Getting funding for your start-up is not always easy. You need to get past many pitch meetings and applications and sometimes you don’t get the funding you need. To help start-ups in South Africa get the funding they need, Google has opened up applications for its Black Founders programme.
The funding initiative is part of the tech company’s Google for Start–ups Accelerator programme. The programme is designed to support start-ups in South Africa using Google’s programs, products, people and technology.
This time around, Google is focusing on black-owned tech start-ups and ones that have their headquarters and operations in South Africa.
Google Focuses on South Africa
“Start-ups in Africa are critical drivers of innovation, economic growth, and social progress,” said Folarin Aiyegbusi, Head of Start-up Ecosystem, Google Sub-Saharan Africa. By investing in South African Black-owned startups, we are driving systemic change and promoting job creation and wealth generation for the future.
This year’s hybrid programme will run from October 2024 until March 2025. The 15 chosen Black-owned start-ups from Seed to Series A will receive equity-free cash of up to $50 000 (over R1 million), Google cloud credit of $200 000 (over R3 million), training with Google professionals and networking opportunities with Google mentors.
The funding will be distributed through a locally based implementation partner. During the programme, the startups are paired with Google and industry experts. The one-on-one mentoring sessions aim to help the start-ups solve any challenges they may have and provide them with insights and best practices so they can improve their products and businesses.
Minister of Communications and Digital Technologies, Solly Malatsi commended Google for its initiative. He said “Government sees tech start-ups as key drivers of innovation and economic growth in the digital era. I’m excited by Google’s investment and technical support to stimulate the SA tech ecosystem and (I) encourage eligible start-ups to apply so they can use this opportunity to grow their businesses and help create employment,”
This programme comes at a crucial time for South African start-ups. According to Statista, there has been a decline in activity and funding in the start-up sector in 2024. Local start-ups have closed 95 deals totalling nearly $640 million in funding. This is a significant decline in comparison to 2021 when local start-ups raised $1,1 billion in funding through 120 deals.
Google Addresses Challenges of Black Founders in South Africa
Google says it recognises the importance of establishing this fund as a way to address the challenges faced by black start-ups.
“Google’s investment in South African black-owned founders is a strategic move to drive sustainable growth and success in the local start-up ecosystem,” adds Ayegbusi.
To qualify for the programme, your start-up needs to meet the following entry criteria:
- Start-ups need to demonstrate traction (ideally) between the Seed and Series A funding stages.
- Building a scalable product or service with an addressable market and defensible growth model.
- Start-up must leverage technologies such as machine learning and artificial intelligence.
- There must be a commitment from the Chief Technology Officer (CTO) and/or technical roles to participate and engage in the required programme sessions.
- Your start-up must be a black-led technology startup headquartered and operating in South Africa.
If you meet the entry criteria, you will be enrolled in the programme which begins in November 2024. Successful participants will be invited to a demo day in January 2024 where they will showcase the growth of their start-ups. The graduation day for successful participants will be held in January 2024.
“This program aligns with Google’s broader goals of fostering digital transformation and inclusion; ensuring that the benefits of the digital economy are accessible to all in the region,” said Aiyegubusi.
Applications for the Google for Start-ups Accelerator: Black Founders programme close on the 14th of October 2024.
If you are interested in applying for this programme, you can fill in the online application form.
