A Fin24 user is looking for seed capital for his start-up companies. He writes:
I am seeking seed capital for my start-ups – or a business partner. Can you help?
Jeremy Lang, regional general manager of Business Partners in its Inland West region, responds:
Based on the information provided, it is quite difficult to give specific information to your request, especially considering that different financiers or investors have different mandates and levels of risk appetite within which they finance or invest.
However, a good start would be to visit the South African Venture Capital Association website, which has a detailed list of most venture capital and private equity firms in South Africa.
The member list also contains links to websites of these firms as well as the contact details of the relevant persons to deal with.
It is important that you try and match the nature of the funding requirement with the potential funder.
In early stage funding, there are generally three types of funders:
Research and development or seed funders
They provide runding required to conduct research and development or to get the product into a market ready position.
They provide funding in cases where the product is already developed, but funding is required to take the product to market.
Post revenue generating funders
These funders generally expect a bit of a track record through actual sales of the product.