AlphaCode provides $160k in assistance to pandemic-founded tech startups in SA

At the end of the AlphaCode Incubate programme, five South African firms formed during the COVID-19 epidemic received a total of ZAR2.5 million (US $160,000).

With the help of Rand Merchant Investments, AlphaCode Incubate provides entrepreneurial packages to South Africa’s most promising financial services firms.

Initially, around 170 tech companies registered for the initiative, which aims to foster creative tech-enabled firms. Only eight companies were chosen to take part in the inaugural three-month programme, which included financing, assistance from performance coaches and a panel of advisory experts, access to AlphaCode’s co-working space, and options to apply for further early-stage funding.

Last week, those eight businesses competed in a virtual demo day, where they had only 10 minutes to persuade a panel of judges that they should advance to the next round of the programme.

Five people were chosen to receive a grant of ZAR500,000 (US $32,000), six months of mentorship, and expert execution support. These businesses will also be eligible to apply for seed funding from AlphaCode’s fund.

Mobile payments platform Abela, legal cost consulting BriefCo, stokvel management tool Sizanani, data-tech firm Vocalysd, and e-health company Welo were among the five companies chosen.

“What was remarkable about this cohort is that there are seven female founders across the eight startups, several of which have run successful businesses prior to these startups which we know makes for more successful entrepreneurs. Women are grossly underrepresented in the startup ecosystem globally. Representation matters and by having a diverse AlphaCode team and selection panel, we have an inclusive and diverse cohort. Female founders are eager to engage and contribute to the startup sector and it helps when they are given the platforms to truly be heard, acknowledged and appreciated,” said Amina Patterson, head of operations at AlphaCode.

“Another point to highlight is that every year the businesses focus on getting to know their customers, solving their customer problems and getting traction, but this cohort blew the lights out. I believe the pandemic forced the founders to work extra hard getting to know their customers, and they had to be incredibly resourceful, resilient and creative in how they validated their products with customers.”