Accion backs East African start-ups

Social sector investor Accion is investing in East African start-ups through a seed capital and management support initiative called Venture Lab, VC Circle reports.

The programme has an outlay of $10 million from which it will invest between $100 000 and $300 000 in companies that have completed R&D and are at the pilot or first-revenue stage. The platform is looking to make around 20 investments over the next three years.

Venture Lab will focus primarily on start-ups driving mobile phone-based financial services, social media platforms or embedded financial services, Market Watch states.

Michael Schlein, Accion president and CEO, says: "Accion Venture Lab will seek companies developing innovative technologies and disruptive business models with the potential to transform the quality and scale of services available to the financially excluded."

Venture Labs` preliminary research has largely focused on East Africa and South Asia, Microfinance Focus says.

In future, Accion indicates its focal point will be Latin America. It says it will support start-ups that are normally considered to be in the `pre-investable` stage.