For an entrepreneur, facing the more experienced and more moneyed people you hope will invest in and help grow your business is more like going into a tank full of sharks.
The sharks can tear your business apart, but they can also lend you their strengths and guide and work with you to make it a success. That’s the premise of the eponymous television series, Shark Tank.
As they gathered for the first Investor Demo Day for the latest cohort of the Spark Accelerator Program on March 21, the men and women behind nine start-ups were tense.
They had completed a three-month incubation period in the program designed to support early-stage startups. Similar to the show Shark Tank, the founders of these businesses presented their ventures to a panel of investors to secure funding and establish connections with them.
The nine startups were from the fintech, e-commerce, healthcare, and digital content sectors. One by one, they pitched their ventures to Chui Investors, Enza Capital, Front End Ventures, Sumitomo Corporation, and PwC, who were present as advisors.
The African startup ecosystem presents a promising landscape for investors. One such investor is Sumitomo Corporation, a 400-year-old Japanese conglomerate with investments in Safaricom Ethiopia and M-Kopa.
Through the Spark Accelerator Program, Sumitomo is aiding in the transformation of promising ventures into thriving businesses by collaborating with Kenyan startups.
But what exactly are investors like Sumitomo, who have likely seen hundreds, if not thousands, of pitches from startups, looking for?
“One of the most important criteria for us is that those participating startups are post-revenue,” says Yusuke Hirose, General Manager, Media & Digital Business Dept. Sumitomo Corporation.
Yusuke states that businesses demonstrating evidence of recurring income are more likely to collaborate with the commercial teams at Safaricom and M-Pesa.
The Spark Accelerator Program, a joint initiative by Safaricom, M-Pesa, and Sumitomo Corporation, was launched in 2024, with the first cohort announced in the same year.
This first cohort has since graduated, and applications for the second cohort were open from 1st April to 15th May 2025. Shortlisting will occur between June and July 2025, while the programme will take place from September to November 2025.
Another key factor investors assess is market potential: this means the startup’s products or services should meet a genuine need and demonstrate proven demand in the marketplace.
However, one circumstance in which an investor will refrain from investing in a startup, even if it has a brilliant idea, is when it lacks any traction.
“If the startup happens to be in the ideation phase, it’ll be unlikely that there will be enough time to explore meaningful relationships or collaboration,” he says.
A capable team with experience and skills will also inspire investor confidence.
“Having a world-class team is also important in demonstrating leadership, and when thinking about scaling the business in future,” Yusuke says.
Here’s one more secret for startups hoping to catch Sumitomo’s attention and potentially secure funding: maintain a long-term vision.
“Sumitomo is unlike typical investment funds. We don’t have a definite investment horizon. We are long-term investors. That’s why we want to build a long-term, enduring relationship with the startups and for us to consider investing seriously,” Yusuke says.
Watch the video to find out more about what investors seek in a startup before they commit to funding.
