Africa-focused Seed Fund 88mph takes a 2 Year Sabbatical from Investing in Startups
Africa-focused startup accelerator 88mph has announced it will take a break in investing in startups in Africa for the next 18-24 months to help it focus on helping the companies get some good return for the investors and founders.
In a blog post 88mph founder and CEO Kresten Buch said,”88mph have invested in 36 companies during 2011 – 2014 in Kenya and South Africa and have fully invested our funds. In the next 18-24 months, we will focus on working with the companies we have all ready funded to get some good return for our investors and founders.”
18 to 24 months is not a long time and 88mph will be back at its a game again. Since 2011, the firm has invested 36 companies such as Kenya’s top entertainment and gossip site Ghafla, Movas Group, a micro-credit firm, BookNow, among others. The fund has also invested in firms such as ApexPeak, BabyGroup, MyDoorHandle among others.
Recently, 88mph partnered with L5Labs to launch 440.ng in Nigeria which has also invested in nine companies. No other funds has such a huge portfolio value in Africa like 88mph’s. Kenyan-based Savannah Fund has invested in over 16 startups in Africa while Nailab says it has worked with over 40 companies investing minimal amounts at a seed stage as well as giving working with the founders on team formation, product development and go to market strategies. GrowthHub has also worked with a number of startups and selectively invests in a few with partners such as the Village Capital among others.
88mph is credited for starting up and accelerating Kenya’s tech scene which was heading to competitions and hackathons in stead of real seed investments. Buch and his team rallied around local investors such as EatOut‘s Mikul Shah to put money into startups. Though it looks easy for critics, fundraising in Africa is not a kid’s game and 88mph should be credited for that as they take a sabbatical from investing in African startups.
Below is Buch’s full statement.
88mph is taking a break from investing in startups
88mph have invested in 36 companies during 2011 – 2014 in Kenya and South Africa and have fully invested our funds. In the next 18-24 months, we will focus on working with the companies we have all ready funded to get some good return for our investors and founders. So, if you are a startup looking for funding in these markets, then we will unfortunately not be able to help you at the moment.
We would like to thank all the people who have been involved in 88mph and our activities thus far – mentors, investors, founders, EiRs, interns, sponsors, staff, and media – all of whom have been an invaluable source of support in the past 4 years. Its amazing to see how much the environment for starting and growing companies in Africa has developed in this short time. I’m certain we will see even more successful companies emerge over the next few years.
Source: Techmoran 10 June 2015