Essential Resources For African Startup Founders

Part 1: Startup Accelerators

It is common knowledge that Africa has long been treated as an afterthought. As recently as last week, the UN admitted that Africans fleeing from Ukraine were treated differently.

This newsletter is about exploring why Africa is not an afterthought. It is also about investigating how technology can help build sustainable solutions that address the challenges that have relegated the continent to the ‘afterthought’ position.

Why technology? For the simple reason that it can touch and enable every other sector.

This a resource for tech founders in the continent trying to build these sustainable solutions. It is a series that will cover different types of resources—from incubators, accelerators, helpful content, podcasts, and websites to investors, events, networking opportunities and books.

This newsletter will compile all the resources into a monster list on Airtable or something similar for quick access and overview. The list will have links to the in-depth coverage to help founders decide the best fit.

To start with, here is a look at startup accelerators.

What is a Startup Accelerator?

A startup accelerator is a program that targets startups that have accumulated a bit of momentum to help them scale. Momentum can mean two things:

• A startup that has the core team in place—CEO, CTO and CFO.

• A startup that already has a Minimum Viable Product (MVP) on the market and is looking to scale that product to greater heights

With such a foundation, the accelerator will offer connections to help you break into new markets, mentorship to help your product fit the market better and a ton of other perks.

As a founder evaluating startup accelerators, a core issue is determining which accelerator best fits your startup. For example, if you do not want to give up any equity, you need to find an accelerator that does not require equity in exchange for the program.

Here is the first group of accelerators that we will cover during the ‘resources for African startup founders’ series.

1. Startup Wise Guys

Startup Wise Guys is an early-stage accelerator program founded in 2012 in Estonia. Their mission is to help founders become bonafide entrepreneurs by building profitable international tech companies.

They have a verifiable history of success that consists of 258 active companies. Approximately 77% of the startups that Startup Wise Guys have worked with are running active businesses and growing.

8 of the startups that have gone through the accelerator program have had successful exits (exit means a return on investment either through IPO or acquisition). The first major exit was in 2016 when VitalFields, a digital agriculture company, was acquired by Climate Corporation for an undisclosed amount. Since then, StepShot, EstateGuru, CallPage, Ondato, Ziticity, Katana and Fractory have also had successful exits.

Initially, the focus was on B2B SaaS (Business to Business Software as a Service) startups in Estonia. Over the past 10 years, they have grown to include Fintech, Cyber, Sustainability and XR. They have also expanded to Latvia, Lithuania, Ukraine, Italy, Turkey, Denmark and most recently, Africa.

Their expansion to Africa is fairly recent and as such they are limiting the focus to B2B SaaS.

What Can a Startup Founder in Africa Expect From Startup Wise Guys?

Their mission is to help founders in the continent to become Pan-African entrepreneurs.

To facilitate that, they offer:

• Funding of up to 65,000 Euros in exchange for 12% equity.

• Access to industry experts including more than 250 mentors, 500 alumni and 200 investors

• A 5-month intensive acceleration program aimed at equipping founders with current and cutting-edge expertise and knowledge

• One on one support after the acceleration program aimed at helping founders find new markets, make sales and develop profitable partnerships

Note that the Startup Wise Guys acceleration program is ONLY open to founders from Kenya, Nigeria, Ghana, Rwanda and Uganda.

Also, it is ONLY open to B2B SaaS startups that focus on:

1. FinTech

2. AgriTech

3. EdTech

4. CleanTech

5. HealthTech

6. RetailTech

How to Apply and What Happens After

Founders should apply online via this link.

If you qualify, you should expect contact from the SWG team to invite you to a selection boot camp. Startup Wise Guys hold selection boot camps every few weeks. At the end of the boot camp, they ask the 10 best startups to pitch to the SWG team and other partners.

Startups that qualify begin the pre-acceleration program, an 8-week equity-free program with SWG. After the 8 weeks elapse, SWG holds a progress day, and the eligible founders are invited to proceed to the 5-month acceleration program.

