As opposed to how many people think, starting a company is very easy. The challenging part is running and expanding the venture. Without proper managerial skills, even well-funded start-ups are bound to collapse. Now that there is the mention of funding, have you ever wondered how to find someone interested in your idea and is willing to give financial support? It turns out it is a bit easier than you thought provided you know the names of private investors for small businesses in South Africa.
The following piece will comprehensively list companies and individuals whose focus is in funding upcoming startups. From the list, you will have a clear idea of who to approach if you want your money-making idea to succeed. One of the background-checks that one needs to do when approaching an individual or agency for funding is their area of specialisation. Opting for an agency that shares the same interests as you is a good way of increasing your chances of getting that initial capital.
How do I get funding to start a small business?
If you check out the article about small business ideas in South Africa, you will note that you have a wide range of options to explore to start a company. However, without the starting capital, your idea may not see the light of day. To get funds for your firm, seek support and deals from the following:
- Venture Capital Investors
- Angel Investors
- Private Equity Funding
How do small businesses get investors?
After noting how you can get the initial capital to kick-start your startup, here is the process of looking for investors in South Africa. Start by researching and educating yourself about the entire topic of investment. After that, do a background check for all the funding options on the table. The information you will gather will help you understand how to pitch your idea for financing.
In your pitch, be sure to clearly articulate how your venture will generate money alongside specific timelines. At the same time, you need to project future developments to determine whether the financing will be in exchange for equity or the form of debt.
Now, here is the information you need the most. It is the list of sources of funding for small business startup ventures in South Africa. As mentioned, the list has both experienced business-oriented individuals, as well as investment companies.
South African Micro Finance Apex Fund (SAMFAF)
The aim of SAMSAF is to offer financial support to micro businesses, especially those that are located in rural areas. The support goes a long way in increasing their asset profiles.
Greycroft Partners aims to accelerate entrepreneurship by investing funds in companies at any stage. It is located in New York, but it has a massive footprint in many African countries including South Africa. They focus on ICT-based ideas.
Rising Tide Africa (RTA)
RTA is a part of The Rising Tide Program for Africa, which constitutes female angel investors whose aim is to create a new Africa. They partner mainly with digitally or technology-enabled startups to develop solutions that will yield financial returns.
Everything about this limited entity speaks South African. From the ownership to its investment choices, it is all about black. If you decide to partner with Kgatelopele, you will not have to relinquish the control of your venture. Their financing targets opportunities can create employment as well as develop skills.
Accion offers another option that you should consider when looking for companies to invest in your venture. This company is big on fin-tech innovation, and it not only provides financial support to entrepreneurs but also advises them on how to expand and grow.
VC4Africa is more about connecting entrepreneurs and investment opportunities. As a startup, being in the venture ecosystem increases your chances of getting funds.
This organisation has established its presence in many countries across the world. Its tagline summarises everything about its investment decisions. An excellent example of the projects in which Goodwell Investments has invested is WhereIsMyTransport.
Kalon Venture Partners
Kalon Venture Partners offer the best option if you are looking for something more than just funding and smart capital. You will also enjoy impressive returns. This financial provider runs from Johannesburg in South Africa; hence, it is easy to contact them and present your pitch.
Knife Capital is accepting applications for Grindstone 5, which is an entrepreneurship program that aims to drive companies to set the right foundation during starting and become sustainable and fundable. Its name will show up if you look up for startups funding South Africa.
Besides the companies, agencies, and organisations highlighted above, you can still look elsewhere to get private business loans in South Africa. Some individuals are willing to help your start-up take off from the ground. However, you might want to go for well-known investors with a good track record of past deals. What better way to explore that option than to go for Angel investors? Here is a list that will help you pinpoint the most suitable option.
According to the AngelList website, there are over 1,000 Angel Investors who are interested in Africa.
- Gour Lentell
- Ernst Hertzog
- Avi Eyal
- Eric Edelstein
- Joel Gascoigne
- Michael Leeman
- Lawrence T Levine
- Brett Dawson
- Dan Stephenson
- Malcolm Gray
- Jesse Hemson-Struthers
- Shlomi Podgaetz
- Pardon Makumbe
- Charles Lorenceau
Your bank account balance does not decide whether you will succeed as an entrepreneur or not. The above details about private investors for small businesses in South Africa should inspire you to go out and seek financial and professional advice when coming up with the fundamentals of your venture. Provided you have a sound business model, the funding will accelerate your growth within the shortest time possible. We hope that you may start your business soon using private investors for small business in South Africa.