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The Startup Information sequence of books, launched in 2014 by Copenhagen-based writer Sissel Hansen, covers over 20 cities resembling London, Stockholm, Lisbon, Tokyo, Oslo and Miami. See our critiques of the guidebooks for New York, Berlin, Munich, Zurich, Paris, Johannesburg, Cairo, and Singapore.
Startup Information Capetown is unfold throughout 220 pages and makes for an informative and entertaining learn, with profiles of founders, co-working areas, accelerators, and different ecosystem gamers. Supported by Silicon Cape and Enterprise Burn as companions, the e book additionally features a three-page glossary of entrepreneurship phrases.
Cape City gives a world pool of expertise, rising ecosystem of help, and comparatively low price of dwelling, Sissel begins. Notable successes in recent times have been edtech platform Siyavula and healthtech startup LifeQ.
The Cape Innovation and Expertise Initiative (CiTi) runs various incubator and accelerator programmes. Silicon Cape was based in 2009 by entrepreneurs Vinny Lingham and Justin Stanford to help native startups.
Cape City is house to 60 p.c of all South African startups, in response to Sumarie Roodt, Chairperson, Silicon Cape. Popping out of the legacy of apartheid, Cape City gives a “fantastic base for pan-African collaboration”, she provides.
Overview
The e book begins with an overview of Cape City information resembling tradition (melting pot of native and worldwide cultures), spoken languages (English, Afrikaans, Xhosa), journey vacation spot (one of many prime on this planet), delicacies (beautiful), bars and cafes (glorious), customs (braai barbecue), nature and sports activities (implausible), wildlife (numerous), locals (chatty, pleasant), and transportation (nice however fragmented),
Cape City additionally stands out for web penetration (63 p.c), presence of accelerators and co-working areas (highest quantity in Africa), instructional institutes (4 world-class universities, two globally recognised enterprise faculties), and ease of doing enterprise.
Of the greater than 500 entrepreneurial corporations within the Cape’s tech sector, 20 p.c are in ecommerce and SaaS, and 15 p.c in fintech. Its inventive tradition led it to be topped the World Capital of Design in 2014, and there are a variety of music and culinary festivals.
Earlier high-profile startups from Cape City embody Thawte, based in 1995 by Mark Shuttleworth and bought to internet-security agency Verisign in 1999. Newer acquisitions embody GetSmarter (by US edtech firm 2U), Fundamo (by Visa) and Nimbula (by Oracle).
I. Startup profiles
One part of the e book profiles 12 startups primarily based in Cape City. They embody edtech platform Siyavula, which helps learners observe issues in math and science.
Aerobotics combines satellites and drone imagery with synthetic intelligence to assist farmers monitor their crops. DataProphet has developed AI options for the manufacturing sector and Trade four.zero, to detect defects and scale back scrap.
Custos Media Applied sciences makes use of watermarking know-how and blockchain to guard digital media recordsdata from on-line piracy. Guardian Gabriel has wearable options for security to thwart kidnapping incidents.
The Discoverikasi platform showcases cultural sights in South Africa’s townships. Domestly is a scheduling app for reserving educated and vetted home staff.
JUMO advances monetary inclusion options in seven nations. Karri Funds gives cell cost assortment for faculties and neighborhood organisations.
SnapScan gives QR code-based cost options for retailers, and has a partnership with Normal Financial institution. ThisIsMe gives instruments to confirm the identification of shoppers within the finance sector.
A few of these startups have been funded by traders resembling 4Di, Nedbank, AgFunder, Knife Capital, Goldman Sachs, Kenya’s Savannah Fund, IDC (South Africa’s nationwide improvement finance establishment), Proparco (non-public sector financing arm of the French Growth Company), Finnfund, Gemcorp Capital, Leapfrog Investments, Vostok Rising Finance, and Omidyar Community.
Some startups additionally obtained company help from Google Builders Launchpad Africa, Mercedes-Benz Innovation Problem, MTN App of the 12 months Awards, and FSAT Labs incubator. The College of Stellenbosch and College of Cape City’s Bertha Centre for Social Innovation and Entrepreneurship present help for entrepreneurs as nicely.
II. Startup ecosystem
Two sections of the e book profile the help system for startups, starting from co-working areas to programmes at incubators and accelerators. For instance, energetic co-working areas embody Cape City Workplace, Internal Metropolis Concepts Cartel, MEST Incubator Cape City (by Meltwater Entrepreneurial College of Expertise), and SAP Subsequent-Gen Lab. Work & Co additionally gives a cell workplace pod known as Nova.