The acceleration program will cover:

• Goal setting

• Customer discovery

• Product-Market fit

• Market engineering

• Sales and marketing

• Building the product

• Developing a business model

• 12 months road map

• Fundraising

After the 5-month program, SWG will continue to offer help as needed and on-demand.

2. Google for Startups

Google for Startups is an accelerator program that targets Seed to Series A tech startups in Africa.

Seed and Series A are funding stages or rounds. When a founder conceives a brilliant idea, the next step is developing the idea, which requires funds.

The first stage of funding is the pre-seed, where a founder uses their savings and sources funding from friends and family to help get the idea off the ground.

The next stage is the Seed Round. In this stage, a founder will seek to raise money from investors to help the startup grow. The money raised is in exchange for equity and the founder uses it to accomplish tasks such as market research to facilitate growth.

Series A funding involves raising money to help the startup to scale. Scaling can involve adding more features or onboarding more customers.

Hopefully, that gives you an idea of what ‘Seed to Series A tech startups’ means and will help you evaluate if your startup fits the parameters that Google for Startups is looking for. For more information, this is a great resource.

The Google for Startups accelerator program is a virtual 3-month program that is ONLY open to startups from Nigeria, Rwanda, Algeria, Kenya, Ghana, Egypt, Ethiopia, Côte D'ivoire, Uganda, South Africa, Tanzania, Botswana, Tunisia, Cameroon, Zimbabwe, Senegal, and Morocco.

To qualify, you must be building an incredible tech product or business for Africa in Africa (well, the mentioned African countries).

The program is sector agnostic, meaning your startup can be from any sector, as long as you plan to leverage machine learning and AI at the moment or in the future

What Can a Startup Founder in Africa Expect from Google for Startups?

The program’s mission is to bring together Google expertise, products, people and technology with startups in Africa.

To try and achieve that, they offer:

• Equity-free support for three months (the reason it is equity-free is that you will be using Google products such as Google Cloud)

• Mentoring from more than 20 teams working for Google

• Support on how to set up your company and develop a strategy for your product to maximize your chances of success

• Training on how to design your product, market it and be an exceptional leader that gets results

• Credits on the Google products you choose to use. For example, if you decide to build your product on Google Cloud, they might offer you year-long credits that allow you to use storage, compute and database services for free.

• Access to any new Google products that might benefit your product

• Possible technical partnership if your product makes use of advanced technology

• Access to a network of experts in the industry

Please note that Google for Startups does not offer any funding or grants to the selected startups.

How to Apply and What Happens After

Startup founders should apply through this link. Currently, applications are closed, but you can still register your interest.

After registering, wait to hear if you’ve been selected. The program focuses on high potential startups, and some of the program’s alumni include OMG Digital from Ghana, Flexpay from Kenya and Babymigo from Nigeria.

If you qualify, you will go through a three-month virtual acceleration program. The program includes three online boot camps that the CEO and CTO must attend. A third team member can also participate, but that is optional.

The rule of thumb is that three core team members/company representatives should participate in the program.

The team will highlight the core challenges facing the startup during the program. Thereafter, Google for Startup personnel will pair the team with the relevant experts from Google to help deal with the challenges.

Experts will mentor the team on machine learning, AI and other technical aspect. Founders will also learn to manage a tech startup via workshops and labs.

After the three months, you will continue to receive support from Google for Startups network of mentors, alumni and the global community.

3. Startupbootcamp Afritech (SBC AfriTech)

Startupbootcamp AfriTech is a corporate-backed accelerator. That means it has partnered with corporate entities interested in being part of the African tech ecosystem for the benefit of all the parties.

Startupbootcamp AfriTech was launched in 2017 to ‘scale African solutions for African challenges.’ One of their most significant corporate partners is Telecel. Other partners who came on board for the first cohort included PwC, Old Mutual, Nedbank, BNP, RCS and Paribas.

