Kenya’s mobile telecom operator, Safaricom, has announced the second edition of the Spark Venture Fund established to invest and support late-seed, early-growth stage companies in Kenya.
Safaricom has increased the fund from $1 million to $6 million in this second edition.
The fund launched in 2014, was set up to “grow a portfolio of strategically-aligned tech-enabled start-ups for deeper commercial partnership and/or acquisition by Safaricom whilst transforming lives.”
The $1 million in the first fund was subsequently fully invested into 6 mobile technology start-ups in Kenya namely Sendy, Lynk,Ajua, Eneza, iProcure and Farmdrive.
For this edition, Safaricom is willing to put up a fund of $6 million, with up to $500, 000 into tech-enabled start-ups that are strategically aligned with Safaricom’s purpose.
The new allocation will go a long way in supporting the successful development and growth of high potential tech start-ups in Kenya. The fund will support start-ups through a combination of investment, business development support and technical assistance leveraging on Safaricom’s unique capabilities, assets and market positioning.
According to the company’s statement, “We are keen to support tech companies that align with Safaricom’s long term corporate vision in Education, Healthcare and Agriculture. Start-ups in other categories of strategic importance and being complementary to Safaricom’s offering will also be considered.”
The start-ups will be identified and selected by a fund manager (S&B ventures) and upon completion of due diligence process be presented to the Investment Committee and Board of Trustees for funding consideration.
Following investment approval, the funds will be disbursed, where Safaricom will appoint an internal deal team to provide post investment support.
From time to time start-ups in other categories of strategic importance and being complementary to Safaricom’s purpose will also be considered.
Investees will have the following characteristics;
Required
- Kenyan presence
- A Core diverse skilled team
- Refined Working mobile based product/service
- Commercially viable business model
- Active user base
- Generating revenues
- Partnership with Safaricom signed or being discussed
- Raising equity or quasi equity
