Altconf - Financing Startups

Startup Financing

The Financing Gap& Solution for South Africa

justin spratt – 4 July 2009

South AfricaSouth Africa

SA has….

Great peopleRight CultureGreat ideasEnough money

So what is the problem?

www.twitter.com/justinsprattwww.twitter.com/islabs

http://www.twitter.com/justinspratt

http://www.twitter.com/islabs

Context: Recession

• Global mainly

• U versus V

• SA should be out be early 2010

• But 3.5% growth wont solve our problems!




Context: Poor Fundamentals

• Government wont solve our problems

• Enablement can help

• Intervention by private business is critical




The Good News

• Michael Porter & Cluster Theory

• Examples:

• Bangalore• Silicon Valley• Detroit• Wall Street• Rwanda• Venice




“All we need is deal flow for VC and Angel to start working… I am

coming back soon to help with this”

Vinny Lingham, June 2009




Finance Continuum




ISLabs – Germination

• Water-cooler chats… gazillion ideas

• IS has some of the smartest people

• We are best equipped private enterprise to help tech




The Idea: A Mashup

Angel great, but we don’t have $

Incubator best model for IS


Y- Combinator

Google Projects

Summer of Code

Y-Combinator: Successes • Loopt (2005), mobile social networking, on all

the major U.S. carrier networks

• Scribd (2006), a Web-based document publisher, partnered with Random House

• Xobni (2006), an e-mail software maker, was demoed by Bill Gates, a $20 million buyout offer

• Weebly (2007), a website authoring toolmaker, 1-million-users mark

• Omnisio (2008), an online video annotator, acquired last year by Google, circa $15 million


Google Projects: Successes



Thanks!

Technology

Altconf - Financing Startups