1. AUGUST 2016 ENTREPRENEURMAG.CO.ZA 31
TACTICS FEATURETACTICS FEATURE
FUND YOUR
BUSINESS
30 ENTREPRENEURMAG.CO.ZA AUGUST 2016
CHECKLIST
Before you apply for funding,
do you have the following
documents?
□ Business plan or relevant
application
□ Formal contracts directly
with a blue chip company or
government department
□ Letters of engagement with
clients
□ Tax clearance certificate
□ CIPC company documents
□ BEE certificate
□ Audited financial statements
□ Management accounts
» Established: Your business is thriving
with a place in the market and loyal
customers.
» Expansion: Characterised by a period of
growth into new markets.
» Decline: Decreased sales and profits.
» Exit: Either the opportunity to cash out
on all the years of hard work, or it can
mean shutting down the business.
* See table below
Step 2: Identify the funders/financial
institutions and their target audience
This information is available on each
funder’s website. Read each funder’s
mandates to determine:
» What the funders are looking to achieve
(black/youth/female ownership, jobs,
profitability, rural vs. urban business,
contracts etc.)
» Priority industries
» Business phase/size
» Minimum and maximum funding available
» Collateral requirements and personal risk
» Valuation methodology in the case of
buying into or selling a business
» Operational involvement of previously
disadvantaged individuals.
Step 3: Research the funds within the
relevant institution
Funders will, on average, have between two
and 26 different funds, each with their own
mandate, eligibility criteria, funding type
(loan or grant), costing, things they will and
won’t fund and other specifics. Read the
mandates to find your fit.
Step 4: Reach out to the funders
Call and speak to the funders and be fund
specific. Speak to a consultant at the fund
to clarify your eligibility before starting the
application process.
Ask questions around:
» Their timelines
» When the credit committees or panels sit
for adjudication
» What is considered for your application to
get adjudicated.
Arming yourself with this knowledge
will exponentially increase your chances
of being considered for funding. Many
applications do not reach the adjudication
phase because the business doesn’t match
the fund or the application is incorrectly
filled in.
You cannot receive funding if your
application is not even considered. The
correct content and format is vital.
QARE GOVERNMENT GRANTS ONLY
FOR SMALL ENTERPRISES?
Not at all. Where a large business is looking
to expand its network through distributors,
agents or franchisees, wholesale loans
from the likes of SEFA, NEF and IDC as
well as some developmental grants such
as the Jobs Fund, Incubator Support
Programme and Social Enterprise Fund are
attractive funding models for previously
disadvantaged individuals to be included in
your value chain as business owners. This
is also a way that businesses are able to
leverage funding for growth.
QWHAT IS THE FIRST STEP TO SECURING
FINANCE FOR YOUR BUSINESS?
You must understand what you need. There’s a
basic checklist to follow:
» Do you need money for working or operating
expenditure vs capital investment?
» How much do you require?
» How long do you need the money for?
» What is the cost of capital you can afford
to repay?
Armed with this knowledge, you can start
finding the right fund or finance vehicle for
your needs.
QHOW DO YOU IDENTIFY THE RIGHT
FUND FOR YOUR BUSINESS?
There are four key steps in the process.
Step 1: Know your business phase
Each phase of business attracts a different
type of funder, so it’s important to be clear
about which phase you’re in.
» Seed: Your business is just a thought or
an idea.
» Start-up: Your business now exists legally.
Products or services are in production and
you have customers.
» Growth: Revenues and customers are
increasing, profits are strong, competition
exists.
FUNDERS APPROVE FUNDING
BASED ON DIFFERENT CRITERIA:
➢» Turnover: mainly grants
➢» Profitability: loans and grants
➢» Balance sheet: loans and grants
➢» Ability to scale: venture capital
Page over for a comprehensive list of funders
LIFE-CYCLE VS FUNDING VEHICLES
Growth and expansion phase
Maturity
Idea RD Launch
Venture capital
firms corporate
investors
Private equity firms
Founders
Seed funders
Start-up funders
Angel investors
Debtor and trade finance; long-term funders
and Development Banks
Banks
IPO acquistion
Revenue
Time
93% of South African businesses lack the
knowledge of how and where to access
finance. Nadia Rawjee unpacks the how,
where and who of funding your company.
