The Sunday News
Nkosilathi Sibanda, Business Correspondent
A Germany-based business incubator, DeutschConnect, has crafted a tailor-made educational course for Zimbabwean startup projects in a bid to help them forge relationships with would-be investors.
Startups are the new normal in the business worldwide as entrepreneurs now dominate what used to a “big company” landscape. In Zimbabwe there has been a rush towards registering startups, as young entrepreneurs enter the previously red taped business industry.
These emerging businesses have sprung from information communication technologies (ICT) agriculture, leather, clothing industries and in small street trading projects. But, without investor funds, some of these have gone under. DeutschConnect has said it would commit to give local startups educational knowledge on how best they can lure investors.
The company, which is owned by businessman Mr Kumbirai Chipadza has set the educational course to be themed on investor readiness.
The move to incorporate entrepreneurs was mooted through a partnership with a variety of European businesses that include Melanin Kapital, leetHub, Afrolynk, Leverist.de and AG Career Hub. Mr Chipadza, speaking from his base in Germany said the goal of the educational project was to link Southern African businesses with the German business ecosystem through mentorship, matchmaking and access to market and partnerships.
“In January we will be launching the Investor Readiness Series that will target startups in agritech, health-tech, fintech, logistics, e-learning, tourism and mining that are looking for market entry into EU and investment opportunities,” said Mr Chipadza.
He said the level of innovation and enterprise among Zimbabwean entrepreneurs was amazing but lack of funding presented a setback.
“While most of our startups have brilliant and innovative ideas, raising funds is an art on its own which needs to be taught.
“Startups need to know what investors look for before investing and they need to zero in on that,” said Mr Chipadza.
He said the training comes at a time when startup companies focus on long pitches which investors tend to shun.
“Too many a time, startup owners concentrate on long business pitches whereas investors only concentrate on a few key things. The Investor Readiness Courses will only be open for selected startups and the application process has commenced. Furthermore, the graduates would then be afforded online pitching to investors and venture capitalists from across the globe,” he said.
Mr Chipadza said due to Covid-19, which has restricted travel, they are forced to launch the programme on the virtual space.
Business analyst and leadership coach, Mr Patrick Maseko told Sunday News Business that investors go where there is innovation.
“By their nature, startups rely on funding. That is why Fintech start-ups need to partner with financial institutions in order to deliver their products and such collaboration is important.
“There is a need for the development of an ecosystem that supports their growth,” said Mr Maseko.
