Savannah Fund Overview @ iHub
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Transcript of Savannah Fund Overview @ iHub
Africa’s Seed & accelerator fundMentor. Accelerate. Invest
Developing tech entrepreneurs in subsaharan Africa @savannahfund
Mbwana Alliy- Managing Partner
@mbwana
iHub Info Session: 26th July 2012
Covering Today
• Savannah Fund Overview
• Objectives of Savannah Fund
• What we look for?
• Who we fund?
• How we add Value to Startups
• Our Timeline & How to connect
• Q&A
Savannah Fund Team
Partners
Erik Hersman: Ushahidi, iHub, Afrilabs, Senior TED & PopTech Fellow
Paul Bragiel: 3X Tech Entrepreneur (2 exits), I/O Ventures Managing Partner. Silicon Valley ambassador to the World
Mbwana Alliy: Systems Engineer, Stanford MBA, Microsoft Product Management, I/O Ventures EIR, 1X startup
Investment Committee: None.
Advisor: Rachel Pike (Draper Fisher Jurvenson)
We are a fund for entrepreneurs by entrepreneurs
4
Portfolio
Mentor Network
16
Objectives
• Plug the seed investment gap exists in for tech entrepreneurs to get their ideas from prototype to scalable business
• Provide High quality mentoring via accelerator program to stimulate investment grade entrepreneurs
• Build a sustainable Early Stage Tech investment Ecosystem for Sub Saharan Africa with Kenya at the core
"Most critical challenge facing Africa's quest for regional integration is the limited availability of technical and entrepreneurial capabilities. More specifically, Africa's educational systems have so far paid little attention to training in the engineering fields and related business knowledge."- Professor Calestous Juma, Harvard Kennedy School
Journey: Pivot to Pivot
Savannah Fund Concept
Talked to over 200 investors
3 months Research
DecJun Sept Mar Jun
2011 2012
Launch
• Reaching out to local mentors (vertical expertise & proven track records with real time to add)
• Building connections with iHub and Follow on/Co- investors
• Getting ready to start operations and investing
Differentiation
• 2 classes/year of 5 companies, optional residency in Silicon Valley ($25k investments 15% stake)
• Follow on and Independent Seed Fund ($100-500k)
• Mentor Network & Early backers from Silicon Valley that have started companies with over $5B in market value + Local
Can add value locally and from Silicon Valley
Trusted Angel Network & Co-
investment partners
Tech focused seed fund - accelerate
deal flow
Seed/Series A Follow On + RBF29%
Independent Seed34%
Accelerator Seed Follow On29%
Accelerator tests/experiments7%
~$10M
30 teams to test prototypes & business models at $25k in Accelerator in Kenya. ~10/year.
Up to half (15) of Accelerator graduates Seed Financing at about $100-200k for proven model with scale potential
20+ Investment ready seed deals between $150-250k that are already gaining traction across Africa
Follow on & co-invest in subset of portfolio (35+) that are scaling Strategic use of Revenue Based Financing (up to $500k)
Fund Components
• 1st class to begin in mid-late September expected to last 3 months
• Online form + We'll run coding tests + interviews (CodeEval or Codility)
• Will accept a class of 5 startup/teams per cohort
• Local + Silicon Valley mentors (via "mentor trip") + offsites & dinners
• Work on Creating Value: product, hiring, strategy, business model, marketing, design, analytics, local/regional scaling connections, technical scaling
• Ready for Demo Day and invite leading tech focused Investors
• Teams who secure follow on funding can opt for Residency in Silicon Valley
Accelerator Outline
1 week Mentor trip
Mentor Trip 1 week Schedule
Optional Cross incubation in Silicon Valley- 6 weeks
Casual Meetup Keynotes Office Hours (iHub) Hands On Help Conference &
Demo Day
Q1 Cohort 1
Q2 SV Residence
Q3 Cohort 2
Q4 SV Residence
Conference & Workshops
Business Development
Office Hours (i/o Ventures)
1:1 Investor Pitches
Africa in Silicon Valley Demo Day
1 week Mentor trip
1 week Mentor trip
Accelerator Outline
Mentoring
Inspiring Mentors Specialist Mentors• Inspire • Big Picture, Scaling,
Lessons Learned, etc.
• Knowledge Transfer • Hone Skills
Cross/Incubation
An Accelerator Program designed to empower East Africa startups to scale up rapidly and effectively, while driving customers and revenues
Virtual Link• Connected Presence • Mailing List • Cloud IDE & Code Checking
• Optional 4-6 weeks
Silicon Valley
Local Mentors• Alumni of the Program • Provide Local Context
Categories of Mentoring
Confidential
Events • Mentor Trips • Offsites • Demo Day Prep
• For profit sustainable businesses
• Technical & well rounded teams (the 3 Rs): Roles, Relationships, Rewards = High Performing Team
• Focused on Scalable Product or Service addressing the Subsaharan Africa market
• For the accelerator, core team needs to be in Nairobi at the iHub during the 3 months
• Teams with a bias on learning & execution over "IP".
• Not afraid of failure... NEVER GIVE UP
Who we fund
3 Rs (Control vs Maximizing Wealth)
Bwana James founded the business with his brother, they desire to conquer the Tanzanian mobile money market. They have not agreed how to split equity, they have no prototype because they have a secret sauce they want to hide from Vodacom. Looking for $500k to build product and launch a billboard campaign. He also runs a web Dev consultancy...
James, John and Jane are engineer, sales and designer- They have a prototype mobile money solution being used with 100 customers in pilot across Kenya & Tanzania. They plan to hire rock star engineers and bring on experts to scale and set side equity & expect dilution to grow the pie size
James was working within Vodacom and was frustrated that the mobile money remittance solution was not being adopted in his home town of Tanga, so he left his job and recruited John & Jane (worked weekends), college friends and bootstrapped on their savings - their pilot "MVP" is growing 20% a month in Tanga alone with no marketing.
Who we fund:
Connect with Us
Website: www.savannah.vc
Angel List: www. angel.co/savannah-fund
Twitter: @savannahfund
Resources: www.savannah.vc/resources