Local innovations attract global funding

Probably, attracted by homegrown technology success stories from Kenya, such as M-Pesa, the mobile money transfer service, and Ushahidi, the crisis mapping software, the investors are moving into the bustling web and mobile applications scene, writes JEVANS NYABIAGE

Human IPO is a social media platform that aims at accelerating entrepreneurship by connecting entrepreneurs to professionals, co-founders, employees and angel investors. .[PHOTO: COURTESY]

Venture capitalists — who provide funding to promising startups — are making a beeline for a slice of the country’s bustling web and mobile application segment, as interest builds up over its lucrative potential.

In the last few months, the technology scene has witnessed increased activities from investors who want to tap into Kenya’s tech startups, with the conviction that they will be the future "Googles."

Recently, in a 48-hour tech start up pitching contest known as IPO48, 12 startups competed to prepare business cases with the help of local and international mentors. This took place at the Nairobi’s Innovation Hub (i-Hub), where the contestants had just 48 hours to turn brilliant ideas into viable businesses.

Tusqee Systems, run by six university students emerged the overall winner, attracting Sh3 million in investment from HumanIPO, the organisers of the event.

The student’s application promises to revolutionise the way more than 35,000 primary and secondary schools interact with the parents. They will provide cheap, simple and interactive tools that will not only let parents query for exam results, fees balances and fees statements, but also allow schools to converse with parents and other stakeholders via short messages.

MOBILE APPLICATION

Following the great displays and the potential for success shown by the other teams, HumanIPO added two other startups, namely: Ghafla and 6ixDegrees that will get over Sh2 million each to actualise their businesses.

According to HumanIPO, the winners will get investment and office space in a new hub that will house Ghafla, Tusqee, 6ix Degrees as well as two other investments Drugs.co.ke and Futaa.

6ix Degrees, which consist of a team of three, has developed a mobile application that retrieves all contacts in the users’ phonebook and backs-up these in a remote server.

Speaking at the presentations a fortnight ago, the co-founder of HumanIPO David Owino said the mentorship programme involved 18 individuals from US and Europe, who have had a lot of experience in investments of this kind and Kenyan entrepreneurs with web services and ICT experience who know what it takes to make the businesses work in Kenya.

"We don’t just give money and let startups to go on their own, we provide support in setting up working systems and help with getting them the right contacts to make the businesses a success. The mentorship programme is key ingredient that will make the businesses successful," Owino said.

RISKY VENTURE

He said with the potential displayed at the contest, HumanIPO will further commit to invest 400,000 Euros in ICT startup companies with viable ideas.

One of the investors from Denmark, Ivan Alexander Larsen, who is working closely with HumanIPO will help to identify and develop startups.

"We are looking at investing in eight other companies within the next six months. This is over and above what we have done here today at the IPO48," said Larsen.

The flow of funds into Kenyan start-ups is set to change the fortunes, in a segment that was previously shunned as they were considered too risky a venture.

Last year the contest was held at the Strathmore University where M-Farm, a mobile-based service that allows farmers to keep abreast of market prices and market conditions for their produce, emerged the winner, HumanIPO investing Sh1 million.

Human IPO is a social media platform that aims at accelerating entrepreneurship by connecting entrepreneurs to professionals, co-founders, employees and angel investors. It was founded by Danish entrepreneur Kresten Buch and David Owino, who was formerly at Kenya Data Networks.

INNOVATION WAVE

• Human IPO is a social media platform that aims at accelerating entrepreneurship by connecting entrepreneurs to professionals, co-founders, employees and angel investors.

• Last year the contest was held at the Strathmore University where M-Farm, a mobile based service that allows farmers to keep abreast of market prices and market conditions for their produce, emerged the winner, HumanIPO investing Sh1 million.

• The student-run Tusqee Systems developed an application that will allow parents query for exam results, fees balances and fees statements, but also allow schools to converse with