3 South African Startups Secure Funding on Startup Circles Demo Day

Three African startups have secured funding totaling ZAR1.25 million (US$ 75,000) from Enygma Ventures at the latest demo day of Startup Circles.

South African tech accelerator Startup Circles is a partner of Enygma Ventures in its ZAR100 million (US$ 6.8 million) fund launched late last year, which focuses on investing in women entrepreneurs in the SADC region.

At the recent demo day, 13 startups graduating from the Startup Circles Launch and Investor Readiness programs delivered their ideas to a panel of judges which included founders, experienced entrepreneurs, and advisors, with three obtainable deals.

Lelemba Phiri, Africa Trust Group leader and Enygma Ventures operating partner, offered ZAR420,000 (US$ 25,000) for a 10% stake in Malawi’s Mangwee, a payment platform that helps educational institutions automate payment and data management processes.

Sarah Dusek, Enygma Ventures’ managing partner, offered out-of-season shoe reselling Candor Life trading platform $25,000 for a 10 percent stake in the business. The South African startup provides earning prospects for rural and township communities across its online reseller platform spanning nine provinces and two countries.

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Dusek also offered US$ 25,000 for a 10 percent interest in AIA, an online marketplace for handmade African artisanal goods promising the ability to market their items digitally to innovative people who lack budget and technical skills.

The startups have only issued funding proposals at this stage, which are also subject to discussion and finalization. Startup Circles reported that there is no due diligence process as it has already worked closely with the firms.

Although it did not receive direct financing, another business that caught the attention of the investors was Mtwanamba Solutions from South Africa which provides funeral mobile toilets and hand-washing devices. The judges were inspired by the community-based crowdfunding platform developed by the organization to help generate venture money.

Vuyisa Qabaka, the operating partner of HYBR Group for Africa, made a pledge to seed the initial ZAR5,000 (US$ 300) minimum investment needed for each participant, while Lelemba Phiri committed to seed the second minimum investment with a guarantee of more if the entrepreneurs committed to fostering greater gender diversity within their team.

“Events like these take the mystery out of how investors think and what they are looking for. Essentially, it is like giving you the exam questions and the answers. At Startup Circles we, as Africa’s number one startup school and online accelerator, want to give everybody regardless of geography access to world-class mentorship and capital,” said Startup Circles chief executive officer (CEO) Sandras Phiri.