SAVCA Venture Capital Fund Manager Programme (VCFMP)

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About

The SA SME Fund, the Technology Innovation Agency (TIA), and the Southern African Venture Capital and Private Equity Association (SAVCA), are excited to open applications to the inaugural SAVCA Venture Capital Fund Manager Programme (VCFMP).

The VCFMP aims to increase the number of transformed and investable VC fund managers in South Africa by providing technical assistance, ultimately in support of an increased flow of capital to the VC asset class.

The VCFMP technical assistance facility, through the support and funding of the SA SME Fund and TIA, will include skills development in the form of workshops and masterclasses, one-on-one mentoring, and facilitate access to subject matter experts and service providers for VC fund managers in South Africa.

The 6-month inaugural programme will accept applications until 17:00 Central African Time (CAT) Monday, 21 February 2022, and is scheduled to kick-off in May 2022 and end by December 2022.

#venturecapital #VC #transformation #fundmanagerdevelopment

FAQ

1. WHAT IS THE SAVCA VCFMP?

  • The SAVCA VCFMP, short for the Southern African Venture Capital and Private Equity Association Venture Capital Fund Manager Programme, is a mentoring and incubation programme funded by the SA SME Fund and the Technology Innovation Agency (TIA), and is being implemented by SAVCA.
  • The SAVCA VCFMP is aimed at increasing the number of transformed and investable VC fund managers in South Africa by providing technical assistance, ultimately in support of an increased flow of capital to the VC asset class.

 

2. WHO IS THE SAVCA VCFMP TARGETED AT?

  • The SAVCA VCFMP is targeted at:
    • supporting South African venture capital fund managers;
    • with an investment thesis and fund raising ambitions; and
    • who could benefit from skills development assistance.
  • Whilst there is a preference to receive applications from 51% Black-owned and managed fund managers, fund managers that do not meet this criteria will not be precluded from submitting an application.
  • 51% Black-owned and managed means any legal entity or juristic person conducting a business, trade, or profession in which one or more Black persons (as defined in the Broad-Based Black Economic Empowerment Act), directly or indirectly (i) beneficially owns or own or hold at least 51% of the ordinary shares or other equity interest of such entity, and is operationally involved in the management of the entity; (ii) is or are entitled to (a) at least 51% of the economic interest and (b) exercise at least 51% of the voting rights in relation to such ordinary shares or other equity interest in such entity.
  • Black is defined as African, Coloured, Indian and Chinese persons who (i) are citizens of South Africa by birth or descent; or (ii) who became citizens of South Africa by naturalization before 27 April 1994; or on or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalization prior to that date.

 

 3. WHAT DOES THE SAVCA VCFMP CONSIST OF?

  • The SAVCA VCFMP will provide participants with technical assistance, including skills development in the form of workshops and masterclasses, one-on-one mentoring, and facilitate access to subject matter experts and service providers for VC fund managers in South Africa.
  • Although the programme will support knowledge of setting up and managing a VC fund in South Africa, which will include aspects related to fundraising, it will not formally include fundraising support during or post the programme.

 

4. WHEN WILL THE SAVCA VCFMP KICK OFF, HOW LONG WILL IT RUN, AND HOW WILL IT BE CONDUCTED?

  • The SAVCA VCFMP is currently scheduled to kick off in May 2022, and end by December 2022 (i.e. run for a 6-month period).
  • It is anticipated that the technical assistance associated with the programme design will be delivered virtually and in English, however, where the easing of COVID-19 restrictions may allow (and it is safe to do so), selected components of the programme may be delivered through hybrid workshops to be hosted in Johannesburg, South Africa, for those who are able to attend in person.

 

5. HOW MUCH DOES PARTICIPATING IN THE SAVCA VCFMP COST?

  • Through the generous funding support from the SA SME Fund and TIA, the technical assistance associated with the design of the programme will be delivered to selected fund management firms free of charge.
  • Any indirect or other costs associated with participation in the SAVCA VCFMP - including but not limited to travel to, and accommodation in, Johannesburg, South Africa (where select components of the programme may be delivered should it be possible to do so in person) - will however be paid by the selected fund management firm.

