A Nairobi tech incubation facility has secured international venture capital funding to help kick-start local entrepreneurs.
m:lab East Africa, a mobile innovation and entrepreneurship development facility, has signed a one-year partnership with Grow Venture Community (Grow VC), an investment firm headquartered in Hong Kong. Grow VC plans to help m:lab assist start-ups in the region with services such as training and contact with experts funded by the firm.
The Hong Kong-based investment firm is also adopting a funding model that facilitates investments in small amounts, giving local developers the money they need while allowing the investors to mitigate their risks.
“The start-ups can access the funding from as little as $1 000 to as high as $10 000,” said John Kieti, m:lab East Africa manager.
“Sometimes the developer may not need much at first, but if he or she is to grow then he needs to pay rent, salary for assistants, marketing and legal advice,” said Kieti.
Grow VC's involvement in Kenya follows on more investment firms focusing their attention on Africa technology start-ups.
Fanisi Venture Capital, a $50 million equity fund, recently invested $1 million in Kenyan financial transaction platform firm Paystream. Another company, Adlevo Capital, plans to invest between $3 million and $10 million in companies operating in ICT sectors across Africa. Fifty percent of its capital is targeted at Nigerian entrepreneurs.
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