IDF Capital was established on 01 March 2008, to exploit the opportunity of profitably investing in the entrepreneurial SME landscape by providing appropriate financial and non-financial products and support to unlock value of the SME sector.
They are driven to provide continued sustainability of African businesses through capital and intelligent support. They believe in the power of small businesses to facilitate trade and create jobs.
IDF Capital
IDF’s mission is to facilitate access to finance for high growth businesses through:
- Providing responsive and innovative financial solutions that unlock the economic potential of the African continent;
- Achieving high social and economic returns for investors by investing in entrepreneurial businesses that will yield high social and economic returns with sufficiently mitigated risk; and
- Harnessing the intrapreneurship culture of our employees with the aim of creating shared sustainable wealth.
The company is:
- Level 1 B-BBEE Black Female-Owned South African Company;
- Member of ABSIP and SAVCA;
- Invested in Excess of 150 Entrepreneurs and Growing; and
- Has over R625 million in Funds under Management and Growing.
Entrepreneurs
With over 50 years combined experience in the African entrepreneurial landscape and financial services industry, IDF’s collaborative approach to supporting entrepreneurs has made them a trusted name.
Through capital and intelligent support, they are committed to the continued growth of Africa’s entrepreneurs by unlocking their potential to expand their businesses not only locally, but continentally as well.
IDF Capital has to date invested in over 100 South African entrepreneurs to grow their businesses. Their value added service solutions are tailoured to the needs of their clients and seeks to ensure their continued sustainability and growth within their chosen industries.
Their value proposition for entrepreneurs is through:
- Funding Solutions
- Business Growth and Value Adding Solutions
- Market and Supply Chain Linkages
They collaborate with Corporate clients seeking Enterprise and Supplier Development (ESD) solutions through the following services:
- For Corporate Investors
- Fund Management Services (including Enterprise and Supplier Development (ESD) Funds)
- Back Office Fund Administration Services
- Post Investment Value Added Services
- Supply Chain Linked Funding Solutions
- For Corporate ESD Services
- ESD Advisory Services
- Commercialising ESD Initiatives
- Supply Chain Analysis and Linkages
- Business Process Assessment and Re-engineering
- Project Viability Diagnostic
- Transaction Structuring
- Due Diligence Services
- Company Valuations
Qualifying businesses must have:
- 51% Black Owned and Controlled Entities;
- Growth Centric Sectors and Businesses;
- Minimum Six Months Post Revenue Operational Track Record (exceptions made for businesses in the technology industry);
- Potential for Profitability and Commercial Sustainability;
- Scalable Business Models;
- Sound Management and Good Governance in Place;
- Are Willing to Receive Post Investment Value Added Services; and
- A Clear Exit Strategy.
Investments
1. Cash-Flow Financing is a form of bridging finance which allows businesses to manage their cash-flow and working capital more efficiently.
- Supply-Chain Linked
- Working Capital, Sales-Backed Financing
- Invoice and Purchase-Order Financing
- Prime-linked Interest Rates
- Short-Term Loans: 7 days to 12 months
- Loan Size: R50,000 to R1,000,000
For your business to qualify for IDF Capital Cash-flow Financing you need to:
- Be a Qualifying Supplier Linked to an Established Corporate Supply Chain
- Have a Verifiable Debtor Partner Invoice
- Generate at Least R1 million in Annual Turnover
- Have a Minimum of 6 Months Trading History
- Have Personal Sureties Required of Directors and Shareholders
- Have Loans Secured by Cession of Invoice or Purchase Order
- The Business should be Solvent and Sound
2. Term-Debt Financing allows investing in asset finance, contract finance and franchises.
- Expansion Capital
- Asset/Equipment Finance
- Prime-Linked Interest Rates
- Term Debt Loans: 1 year – 5 years
- Loan Size: R250,000 to R5,000,000
For your business to qualify for IDF Capital Term-debt Financing you are required to:
- Have Contracted Future Sales and Stable Forecasted Profits
- Have Strong Visibility of Cash Flows
- Show Solid and Stable Profit History
- Have a Minimum of 6 Months Trading History or a Solid Off Take Agreement
3. Venture Capital is capital invested in early stage projects with a substantial element of risk, typically ICT businesses when they are at their early stages.
- Early Stage Growth and Start Up Finance
- Investment in High-Growth Companies
- Equity or Quasi-Equity
- Seeks Equity and Venture Capital Returns
- Investment Size: R250,000 to R10 million
For your business to qualify for our Venture Capital Financing you need to:
- Be a High-Growth Business, With a Clear Unique Selling Proposition
- In ICT, have a Proof of Concept
- Have a Clear Market Entry Strategy
- Offer a Clear Exit Strategy
4. Private Equity is finance for established firms that can benefit greatly from change in management and an injection of new capital.
- Established Businesses with 3-5 Year Track Record
- Growth and Acquisition Financing
- Investment in High-Growth Companies
- Equity or Equity-Linked Investments
- Seeks Private Equity Returns
- Investment Size: R250,000 to R20 million (with follow on investments)
For your business to qualify for IDF Capital Private Equity Financing you need to:
- Be an Established but High-Growth Potential Business;
- Have a Strong and Committed Management Team; and
- a Clear Exit Strategy.
Contact us for more information on funding through IDF Capital.