More corporate partners keep signing up, and for the second cohort, which will start in April of this year (the long break was due to Covid), AWS, Google Cloud and Hubspot have also come aboard.

Since its inception, SBC AfriTech has scaled 40 startups. Of the 40 startups, 88% are still scaling and operating, and 50% are self-sustaining, thanks to commercial contracts. That is a pretty decent outcome and is something you should consider when evaluating Startupbootcamp AfriTech.

The accelerator focuses on African startups disrupting these sectors:

• AgriTech

• Analytics

• Blockchain

• Finance

• Big Data

• E-commerce

• Cross-border payments

• Insurance

• Connectivity

• Authentication and Identity Management

• Capital Markets and Asset Management

• Enabling technologies

For more information on the kind of startups they are looking for and the sectors that excite them, here is a video showcasing the top 11 startups from the first cohort.

What Can a Startup Founder in Africa Expect From Startupbootcamp AfriTech?

The first thing to note is that in exchange for the program and all the perks that come with it, they expect 6% to 8% of equity. No, they do not take board seats or select preferred shares.

Startupbootcamp AfriTech is a 3-month accelerator program whose primary goal is to bring corporate and startups together. To that end, they offer:

• Connections with corporate entities in your industry for opportunities, partnerships and as potential customers

• Mentorship from over 1000 mentors who are leaders in their industries

• A global network of experts and corporate partners from over 40 countries

• Access to highly beneficial industry events

• A co-working space for your entire team

• A 15,000 Euros cash stipend for your team to cover living expenses during the program

• Masterclasses that will cover everything you need to know to run a successful startup—from fundraising to lean methodologies and business models

• Discounts and perks that are worth over 500,000 Euros from partners such as AWS, SendGrid and Hubspot

• Access to Alumni only events, tailored introductions and deals after the 3-month accelerator program

• Access and introductions to VCs and Angel investors from across the globe

• A demo day that allows you to showcase your startup to more than 400 corporate entities, investors, press attendees and mentors

How to Apply and What Happens After

As mentioned above, applications for the second cohort are closed. However, Startupbootcamp AfriTech typically opens the applications for three months each year. Keep checking their site and social media to find out when the applications are open.

During the three months when applications are open, SBC AfriTech holds FastTrack events to meet entrepreneurs that SBC AfriTech’s partners, investors, alumni and mentors have recommended. Some of these entrepreneurs might end up becoming part of the final group.

If you are interested in attending a FastTrack event and no one has recommended you, check out the events page on the site. Complete the available form and it will put you in the running to attend the event when SBC AfriTech visits a city near you.

After the application window closes, SBC AfriTech determines if you are a good fit. They arrange a video call to get to know you better if you are. The call determines if you will be invited to a three-day selection event where you will interact with over 50 partners, mentors and investors. You will also receive a bit of training and presentation coaching.

At the end of the three-day selection event, the qualifying startups are invited to a 3-months acceleration program.

While you can apply for the SBC AfriTech acceleration program as a single founder, they prefer to work with a team. According to SBC AfriTech, a team with multiple co-founders can very quickly accelerate their startup within the 3-month time frame. That said, they have invested in several single founders over the years.

SBC AfriTech accelerates startups at two key stages:

1. A startup with a core team but no product yet

2. A startup with a product that customers are already using, although at a small scale

During the program, your entire team needs to move to the city where the program is held. SBC AfriTech usually facilitates visas and logistics support such as bank accounts.

They do not offer a living space but they give your team a 15,000 Euro stipend to cater for living expenses. After the program, they encourage you to stay in the city for an additional three months so you can leverage the connections made during the program. However, that is entirely your decision.

Final Thoughts

This is only part 1 of the series. The rest of the series will cover other accelerators in addition to other resources. When the Airtable is up, we will provide the link and password for quick access to all the resources.

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