Google picks Cape Town for project

No business plan is necessary but there needs to be an idea and "thoughts" on execution

NUR BREMMEN

Published: 2011/03/28 07:06:50 AM

GOOGLE has chosen Cape Town as a pilot for a new technology incubator called Umbono, which aims to bring together seed capital, Google mentorship, angel investors, local tech stars, entrepreneurs and business leaders.




If it succeeds in Cape Town, Google may take the model to other parts of the globe. Google says it chose Cape Town because the city is in "the process of positioning itself as a hub for innovation and technology". The search engine expects that successful funders will move to Cape Town and work "onsite" to take advantage of the opportunity.








Umbono is Zulu for "vision", "sight" or "idea".












"The South African tech scene is incredibly dynamic, particularly in Cape Town," Luke McKend, Google SA country manager, says.








"We’ve seen some terrific startups come from this environment, companies like Yola, MXit and Twangoo. Google’s latest investment with Umbono is a great extension of our overall strategy in the region to strengthen the web ecosystem."




For six months, South African teams will enjoy free office space and bandwidth, in addition to the $25000-$50000 in funding they will receive from Umbono’s panel of angel investors and Google.




It is certainly not money for nothing, though. The angel investment capital will also be exchanged for equity (10%) and will be governed by what Google says are the "standard terms of investment". Google says it will not take an equity stake. The funding will be released around milestones, but it is up to the startup how to use the funds.








Google wants teams rather than individuals to apply for the funding, and the majority of the team "should have a technical background". Companies that already have funding are also welcome to apply.


No business plan is necessary, there just needs to be an idea, a team and the company’s "thoughts" on the execution of the product.








The deadline for first round applicants is April 15 but the Umbono website will continue to accept applications from interested candidates. Memeburn