Alternative sources of funding for Uganda: Accion Venture Lab
Disclaimer
I am not an agent nor am I connected to this entity. The information provided below is independent and based on my research and experience. While I have taken steps to ensure the accuracy of the information presented here, there is no guarantee that it will continue to be accurate.
Basic information
Target customer of the fund: “Late start-up”.
Sector focus: Financial services, particularly those using emerging technology, for example mobile money and “branchless” banking, social media, and cloud computing.
Amounts provided: $ 100,000 – $ 300,000
Financing type: Risk capital (It means that instead of providing a loan, the fund takes a% of the shares of the target company, you can also make convertible debt which is a loan that can be converted into stocks.)
Key criteria:
- Innovative business models that are developing innovative technologies and disruptive business models that will provide financial services to people at the base of the pyramid (BOP); and
- You don’t need to have significant income, but it should be post-research and development, a full-time team in place, and ideally a pilot / prototype on the market.
More information:
Look online for fund information or contact the East Africa contact: [email protected]
Who is behind the bottom?
Acción is a pioneering private non-profit organization in microfinance. It was founded in 1961.
How is the application process?
The fund was recently launched in April 2012, so there is no clear information available, but the expectation of the process is:
1. Send an initial email to Nicky Khaki, the East Africa contact.
2. presentation of an executive summary to highlight the opportunity and need for funding.
3. Submission of a detailed plan, due diligence, and a site visit to ensure equipment is in place.
What are my views / tips to be successful in accessing the capital?
1. Impress:The Hazard Lab is an “Experimental Project” and is therefore looking for the “Next Big Hit”. I think the business plan / executive summary you submit should show how you are embracing new / emerging technology to solve Uganda’s problems. It should not be conservative, but rather balance the futuristic vision with the practicalities.
2. Market research. Since the team is interested in technology that has been tested and a model that is starting to work in the market, they must demonstrate evidence of tests in the Ugandan market.
3. Scalability.Taking into account the work that Acción does worldwide in the field of microfinance, a good model should demonstrate that it can be replicated, at low cost, preferably in other emerging economies and for the benefit of the “poorest of the poor”. the focus of a lot of microfinance.
While I provide the tips above, you should be aware that some basic key information applies to all applications. This includes things like the plan that includes an executive summary, that it does not contain errors, that it is in an easy-to-read format, and the like.
Otherwise, good luck.