Funding your digital venture: a thread of selected highlights and pertinent advice for South African digital start-ups from last week's joint @TheRealSEFA, @EDSE_programme webinar. It was the third in our ongoing set of Market Access for Digital Entrepreneurs webinars. More...:
#1. Access to finance is a major hurdle for small business entrepreneurs - and the tech sector is no exception. But there is funding available: from angel investors, development finance institutions and specialised start-up funders, frequently facilitated by incubators.
#2. What is clear is that there is a need for local digital entrepreneurs to be better equipped to identify and engage with potential funders, based on a clear understanding of funder criteria. Our star-studded panel, ably facilitated by @AudreyVerhaeghe, provided just that.
#3. Advice for digital entrepreneurs from industry veterans:
An app is not a business: it is a tool for your business
What does your customer think is your competitive advantage: "not what you think it is"
A business plan is not a funding request
Build your network: connect!
An app is not a business: it is a tool for your business
What does your customer think is your competitive advantage: "not what you think it is"
A business plan is not a funding request
Build your network: connect!
#4. Plus:
Raising funding is a fairly lengthy process: "get your ducks in a row for a due diligence process"
Research your potential funders: "learn as much about them as they want to know about you"
What is your differentiator? Is it a disruptor in the market?
Raising funding is a fairly lengthy process: "get your ducks in a row for a due diligence process"
Research your potential funders: "learn as much about them as they want to know about you"
What is your differentiator? Is it a disruptor in the market?
#5. Our first speaker, @donmashele12, @TheRealSEFA's head of development impact support, explained the portfolio of offerings available at incubators operated by @DSBD_SA, @Seda_dsbd and SEFA. Applicants needed to present a business case, supported by a good letter of intent.
#6. Akro Capital's Janine Basel urged participants to be creative in thinking about the six types of funding available. But: "In your early stages, don't waste time with VCs. Focus on Angels and revenue-generating deals" 
#7. Hannah Subayi Kamuanga (@DazzleAngels) spoke to participants from Lumbumbashi in the DRC. She explained the distinct roles of an incubator, an accelerator and an innovation lab in assisting digital entrepreneurs to access finance.
#8. Incubators are typically the first structure available for start-ups.
Accelerators are typically involved at the pre-seed level, are highly competitive and require a stake for a cash investment.
Innovation labs typically collaborate with both incubators and accelerators.
Accelerators are typically involved at the pre-seed level, are highly competitive and require a stake for a cash investment.
Innovation labs typically collaborate with both incubators and accelerators.
#9. In a powerful presentation @LlewClaasen (CEO of @newtownpartners) took participants through the thinking of VC and Angel investors: "It is important for us to get correct info in a pitch, since we are looking for reasons why not to invest, rather than why to invest"
#10. @LlewClaasen said his company invested in early stage disruptive innovation opportunities along the model developed by Clayton Christensen. Pitches had to validate market opportunity and size and what made the solution different to its existing customers. Also: think global.
#11. This was an absorbing, engaging and well-attended webinar. A big thanks from us at @EDSE_programme and @TheRealSEFA to our speakers for their participation, commitment. The presentations will soon be available on our website. Look out for the next webinar in this series.
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