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Venture capital

  • Three reasons why Uber acquisition of SA grown orderTalk is so big a deal [Updated]

    Uber’s food delivery business Uber Eats has acquired tech company orderTalk, which was once headquartered as a startup in Cape Town, South Africa. Here's why it's such a big deal. OrderTalk provides online ordering software to restaurants that integrates with a restaurant’s point-of-sale system. The announcement was made yesterday by SA venture capital (VC) fund Knife Capital (orderTalk first revealed the acquisition on its blog last week). The terms of the deal — including how much Uber Eats paid Knife Capital and orderTalk in the deal — were not disclosed. Read more: Uber Eats acquires SA founded tech firm orderTalk for undisclosed amount Why then is it such a...

  • Nigerian fintech Lidya raises $6.9m in Series-A round led by Omidyar Network [Updated]

    Nigerian fintech startup Lidya has announced that it has raised $6.9-million in a Series A round led by Silicon Valley-based philanthropic investment firm Omidyar Network. The startup's platform assists small African businesses to manage their funds as well as access credit. The startup was founded in 2016 by Tunde Kehinde, and Ercin Eksin. In an announcement in a statement yesterday (23 May) Lidya said the funding will be used to scale operations in Nigeria, as well as to launch in new markets in Africa, in addition to hiring more staff and expanding the company's loan book. A total of five investors: Alitheia Capital, Accion Venture Lab,...

  • Uber Eats acquires SA founded tech firm orderTalk for undisclosed amount

    Uber's food delivery business Uber Eats has acquired SA tech company orderTalk from Knife Capital, the Cape Town based venture capital (VC) firm revealed today (23 May). OrderTalk provides online ordering software to restaurants that integrates with a restaurant's point-of-sale system. Knife Capital's announcement was revealed in a news story by SA tech site TechCentral. The terms of the deal -- including how much Uber Eats paid Knife Capital and orderTalk in the deal -- were not been disclosed. OrderTalk was founded by Hilton Keats in 1998. Today it is based in Dallas, Texas. Uber's food delivery business Uber Eats has acquired 100% of SA tech company orderTalk Knife Capital invested...

  • Market readiness key when investing in startups – 4Di Capital founder [Q&A]

    For a venture capital (VC) fund, finding the perfect investment comes down to not only things such as investing in the “perfect" founders with the “perfect" tech -- but to the market readiness of an investee's product or service. This, says venture capitalist Justin Stanford is probably the most difficult variable to get right when investing in startups. Stanford's Cape Town based VC company 4Di Capital, which he started in 2011, has so far made 14 investments. "Some analysis of thousands of VC investments in the past has shown that market demand during the life of the investment is the most important success criteria....

  • Startups need at least 10x in 5 years to be good investment – VC, angel investors

    Want to get investment from an angel or venture capital (VC) investor? You're going to have be able to grow the valuation of your startup by about 50% year on year and return to investors 10 times what they invested in your company -- all in just five years. Most South African based VCs Ventureburn spoke to this month say they look to return to investors 10 times their initial investment and grow the value of an investment at about 30% to 40% per year for about five years. “To achieve 10X in five years you need to be growing at above 50% year...

  • Sensor Networks nets new funding round of R13-million to expand IoT products

    Just months after securing funding from 4Di Capital, Cape Town based Internet of Things (IoT) platform Sensor Networks has secured a further round of investment -- of R13-million, from 4Di Capital, Sanari Capital, which led the round and The Asisa ESD Fund, managed by Edge Growth. The current round of funding -- which follows a smaller round of investment that the startup announced in August last year -- is for expansion capital and new-product development. Sensor Networks founder Mark Allewell (pictured above with his team, fourth from left) told Ventureburn today that the funding would help expand the three-year old startup's B2B products which it...

  • 3 of 6 startups former Dimension Data head has invested in headed by Saffers [Updated]

    Former Dimension Data head Brett Dawson revealed today that he has invested in six startups, and has formed Campan, an investment company. Three of the startups have been founded by Saffers, or South Africans living overseas. The three startups are Australian based social networking site Gather Online in which Dawson has invested R10-million and UK-based startups Fourex -- which makes fast, easy and efficient forex its primary objective — and Free2cycle which aims to transform wellbeing by reimagining the cycling commuter business model. Dawson said there was no "strategic reason" why three of the six investments are in startups founded by South Africans living overseas, rather these were just from those he...

  • Private equity fund Africinvest to launch VC fund targeting startups on continent

    Tunisia-based private equity fund AfricInvest is busy raising funds to launch a €120-million fund to invest in innovative new ventures across the continent, a top official at the company has revealed. Speaking to Ventureburn last week, AfricInvest VC director Selma Ribica said the fund would target "successful startups" from any sector, from across the continent, using AfricInvest's various other offices across the continent, namely: Tunis, Lagos, Abidjan, Nairobi, Cairo, Algiers and Casablanca. "It is aimed to be first truly African fund with offices in North, East, and West Africa and we aim to raise €120-million," said Ribica. The idea, she said is to help startup...

  • ‘$8.6m Series A round well timed as Africa’s Talking was looking at expansion’

    Africa's Talking Series A $8.6-million funding round led by IFC Venture Capital was the startup's first major round of investment and came just as the Nairobi-based software company is looking to expand into more African countries, the company's spokesperson has said. Orange Digital Ventures and Silicon Valley VC firm Social Capital also participated in the $8.6-million funding round. "This round of funding has come as the need for us to accelerate to more African countries became more pressing," Africa's Talking spokesperson Rachael Wambua said in an email. Africa's Talking was founded in 2010 by MIT graduates CEO Samuel Gikandi (pictured above) and Eston Kimani. The...

  • How MFS Africa made history for African fintechs with $4.5m Chinese-led deal

    Johannesburg-based company MFS Africa made history earlier this month when it became one of the first African fintechs to secure funding from a Chinese-based venture capital (VC) firm. This, after a China-based VC firm LUN Partners Group led a $4.5-million Series B funding round in which the VC invested $2.5-million in the digital payments company. Dutch impact investor Goodwell Investments also participated in the round, investing $1.5-million, while the remaining amount of $500 000 was contributed by a number of angel investors including Mojit Davar, the former CEO of MoneyGram International. MFS Africa CEO says as Chinese interest in African fintech grows, LUN Partners Group will likely...