AfriLabs Capacity Building Needs Assessment

T H E M E 2

The r i ght coach i ng and mentor sh i p adds va l ue to bus i ness sur v i va l and growth prospect s

Describe what type of interaction or engagement you have with hubs as an investor (% of rating)

Mobilizing funds Deal sourcing Demo days Product development Limited interaction Mentorship None Partnership Preparing entrepreneurs for pitch opportunities Serving as an advisor Some interaction Training and advisory

23%

Investors, entrepreneurs and ESOs needs to build a better and stronger relationship 26% of investors said to have limited interactions with ESOs. Other interactions between ESOs and investors have been related to ‘training and advisory’, mentorship and deal sourcing. With mentorship being the highest, rated at 32% response rate. 45% of investors have not benefited from ESOs. This is certainly one of the conse- quences of the gap that exists between ESOs and investors. The risk of this affecting entrepreneurs’ survival and growth is high. When asked what ESOs can do to bridge this gap, 65% of investors indicated that ESOs should ‘provide support and mentorship to its entrepreneurs’. 24% of investors also believe that ESOs should ‘listen to feedback from entrepreneurs. In order to strengthen the innovation ecosystem across Africa, there is a need for ESOs and Investors to collaborate and work together to support entrepre- neurs. Findings form secondary research show that, in African contexts, ESOs are the main assemblers of technology entrepreneurs (see: Oxford University Archive on Innovation Hub in Africa) and Investors lack intermediary connections to the entrepreneurs (see: FT Strategy report on how to boost early stage deals in Africa) which reduces the efficiency of investors finding the right startups to fund. Investors and ESOs can form both physical and digital communities to exchange experiences, promote opportunities and devise a more collaborative means to support the entrepreneurs.

5%

2%

5%

2%

8%

32%

26%

2%

3%

22%

2%

0%

5% 10% 15% 20% 25% 30% 35%

As an investor, do you benefit currently from hubs? How? (% of rating)

Yes, access to information Yes, connecting to entrepreneurs Yes, dynamic co-working space Yes, free events Yes, network of mentors for startup programs Yes, Source of pipelines Yes, they review and mentor startups for pitch day Limited interaction

5%

2%

35%

6%

2% 2%

3%

2% 2%

45% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% No Yes,

What can or should hubs do to better serve entrepreneurs? (% of rating)

65%

0% 10% 20% 30% 40% 50% 60% 70%

23%

11%

8%

5%

3%

2%

2%

2%

Promoting startups

Connecting entrepreneurs with mentors

Create more linkages with the investor community

Engagement with corporate and other partners

Listen to feedback from entrepreneurs

Partner with VC funds

Support proof of concepts

Provide support and mentorship

Strategic partnerships for growth

29

N E E D S A S S E S S M E N T R E P O R T

Trends and insights from ESOs, entrepreneurs, and investors

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