Business
Silicon Savannah – Africa’s growing tech scene attracting investors
But while African developers have plenty of ideas, many lack the technical or business skills needed to make money from them. “We are really short on great start-ups that are actually ready to take off,” said Amrotte Abdella, director for start-up engagements for Microsoft in Africa.
“What most angel investors and venture capitalists are looking for is to find start-ups that are tech ready and business savvy,” Abdella said.
Microsoft and its network of partners listens to an average 20 pitches a month from start-ups looking for initial funding or mentoring to get them to the point where international investors start to get interested.
Venture capital firms are typically looking for returns of two to three times their investment in less than 5 years, according to U-start’s Guidotti.
Microsoft plans a second round of innovation grants for Africa in June after giving a total US$100,000 to five ventures in Kenya, Uganda and Nigeria.
The recipients include a school textbook subscription service that saves users up to 60 percent of costs and a mobile gaming company.
Nicknames like “Silicon Savannah” are starting to crop up in reference to the tech scene, although there is still hardly any manufacturing of hardware on the continent.
