Seed Engine: a lifeline for idea-stage ventures

While the US is seeing a downturn in Series A tech startup funding, 2012 has been a bumper year for seed/angel deals. In more risk averse arenas like South Africa, the feeling is that investors have traditionally been reluctant to throw money at idea-stage startups without active revenue streams. That’s what makes Seed Engine, a new early-stage startup accelerator and incubator, so intriguing.

In exchange for equity, 10 startups will receive R100 000 startup capital to turn their ideas into business plans, with the wind of three 13-week accelerator bootcamps at their backs. At the end of the programme, the teams will be introduced to potential investors that are willing to invest amounts between R200 000 and R2 million.

Entries were supposed to close 9 December, but have been extended — indefinitely. Marc Elias, who heads up Seed Engine tells Ventureburn that the decision was made to re-open entries after his team became “a bit inundated with requests to reopen them.” “The reality is that applications never close. They will stay open, regardless of the first top 10 we select. The residual applications will be considered for second and third accelerator activations, together with all new applications,” says Elias.

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