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Kalon Venture Partners, a registered Section 12J Venture Capital Company has prepared a guide on how startups can become investee’s in their company along with how investors can invest in Kalon.
This article forms part of our second webinar, held on 6 October 2020, where we will be discussing the benefits of startups accessing funding from Kalon Venture Partners, entrepreneurship, and more all in relation to Section 12J.
Register for the free webinar
Date: 6 October 2020
Register in advance for this webinar held on Zoom:
Special guest speaker for this webinar: Greg Chen, CEO, and co-founder of Mobiz, an investee tech startup with Kalon Venture Partners.
A guide for startup investees
As a potential investee company, the first question to ask yourself is whether you want outside funding. Funding isn’t free and comes with many obligations. Entrepreneurs must carefully weigh the financial consequences of taking outside money and the pressure on your startup to deliver specific results for your investors.
It means taking on a substantial obligation to those investors, in addition to the obligations to the existing company itself, any co-founders, employees, and customers.
What to consider before approaching a VC firm:
- Consider what you have to offer and ask yourself if you would invest in your own business.
- What stage your business is and whether you have sufficient traction for the VC being approached
- Make sure you are ready to answer all the questions investors will throw at you and make sure you can back up your presentation.
- Preparing a good pitch deck is the next step for potential investors.
Kalon Venture Partners typically looks at scalable technology businesses with a good product-market fit and showing positive double-digit month on month revenue growth.
Kalon Venture Partners offering for startups (subheading)
VCs do not only provide capital, Kalon Venture Partners provides mentorship, relationships, guidance and so much more. Great VC’s understand that investing in companies marks the beginning of the journey and not the end of the process.
Kalon evaluates start-ups on a proven framework when looking at potential investments.
Requirements for startups to secure funding from Kalon:
Kalon looks for, what we call the 5Ts when making the important decision on whether to invest.
- A strong management Team.
- Proven developed Technology with a competitive edge.
- A business with revenue Traction and a solid referenceable customer base.
- The business must Target a large addressable market.
- Finally, an analysis of agreeing on Terms of the agreement which are suitable for the investment. It is worthwhile researching typical VC terms so that you are familiar with the proposed deal structure.
These are the necessary considerations to successfully raise VC money.
A guide for investors
For Investors wanting to take advantage of investing in Kalon’s disruptive tech fund and reducing their taxable income, you have the opportunity to invest in South Africa’s exceptional tech entrepreneurs and become part of South Africa’s burgeoning tech landscape.
Being a Section 12J Venture Capital Company means that any investment you make is 100% deductible from your taxable income as an individual, company, or trust. Treasury has limited individuals and trusts to claim a maximum annual tax deduction of R2.5-million and a maximum deduction of R5-million for corporates.
Kalon will be open for investment in November 2020 after CIPC approves our prospectus. To invest in Kalon please click here and we will contact you with simple instructions when available, alternatively visit the Kalon website www.kalonvp.com and click on the Apply to Invest button.
This content has been created in partnership with Kalon Venture Partners, a registered Section 12J Venture Capital Company.
Read more: The benefits of startups and SMEs as investees of Kalon Venture Partners
Read more: Part one: All you need to know about Section 12J
Read more: Part two: All you need to know about Section 12
Featured image: CEO Clive Butkow, Kalon Venture Partners (Supplied)