Edge Growth Overview
Edge Growth invests in high-growth small enterprises and is capitalised using corporate enterprise and supplier development spend under the BEE codes. It targets entrepreneurs who can manage complex tasks, stay focused, possess deep industry experience, and demonstrate a strong work ethic.
Edge Growth currently offers two funding options. Vumela’s first fund, which closed in 2010, raised R102 million from FirstRand and completed eight deals, including Everlytic. Vumela’s second fund had deployed R180 million as of November last year across ten deals, including three to black-owned firms. Notable investments include SweepSouth, which provides on-demand domestic workers; Giraffe, a job-matching platform; and Selpal, which connects informal retailers with suppliers, wholesalers, and brands.
The Asisa fund had deployed R68 million by March last year in 21 deals, 16 of which were in black-owned firms. Key investments include health-tech startup Recomed, debt counselling service Meerkat, and private equity firm Bopa Moruo.
Ventureburn recently interviewed Johnston about what makes an entrepreneur investable. He explained that a high-quality early-stage entrepreneur identifies a large problem in a growing market and solves it efficiently, innovatively, and in a defendable way. Additionally, investable startups must have a scalable business model, a differentiated value proposition, and a cost-efficient plan for growth.
Ventureburn recently interviewed Johnston about what makes an entrepreneur investable. He explained that a high-quality early-stage entrepreneur identifies a large problem and solves it efficiently, innovatively, and defendably. Additionally, investable startups must have a scalable business model, a differentiated value proposition, and a cost-efficient growth plan.
The company also needs a committed, complementary founding team and a clear execution strategy. By the time it seeks third-party investment, it should demonstrate customer adoption and some revenue traction. Moreover, investors must understand exit opportunities and the business’s potential to meet financial forecasts.
Once recognised as investable, Edge Growth typically closes deals within four to six months. However, developing a relationship with investors before requesting funding often works best. In some cases, Edge Growth becomes interested in early-stage businesses 12 to 18 months before funding. This allows time to build trust as the team achieves strategic milestones.
Contact DTC
At DTC, we understand the complexities of different funding agencies and the unique application criteria for each. Consequently, we have guided thousands of entrepreneurs through the funding process and can assist you to access business funding successfully.
Contact us for more information on funding through Edge Growth.