WorkInProgress, Absa’s innovation hub in Cape City, is positioned on the iconic Woodstock Trade constructing, considered the non secular house of Cape City’s startup house. One of many greater co-working areas within the metropolis is Workshop17, positioned within the Watershed, which doubles as an arts-and-crafts market.
The Cape Innovation and Expertise Initiative (CiTi) is the town’s oldest tech incubator, with roots tracing again to 1998. It runs the Bandwidth Barn hubs in Woodstock and Khayelitsha. It gives a three-month programme for girls entrepreneurs, the six-month FutureMarkers initiative for idea-stage companies, and a variety of two-day to three-year enterprise improvement help programmes.
Grindstone Accelerator helps scale-ups grew to become sustainable and investable. It was launched in 2013 by VC agency Knife Capital. Its portfolio contains radar programs developer iKubu (subsequently acquired by Garmin), ticketing platform Quicket, gaming firm Sea Monster, and anti-piracy options supplier Custos Media Applied sciences.
GSB Resolution House is an incubator for early-stage startups. It was based in 2014 on the College of Cape City. It has partnered with the MTN Group, and works with cohorts of 10-15 startups in two batches per 12 months. The programme is equity-free, and gives proof-of-concept alternatives with MTN.
Injini is an incubator and accelerator devoted to edtech. Every participant is given a grant of 100,000 ZAR ($7,000). Success tales embody Mtabe and M-Shule. LaunchLab Elevate-Off is run out of the Stellenbosch College-based incubator LaunchLab. Its 4 zero-equity programmes embody the LaunchLab Fellowship, Concepts, Construct, and Countdown.
RLabs is a social influence accelerator and incubator programme for reconstructing marginalised communities. Based in 2008, it has labored with greater than 2,000 SMEs, and co-founds as much as 5 startups a 12 months by way of its Enterprise Storage.
SAP Subsequent-Gen works with three,700 instructional establishments in 116 nations, and is current in Cape City as nicely. It really works with startups which are aligned with SAP’s dedication to the UN Sustainable Growth Objectives.
StartupBootcamp, based in 2010, got here to Cape City in 2017; it’s current in San Francisco, Berlin, Dubai, London, Melbourne and Mumbai. It has partnered with native corporates resembling Outdated Mutual, RCS, and Nedbank. Every startup is given $17,000 and likewise will get mentorship and company connects.
Leaders of those help establishments record various success components for entrepreneurs: ardour, dedication, hustle, revolutionary mindset, steady studying, questioning of assumptions, traction, teamwork, collaboration, and talent to discover a market and align with company companions.
III. Knowledgeable insights
One part of the e book supplies suggestions from consultants representing accelerators and startup help initiatives within the metropolis. The recommendation covers accounting, finance, authorized points, and general mission.
Eitan Stern, Director and Legal professional at Legalese, advises founders to have readability on whether or not they need to be registered as an organization, partnership, or sole proprietorship. Successful a fundraising spherical doesn’t essentially equate to success, he cautions. Buyers could drive founders to have targets that they won’t need to have.
To keep away from authorized dispute additional down the road, founders ought to have readability on shareholding patterns, preparations with suppliers, and standing of trade rules resembling GDPR.
Jonathan Smit, Managing Director and Founding father of on-line cost service supplier PayFast, advises founders to study the essential ropes of accounting. This contains bills, price of gross sales, revenue margins, and fundraising from grants and entrepreneur-development programmes.
“Accounting is the language of enterprise,” he explains. This turns into much more necessary as soon as a startup begins to scale and raises funds.
Ann Rosenberg, SVP and World Head of SAP Subsequent-Gen, urges social entrepreneurs to be dedicated to tackling points linked to the UN World Objectives. “Share your startup story with the world. Speak about your journey so others can study out of your expertise,” she emphasises.
She additionally advises founders to faucet into “science-fiction pondering” and Innovation four.zero fashions. SAP Subsequent-Gen has initiatives for girls entrepreneurs, and has joined companions for the Epic Groundwater Problem to shut the hole between demand and provide of freshwater assets by 2030.
“Cape City is a very worldwide metropolis, and that’s a part of the explanation why it has such a robust startup ecosystem,” Ann observes.
