Guidelines & Process for Application

Stage I: Pre-application

• Applicants should familiarise themselves with the Background and Policy Summary provided above, and all other information on the Innovation Fund reflected on this website.
• Applicants should familiarise themselves with all early stage funds and venture capital resources in South Africa (for example SPII, HBD, Triumph Venture Capital, Export Venture Capital, Industrial Development Corporation’s VC business unit, and relevant Biotechnology Regional Innovation Centres such as BioPad, Cape Biotech, LifeLab and PlantBio, as appropriate).
• Applicants should have approached early stage funds or other venture capital resources for possible investment in their entrepreneur idea before approaching the Innovation Fund Seed Fund. During the application screening stage, the Innovation Fund will assess the reasons such funds are/are not willing to invest, where appropriate through direct interaction with the fund managers.

Stage II: Executive Summary Screening

A succinct Executive Summary of the opportunity, in electronic format, not exceeding 10 pages should be submitted, containing at least the following information:

A description of the opportunity (no more than one page), providing interalia a clear articulation of the value proposition, the gap being addressed and current options for customers.

• Clear description of the technology and novelty, as well as status of development.
• Patent numbers or patent application numbers of the technology, where patented (append copy of patent application to the Exec Summary). If the technology is not protected by applications to register formal IP, a clear statement of how the opportunity offers unfair competitive advantage over existing technologies should be included, and indicate how such advantage would be protected or maintained going forward.
• Statement of ownership of technology.
• A summary of the market analysis including a summary competitor analysis, as well as an outline of the market development strategy.
• Introduction to the team and skills/expertise available to the opportunity, and status of their commitment to the opportunity in terms of time and sweat equity, (append relevant CVs).
• Summary financial projections highlighting major expense and income items for a 5 year timeframe.
• A statement of finance required, justification thereof, and returns on offer to an investor interested in providing such finance e.g. equity being offered.
• The Executive Summary should be accompanied by the completed Seed Fund Application Supplementary Information Form, which also requires a list of all other potential investors with whom the opportunity has engaged, and a summary of reasons they are/are not interested in investing.

An application is only formally accepted in the form detailed above and when applicants have some feedback as to the potential interest of early stage investors into the business.