Betting on high growth mobile/Web markets in Africa, the seed investment fund 88mph will now run the continent’s first intense 3-month accelerator program – inspired by Y Combinator – investing another minimum of $200,000 spread across 8-15 startups.
The 88mph accelerator program is open to both local and international tech entrepreneurs. The combination of a large market, young population and opportunities within the mobile/web industry makes this accelerator attractive to any tech entrepreneurs who are looking to solve real challenges.
The speed at which the mobile Internet has reached the markets of Africa, now at 274 million Africans on Edge or 3G, has created a huge demand for local applications and services catering to the young and growing middle class of Africa.
Kresten Buch, founder of 88mph comments, “Looking 2-5 years ahead, the US and Europe will be stagnating at best. I think the biggest opportunities for return on investment will be in Africa and other emerging markets. Our accelerator program is a great opportunity for international tech entrepreneurs and returning diaspora to come, take advantage of the insane growth here, and work on solving some really interesting problems.”
88mph provides the perfect landing for entrepreneurs with guts and a sense of adventure. They offer office space, a great local network, market knowledge, cash and, “a one way plane ticket”, Kresten jokes. “One of the reasons for the success of other tech/investment ecosystems, like Silicon Valley, has been the influx and mix of talent and ideas from across continents and cultures”, Nikolai Barnwell, program manager at 88mph, points out.
Up to $24,000 per startup – and other program details
- Applications to 88mph close on August 15th
- Startups can apply now at 88mph.ac
- The $24k investment will take a 6 to 18 percent equity stake in each startup
- Altogether 8 – 15 teams will receive an investment and get accepted into the 3-month program
- The teams will be notified if they have been accepted to the program by Sept 5th
- Program starts on September 15th in the 800m2 88mph Garage in Nairobi, Kenya
- Besides funding, the accelerator program includes exposure to 88mph’s mentors & networks of business and tech professionals, like Johanna Kollar, from Startup Support Africa at Google, Larry Madowo, Anchor at CNBC Africa, and Ranjith Cherickel, Head of Services Sales, Nokia Siemens Africa.
- Startups in the program will have access to tech hubs in Nairobi and Cape Town, as well as to 88mph’s partner tech hubs across Africa.
Companies and Testimonials
Since it was started, 88mph has invested in seven startups – all targeting the African mobile/Web markets – one of which has raised follow-on funding and expanded into Nigeria.
The startups include Tusqee, Ghafla and 6ix Degrees, Futaa.com, PesaTalk, Hivi Sasa and Drugs.co.ke.
Futaa.com’s CEO and chief editor Patrick Korir said that without 88mph’s initiatives, the company would probably have remained it’s old shell.
“With 88mph on board, Futaa.com came into being. Funding, the biggest and most important facilitation, made it possible to have the resources; from human to the necessary assets to facilitate the flow of news,” Korir said.
Tusqees’ cofounder Boniface Githinji, said that 88mph’s idea is to provide the startups with the money to kick-start the businesses as well as to help with the administrative tidbits of setting up new ventures that many developers “didn’t want to waste time with.”
“Many investors dilly-dally on the terms and conditions, and then send you the money in installments, but these guys have simple terms, and they send you the money in one installment. So it’s like they pay you so they can work for you,” Samuel Majani, cofounder of Kenya’s top infotainment site Ghafla!, said.
6ix Degrees cofounder Gikonyo Ngugi said: “88mph has brought exposure and business best-practises into our startup. The difference is in the level of individual detail 88mph accords each startup with unique problems and solutions.”
About 88mph
The team behind 88mph has previously hosted two investment events in Kenya. In 2010, set up as 48-hour investment bootcamps, the first event resulted in an investment in M-Farm. The second event, in August 2011, led to the creation of 88mph, which at the same event invested in three startups.
For more information please contact:
Kresten Buch
Founder, 88mph
+372 532 294 53
[email protected]
Nikolai Barnwell
Program Manager, 88mph
+254 713 589 662
[email protected]
