Financing Instruments for Technology Business Incubators

A panel discussion with a team of specialists

VentureCapital

Time

BusinessGrowthPhase

FundingSources

Owner’sCapital

GovernmentSources

Private Equity

AngelFunders

Bank & SpecialisedFinance

Seed

Start-up

Early Stage

Growth

Expansion

SustainedGrowth

Open Market(IPO/ Listing)

Risk

Asset Base

Business Growth Phases

VCOwner

Government

PEAngel

Banks/ Mez

IPO

A financial award from government that is

not necessarily subject to interest,

revenue sharing, equity or payback.

Can be recouping (spend & recover),

matching funding or upfront grant.

Government Sources

Public Funding Sources (Tech Focused)

Private Funding Sources

Private Funding Sources

VCOwner

Government

PEAngel

Banks/ Mez

IPO

A private individual who invests his or her

own money in an entrepreneurial co.

They provide funding and sometimes

expertise, in exchange for an equity share

of the business.

3 F’s: Friends, Family, Fools

Angel Groups/ Networks

Angel Investment

Government

PEAngel

Banks/ Mez

IPO

Predominantly equity funding of high

growth-potential businesses to

commercialize/ scale rapidly

Provides equity funding, skills,

experience, networks and shares riskThe VC Funder

The Investee Co

Exchanges shareholding and

autonomy to gain a growth partner

VCOwner

Venture Capital

Section 12J VCC

• Tax incentive for qualifying investors

• Legislation was promulgated in 2009

• Initial uptake was limited

• 2015 positive changes

• Currently 32 VCC’s registered

Business Incubators/ Accelerators

Programmes designed to support the successful development

and/or acceleration of entrepreneurial companies

through an array of business support resources and services

CrowdFunding ?

Collective effort of individuals who network and pool their

resources, usually via the Internet, to support efforts initiated by

other people or organizations.

Corporate Venturing

When a corporate takes a large equity stake in, or enters into a joint

venture arrangement with, a small but innovative co.

Objective = to gain a specific competitive advantage/

unlock synergies

Impact TimeImpact TimeImpact Time

Impact TimeImpact Time

Impact TimeImpact Time

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ALLON RAIZBARLOW MANILAL

BEN BIERMANJAYESH RAVJEE

JEFF MILLEROCTAVIUS PHUKUBYE

REBONE MAJOLASETLAKALANE MOLEPO

THAKHANI MAKHUVHA

Panelist