App developers race for more funding and greater visibility

• The international venture capitalists believe that investments that has attracted local interest have higher chances of surviving than those that have not.
• Demo is a launch pad for emerging technology and trends in Africa and will be hosting a conference in Kenya from October 24 to 26 in search of firms or new software developed within Africa that they can buy out.
• Demo has partnered with Venture Capital for Africa — an online network of entrepreneurs and investors building innovative companies on the continent to bring the event to Kenya.
• The demands by the international venture capitalist comes at a time when it is emerging that despite producing innovative software, Kenya and Africa has failed to turn these ideas into viable enterprises.
• The country has seen an increase in the number of research hubs, which has opened doors for young innovators, giving them an environment to code their programmes.
• The scramble for Africa has now gone mobile. Firms are targeting the continent with affordable smart phones and more research firms are looking to Africa.

Software application developers who have entered into agreement with local venture capitalists have higher chances of attracting international investors than those who have not, says industry experts.

Harry Hare, the executive director of Demo Africa said while there is an increasing number of international venture capitalists eying local software innovators, most of them are only keen on putting their money in operations that are already being funded by locals.

The international venture capitalists believe that investments that have attracted local interest have higher chances of surviving than those that have not.

The keen interest by venture capitalists is seen to boost the sector which has been stifled by lack of capital for translating the ideas into marketed products.

“A number of venture capitalists want to invest in Africa but say they can only do so in activities that have attracted local funding and have some visibility,” said Mr Hare.

“The biggest problem that the international VCs have is the assurance that their business is safe, this is why they are looking for budding enterprises that have already attracted locals as they believe that it has potential .”

Demo is a launch pad for emerging technology and trends in Africa and will be hosting a conference in Kenya from October 24 to 26 in search of firms or new software developed within Africa that they can buy out.

Demo has partnered with Venture Capital for Africa — an online network of entrepreneurs and investors building innovative companies on the continent to bring the event to Kenya.

The conference has attracted 10 venture capitalists from Silicon Valley but whose names we could not obtain by the time of going to Press.

The demands by the international venture capitalist comes at a time when it is emerging that despite producing innovative software, Kenya and Africa has failed to turn these ideas into viable enterprises.

The country has seen an increase in the number of research hubs, which has opened doors for young innovators, giving them an environment to code their programmes.

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There are at least seven startup hubs in Nairobi. These are iHub, Nailab, Startup Garage, mLab, Fablab, 88mph, and iLab, and GrowthHub Africa. But most of the innovators have failed to turn these ideas into viable business.

“Most of these are young developers and they only know programming but they have no idea how to turn their ideas into viable business,”

says Sheilah Birgen, Programme leader at Mlab.