Investment Criteria

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.