THE BUSINESS MUST:
- Be a company. We do not invest into ideas or research.
- Be revenue generating. (Taking even the smallest amounts of revenue offers opportunities to learn and improve.)
- Be incorporated in the Republic of South Africa and preferably be based in/around Cape Town.
- Solve a burning need for its clients.
- Not be capital intensive.
- Be scalable.
- Display innovation in its processes, products or services.
- Have barriers to entry that create a competitive advantage.
THE ENTREPRENEUR MUST:
- Have invested some of their own money into the business.
- Understand that an idea alone has no monetary value.
- Be able to execute, lead and sell.
- Provide a concise, realistic business plan that clearly shows how the funding provided will be applied to grow the business.
- Be willing to accept funding in stages, subject to achieving certain milestones.
- Be willing to listen to advice and criticism from partners and shareholders, i.e. give up some control over the business.
- Be willing to accept governance systems that will reduce business risk.
- Be willing to remain the majority shareholder.
- Be willing to work exceptionally hard for long periods of time.
- Be patient.
- Have the highest ethical standards.
On average, only 10% of applications proceed to the due diligence phase and only 1-2% of applicants receive funding.