Webinar Wednesday :: Funding Readiness and Capital Matching

Summary

Webinar Wednesday featured Cleo Canan, head of SV development at the Johannesburg Stock Exchange (JSC), discussing funding readiness and capital matching for SMEs. Cleo highlighted the JSC's accelerator program, which has seen companies achieve significant revenue growth and job creation. She emphasized the importance of understanding the funding landscape, being funding ready, and matching with appropriate funders. The session also covered the upcoming capital matching series and provided a link for companies to register for funding opportunities.

Takeaways

• ?Í🎀 The Johannesburg Stock Exchange (JSC) is focused on supporting the economy by aiding the growth of small to medium-sized enterprises (SMMEs) through initiatives like their accelerator program.
• 📝 The JSC's Head of SV Development, Cleola Canan, emphasizes the importance of funding readiness and capital matching to bridge the gap for medium-sized companies looking to scale up.
• 📱 The JSC's accelerator program has shown significant success, with an average of 53% revenue growth and over 30% job creation for the companies it has worked with.
• 💵 The webinar highlights the need for companies to understand their funding options and the importance of being prepared when seeking funding, rather than waiting until it's needed.
• 💲 Cleola stresses the significance of authenticity and credibility when approaching funders, warning against falsifying information or attempting to raise capital too early.
• 💳 The process of securing funding involves due diligence and requires businesses to have their financials and documentation in order.
• 💴 The webinar discusses the difference between various funding types, such as venture capital (VC), seed funding, and other financing options, and the importance of choosing the right type for each business stage.
• 💰 Companies are encouraged to register for the JSC's capital matching series, which connects them with an average of four funders that align with their specific needs.
• 💱 The success rate of the JSC's capital matching initiative was notably higher than the national average, demonstrating the effectiveness of their ecosystem approach.
• 💷 The webinar underscores the importance of continuous learning and staying informed about funding options and requirements for businesses to grow and scale effectively.

Q & A

What is the main focus of the Johannesburg Stock Exchange's (JSC) accelerator program?

The JSC's accelerator program focuses on developing medium-sized companies to fast track their growth and help them scale to large enterprises.

What is the significance of funding readiness in the context of the JSC's program?

Funding readiness is crucial as it prepares companies for accessing funding opportunities effectively. It involves understanding the funding landscape, the right type of funding for the business stage, and ensuring the company's documentation and market strategy are in order.

How does the JSC's capital matching initiative work?

The capital matching initiative connects companies with funders by matching them with an average of four funders that are relevant to their specific funding needs. This is based on the company's business requirements and ensures they are matched with appropriate funding sources like banks, micro-finance institutions, venture capitalists, and development finance institutions.

What was the success rate of the capital matching initiative held in November last year?

The success rate of the capital matching initiative was 62%, which is significantly higher than the national average of 37%.

Why is it important for companies to understand the type of funding relevant to their business stage?

Understanding the right type of funding is important because different funding options are suitable for different business stages and growth trajectories. For instance, venture capital is suitable for high-growth companies, while seed funding might be more appropriate for startups.

What does the JSC do to ensure companies are prepared for funding?

The JSC provides funding readiness programs that include face-to-face sessions to guide companies on what is required for different funding types, how to prepare necessary documentation, and how to present their business case effectively.

How can companies register for the JSC's funding readiness and capital matching programs?

Companies can register for the JSC's programs by searching 'SM Rise' on the JSC website or through the provided link in the webinar chat. They will be guided through the process and given information about upcoming roadshow dates and provinces.

What is the role of the National Small Business Chamber (NSBC) in the JSC's initiatives?

The NSBC partners with the JSC to support small and medium-sized enterprises (SMEs) by providing access to resources, funding readiness programs, and capital matching initiatives to help them survive and thrive.

Why is it advised for companies to become funding ready even if they do not immediately need funding?

Becoming funding ready in advance is advised because it can take significant time to prepare the necessary documentation and business strategy. Being prepared ensures that when the need for funding arises, the company can quickly access it, impress potential funders, and use the funds effectively for growth.

What are some key 'do's and 'don'ts' for SMEs seeking funding according to Cleo?

Key 'do's include being authentic and credible, understanding the right type of funding for the business, and having a clear plan for using the funds. 'Don'ts' include trying to raise funding too soon without being ready, not understanding the implications of different funding types, and not having a strategy for how the funds will be used to grow the business.

How does the JSC's program help companies scale internationally?

The JSC offers solutions for companies that are ready to scale internationally, focusing on growth and providing support to help them expand into global markets.