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Venture Fund

Small businesses are important innovators, continually bringing new products to the market. Yet, there is very little support and limited access to finance for entrepreneurs in the innovation space.

​At BUSINESS/PARTNERS, we recognise the potential benefit that innovative and high-risk growth enterprises can bring to the country, and it is for this reason that our Venture Fund is aimed at financing high impact entrepreneurs.

  
Description
  

Under the Venture Fund, we offer finance where:

  • The development of a new product/concept or taking a new initiative to market;
  • Job creation is substantial and the provision of funding will create substantial jobs;
  • Blue sky potential exists, albeit riskier;
  • There is a well-structured BEE transaction where wealth creation and the possibility of a transfer of skills exists;
  • The funding of businesses will take an existing business to the next level, resulting in a significant increase in activities;
  • The funding of businesses will result in import replacement;
  • The funding of businesses will contribute to the introduction or increase in exports;
  • The funding is for high technological projects;
  • A transfer of skills will be facilitated through the transactions, in particular, to previously disadvantaged entrepreneurs. 

Typically, funding would exclude:

  • Property transactions;
  • Lifestyle businesses;
  • Low return investments;
  • Seed capital;
  • Lack of technical viability;
  • Research and development. 
  

Financing period:

There is no defined investment period, however, on average, the financing period is between 3 to 7 years. There should be clear indications of a proposed exit strategy within a reasonable time frame.

Minimum and maximum loan amount:

The fund considers first round funding up to a maximum of R10 million, with a focus on deals between R500 000 to R3 million.

Own contribution requirements:

The financial risk, business risk, industry risk and environmental risk of the business venture will influence the own contribution requirements.

Required documents for application:

Business plan.
Annual financial statements.
Up to date management accounts.
Cash flow forecast.
CV of entrepreneur/s.

Want to know more about our financing criteria? Click here for our investment FAQ.

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