A local company called Corporate Affairs (Pty) Ltd has launched a new matchmaking initiative that will grant budding entrepreneurs easier access to potential investors. The initiative, Dreamer & Angel (D&A), hopes to create sustainable profitable businesses and enhance already existing businesses through capital investment.
In exchange, the investor will get a stake in the company and becomes a partner. Corporate Affairs has brought together a number of established companies to finance the entrepreneurship development platform. Aspirants will be required to submit applications, which will later be classified according to investment range.
“The ideas are then tested against pre-screening measurement criteria and analysed before they pass through to the interview stage,” said Thabiso Botlhole, one of the founding partners.
Shortlisted applicants will be invited to pitch their business ideas before would be investors, at which stage they will be asked to articulate how much funding they want and what stake they are willing to offer in return.
“Their presentations should be backed by a strong business case and an understanding of the numbers involved, revenue streams and scalability,” said Botlhole.
Potential investors will then table an offer to successful applicants and provide financing if an agreement is reached. Once the offer has been accepted, Botlhole said, a due diligence exercise will ensue, involving thorough examination of the background, financial condition, business operations and contractual obligations of the promoter and the proposed business.
“This is done to establish a complete, accurate and reliable vision of the subject so that realistic, fact based decisions can be made by the investor. A formal equity for funding transaction will take place, paving the way for a business relationship between investor and entrepreneur,” said Botlhole.
?He further explained that the program is a collaborative effort between companies that see value in developing sustainable entrepreneurship. Each of the companies has deliberately designed its service to bring value to D&A and participants by offering them preferential pricing and entrepreneurship friendly services.
“Collectively, the companies offer a ‘go-to’ market platform for entrepreneurs,” he said.
He added that D&A will protect aspiring entrepreneurs by insisting that their ideas should be original and patented.
“Our professionals are aware of the implications of violating other people’s intellectual property. We also have a non-disclosure agreement that is signed by all parties concerned,” Botlhole said.