Venture capital (VC) is a form of private equity financing that investors provide to startup companies and small businesses. It is a less-known financing option, however, it is an essential source of funding that gives entrepreneurs access to capital markets.

A great example of VC investment is the recent  25 African-based start-ups selected for this year’s R73 million Black Founders Fund by Google for Start-ups (GfS). Despite the increasing availability of venture capital in Africa, access to funding remains a challenge for many startups on the continent. Here are some factors investors will look at before investing in your startup:

• They want to assess if the business has a big enough market for what it is offering.

• How is the business different from others in the same sector?

• Have you researched your competitors?

• Who is the team behind the business?

• How do you intend to turn a profit?

• What does the financial forecast indicate?

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Business Grants You Don't Need To Pay Back

Did you know that there are grants which unlike loans are not repayable? The government lending agency provides for 100% of the financial need. However, these types of grants are significantly less common and tend to be once-off opportunities to assist new businesses.

Here are some places to look into if you could do with a nonrepayable business grant: 

• Department of Trade, Industry and Competition (DTIC)

• Business and Arts South Africa Supporting Grant Programme

• Department of Small Business Development (DSBD)

• Development Bank of South Africa (DBSA)

• Technology Innovation Agency (TIA)

• National Empowerment Fund (NEF)

• National Youth Development Agency (NYDA)

• Industrial Development Corporation (IDC)

• Seda Technology Programme (STP)

For a full explanation of these and how you can apply check below

How To Get the Most Out Of  Enterprise Development 

The Innovator Trust Enterprise Development programme develops SMMEs through training, skills sharing and infrastructure support. One of their beneficiaries is iCurity, a leader in Cyber Security and Integration Consulting and an incubation beneficiary for 2022/2023."Sometimes, as entrepreneurs, we just need the affirmation that we are headed in the right direction.

While we had the technical skills and knowledge, we were equipped with crucial marketing, branding, and financial skills," says company founder Tavernt Munchenje who credits the program for his business growth. The Innovator Trust Enterprise Development programme assists through:

• Business skills development 

• Access to funding 

• Networking opportunities 

• Market access 

To find out how the Innovator Trust Enterprise Development programme assisted iCurity and how they can assist you, check below:

The Low Down On Enterprise and Supplier Development

According to the B-BBEE Commission, the purpose of the Enterprise and Supplier Development (ESD) is “to promote a conducive environment for the creation of sustainable partnerships between Corporate South Africa and black entrepreneurs to enable access and transformation of the value chains.”ESD Programmes are designed to facilitate business success through mentorship, access to capital and procurement of goods or services.

One of the most important steps in joining an ESD programme is to find one that fits your business’s needs – whether it is market access, development support or funding. 

All programmes would have their own set of rules and regulations however some requirements are common across most programmes such as:

• Qualifying B-BBEE rating

• A well-defined business plan

• Proven financial history

• Overall positive performance

Creating A Business Proposal For Funding

Creating a business proposal for funding is something that most small businesses need to do at some stage. If you need a grant or business loan, you can't just walk into a bank or sit down at a meeting and hand them your notes. You need a well-thought-out business proposal to lay out your plans and prove that you can pay them back. Questions funders ask when looking at your proposal:

• Where will their contributions go?

• What are the specific steps the organisation will take to achieve their objectives?

• What kind of impact will their contributions make?

• What can they expect in terms of return on their investment?

For more on how to write a funding proposal that will set you apart from the rest, check out below: