Nailab Seed Limited, an angel fund founded by Nailab and Fair & Sustainable Participations is calling for applications for startups to apply and stand a chance to raise Ksh 2.5m.
According to the firm, the investment will be a convertible note of up to KES 2.5M, with a maturity of 24 months and a 6-month grace period.
Speaking to TechMoran, Josephine Mwangi, Communications lead at Nailab said, “It’s in two ways; the can can be in form of a convertible note or equity. They can choose to payback this money or we convert it into equity. We want to give entrepreneurs a choice.”
The startups to be funded must be duly registered and operational in Kenya and have a proof of concept. Nailab says the startup teams should be committed and their technologically driven idea should be ready to launch within six months.
Nailab Seed Fund will give the entrepreneurs personalized business development support on key business areas, linking them to its wider network base of mentors, investors and experienced entrepreneurs for growth as well as the funding and working space.
Nailab Seed Fund’s second cohort invested in startups such as KejaMove and PataMboch. PataMboch, a cleaning service that provides thorough home cleaning, selective cleaning like laundry, upholstery cleaning, house help training and recruitment.
Keja Move aims to simplify home and office relocation by using web platforms to allow individuals and companies to find reliable and convenient relocation services in Kenya.
By asking for committed entrepreneurs, Nailab Seed Fund is bullet-proofing itself from the norm where kids from university join the accelerator, raise funding and after a few months in the trenches give up on entrepreneurship altogether-losing the community both time and money.
Though failure is inevitable and a great lesson for all entrepreneurs; battle-hardened entrepreneurs stand a chance to build living and long-lasting companies able to make investors money and give back to the society. There is also need for follow-on funding in the local tech ecosystem as many startups die after these angel and seed rounds.
Kenya’s iHub is also set to start a bigger innovation fund that will invest in as many local startups as possible and help them compete globally.