How to raise funding for a new company in South Africa

Raising funding for your business is not the biggest challenge as you think. Planning and executing the planned strategy is the challenge. Many institutions, in South Africa are always ready to offer you money to do your business. They will however not throw their money into a hole where it cannot be recovered. You will need to offer real value for the money they will put in and hence show that you have the means to return their money.

So let's dive straight into our topic today. How can you raise capital or funding for a new company in South Africa. I would like to hear from the randforum community, how they will answer me on this one


  • Here is my take on it... Looking for investors for most South African Entrepreneurs seems like a mammoth task. And I am not here to tell you the exact opposite… rather offer you a proven and easier solution to your need.

    Remember if you can’t raise capital… its game over!

    You can’t start your business.
    You can’t run your business.
    You can’t grow your business.

    So in your search for funding you should know certain things that will make your company more attractive to potential investors. Do not just throw your business plan online and hope that someone will find it and get interested and go ahead and fund you. That has never worked for anyone and the painful truth is that it will not start working for you either. Now that I have told you what not to do, let me tell you what to do. yes you will need to locate and contact potential funders in their chosen or preferable way, find out out what are their requirements, terms and conditions, eligibility of applicants, industry preference of investing and so forth.

    Bplans has already made your work much lighter by compiling a comprehensive list of investors located in South Africa who are looking for sound business investment opportunities. Most of our investors, don’t give away their contact information easily mainly because of three reasons:

    To protect their identity from clone sites and associations.
    To protect themselves from fraudulent business opportunities
    Avoid influx of poorly written business plans and business proposals.

    Needless to say, remember investors are real people, with real contacts and people with a busy life like everyone else. Now imagine yourself having a phone that rang continuously from unsolicited callers and an email inbox full of some coax stories of some fraudulent opportunists. Honestly that wouldn’t be fair at all to say the least. Investors choose to do business in a professional, ethical and sound manner.

    Now, in your search for investors, you should remember that they are steps to follow to make your company or project to be investor ready. What is the first step to approaching a potential investor? You need a business plan. Now we won’t talk about business plans in this section but as you go along I want you to read this information with that requirement in thought. I suppose you have already finished it before you look any further. You can click on the link written business plans below this article to learn more about business plans and how we can help you complete yours in no time.

    The South African business community is one that is diverse and I can repeatedly say rich in diversity. A detailed analysis of the Absa SME Index shows how the community has evolved over time from independence in 1994. Business opportunities are surfacing from different angles of the economy every single day. With the upgrading of infrastructure to world class standards, South Africa has become an investment destination for both local and international investors.

    Government backed loans from banks and social initiatives are limited in capacity. Innovative entrepreneurs are not intimidated by such facts. They look for alternative ways to raise money to fund their businesses. The rising of a new group of such alternatives has given birth to Angel Investment groups and Venture Capital Firms in South Africa.

    These have gathered experience in different industries across the economy and are ready to invest in different projects and companies. They are not some easy cash cows and not an alternative for “chancers”… excuse the word.

    They typically invest anything from R100 000 to R10 Million in the companies they choose to invest in as you can find out from our highly resourceful Bplans Investor Database.

    Don’t let your dream die with negative media speculation about Business Funding in South Africa. We can provide you with the solution today
  • I wonder if the IDC and Business partners still help small businesses as they used to
  • Great post. I hope the community benefits from such knowledge
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