Getting Funding Can Be A Make Or Break For Your Business
On the 19th of January, we ran a webinar on investment where we had two investors sharing their insights and answering questions from attendees. We have collated some of those questions and answers as resource for you here. The rest of this article gives you food for though on what it means to be investment ready.
Are you currently fundraising or seeking funds to grow your business? Being investment ready has been a buzz word in the African ecosystem because it can be the difference in getting funder buy-in or closing your business. 95% of businesses fail in the first five years of operation.
According to USChamber.com “Entrepreneurs say getting business financing is among their top challenges” But why is it so hard for entrepreneurs to get funding?
Acquiring commercial funding for your business can be tricky, before they make that investment, potential investors need to believe that you are worth investing in and want to see a return on their investment. Therefore, you need to demonstrate that your business will grow, and you will make money.
Being investment-ready makes this a lot easier
Investment-readiness is essentially the bridge that provides the financial and fundraising capability that investors and funders expect from entrepreneurs, thereby significantly increasing the chances of being funded.
Preparation by entrepreneurs is very imperative before they approach investors. The process of investment-readiness is about preparing your start-up to answer some of the essential questions that investors will most likely ask you in the pre-due-diligence stage.
We spoke to Abu Cassim, the founder of Jozi Angels and Lelemba Phiri, the Principal at Africa Trust Group and asked them what is it that they look for in an investment and here is what they had to say:
Join us in January as we delve deeper into this topic of investment readiness. We will host a webinar with investors and experts in the field which will look the process of investments and how entrepreneurs can prepare themselves before their approach investors.