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Here Be Dragons sharpens firms with web test
September 3, 2009
By Thabiso Mochiko
Here Be Dragons (HBD), the venture capital fund started by businessman Mark Shuttleworth, is on a mission to help entrepreneurs access up to R25 million by setting up an online facility to test if they qualify for capital injection.
"For prospective candidates, it is important to know the ins and outs of venture capital before applying for backing, as it may not necessarily be the right solution at every stage of business, or for all entrepreneurs," Julia Fourie, the chief executive of HBD, said last week.
She said the HBD test was quick and practical, designed to educate and prepare potential applicants for what they could expect from venture capital and a partnership with HBD.
The test guided applicants through a number of important decisions and points they would have to consider carefully should they want a partnership with a venture capitalist such as HBD.
"Questions such as 'Will your revenue grow by at least 30 percent each year?' and 'Are you prepared to part with a significant ownership stake in your business that may result in the loss of control?' were tough choices to be made ahead of time. Answering yes to most questions might mean that you were on track for venture capital," she said.
HBD would not comment on how many companies had used the service as it "does not capture the information".
HBD announced in March that it had R25m to invest in small entities with new ideas and potential to expand globally.
The company takes a 25 percent stake in the firms it invested in, and provides mentoring and other assistance. It said firms that did not qualify for capital would be given other funding options and advice.
So far, HBD has backed companies such as OrderTalk, which developed an online ordering solution for the food service industry; Moyo, the African restaurant chain; Fundamo; and Clicks2Customers.
The firm was also targeting the energy and fuels sectors.
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