A Venture Capital fund is a fund provided by investors to businesses or start-up businesses with growth potential or in start-up phase. Venture capital is especially attractive for new or small businesses, because these businesses, due to their small size have difficulties in raising capital or are not able to secure a bank loan.
Investment in venture capital is usually carried out by taking a minority stake in the share capital of the company and usually lasts between 3 and 7 years, being limited by the settlement date of FACRA.
If the potential business project has at least 51% of its share capital held by Angolans, is classified as an MSME by INAPEM and falls within the target sectors of FACRA, the company has the opportunity to apply for capital support from FACRA.
Although there are documentation requirements that must be met prior to the approval of any financing, FACRA initiates the analysis process of a business plan as soon as it is submitted. The analysis includes: reviewing the background of promoters and management team, financial information of the company (if it already exists). These steps are necessary to ensure that the economic and financial potential of your enterprise and investment framework falls within the stipulated guidelines of FACRA.
FACRA selects investments that have the potential to rapidly make it difficult for competitors to compete, through differentiation, branding, protection of patents, important contracts, know-how or ability to dominate the market.
FACRA is actively pursuing investment opportunities in most productive sectors of the economy that substitute importations and create qualified employment, with a special focus on the following priority clusters:
With unrivalled knowledge of the local Angolan market, FACRA’s deep insights enable it to grow Portfolio Companies by leveraging its vast network of trusted local partners. Examples of management support include helping to define strategic goals, financial structuring, international expansion and preparation for exit amongst others.
FACRA is always looking for a degree of differentiation that can form the basis for growth and ultimately increase the value of the company at the exit stage. In many cases, the Fund will invest together with an Angolan entrepreneur and adapt the business case towards a concept that has shown success internationally, thus ‘tropicalizing’ successful foreign products or services in order to ensure success within Angola.
The key factors for the submission of an investment project by its promoter consist of:
FACRA supports setting up businesses across Angola. The key criteria to secure FACRA capital is that the potential business must have at least 51% of its share capital held by Angolans and should be certified as an MSME by INAPEM
Businesses can reach FACRA via its email: firstname.lastname@example.org or through the following phone numbers:
T: (+ 244) 222 380 780 F: (+ 244) 222 321 626 M: (+ 244) 928 818 650