The process of starting a company can be treacherous, especially if you are doing it alone. Without experienced brains to guide you, the possibility of failure is much higher. The same goes for when you don’t have the requisite capital to get your business off the ground. A good number of businesses that fail in the startup phase are downed by liquidity and cash flow issues.
However, cash flow management is tied in with the overall operations of your business. The way your business is structured from day one plays a big role in your ability to keep it afloat later on. Having a mentor in the form of an angel investor, or an adviser in the form of a venture capitalist, can be a huge advantage in ensuring start-up success.
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Venture Capital Firms
Today, Kenya is considered to be the silicon valley of Africa. The start-up space is quite robust, with the signs pointing to more growth in the future. So, if you are an aspiring entrepreneur thinking about the leap, now is the time to start doing your homework. Knowing the people you can approach for start-up funding, advice, and guidance can be a huge advantage.
So, without much further ado, below are seven of the best native Venture Capital firms and some top Angel Investors that you can consider when seeking funding for your start-up.
Fanisi Capital is one of the biggest venture funds in East Africa, with over Ksh 3.5 billion invested since 2017. Mostly focused on agribusiness, healthcare, mining, and financial services, Fanisi is a great partner for any SME looking to unlock its growth potential. After the recent merger with Ascent Capital, Fanisi Capital is even better placed to help you find success.
The Savannah Fund is hands down the biggest and most influential venture fund for start-ups in the tech sector. The fund offers the best mentorship and training on early start-up management, to avoid mistakes like poor cash flow management among others. Moreover, Savannah start-up support extends to post-investment assistance, ensuring that you are able to scale your business effectively and profitably.
Adullam Ventures
Adullam Ventures is one of the only native venture funds on this list. Located in Kitale Town, this start-up fund targets mostly youth businesses in the country, providing both venture funding and business mentorship. One of the most successful investments by Adullam is the Rayzon Schools, which provide robotics and programming training for students.
The Africa Tech Venture fund is a pan-African investment firm with roots in the technology industry. In partnership with Safaricom, AFV has recently launched the Safaricom Spark Venture Fund II, a Ksh. 3 billion fund which started handing out funding in 2021. A highly diverse team of industry experts sits on the AFV board, which ensures the most comprehensive technical advice you could ever hope for.
Angumi Global is a Kenya-based venture fund that provides services in start-up organization as well as start-up capital and seed investment planning. With operations in the Horn of Africa, Angumi Global has been working with private and government sector players to run projects in agriculture, real estate, and credit services.
Cornerstone ventures had its humble start as an investment club ten years ago. It has now grown into one of the best investment firms in the financial sector, energy, and industrial development. A partnership with Novastar Ventures has further solidified the VC’s presence in the region.
If your business idea is in the environmental space, then Enza might just be the venture firm for you. Enza specializes in social impact businesses, especially those in environmental conservation. The company also supports technology startups using digital tools to solve pressing societal concerns. Scalability is a big factor in getting funded here, so be sure to have a good vision for your business idea.
Angel investors
Angel investors are high net-worth private entities who commit their personal funds to support entrepreneurs, especially those in small startups. This is unlike venture capital firms, which are companies engaged in the business of providing start-up investment for early-stage businesses with the explicit intention to make profits.
Angel investors tend to be more closely associated with the business and may even provide technical assistance in day-to-day business operations. Below are some of the best platforms to find angel investors in Kenya.
Viktoria Ventures is the leading angel investment provider in Kenya. The company is especially dedicated to the creation of the ecosystems that entrepreneurs need to thrive, especially in the early business stages. To this end, Victoria offers entrepreneurial coaching, helping start-ups to develop strategic growth plans to entice investors. Other services include valuation of start-ups for investment planning, negotiation, and facilitating deals between investors and entrepreneurs.
Another platform where you can connect with angel investors online, Villgro connects native entrepreneurs with native angel investors and facilitates the onboarding process. Businesses that may be listed on Villgro range in maturity from incubation, early start-up, and take-off. However, Villgro Kenya is also a venture fund of sorts, providing funding for businesses, especially in the healthcare system.
Especially suited to social businesses that solve a pressing issue in the community, Villgro also provides entrepreneur training on start-up formulation in order to attract investors.
Whether you are planning to seek funding from an individual investor or from a boutique investment firm, there are limitless options in Kenya. But getting start-up investment is no mean feat for it takes great effort to impress prospective investors with a clear and compelling vision.
