After an initial online talk a few weeks ago, a group of investors has established the Addis Abeba Angels Network.
For context, entrepreneurs in Ethiopia state finance as (one of) the major obstacles they face. Generally speaking, all loans require considerable collateral compared to other countries. A notoriously risk-averse finance sector has left startups with few options other than private investors.
This organization is taking important first steps to establish a fund for high risk, high reward investments opportunities for investors.
“Entities need to exist that are willing to invest in high-risk ventures to build a robust startup ecosystem in Ethiopia. […] The network members said they were motivated to drive the success of start-ups and, broadly, give back to society. They bring knowledge, skills, contacts and personal capital for Ethiopian Entrepreneurs.”Source – Addis Standard
With the considerable profits being made by Ride, Ethiopia’s top ride-hailing app, many new ride-hailing platforms were established to compete for those hundreds of millions in annual profit. This effectively created jobs countless drivers and new revenue streams for car rental services; not to mention more (and safer) mobility for users.
The first startup to benefit from this network: Accross Express, freight transport and logistics startup.
“If you have a tech-enabled, repeatable, and scalable business model; if you are fully aware of who your best customers are; if you have completed your MVP; if you have the right mix of commitment and attitude to accomplish the next big thing, then we would like to talk to you.”From Addisababaangels.com
Visit their website, if you fit that description. Addisababaangels.com
AAA also welcomes more investors to join their already impressive list of angel investors including the founders of Precise Consult, YAYA Investment, NEST ventures, and partners from Kazana Group and Bluemoon.
This could be the best catalyst needed for more action in Ethiopia’s startup scene.