Venture Capital

VC is more suitable for a start-up business, which has high growth potential and is scalable. This is high risk – high return terrain and most venture capitalist scour for opportunities in the technology sector. They look for new innovations and inventions, trend setting and transcendental stuff, breakthroughs in the fields of science and technology are a particular attraction. If you are looking for R25 million or more, then you can contact a venture capitalist on SAVCA.

Private Equity

PE is not very different to venture capital, other than the fact that private equity firms prefer matured businesses with indelible track records, established and experienced management teams and a scope to grow the business into new markets or new product lines. The numbers are usually much bigger and transactions are undertaken on the basis of value being unlocked by private capital injection into the businesses. This is more suited for entrepreneurs who require growth capital in the tens and hundreds of millions.