary of.
Seed Engine does not take any fees for running the programme, but does take an equity stake, says Elias. He explains that through the stake, the company has a vested interest in seeing the concepts succeed.
Entrepreneurs can enter by going to www.seedengine.co.za and completing the application process. The application should clarify points of difference, scalability, disruptive strategies and team details. The first activation will begin in February 2013.
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