|
Purchase Order Finance |
Supply Chain Debt Finance |
Transformation Equity Finance |
Growth Equity Finance |
Venture Debt (New) |
Accelerate Loan (New) |
|
|---|---|---|---|---|---|---|
| INVESTMENT SIZE & HORIZON |
R300k to R5m 0 - 6 months |
R1m to R10m 3 - 5 years |
R10m to R30m 5 years |
R10m to R40m 5 - 6 years |
R10m to R20m 1 - 5 years |
R100k to R2m 1month - 3 years |
| SIZE AND STAGE OF BUSINESSES |
Revenue: R0 - R50m Very early to late growth stage |
Revenue: R5 - 50m Early-stage growth phase Strong preference for businesses with supplier contracts |
Revenue: >R20m Mature businesses seeking transformation for further growth |
Revenue: >=R5m Preference for businesses that are cash flow positive, profitable, or approaching profitability |
Revenue: >R15m High growth tech-enabled scale ups. Recently or currently raising Series A or B funding. |
Revenue: R0-R50m Very early to late growth stage |
| PURPOSE OF FINANCE | Purchase order finance | Capex strongly preferred. Working capital or Opex, provided there can be some form of surety | Shareholders buy-outs | Capex, working capital or opex with a small proportion going to shareholder buy-outs | Capex, working capital or opex | Purchase order finance. Capex, working capital or opex |
| BEE/TRANSFORMATION | May be >0% Black-Owned | Must be >51% Black-Owned | Must be >51% Black-Owned post investment. Vumela equity is BEE | Must be >51% Black-Owned post investment. Vumela equity is BEE | Must be >51% Black-Owned | Must be >51% Black-Owned |
| SUPPLY CHAIN ALIGNMENT | Must be a direct supplier to another company (B2B or B2B2C business model) | Must be a direct supplier to another company (B2B or B2B2C business model) | Must be a direct supplier to another company (B2B or B2B2C business model) | Must be a direct supplier to another company (B2B or B2B2C business model) | Must be a direct supplier to another company (B2B or B2B2C business model) | Must be a direct supplier to another company (B2B or B2B2C business model) |
| SECTOR | No mandatory sector requirements | No mandatory sector requirements | No mandatory sector requirements | Focus areas: Education, Healthcare, Digital Inclusion, Green Economy | Focus on tech-enabled with recurring revenue | No mandatory sector requirements |
| DEAL | Loan with profit share | Debt | Equity | Equity | Term Loan | Term Loan |
The first fund of its kind in South Africa, Vumela's main goals are to invest in and develop entrepreneurial companies in order to help alleviate poverty in South Africa by creating jobs.
FNB Commercial, together with Edge Growth, manage the Vumela Enterprise Development Fund and through it makes equity investments into high growth SMEs currently struggling to access finance through traditional channels.
Growth finance of this nature is challenging to access in the SA economy as it falls into the 'missing middle'.
Vumela Enterprise Development offers
Vumela Enterprise Development funding applies to both early-stage ventures as well as more mature expanding businesses.
These are businesses that are:
Vumela Enterprise Development Fund actively works with its investees to ensure the growth of these businesses to achieve the objectives of sustainable job creation and related social impact.
