Finding the right investor is a huge step for any startup. As we know by now, nothing comes for free, which means that hauling in the right funding partner should be is as much a capital decision as it is strategic.
Ventureburn speaks with Schalk Nolte, the CEO of the authentication startup Entersekt, about finding the right funding partner.
He takes us through the early days of Entersekt, when the company finally had a proof of concept and wanted to go to market. Nolte — coming from a engineering industry — tapped into his strong network and convinced Ramzi Mansour from Carita Investments to join the company’s board as chair in exchange for US$250 000 (about R2-million at the time).
The CEO explains that while the capital was essential at that stage, what Entersekt really needed was access to market, which is exactly where Mansour shined through.
Over the next few years, Entersekt went on to raise millions of dollars through undisclosed partners, which amounts to a total of US$9-million. Today it boasts and range of high-profile clients like South Africa’s Nedbank, Old Mutual, Capitec and Investec, as well as a couple of financial institutions in the UK, Switzerland, and East and West Africa.