The following frequently asked questions will aid businesses to have a better understanding about what venture capital (VC) and Bolkin is all about.
What is venture capital?
Venture Capital is capital provided by investors for the purpose of growing, developing / expanding or launching a business's products or services.
What type of financing can Bolkin venture capital arrange?
Loans
Equity
Mezzanine financing
Leasing financing
What amount can Bolkin venture capital arrange finance for?
We arrange venture capital in the range of 10 mil ZAR ($1-million US Dollars) upwards.
Is industry experienced required?
Yes, a minimum of 1 partner (preferably 2) must have industry experience in the venture that funding is acquired for. This partner must also have an active role in the business going forward.
Who do I submit my application to?
Please call Arnoux Lombard on +27 83 463 8726 or email your proposal direct to proposals@bolkin.com
What stages can funding be obtained for?
At the initial development stage (start up).
MBO - Management buy out
MBI - Management buy in
Corporate restructurings.
Local or international expansion.
What are the requirements for obtaining funds?
Venture capitalists offer equity-structured finance for projects requiring a medium- to long-term investment of 10 mil ZAR ($1-million US Dollars) or more.
The project needs to be registered in a company
All projects are subject to a vigorous evaluation and risk assessment process, to the benefit of both proposer and potential financiers.
Management teams must have direct experience in the relevant market,
All projects must have the demonstrable potential to produce an above average return on investment per annum
Partners must be able to demonstrate a strong commitment and ambition to making their business plans work.
Who can I contact with regards to patenting an idea?
There are many patents attorneys that are available. It's important to match your idea with the expertise of the patent attorney! An option worth considering is Adams & Adams. www.adamsadams.com
How long will it be before I receive a response to my initial application?
You will receive a response outlining the next steps within nine weeks of providing Bolkin with an Exsecutive Summary.
The management team have worked in various industries and countries, and their experience proves invaluable to a business.
How does Bolkin determine its equity stake in my company?
During the due diligence, Bolkin determines the fair value of the company based on various factors linked to its future potential. This value is then discussed and negotiated with the current shareholders on an arms length basis to determine the ultimate subscription price.
What are the steps for applying for funding through Bolkin?
Bolkin has a very structured approach for funding applications. The process guides a potential business through different phases: Initial Screening, Assessment, Term Sheet, Due Diligence and Deal Execution.
What is Bodkins exit strategy?
Bolkins exit strategy is structured on a deal by deal basis. Potential exit strategies include:
Initial Private Offering,
Listing on a stock exchange,
Trade sale,
Management buy-back,
Sale to another venture capital fund.
Does Bolkin co-invest or syndicate with other Venture Capital funds?
Bolkin will consider the dynamics of the transaction, and where the situation dictates syndication, it will be considered.
How involved is Bolkin in my company post-investment?
Bolkin invests in passionate entrepreneurs and strong management teams that can successfully manage their own business. Bolkin does not usually get involved operationally. Quarterly management accounts are required by Bolkin to track performance and regular interaction with management is encouraged to gain valuable insights in to the business.
