South African Venture Capital is a community website for the South African companies and Venture capital firms, as well as seed, angel, and crowd funding to match-make investors with over 100,000 rand of investment to make within existing established or early stage companies with an experienced Board of Directors.
For the past 30 years, there has been much discussions that the South African Investment Markets do now have a Venture Capital market. However, venture capital into IT companies, seed capital into mining exploration firms, and investment into BBBEE projects has been a booming part of the investment community proving the viable existence of SA Venture Capital.
Within Venture Capital and “early stage” investment, it is important to bridge the gap between fears of investors and hopes of the entrepreneur. Through the negotiation of initial offering prices for investment, to more sophisticated termsheets and mentoring similar to “business incubators” with milestone based financing.
VC’s generally invest into 5 items, capital assets, product development overhead, leadership and administration expenses, working capital, and sales ramp up costs (expansion). Generally Venture Capital is a “fixed-term” partnership, where by the company receiving the investment gives a management fee to the VC for mentoring the company as an investor and a share of the gains (carry), as well, in the case of Private Equity, generally a common share and board member seat with a “preferred” share that allows the VC to elect an additional board member or have specific privileges they see are required to secure their investment or their investors funds in the venture. Most of these are all milestone based specifications, and if the company meets the milestones, then restrictive clauses fall away with their success.
The South African Venture Capital website and its forums are designed to educate the Companies and prepare their “due diligence” and pitch to an acceptable international standard. Specifically assisting in defining and developing their Financing Map, Stepping Stones and Milestones, Unique nature of the company and its Cashflow and Risk Matrix, Raising the Finance utilizing world class sales models and targeting to gain investors combined with basic “database driven” tools and personal marketing, Understanding the complex sale and getting behind how the VC thinks and responds, building a “complete” business plan and action plan, valuation of the company and financial modelling, negotiation skills and communication skills with regards to the “investment” and “termsheets”, Complex industrial project due diligence and preparation, IT and general business project due diligence and preparation, allocation of control and venture structure and splits, alignment of Founders, Investors, Management, and VCs.
This comprehensive process creates the ultimate value for firms, and builds their awareness of the market and Venture Capital standard so that “VCs” and investors are matched properly and effectively to the point no one wastes anyones time, because there is one major point all VCs and new entrepreneurs hate, which is wasting time. Time is money!