Leading Kenyan mobile network operator (MNO) Safaricom has introduced the second version of its Spark Venture Fund, in order to make investments a total of US$6 million in numerous innovative Kenyan tech startups.
Safaricom first released the Spark Venture Fund back in 2014, to make investments and assist late-seed, early growth stage agencies with a presence in Kenya, while leveraging Safaricom assets to permit the agencies to scale.
A US$1 million fund, it invested about US$175,000 in six Kenyan startups, namely Sendy, Lynk, Ajua, Eneza, iProcure and FarmDrive, and a 2d fund has now been introduced.
The new Spark Venture Fund is a larger beast, however, standing at US$6 million, at the same time as Safaricom may even invest larger amounts. Recipients can anticipate to obtain up to US$500,000 each, and on a case-by-case foundation larger amounts, in convertible notes or equity funding.
“The new allocation will go a long way in assisting the successful development and boom of high potential tech startups in Kenya. The fund will aid startups through a aggregate of investment, business development support and technical assistance leveraging on Safaricom’s unique capabilities, assets and market positioning,” the company said.
The Spark Venture Fund will focus on agencies that align with Safaricom’s long-term corporate vision in education, healthcare and agriculture, though startups in different classes of strategic significance that are complementary to Safaricom’s providing may also be considered.
The startups can be identified and decided on by fund supervisor S&B Ventures, and upon completion of a due diligence method be offered to Safaricom’s Investment Committee and Board of Trustees for investment consideration. Following funding approval, funds can be disbursed, and Safaricom will hire an inner deal team to offer post investment support.
