Seed Engine, a South African start-up business accelerator, has launched its second program where\u00a0participants are able to pitch\u00a0their start-up ideas to\u00a0venture capitalists and private equity firms.<\/p>\n
The\u00a0investment engine has already selected six start-ups which will benefit from a\u00a0R100,000 cash injection, along with over R300,000 in additional benefits including\u00a0coaching, mentoring and support to grow their concept into a business.<\/p>\n
Seed Engine CEO,\u00a0Marc Elias\u00a0said: \u201cWe take a 20% stake in each business so we are invested in the outcome. Interestingly the average valuation of each of the ventures at the start of the journey is R500,000. At Demo Day where they pitch their ideas to potential investors, the average is around R3 million \u2013 a substantial increase in a very short time.”<\/p>\n
At the demo day, which takes place on 27 November 2013, ventures pitch potential investors including angels, venture capitalists, private equity firms, corporates and government so that they can attract further funding.<\/p>\n
Seed Engine said it selected six ventures for its first 12 week accelerator boot camp from more than 300 applications. These ventures are currently in negotiations.<\/p>\n
\u201cIn South Africa, it takes between six and nine months for venture capital; however, the angel investment cycle tends to be shorter,”\u00a0Elias said.<\/p>\n
He noted that first program ventures, Zehoo.me, Cirqls.com and ChowHub made it into the top 40 Start-ups in Africa at the Angel Fair.<\/p>\n
The new ventures earmarked by Seed Engine include:<\/p>\n
Seed Engine has received seed capital from Absa, while strategic partnerships are in place with both local and international early stage venture capital firms including Grovest, and U-Start.<\/p>\n
Redwood Capital has provided funding to develop the innovative workspace and is involved in the mentoring of entrepreneurs during the activation process.<\/p>\n
The accelerator also has backing and support from tech and other companies looking to boost start-up culture and employment in South Africa.<\/p>\n
These include, Microsoft; ITEC; business advisors, PKF; coaching and leadership facilitation company, Urban Everest; and private property and construction company, Tiber.<\/p>\n
SA Seed Engine fires up<\/strong><\/a><\/p>\n IDC commits R150 million to SA startups<\/strong><\/a><\/p>\n Seed tech investor reveals SA candidates<\/strong><\/a><\/p>\n