Start-up Funding

[AutoX]

Hi Guys and Gals,

I was wondering, how do we get BEE start-up funding and where? How does it work? Do we require certain documents or qualifications?

I think this might be an interesting thread as to the process of getting funding ofr a new start-up.

 

[LandyMan]

What do you mean with BEE start-up funding?

Do you need funding for a new BEE company, or do you need funding FROM a BEE company?

 

[sox63]

Hi Guys and Gals,

I was wondering, how do we get BEE start-up funding and where? How does it work? Do we require certain documents or qualifications?

I think this might be an interesting thread as to the process of getting funding ofr a new start-up.

You can try the usual banks. But the interest rates are higher than prime. Some others you can try:

1. National Empowerment Fund
2. Umsombovu (if you are a dude under the age of 35, or a woman of any age)
3. Business Partners

Good luck

EDIT: All have their minimum qualifying AA shareholding requirements. And as ebie says, solid business plans go a LONG way.

 

[ebie]

Write a solid business plan. Go to a bank or venture capital business like 'Business Partners' to secure funds.

 

[stoke]

SBDC will throw money at you once you have a business plan drawn up. They also have a list of other funding companies that will also throw money at you before you present to them, and then when you start the company. And then, when the company is failing dismally, they will send you on training courses and then when it really fails, they will send in their own consultants who will then decide to restart the company.

Not if you're White though, if you're white, forget about even getting a response.

 

[AutoX]

Thanks everyone

Landyman new BEE requiring startup funding.

Stoke, 51% Black / 49% white owned?

 

[sox63]

Thanks everyone

Landyman new BEE requiring startup funding.

Stoke, 51% Black / 49% white owned?

Then I would recommend NEF, they are very proffesional. And ranges from R 250k to R 250 million.

www.nefcorp.co.za

 

[stoke]

Autox, is there actually a reason for the 51% to hang onto the 49%? Watchout for your idea being stolen out form under you.

 

[AutoX]

Thanks sox

Stoke, no actually I am only thinking should one want start-up funding you going to need to give more to the black owner to actually make it BEE

 

[sox63]

Thanks sox

Stoke, no actually I am only thinking should one want start-up funding you going to need to give more to the black owner to actually make it BEE

There are different levels of BEE. Many companies get by with remaining White owned. Just having black ownership is only one component of the Scorecard. You could have 100% Black ownership, and still be a low contributor to BEE.

 

[stoke]

In a startup, there is not much more than OWNERSHIP to scorecard against.

 

[dhez]

business partners are the best bet they are really good!!

 

[skig]

SBDC will throw money at you once you have a business plan drawn up.

Now known as Business Partners.

Not if you're White though, if you're white, forget about even getting a response.

Not true, I worked there for a while as an investment/business analyst....

Hi Guys and Gals,

I was wondering, how do we get BEE start-up funding and where? How does it work? Do we require certain documents or qualifications?

I think this might be an interesting thread as to the process of getting funding ofr a new start-up.

First and foremost is to start with drafting a solid business plan...

PM me if you want me to put you in direct contact with some people to help you at Business Partners....

In essence the BEE product from Business Partners finances the BEE individual(s) so that they can buy the necessary percentage from you (I'm assuming you are a white business owner). So, no freebies, just cold hard cash - the BEE partners will have to cough up to buy you out (with Business Partnrs' help).

 

[AutoX]

thanks skig, I will pm you

 

[CharlesM]

Hi Guys and Gals,

I was wondering, how do we get BEE start-up funding and where? How does it work? Do we require certain documents or qualifications?

I think this might be an interesting thread as to the process of getting funding ofr a new start-up.

How do you get finance for a non-BEE startup?

 

[AutoX]

CharlesM... I think there is a couple of ways. Try private VC's or if you can add 50% of the amount required I think the banks will help too.