88mph in VC funding boost
88mph, an African seed accelerator, has announced that 4Di Capital, an independent early-stage venture capital fund based in Cape Town, has invested in the private fund.
88mph says the investment from 4Di provides its group of startups with greater access to a vast network of local investors and the chance to secure follow-on funding.
In February, 88mph selected nine local start-ups out of more than 250 applications for its accelerator programme for 2013.
The group launched its three month accelerator programme in South Africa last year, aiming to assists start-ups by providing them with investment, access to business networks and the know how to quickly grow their businesses.
The fund invests in early stage mobile-web companies targeting the African market, focusing purely on ideas with potential to scale across Africa.
“The technology space in Africa is picking up and we’re seeing a lot of activity and opportunity,” said Kresten Buch, 88mph founder.
“Investors are watching this and beginning to look outside of developed markets like the United States for growth, because those markets aren’t expected to grow as fast as they have in the past.”
The International Monetary Fund (IMF) forecasts sub-Saharan Africa to be the world’s third fastest growing region in 2013 and 2014, with many African economies growing above 7%.
“88mph is unique in that they provide startups with actual funds, which is very rare for an accelerator in emerging markets and Africa especially,” said Justin Stanford, 4Di CEO and co-founder.
“They have spent over one million dollars on investing and supporting startups Africa—far more than any other accelerator here. We have chosen to back this accelerator as a part of our desire to help foster and develop the nascent early-stage startup ecosystem in South Africa. ”
88mph is partnered with Google for Entrepreneurs and is also funded by private investors including Hannes van Rensburg, Fundamo CEO and Ranjith Cherickel, head of sales and business development, Africa at Nokia Siemens Networks.
88mph opened in Nairobi, Kenya in 2011 and has since made 24 startup investments. The seed accelerator plans to expand to Nigeria.
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