Investors Turned Vultures: Disquiet As Venture Capitalists Prey On Kenya’s Start-Ups

KENYA: Kenya is in the middle of a technology revolution. It is bustling with innovations driven by the strong entrepreneurial spirit of people hoping to replicate the successes of the revolutionary M-Pesa service or Ushahidi technology company.

As a result, the country has attracted its fair share of investors looking to harness the wealth of potential on display. From one incubation hub to the next, entrepreneurs are proving to be bursting with creativity and mind-boggling ideas.

But due to a lack of capital, many start-ups remain just that. Which means that in too many cases, some hawk-eyed companies and investors have swooped in and taken over.

There have been reported instances of big companies stealing ideas as soon as a start-up is out of the protective nest of an incubation hub.

These hubs, primarily targeted at start-ups and early-stage companies, are designed to support the successful development of a firm through a host of business support resources and services offered by both the incubator and its network of contacts.