Savannah Fund Overview @ iHub

Mentor. Accelerate. Invest Africa’s Seed & accelerator fund@savannahfund Developing tech entrepreneurs in subsaharan Africa iHub Info Session: 26th July 2012 Mbwana Alliy- Managing Partner @mbwana

Covering Today • Savannah Fund Overview• Objectives of Savannah Fund• What we look for?• Who we fund?• How we add Value to Startups• Our Timeline & How to connect• Q&A

Savannah Fund TeamPartnersErik Hersman: Ushahidi, iHub, Afrilabs, Senior TED &PopTech FellowPaul Bragiel: 3X Tech Entrepreneur (2 exits), I/O VenturesManaging Partner. Silicon Valley ambassador to the WorldMbwana Alliy: Systems Engineer, Stanford MBA,Microsoft Product Management, I/O Ventures EIR, 1XstartupInvestment Committee: None.Advisor: Rachel Pike (Draper Fisher Jurvenson) We are a fund for entrepreneurs by entrepreneurs

Portfolio164 Mentor Network

Objectives• Plug the seed investment gap exists in for tech entrepreneurs to get their ideas from prototype to scalable business• Provide High quality mentoring "Most critical challenge facing via accelerator program to Africas quest for regional integration stimulate investment grade is the limited availability of entrepreneurs technical and entrepreneurial capabilities. More speciﬁcally, Africas educational systems have so• Build a sustainable Early Stage far paid little attention to training in Tech investment Ecosystem for the engineering ﬁelds and related Sub Saharan Africa with Kenya at business knowledge."- Professor the core Calestous Juma, Harvard Kennedy School

Journey: Pivot to Pivot Savannah Fund Talked to over 200 investors Concept 2011 2012Jun Sept Dec Mar Jun Launch 3 months Research • Reaching out to local mentors (vertical expertise & proven track records with real time to add) • Building connections with iHub and Follow on/Co- investors • Getting ready to start operations and investing

Can add value locally and Differentiation from Silicon Valley Tech focused seed fund - accelerate deal ﬂow Trusted Angel Network & Co- investment partners• 2 classes/year of 5 companies, optional residency in Silicon Valley ($25k investments 15% stake)• Follow on and Independent Seed Fund ($100-500k)• Mentor Network & Early backers from Silicon Valley that have started companies with over $5B in market value + Local

30 teams to test Fund Components prototypes & business models at $25k in Accelerator in Kenya.Follow on & co- ~10/year.invest in subset Accelerator tests/experimentsof portfolio 7%(35+) that arescaling Seed/Series A Follow On + RBF Up to half (15) ofStrategic use of 29% AcceleratorRevenue graduates SeedBased Financing atFinancing (up Accelerator Seed Follow On about $100-200kto $500k) 29% for proven model ~$10M with scale potential Independent Seed 34% 20+ Investment ready seed deals between $150-250k that are already gaining traction across Africa

Accelerator Outline• 1st class to begin in mid-late September expected to last 3 months• Online form + Well run coding tests + interviews (CodeEval or Codility)• Will accept a class of 5 startup/teams per cohort• Local + Silicon Valley mentors (via "mentor trip") + offsites & dinners• Work on Creating Value: product, hiring, strategy, business model, marketing, design, analytics, local/regional scaling connections, technical scaling• Ready for Demo Day and invite leading tech focused Investors• Teams who secure follow on funding can opt for Residency in Silicon Valley

Accelerator Outline Mentor Trip 1 week Schedule Ofﬁce Hours Conference & Casual Meetup Keynotes Hands On Help (iHub) Demo Day 1 week 1 week 1 weekMentor trip Mentor trip Mentor trip Q1 Q2 Q3 Q4 Cohort 1 SV Residence Cohort 2 SV ResidenceOptional Cross incubation in Silicon Valley- 6 weeks Conference & Business Ofﬁce Hours 1:1 Investor Africa in Silicon Workshops Development (i/o Ventures) Pitches Valley Demo Day

An Accelerator Program designed to empower Mentoring East Africa startups to scale up rapidly and effectively, while driving customers and revenues Categories of Mentoring Inspiring Mentors Specialist Mentors Local Mentors • Inspire • Knowledge Transfer • Alumni of the Program • Big Picture, Scaling, • Hone Skills • Provide Local Context Lessons Learned, etc. Events Virtual Link Cross/Incubation • Mentor Trips • Connected Presence • Optional 4-6 weeks • Offsites • Mailing List Silicon Valley • Demo Day Prep • Cloud IDE & Code CheckingConﬁdential

Who we fund• For proﬁt sustainable businesses• Technical & well rounded teams (the 3 Rs): Roles, Relationships, Rewards = High Performing Team• Focused on Scalable Product or Service addressing the Subsaharan Africa market • For the accelerator, core team needs to be in Nairobi at the iHub during the 3 months• Teams with a bias on learning & execution over "IP".• Not afraid of failure... NEVER GIVE UP

3 Rs (Control vs Maximizing Wealth)

James was working within Vodacom and was frustrated that the mobile money remittance Who we fund: solution was not being adopted in his home town of Tanga, so he left his job and recruited John & Jane (worked weekends), college friends and bootstrapped on their savings - their pilot "MVP" is growing 20% a month in Tanga alone with no marketing. James, John and Jane are engineer, sales and designer- They have a prototype mobile money solution being used with 100 customers in pilot across Kenya & Tanzania. They plan to hire rock star engineers and bring on experts to scale and set side equity & expect dilution to grow the pie sizeBwana James founded the business with hisbrother, they desire to conquer the Tanzanianmobile money market. They have not agreed howto split equity, they have no prototype becausethey have a secret sauce they want to hide fromVodacom. Looking for $500k to build product andlaunch a billboard campaign. He also runs a webDev consultancy...

Connect with Us Website: www.savannah.vc Angel List: www. angel.co/savannah-fund Twitter: @savannahfund Resources: www.savannah.vc/resources

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Savannah Fund Overview @ iHub

by Mbwana Alliy on Jul 27, 2012

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