New funding scheme launched for startups in South Africa
A new funding opportunity for startups in South Africa called DeveloPPP Ventures has been launched by Deutsche Gesellschaft für Internationale Zusammenarbeit (Giz) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
Source: Pexels
The funding is decided within the framework of regular competitions (in 2024 it takes place twice a year).
If the application is successful, startups can receive a grant of up to R2m towards a growth investment to scale up their development-relevant business model.
Prerequisites are that the startups already generate initial revenues with their product or service and acquire additional funds from other sources of at least the same amount via a matching fund model.
DeveloPPP Ventures financing is tailored to raise these companies above the first threshold of becoming attractive enough for commercial (impact) investors and/or financial institutions.
The SGB must be registered in South Africa, must have a relevant product or service already on the market and can prove first sales figures by providing at least one annual financial statement.
In addition, they must provide sound financial and strategic business planning documents over three years going forward. The financial planning should provide insight into how the funds will be used to grow, become financially sound and reach break-even.
Besides funding, the companies will receive technical assistance based on their specific needs to maximise their chances of success.
"Please note that additional requirements and due diligence processes are part of the overall selection process and that additional legal considerations will be taken into account before an engagement by Giz," notes Giz.
The first DeveloPPP Ventures competition for South Africa is currently open from 15 May until 30 June 2024.
SGBs interested in applying to the DeveloPPP Ventures funding scheme should visit www.develoPPP.de/en/ventures and/or contact ed.zig@serutnevPPPoleved.
