$2 million VC boost for 6 local startups

88mph, an African seed accelerator, says it has invested US$2 million (R20 million) into six Cape Town startups.

In February, 88mph selected 10 local startups out of more than 400 applications for its three-month accelerator programme in Cape Town.

A spokesperson for the fund, Katie Sarro, told BusinessTech that “the fund is up more than 200% based on market valuations of the startups in our portfolio”.

Overall, 88mph said it has invested US$3million (R30 million) in tech in Africa over the last 3 years, since its launch in Nairobi, Kenya in 2011.

In March, 88mph announced that 4Di Capital, an independent early-stage venture capital fund based in Cape Town, had invested in the private fund.

“We are now accepting applications for our Nairobi accelerator which will begin in August. We invest $15-100k (R150,000 – R1 million) per startup,” Sarro noted.

“With an increasing middle-class, now at 313 million consumers (34% of Africa) and rapid urbanization, there is a huge demand for new tech products & services, making 88mph’s arrival on the continent quite timely,” she said.

88mph said special consideration is given to African diaspora or other entrepreneurs that have an understanding of the African markets.

Startups selected by 88mph in South Africa in February included:

  • Online electronics store CableKiosk;
  • Action sports online community marketplace, Adrenalin Hunter;
  • Online auction platform, Liquid Crunch;
  • Online search directory for the construction industry Near a Builder;
  • Online property connections platform The Massive;
  • Real time energy consumption monitor Homebug; and
  • Pay-per-view video streaming service Wabona.

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$2 million VC boost for 6 local startups