JSE-listed Blue Label Telecoms – the company in the throes of acquiring 45% of mobile operator Cell C for R5,5bn – has announced plans to invest in start-ups.
The firm has unveiled a new “business boutique accelerator programme”, to be run in partnership with Blue Pencil Management Architects, that it said will “help disruptive new businesses reach new markets and achieve commercial success”.
The programme is meant to provide high-potential South African businesses with access to funding, market opportunities, channels and skills.
The focus will be on “scale-ups” that are leaving the incubation phase.
“The initiative will provide them with access to skills and infrastructure cutting across finance, IT, human resources, marketing, product development and other business functions,” Blue Label said in a statement on Tuesday.
Where businesses need capital to grow, Blue Label is keen to provide funding in exchange for an equity stake, or may help them to secure external funders, the company said.
“Blue Label and Blue Pencil are currently evaluating companies suitable for the programme, with the aim of bringing 10 on board during the first quarter of 2017.”
The first phase of the accelerator programme will last for about three years.
Blue Label co-CEO Mark Levy said that in the initial stages, the aim will be to test the depth of intervention that will be required to accelerate the chosen companies, and to consolidate best practices.
“Although there is a social responsibility aspect to this project, our aims are largely commercial,” Levy said. “We help to establish a foundation for these businesses, assist with the acceleration of their initial growth and ultimately invest in them, either directly or via a third party.”
He said the start-ups will be supported by Blue Label’s frameworks, experience and infrastructure.
“We want to enable them to scale up rapidly and ultimately penetrate new markets across Africa and the rest of the world. We will work with them in terms of commercialisation and market opportunities, assist them to refine their value proposition and see where we can leverage synergies with Blue Label.” — © 2016 NewsCentral Media