Startup Funding Vehicles, a Journey for Empowering Uganda’s Startup Ecosystem

In the bustling city of Kampala, a quiet revolution is unfolding—one that seeks to redefine Uganda’s startup investment landscape. At the heart of this transformation is the Startup Funding Vehicles (SFV) Initiative, an open ecosystem project championed by TechBuzz Hub. SFV is not just another initiative; it is a movement striving to empower local investors, raise awareness, and foster an investment culture that supports the growth of homegrown startups.

The challenge: Bridging the funding gap

For years, Ugandan entrepreneurs have faced an uphill battle in accessing funding. According to the Hatching Unicorns research, 53.8% of Ugandan startups consider funding their biggest challenge. This financial bottleneck does not only stifle growth but also makes it harder for startups to attract external investors.

However, across Africa, local investor networks have been game-changers, supporting economic resilience and innovation:

• Nigeria’s tech ecosystem raised over US$1.2 billion in 2022, driven by local investors like Lagos Angel Network, fueling the success of startups such as Paystack and Flutterwave.
• Kenya’s Silicon Savannah, backed by local investors, contributes 8% of GDP, creating thousands of jobs in tech and renewable energy.
• South Africa’s fintech scene, with startups like Yoco and TymeBank, has significantly boosted financial inclusion from 32% to 55% between 2014 and 2021.
• Egyptian startups secured $400 million in 2020, proving the critical role of local investors, especially in times of global economic uncertainty.

See also: Flutterwave secures PSO license from Bank of Uganda, paving the way for pan-African expansion

These case studies reinforce a crucial truth: Uganda must develop local investor networks to drive sustainable startup success and economic resilience.

The vision: Igniting Uganda’s investment potential

Recognizing the need to cultivate a robust investment culture, TechBuzz Hub has launched the SFV Investor Knowledge and Learning Webinar Series. This bi-monthly series, in collaboration with the Uganda Management Institute (UMI) Business Incubation Center, is designed to:

• Educate investors on recognizing startups as viable investment opportunities.
• Engage ecosystem players, including startups, corporate companies, and journalists, to foster a culture of local funding.
• Feature seasoned experts to share insights and best practices in startup investment, particularly in technology-driven enterprises.

Doing this will lay the groundwork for local investors, advisory firms, and investment technology solutions.

Milestones and achievements

Since its inception, SFV has actively pursued initiatives aligned with its mission:

1. Research Training Activity

Through a partnership with the Uganda National Council of Science and Technology (UNCST), SFV has trained young researchers in Research topic identification, Proposal writing, and Funding strategies. Additionally, the initiative has actively participated in ecosystem-building programs such as The AfriLabs Investor Training, Hive Colab’s YSAU Program, and the Ministry of Finance’s National Competitiveness Program.

2. Supporting a startup champion

Beyond research, SFV has demonstrated its commitment to supporting the startup community through initiatives like the Save-Cecilia Car Wash Drive, which aimed to raise US$140,000 (approx. UGX513.7 million) for a life-saving medical procedure. The cause resonated deeply within the startup ecosystem, as the beneficiary is the wife of Gerald Otim, founder of Ensibuuko, a fintech startup empowering over 500,000 savers in Uganda.

See also: Bridging Gaps and Fostering Growth in Uganda’s Entrepreneurial Ecosystem with Keneth Twesigye

 Join the Movement: SFV’s Next Steps

As SFV continues to gain momentum, the initiative is setting its sights on several strategic next steps:

1. A comprehensive national research study to analyze Uganda’s funding landscape and provide valuable insights for informed investor decision-making.
2. Developing investor networks such as establishing angel networks, investment advisory firms, and fintech solutions to support local investors.
3. Launching a startup investment support center to equip entrepreneurs with the technical and investor-readiness support they need.
4. Establishing diverse funding mechanisms – Including private capital, crowdfunding, syndicates, loans, and grants to support Ugandan startups.
5. Strategic collaborations and partnerships with special interest groups such as the banks, the diaspora, Uganda Investment Authority, and others.

The first SFV webinar is scheduled for Friday, 14th March 2025, at 6:00 PM, in collaboration with the Uganda Management Institute (UMI) Business Incubation Center. Themed “Investment Readiness: What Investors Look for and Challenges in Accessing Private Capital”, the webinar will feature Ms. Brenda Amony Yikii, Portfolio Relationship Manager at Financial Sector Deepening Uganda (FSDU) – Deal Flow Facility.

This event is tailored for investors, salaried professionals, entrepreneurs, corporate firms, ecosystem players, journalists, and media professionals who want to be part of Uganda’s growing investor network. Register Here: https://bit.ly/sfvwebinar1

Individuals and organizations passionate about strengthening Uganda’s investor ecosystem can join SFV and contribute to building local investor networks by signing up here: https://bit.ly/fundingvehicles

Uganda’s startup ecosystem is at a turning point, and Startup Funding Vehicles (SFV) is lighting the way forward. By fostering a thriving local investor network, Uganda can unlock entrepreneurial potential, create jobs, and drive economic transformation.