QA
FUNDING
GET THAT
CASH
There’s a wealth of
funding and finance
available in South Africa
— you just need to know
where to apply, and
what they need from
you.
VITAL
STATS
PLAYER:
Nadia Rawjee
COMPANY:
Uzenzele
Holdings
WHAT THEY
DO:
Facilitate a
range of non-
traditional,
developmental
grant and
loan funding
applications
to expedite
the progress
and growth of
established
businesses.
VISIT: www.
uzenzele.com
PHOTO:SUPPLIED

2. 32 ENTREPRENEURMAG.CO.ZA AUGUST 2016 AUGUST 2016 ENTREPRENEURMAG.CO.ZA 33
IMPROVE YOUR FUNDING CHANCES: Submit applications before October and stand a better chance of gaining access to developmental
funding grants and loans in the 2016/17 financial year.
NEF: National Empowerment Fund
Phase Finance Name of Fund Mandate Eligibility Criteria Contact
Debt Imbewu fund Supports black entrepreneurs
wishing to start new businesses
and existing black-owned
enterprises with expansion capital.
50,1% black shareholding, operationally
involved black shareholder, business
and/or industry experience by black
entrepreneurs is also considered.
+27 (0)11 305 8000;
0861 843 633 / 0861
(THE NEF)
applications@nefcorp.
co.za
Debt uMnotho Fund Designed to improve access to
BEE capital and has five products:
Acquisition Finance, Project
Finance, Expansion Finance,
Capital Markets Fund, and Liquidity
and Warehousing.
Minimum BEE ownership of 25,1% post
NEF investment, NEF exposure to the
project generally not to exceed 50% of
total project costs.
Expansion: 50,1% shareholding with
operational involvement.
Same as above
How to access NEF funding
The vision of the NEF is to be a leading provider of innovative transformation for an economically inclusive South Africa through being a thought leader,
promoting and facilitating black participation, providing financial and non-financial support to black-owned or empowered businesses, and by promoting
a culture of savings and investment among black individuals and communities. This is achieved through fund management, asset management and
strategic project funds.
Government / Development Finance Institution (DFI) capital
DTI: Department of Trade and Industry
Phase Finance Name of Fund Mandate Eligibility Criteria Contact
Rebate
Grant
Automotive
Incentive
Scheme (AIS)
To grow and develop the
automotive sector by increasing
plant production volumes and
strengthening the automotive
value chain.
Light motor vehicle manufacturers
and component or deemed component
manufacturers that are part of the Original
Equipment Manufacturer (OEM) supply
chain.
Anna Theron
+27 (0)12 394 1094
atheron@thedti.gov.za
Upfront
Grant
Black Business
Supplier
Development
Programme
(BBSDP)
To improve the sustainability
of black-owned enterprises by
providing funding to increase
the competitiveness of the
businesses.
Majority black-owned with a predominantly
black management team; turnover
of R250 000 to R35 million per year;
operating and trading for at least one year.
Gabriel Makhonxa
+27 (0)12 394 1438
gmakhonxa@thedti.
gov.za
Rebate
Grant
and/or
Upfront
Grant
Clothing
and Textile
Competitiveness
Programme
(CTCP) (PIP)
To structurally change the
clothing and textile industry by
providing funding assistance
for enterprises to invest in
competitiveness improvement
interventions.
Clothing manufacturers: Textile
manufacturers; Cut, Make and Trim (CMT)
operators; Footwear manufacturers;
Leather goods manufacturers; Leather
processors (specifically for leather goods
and footwear industries).
Joy Balepile
+27 (0)11 269 3762
joyb@idc.co.za
Rebate
Grant
Black
Industrialist
Scheme (BIS)
To achieve the demographic
transformation of economic
power and spatial concentration
within the overall industrial
sector.
Have more than 50% black
shareholding and management control;
Must have requisite expertise in the sector;
Have a project with a minimum investment
of R30 million.