Eligibility

6. WHO IS ELIGIBLE TO APPLY FOR PARTICIPATION ON THE SAVCA VCFMP?

  • Fund management firms that are:
    • 51% South African owned* and
    • 51% South African managed* and
    • Venture capital fund managers:
      • with an investment thesis, and
      • fund raising ambitions.

* 51% South African-owned and managed means any legal entity or juristic person conducting a business, trade, or profession in which one or more South African persons, directly or indirectly (i) beneficially owns or own or hold at least 51% of the ordinary shares or other equity interest of such entity, and is operationally involved in the management of the entity; (ii) is or are entitled to (a) at least 51% of the economic interest and (b) exercise at least 51% of the voting rights in relation to such ordinary shares or other equity interest in such entity.

  • Preference will be given to 51% Black-owned and managed** fund managers.

    ** 51% Black-owned and managed means any legal entity or juristic person conducting a business, trade, or profession in which one or more Black persons (as defined in the Broad-Based Black Economic Empowerment Act), directly or indirectly (i) beneficially owns or own or hold at least 51% of the ordinary shares or other equity interest of such entity, and is operationally involved in the management of the entity; (ii) is or are entitled to (a) at least 51% of the economic interest and (b) exercise at least 51% of the voting rights in relation to such ordinary shares or other equity interest in such entity.

    Black is defined as African, Coloured, Indian and Chinese persons who (i) are citizens of South Africa by birth or descent; or (ii) who became citizens of South Africa by naturalization before 27 April 1994; or on or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalization prior to that date.

 

7. WHO/WHAT CONSTITUTES A ‘FUND MANAGER’? 

  • A fund manager for the purpose of the SAVCA VCFMP is defined as:
    • a fund management firm;
    • actively managing a venture capital fund; OR
    • with an investment thesis and fund raising ambitions relating to a venture capital fund.
  • It therefore does not include an individual aspiring to gain the skills that are required to join a fund management firm.

The Application Process

8. WHERE CAN INTERESTED FUND MANAGEMENT FIRMS FIND THE ONLINE APPLICATION FORM?

  • You can click here to view the Application Form.

 

9. WHAT SHOULD A FUND MANAGER KNOW BEFORE COMPLETING THE APPLICATION FORM?

  • Completion of the Application form will require a material time investment. Applicants are encouraged to commence completion of the online application form well in advance of the submission date.
  • Each fund management firm is required to complete one application form.
  • The Application form distinguishes between responses and supporting documents that are required, and responses and supporting documents that are optional. Applicants will be prohibited from submitting an application form until all required responses and supporting documents have been completed or uploaded.
  • Information provided by fund management firms will be kept confidential, and therefore only be disclosed to the members of the SAVCA VCFMP Selection Panel.

 

10. BY WHEN MUST A FUND MANAGEMENT FIRM SUBMIT ITS APPLICATION FORM?

  • To be eligible for participation, fund management firms must submit their online application form by no later than 17:00 (5pm) Central African time (GMT +2) on Monday, 21 February 2022.
  • No late applications will be accepted.

The Selection Process

11. BY WHEN CAN FUND MANAGEMENT FIRMS EXPECT FEEDBACK ON THEIR APPLICATION?

  • Applicants may expect to receive feedback in respect of their applications by no later than 17:00 (5pm) Central African time (GMT + 2) on Monday, 28 March 2022.
  • Shortlisted Applicants will be invited to present to the SAVCA VCFMP Selection Panel* during the week of 18 April 2022.
  • Successful Applicants will be notified of their selection for participation in the SAVCA VCFMP by no later than during the week of 02 May 2022.

 

12. HOW MANY FUND MANAGEMENT FIRMS WILL BE SELECTED FOR PARTICIPATION IN THE SAVCA VCFMP?

  • Up to 10 fund management firms will be selected for participation in the SAVCA VCFMP.

Additional Questions

13. WHO DO I CONTACT FOR ADDITIONAL INFORMATION?