Creating an Angel Investor Ecosystem in Kenya

There is a growing number of start-ups in Kenya, and more international funders (both impact and traditional) entering the market to satisfy the demand for finance.

Local investors, however, have been slow to buy into the tech startup craze. This is for several reasons, including a lack of notable success stories and a general feeling of caution around investing in often untested entrepreneurs. “Everyone has heard of horror stories, or experienced them first-hand,” is how one start-up advisor put it. But, as the number of opportunities grows, local investors are starting to enter the market. Companies like Intellecap and Viktoria Business Angel Network are encouraging successful Kenyans to experiment with angel investing. Often, that means teaching them about not only about the opportunities for high returns, but also tech, more generally. Entrepreneurs approaching business angels need to keep this relative inexperience in mind. Often, it means being more patient, and underscores the importance of finding the right investor, who will help your company with introductions and mentoring based on relevant industry experience.