Gabriel Makhonxa
+27 (0)12 394 1438
gmakhonxa@thedti.
gov.za
Loan Isivande
Women’s Fund
Improves and expands
access to finance for woman
entrepreneurs.
At least six months in operation; 50% +
owned and managed by women; potential
for growth, commercial sustainability and
job creation.
+27 (0)12 772 7910
Rebate
Grant
Manufacturing
Competitiveness
Enhancement
Programme
(MCEP)
Enhanced manufacturing
support for upgrading
production facilities in a manner
that sustains employment and
maximises value-addition.
Operating for at least one year;
Projects are required to sustain existing
employment levels at the date of
application for the duration of their
participation in the MCEP; Level 4 B-BBEE
contributor status.
Magdeline Thwala
mthwala@thedti.gov.za
+27 (0)12 394 1089
Sithembile Tantsi
tsithembile@thedti.
gov.za
+27 (0)12 394 1258
Rebate
Grant
Export
Marketing and
Investment
Assistance
(EMIA)
Establishing export markets
for SA products and to attract
foreign investment into South
Africa.
South African manufacturers and
exporters; Export trading houses
representing at least three SMEs; South
African commission agents representing at
least three SMEs/HDI-owned businesses.
Donald Mabusela
+27 (0)12 394 1716
dmabusela@thedti.
gov.za
Rebate
Grant
SA Emerging
Black Film-
makers Incentive
To nurture emerging black
filmmakers and to capacitate
them to take up large
productions in order to
contribute towards job creation.
Black-owned qualifying productions with a
total production budget of R1 million and
above; must have been operational and
involved in the film industry for at least
six months, with at least a ten-minute
trailblazer or short film produced.
Nelly Molokoane
+27 (0)12 394 1425
nmolokoane@thedti.
gov.za
Rebate
Grant
SA Film and
Television
Production and
Co-Production
Incentive
To support the local film
industry and to contribute
towards employment
opportunities in South Africa.
South African productions with a total
production of R2,5 million and above. Must
be the entity responsible for all activities
involved in the production of the film.
Dimakatso Kgomo,
+27 (0)12 394 1462
DKGomo@thedti.gov.za
How to access DTI funding
The DTI has core areas of focus that include industrial development; trade, export and investment; broadening participation; regulation; and
administration and co-ordination. It aims to promote long-term industrialisation and industrial diversification in metals fabrication, capital and transport
equipment, green and energy-saving industries, agro-processing industries, automotive and respective components, plastics, pharmaceuticals,
chemicals, clothing, textiles, leather, biofuels, footwear, forestry paper, pulp and furniture, tourism and cultural industries, business process outsourcing
and off-shoring (BPOO), and nuclear and advanced aerospace industries to name just some.
FUNDING DIRECTORY PHASE KEY
SEED START-UP GROWTH ESTABLISHED EXPANSION
IDC: Industrial Development Corporation
Phase Finance Name of Fund Mandate Eligibility Criteria Contact
Loan Gro-e Youth
Fund
Financial and non-financial
support to youth enterprises.
Over 50% owership by persons under 35
years; Level 4 B-BBEE Contributor status;
Tax Clearance Certificate; recent Afs’s
and management accounts
+27 (0)11 269 3000
Loan Green Energy
Efficiency Fund
(GEEF)
To encourage investments
in energy efficiency and
renewable energy projects
aimed at improving energy
efficiency.
Financially viable energy efficiency
projects that provides significant
energy and/or emissions savings;
Offset grid-connected electricity
through self-use; Priority will be given
to companies that have less than or
equal to R51 million turnover; R55 million
assets; or 200 employees.
+27 (0)11 269 3000
Loan Manufacturing
Competitiveness
Enhancement
Programme
(MCEP)
Designed to promote
competitiveness in the
manufacturing arena, and to
ensure job retention in this
sector.
Must be classified as a manufacturer. +27 (0)11 269 3000
Loan
convertible
to Grant
Social Enterprise
Fund(SEF)
Supports social and
environmental issues and job
creation of social value.
Majority of profits should be contributed
back to the impact of the business, have
a revenue model, not be a ‘project’ of the
applicant, prove sustainability, should
have a funding partner other than IDC.