IV. Founder recommendation
The e book additionally options interviews with founders of six startups, tracing their entrepreneurial journeys, recommendation obtained, classes learnt, and suggestions for the following wave of aspiring entrepreneurs.
Aisha Pandor based SweepSouth, an on-demand, home-cleaning companies platform, in 2014. She and her husband bought the thought for the startup after they themselves wanted momentary assist at house when their common home employee went on vacation. It attracted help from angel traders who additionally assisted within the tech house.
The obtained recommendation and peer help from Seed Academy, and later from the 500 Startups programme primarily based in Silicon Valley. “One of the best South African founders are not any much less succesful, clever or hardworking than founders primarily based within the Valley,” Aisha enthuses. She lists good instinct as one in all her strengths, in addition to a mixture of quick and sluggish pondering.
Pioneering startups have to do each advertising and training of the market, she observes. “Transferring slowly destroys momentum, and new opponents might emerge at any level,” she cautions.
“Don’t watch for the precise second, the precise time or the precise particular person to share it with, simply execute as quickly as attainable,” she advises aspiring founders. You will need to have mentors to strengthen confidence.
Antoinette Prophy was with McKinsey and based AfroFusion promoting, earlier than transferring on to launch the 88 Enterprise Collective, an 18-month accelerator programme for feminine founders. In the middle of her journey, she needed to cope with challenges resembling corruption and a stalled acquisition bid.
“A part of the journey will entail failure. The way you cope with it’s vital, as a result of the journey shall be riddled with errors,” she advises aspiring entrepreneurs. It will convey maturity and acceptance that not all issues will work.
Whereas there may be extra help for entrepreneurs today, Antoinette advises founders to recover from the psychological block that they can not do with out funding. She additionally requires extra range in funding corporations.
“Founders are product of a particular fibre: they’re visionary, eternally optimistic and innate problem-solvers,” she observes. She advises founders to have an advisory board and enterprise coaches, which will help in higher decision-making and progress.
Daniel Guasco is CEO of Click2Sure, a full-stack digital insurance coverage platform. He earlier based offers web site Twangoo (acquired by Groupon) and angel funding fund Staff Africa Ventures (with startups HealthQ, LulaLend, WumDrop).
“Every part all the time takes longer and all the time prices extra, and it’s all the time a much bigger problem than it seems up entrance,” Daniel cautions aspiring founders. There are lots of unpredictable exterior components.
To succeed takes threat urge for food, conviction, and capability to execute. “Construct domestically, elevate and scale globally,” he advises. He finds Cape City to be a gorgeous location, due to prime expertise from everywhere in the world.
Justin Drennan is CEO of ParcelNinja, a cloud-based warehousing and supply answer for ecommerce shops in South Africa. His earlier enterprise was WantItAll, to obtain objects from abroad.
He admits that he made many errors in his journey. “That’s not what’s necessary, although; it’s what you do with them,” he advises aspiring founders. For worldwide enlargement, he recommends having a sturdy accomplice on the bottom who understands all of the nuances.
Justin additionally advises founders to carry out on investments till extra traction is gained. You will need to rent the precise workers, even when it might want more cash. He discovered the Entrepreneurs Organisation to be a very good sounding board.
Katlego Maphai is the Co-founder and CEO of fintech startup Yoco. Its cell point-of-sale answer helps small companies settle for card funds. He was earlier with Accenture and Rocket Web. “I see entrepreneurship as a really sensible type of creativity,” he says.
“Don’t take brief cuts, and be keen to throw away what you’ve already in-built pursuit of a greater buyer expertise,” he advises aspiring entrepreneurs. “Funding does comply with nice groups and nice concepts with sturdy alternatives,” he provides.
However he cautions that traders could need to management the corporate and even intention for an exit too early. “VC just isn’t suited to the early phases if you’re nonetheless making an attempt to determine your economics out,” Katlego cautions.
Progress brings together with it further complexities that have to be tackled with formal constructions. “You want to suppose exterior of the room and the perceived constraints you’ll have,” he provides. Networks of friends and an advisory board of consultants assist lots.
Software program engineer Tyrone Adams labored within the company world for a mere six months earlier than founding Skywalk Improvements. It helps corporations with digital transformation for brand new enterprise fashions.
Expertise and expertise are each wanted within the entrepreneurial journey, in addition to the willingness to be teachable. Within the warmth of the second, folks can mess up lots, Tyrone cautions. “Laborious work is necessary, however laborious and sensible work have to return collectively,” he provides.
