More than 200 start-ups apply for funds

More than 200 Kenyan start-ups have submitted enquiries and applications for the Safaricom Spark Venture Fund, with applications now going into the short-list phase.

TBL Mirror, the fund managers for the US$1 million (Sh97 million) fund launched last year, have started evaluating the start-ups in line with the fund’s objectives and recipients are set to receive between Sh7 million and Sh22 million to invest in their businesses in return for a minority stake in their companies.

“We are on course to fulfil the promise that we made more than three years ago when we committed to nurture the growing mobile development space in Kenya.

We believe that the sector is ripe for the development of innovative, local-based solutions that have viable commercial application,” said Joe Ogutu, Director for Innovation and Strategy, Safaricom.

In addition to direct funding opportunities, the start-ups will also have access to strategic relationships with partners designed to empower them with the skills to build sustainable businesses.

The Safaricom Spark Fund is to be allocated to a select group of start-ups based on set criteria that the Fund has laid out.

For a start-up to be considered for funding, the firm’s Directors must demonstrate that they are willing to ramp up and scale their operations with a view to growing their market share.

“We have seen promising and good quality start-ups that are starting to build up experienced teams alongside their technical and sales workforce. This illustrates the high level of interest in the market for scalable, locally developed and innovative solutions,” said Eline Blaauboer, Fund Manager, TBL Mirror.

Over the last five years, Safaricom has invested in a number of initiatives that aim to boost the capacity for local innovators to develop specialised mobile applications and tap into the growing applications development ecosystem in the region.