VC4Africa launches secure network for private investing
VC4Africa is pleased to announce new tools that make private investment easy, secure and social. This is a first for the African space and is part of our constant drive to bring the continent’s best ideas closer to the vital resources they need to grow.
This new functionality allows entrepreneurs to register their funding needs. These intentions to raise a round of funding are screened by the team at VC4Africa before they are published for investors, registered as part of the VC4Africa investor network, to review. Interested investors can follow the venture and get regular updates on their progress. They are able to engage the entrepreneur with questions, review secure documents and discuss the terms. At any stage they can express their interest to support the entrepreneur and step forward as a lead investor. If the venture requires addition funding, they can enter a fundraising mode for 90 days needed to attract additional support. This is the next step in VC4Africa’s efforts to help close the startup funding gap, bringing quality entrepreneurs and qualified investors closer together.
This new functionality builds on a pilot in which VC4Africa successfully connected 3 out of 5 participating companies. One deal has since closed and another two are in final stages. Saskia Reus-Makkink, Head of Investor Relations at VC4Africa, explains, “We are stepping up our efforts to connect entrepreneurs with the resources they need to realize their potential. With this launch, we make it even easier for entrepreneurs to connect with possible partners.” Saskia expands, “We screen all of the business plans and related documentation of the ventures that apply for fundraising. If they meet our quality standards the venture is made visible for the investors registered as part of the VC4Africa investor network. If the entrepreneur does not meet the quality criteria, we identify areas they can work on. They are free to make use of our growing number of tools and and can apply to the VC4Africa mentorship program. These are resources the entrepreneur is free to tap into as they get themselves to the next level.”
For investors to give VC4Africa listed entrepreneurs a serious look, the venture has to be well beyond idea stage. The documentation has to be top level and social traction within the community counts. Entrepreneurs have already raised more than a USD $1 million in funding and joint ventures and investments have been secured by members in countries as diverse as Cameroon, South Africa, the United States, Kenya, Nigeria, the Netherlands, Somalia and Zambia.
As a community, we hope these new tools get us one step closer to our mission. With a user friendly platform and cutting edge tools, we seek to empower our members in ways that make it easier and easier for us to unlock the resources available across the member base.