As an entrepreneur looking to start a new business in South Africa, you have probably heard the term private equity or private equity firm and wondered what it is, or whether it can help you launch your new business. Simply put a private equity firms are companies in which third party individuals invest their money into and the private equity firm in turn invests that money into other business, typically to either own that entire business or a share of it.
Private equity firms come in a range of different sizes and typically the largest of these firms will only be looking to invest a lot of money into the largest of business such as high street chains looking for funding. However entrepreneurs in South Africa looking for investment for their business start-ups may find that the smaller private equity firms may be interested in smaller investments although it can be a long time consuming process and difficult to find a private equity firm that will invest.
Whilst private equity firms may offer some entrepreneurs a solution to funding their business start-ups, others may prefer to deal with individuals instead. Therefore private investors, also known as Angel Investors may be the perfect solution. Whilst in many ways a private investor may operate in a similar way to a private equity company, there are some advantages with using a private investor. For example, some private investors are happy to have a more hands on approach and can provide valuable industry experience to a new business. Whilst some business owners may not appreciate this and think of it as meddling, other entrepreneurs welcome all the advice and help that they can get. Private investors are also in the position to act faster than a private equity firm, which can help a business start-up, get underway quicker, especially important if the business has time critical products or services.
For entrepreneurs looking to start a new business in South Africa, then it is important for them to explore all the options for business finance, from investing their own personal money, to private equity firms and private investors. By weighing up the pros and cons of each entrepreneurs can then and only then decide which method is right for them and their new business.
R1,250,000 Req R800,000 Min
The Event sector is a multi-billion industry with very few black players. every event needs a speaker and a microphone, a screen and projector, a stage and lights. Corporate and government hosts huge events daily.
R4,000,000 Req R500,000 Min
Honest and Reliable car service and repair Shop capable of full services and full restoration works. To be setup as a top class Auto Shop.
R6,000,000 Req R50,000 Min
We intend to develop a unique tourist experience with our main target market the overseas visitors to the Battlefields Route in northern KZN, consisting of a Brewpub and B&B.
R250,000 Req R50,000 Min
The Crescendo International started in 1985 as a worldwide network among professional Christian musicians. Annually, these musicians invest by teaching young talented musicians as they will at the second Summer Institute in Durbanville next year.
R5,000,000 Req R250,000 Min
We are the local (ZA) distributor of PROTECT A/S fog cannon security systems, which offer protection in seconds. Family, business, valuables - all are covered. PROTECT is the best-selling product and world market leader in the industry.
R40,000,000 Req R8,000,000 Min
Acquisition of a broiler farm situated in Delmas, Mpumalanga, Republics Of South Africa which has 10 broiler houses with a production of 300 000 birds per cycle with contract.