Bukelwa Mntongana
+27 (0)11 269 3466
bukelwam@idc.co.za
Equity Technology
Venture Capital
Fund (TVC)
Established by the dti
and managed by IDC for
the commercialisation of
innovative products, processes
and technologies.
Case-by-case Craig Sauls
+27 (0)11 269 3554
craigs@idc.co.za
Equity Venture Capital
Fund
Development and
commercialisation of
technology-rich Intellectual
Property (IP).
Case-by-case +27 (0)11 269 3000
How to access IDC funding
The IDC assesses applications for funding based on (but not exclusively) job creation potential, rural development, urban renewal and poverty
alleviation, the employment of women and youth, as well as skills development.
All projects funded must show economic viability and sustainability and should target previously disadvantaged groups, women, people with
disabilities, low income working groups and marginalised communities.
TACTICS FEATURETACTICS FEATURE

3. 34 ENTREPRENEURMAG.CO.ZA AUGUST 2016 AUGUST 2016 ENTREPRENEURMAG.CO.ZA 35
Supplied by Uzenzele Holdings. This list is non-exhaustive and Uzenzele Holdings does not facilitate funding for all of the above funds.
Phase Finance Name of Fund Mandate Eligibility Criteria Contact
SEFA
Bridging
Loans/ Term
Loans /
Structured
Finance
Direct Lending SMEs and co-operatives operating
in all sectors of the economy.
51% South African ownership, and in
certain cases 51% Black ownership.
+27 (0)12 748 9600
helpline@sefa.org.za
Development Bank of Southern Africa
Upfront
Grant
The Jobs Fund To co-finance public and
private sector projects that will
significantly contribute to job
creation.
Dependent on the window for funding. +27 (0)12 406 9166
jobsfund@treasury.
gov.za
SARS
PAYE
reduction
on monthly
returns
Employment Tax
Incentive (ETI)
The ETI encourages employers to
hire young work seekers.
Must be paying PAYE to qualify; 18 to
29 years old; Is paid the minimum wage
applicable to that employer.
0800 00 SARS (7277)
Independant and Non-Government Capital
Phase Development Finance Mandate Eligibility Criteria Contact
Debtor Trade Finance
Randtrust Debtor
Finance
Cash flow financing solutions that allow creditors
to be paid.
Debtors book of R10 million+,
debt must be insurable;
exclusion of public debt.
+27 (0)11 844 7160
Reichmans Debtor
Finance/
Asset Finance
/ Trade
Finance
Working capital and medium-term finance. Established businesses
that do not qualify for
commercial bank finance or
have exceeded the end of
their overdraft.
info@reichmanscapital.
co.za
Retail Capital Merchant
Cash Advance
(MCA)
Unsecured business finance for working capital,
expansion and growth
Minimum 6 months trading
history, minimum R30 000
monthly debit credit card
turnover.
0861 17 17 17 or
enquiries@retailcapital.
co.za
Royalfields Invoice
Discounting/
Long-Term
Loans
Debt funding to SMEs that are unable to access
bank or Development Finance Institution (DFI)
capital.
Minimum 12 month contract;
predominantly for supply
agreements.
086 178 9607,
info@royalfields.co.za
Tebfin Invoice
Discounting
Bridging finance and working capital. Predominantly for supply
agreements.
+27 (0)11 301 3607
info@tebfinance.co.za
Long Term Funders
Business
Partners
Structured
Finance
Deals are structured using equity, shareholders’
loan accounts, revenue sharing and term loans or
any combination of these.
Established businesses and
experienced owner with
own capital to contribute to
the financial requirement.
Collateral required.
0861 SMEFIN
(0861 763 346)
enquiries@
businesspartners.co.za
Business
Partners
Structured
Property
Finance
Finance of up to 110% of the purchase price
for owner-occupied business properties, the
purchase of business properties for leasing back
in order to unlock capital for business expansions.
Up to 100% finance on existing business-
occupied properties to unlock capital for business
expansion or other requirements. Tailor-made
property financing solutions.
Established businesses with
own capital to contribute to
the financial requirement.
Collateral required.
