Seed Engine, which ran its first programme this year, has added six start-ups to its portfolio. All ventures are currently in advanced negotiations with next round funding from investors.
Marc Elias, CEO of the Seed Engine Business Accelerator, which will accelerate new start-ups from 1 September 2013 explains what it takes to launch a business with top prospects for success.
“Seed Engine looks for five pillars which point to likely success for a start-up,” he says.
These are:
* A product or service that is novel or innovative;
* An opportunity – a disruptive response to a market change or the creation of a new market;
* A business model that is tested and validated;
* A team that has the skills to execute; and
* A market – an understanding of a target market’s requirements and the market’s prospects and limitations.
“We are looking for entrants for our next programme – early stage tech entrepreneurs who have extraordinary ideas with international appeal and who are ready for a life-changing journey.
Entrepreneurs selected for the programme are offered coaching, mentoring, work space and an opportunity to grow their concept into a business.
Participants in the second programme are offered an enhanced array of benefits. These include R100 000 start up capital plus over R300 000 in services so that they can convert their ideas into commercial realities, ready to attract further investment at demo day and beyond.
Absa has joined Seed Engine for the next programme contributing operating capital. It has also sponsored trips to both Stellenbosch and the United Kingdom, geared towards enhancing skills and promoting start-up trade relations with international stakeholders including entrepreneurs, corporates and potential investors. This partnership includes the University of Stellenbosch, CEDAR, Vumali and EDFMEDFM.
Strategic partnerships are in place with both local and international early stage venture capital firms. Among these are Grovest, the first Section 12J fund in South Africa, and U-Start, which is an international organisation that seeks investments via Seed Engine.
The South African Venture Capital Association (SAVCA) has endorsed Seed Engine as one of the more prominent feeders of deal flow to the strong venture capital community in the country.
Werksmans Attorneys now assists Seed Engine and its start-ups with legal documentation, compliance and advice.
The Sable Accelerator, based in Silicon Valley has built a strong relationship with Seed Engine in profiling its underlying ventures with its international network of venture capitalists, angel investors and distribution partners.
Amazon Web Services has committed $3 000 worth of data driven products for each Seed Engine start-up.
PKF, one of the largest accounting and auditing companies in the world, offer the ventures financial planning, first year audits and general guidance.
Microsoft has shown its support by providing Bizspark packages and naming Seed Engine one of the key network partners in the South African context.