Intel Capital says it is currently evaluating an \u201cexciting pipeline of start-ups in South Africa\u201d having already invested in listed ICT group Allied Technologies (Altech), in 2011.<\/p>\n
Intel Capital, the global investment and M&A arm of technology giant Intel, recently announced its first venture in West Africa through a tech co-investment initiative with Adlevo Capital Managers.<\/p>\n
The two private equity fund managers completed an expansion investment into Ghana-based Rancard Solutions, a provider of cloud software for mobile content discovery and delivery, focused on Africa.<\/p>\n
Sam Mensah<\/a>, who is investment director for sub-Saharan Africa, told BusinessTech that there is increased activity and global interest in African start-ups in countries such as Nigeria, Ghana and Kenya.<\/p>\n \u201cWe invest in innovative technology companies globally whether they are in Germany or Ghana. Additionally, Africa with its young population and rising income levels has become an important growth market for technology companies such as Intel,\u201d Mensah said.<\/p>\n \u201cWe have an exciting pipeline of start-ups in South Africa we are currently evaluating. Overall we are interested in companies with a high growth potential. Their common feature is their contribution to the broadly-defined technology ecosystem, in which Intel itself operates,\u201d the sub-Saharan Africa lead said.<\/p>\n In June last year, Intel Capital announced its first foray into South Africa, through a $5 million investment in Altech to explore various areas of collaboration in the telecommunications, multi-media and information technology sectors to accelerate the adoption of broadband services in Africa.<\/p>\n According to Mensah, although there is room for improvement in legislation and incentives for entrepreneurs, Intel Capital continues to see exciting start-up opportunities in South Africa.<\/p>\n \u201cIn the last couple of years, however, we have seen a significant increase in start-up activity in other African countries such as Kenya, Nigeria and Ghana. Access to mobile devices and faster data connectivity has created market opportunities for start-ups which did not exist a few years ago.”<\/p>\n \u201cI would also like to highlight that we are an investor that helps its companies beyond just providing funding. At Intel Capital, we are dedicated to offering the entrepreneurs we work with more than just access to money. We offer them our technology expertise, customer connections, business development programs, and overall brand value, all to help the local entrepreneurs to grow their businesses,\u201d Mensah said.<\/p>\n He continued, saying that Internet-enabled business models such as e-commerce and content are specific examples for Africa that help to foster innovation in the broader IT ecosystem.<\/p>\n Are there any potential investments in the pipeline for South African tech companies?<\/p>\n \u201cWe cannot comment on future investment activity, countries or volumes, but rest assured that we continue to look at new investment opportunities throughout the entire region,\u201d Mensah finished.<\/p>\n In 2011, Intel Capital invested US$526 million in 158 investments with approximately 51 percent of funds invested outside the US and Canada.<\/p>\n Relates article:<\/strong><\/p>\n Intel Capital eyes West Africa tech potential<\/strong><\/a><\/p>\n Ricoh to invest R200m in SA<\/strong><\/a><\/p>\n