Same as above
Grofin Debt Specialises in financing SMEs across Africa and
the Middle East, with a focus on franchisees and
manufacturing
Established businesses with
own capital to contribute to
the financial requirement.
Collateral required.
FUNDING DIRECTORY PHASE KEY
SEED START-UP GROWTH ESTABLISHED EXPANSION
For more information and a more comprehensive list of VC and PE funds, visit www.savca.co.za (South African Venture Capital and Private Equity Association).
Phase Investor Name of fund Mandate Eligibility Criteria Contact
VENTURE CAPITALISTS
Angelhub
Ventures
Angel seed
fund
Invests in lean start-ups with
disruptive business models and
technologies.
Existing, profitable, in industries prime for
disruption (SaaS, m-commerce and big
data).
Brett Commaille
+27 (0)21 888 0947,
Info@angelhub.co.za
4Di
Capital
4Di Capital
Fund 1
An independent seed- and
early-stage technology venture
capital firm. Technology-focused
(Internet, software, mobile).
Founder teams; commitment; domain
expertise and deep insights into the large
market problems they wish to solve.
Lungile Makhanya
+27 (0)21 659 2042
lungile@4dicapital.com
Grovest
Venture
Capital
Company
Grovest
Venture
Capital Fund
To build a portfolio of high
growth SMEs. Diversified industry
preferences.
Revenue producing; potential for rapid
growth; defensible market position;
dynamic and motivated management
team.
Jeff Miller
+27 (0)11 262 6433
info@grovest.co.za
apply@grovest.co.za
Grovest
Venture
Capital
Company
Grotech To invest and build a portfolio of
disruptive digital technology high
growth companies.
Innovative, technology-based solutions
with an innovative business model.
Clive Butkow
+27 (0)11 262 6433
clive@grovest.co.za
Invenfin Invenfin Priority sectors are Technology
and Food Beverages.
Businesses that have achieved meaningful
market traction, are on-trend globally, are
poised for rapid growth, and have strong
IP.
Stuart Gast
+27 (0)21 888 3355
contact@invenfin.co.za
ENTERPRISE DEVELOPMENT
Edge
Growth
Vumela
Enterprise
Development
Capital raised from third
parties. No preferred industry, if
addressing broader social need.
Established business. No seed or angel
funding.
Richard Rose
+27 (0)10 001 3715
info@edgegrowth.com
Edge
Growth
Edge Action
Fund
No preferred industry. Established business. No seed or angel
funding.
Richard Rose
+27 (0)10 001 3715
info@edgegrowth.com
Edge
Growth
ASISA
Enterprise
Development
Fund
Focused on suppliers to the
financial services sector. Mainly
loan funding.
Established business. No seed or angel
funding.
Richard Chapman
+27 (0)10 001 3715
info@edgegrowth.com
IDF
Managers
IDF 1, IDF 2 Invests in economically viable
and innovative black-owned and
women-owned (and managed)
businesses within South Africa.
Must be able to yield commercial returns.
Show high growth potential and have
innovative business ideas.
Polo Leteka
+27 (0)11 772 7900
polo@idf.co.za
PRIVATE EQUITY
RMB
Corvest
RMB Corvest Participate predominantly in
management buy-outs and buy-
ins, leveraged buy-outs and BEE
transactions.
South African companies making
sustainable annual earnings above
R30 million EBITDA; profitable and cash
generative; experienced and competent
management team.
Neil Page
+27 (0)11 380 8300
info@rmbcorvest.co.za
Sasfin
private
Equity
Fund
Managers
Sasfin Private
Equity Fund
Backs management teams who
have or can build the business
further and actively seek
minority equity stakes in such
companies.
High-growth companies with an enterprise
value above R50 million.
Neil Eppel
+27 (0)11 809 7500
Zico
Capital
Zico Capital
Fund
Interested in these sectors:
Automotive; Operational
services, Media and advertising;
Human capital recruitment,
training and development;
Financial services; Infrastructure
and manufacturing; Mining and
resources; Alternative energy.
Businesses with minimum company
earnings of R20 million EBITA
Tshego Sefolo
+27 (0)11 217 3300
tshego@zico.co.za
TACTICS FEATURETACTICS FEATURE