Getting near the shopper is necessary as nicely. “It’s best to get out of the workplace, exit to 100 prospects and see what they are saying,” he urges. Establishing a robust firm tradition can be key. “Should you make folks enthusiastic about your enterprise, they are going to deal with your prospects in the precise approach,” Tyrone sums up.
V. Faculties
One part of the e book outlines training help initiatives for startups in Cape City. For instance, the College of Cape City has a cousin of comparable initiatives at Stanford and Potsdam universities, the d-school for design pondering. It advises entrepreneurs to be ready to work in a workforce. They should embrace new methods of pondering, and be keen to adapt.
The Interactive Neighborhood Entry Community (I-CAN) Centre is an initiative of the Western Cape Division of Financial Growth and Tourism. It gives web entry in addition to programs in laptop literacy, app improvement, and 3D printing. It runs programmes for varsity college students and professionals, and urges future-oriented pondering and urge for food for studying new expertise.
Stellenbosch College, the second-highest-ranked greater studying establishment in Africa, additionally gives help companies for startups. It seems to be for entrepreneurs who can exhibit massive potential, present social influence, and have PR potential by way of attention-grabbing and provoking tales.
WeThinkCode, based by Arlene Mulder and Camille Agon, is a coding college in Johannesburg and Cape City. It has a partnership with the Paris primarily based Ecole 42, and has tied up with greater than 40 corporates for tuition help. It encourages peer-to-peer downside fixing, and appears for individuals who can exhibit that they’re formidable and are self-starters.
VI. Buyers
The final part of the e book gives insights from six funding corporations. Enterprise Capital agency 4Di Capital was based by 5 entrepreneurs in 2011. Its portfolio contains healthtech firm LifeQ, software program startup Snapt, agritech firm Aerobotics, and fintech platform Zoona.
“We see two kinds of alternative for South African startups: increasing into creating African markets and into extra developed markets elsewhere,” explains Managing Associate Anton van Vlaanderen.
Goodwell Investments is a private-equity impact-investing agency which was initially launched in India in 2006. It has expanded into Africa, and has invested in Nigerian funds firm Paga, fintech corporations MFS Africa and Nomanini, and mobility startup WhereIsMyTransport.
“We imagine tech is a vastly necessary accelerator that enables companies to succeed in mass populations quick and comparatively cheaply,” explains Funding Affiliate Danai Musandu.
Hlayisani Capital is a black-owned growth-fund that invests in high-growth companies in Southern and Jap Africa. Its founder, Brett Commaille, was a former CEO at Invenfin Enterprise Capital. It has invested in edtech startup Snapplify and mobility platform GoMetro.
VC agency Knife Capital emerged from the Right here Be Dragons fund launched by South African billionaire Mark Shuttleworth. “Funding is an accelerator,” explains Co-Managing Associate Andrea Böhmert.
Its successes embody CSense (exited to Normal Electrical), fintech firm Fundamo (exited to Visa), and Ordertalk (exited to UberEats). Present startups are AI firm DataProphet, edtech service SkillUp Tutors, and ticketing startup Quicket.
Silvertree Web Holdings addresses the consumer-facing digital house and branded FMCG. It was launched in 2013 by Manuel Koser and Peter Allerstorfer, who earlier based South African ecommerce platforms Zando and Jumia.
“We don’t cross startups on like scorching potatoes,” Guide explains. “We fund them primarily based on what is smart long run,” he provides. Present startups embody PetHeaven, CarZar, CyberCellar, and CompareGuru.
Based in 2017, Uprise.Africa is into fairness crowdfunding, and has helped corporations like Drifter Brewing Firm.
Leaders in these funds clarify that they’re looking out for startups with an revolutionary product, sturdy workforce, potential to execute, sturdy firm tradition, native understanding, buyer focus, differentiation, and potential for worldwide progress or excessive margins
The e book ends with a listing of helpful assets for startups, meetups teams and occasions. These embody Startup Grind Cape City, Cape City Enterprise Progress Meetup and Digital Design Meetup, Free Cape Small Enterprise Assist Community, AfricArena, Future Females, and Geek Women Dinner.
In sum, the e book supplies informative and entertaining insights into Cape City’s startup ecosystem, in addition to a helpful framework for different cities to replicate on and enhance their very own startup ecosystems.
(Edited by Teja Lele Desai)
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