What We Look For
We believe VentureBuilder’s principles and practices are replicable in markets across Africa. Rather than pursuing start-ups, VentureBuilder identifies “best-in-class” established local distributors that have strong existing customer bases and can rapidly scale sales with the right investment of capital and expertise. We look for the following in our prospective partners:
Ownership & Management
The enterprise must be locally-owned and -managed, with an excellent reputation and strong roots in the community
Target market
Rural off-grid customers must be at the heart of its business strategy, particularly underserved low- and middle-income residential and SME customers
Business model
The enterprise must own the customer relationship and distribution channels, and show an interest in scaling consumer financing capacity (i.e., pay-as-you-go offerings)
Traction
No prior solar experience required as long as existing customer footprint is broad or customer relationships are strong and at the core of current business model
After identifying high-potential prospective partners, we carry out in-depth due diligence, ensuring that only businesses which meet a carefully designed, exhaustive set of criteria become preferred local distributors (OpCos).
Our Offer
A key element of the VentureBuilder approach is to act not simply as an investor, but as a development company, taking long-term positions in local distributors and then working closely with them for years, enabling them to scale sustainably.
This process starts following completion of due diligence, with VentureBuilder specialists providing investment-readiness support to OpCos, including an in-depth review of their strategy and operations and development of their comprehensive business plan and financial model. What follows is a long-term support package that provides VB OpCos with not just patient capital but several years of Enterprise Developments Services (EDS).
The unique and comprehensive support package provided to each VB OpCo is further detailed below.
Financial investment
Patient capital, primarily through convertible debt and equity, align with VB’s mission to support local distributors over the long-term without sacrificing critical near-term OpCo cashflows.
VB will seek to fund all of the OpCo’s equity financing needs over a two year period; this will enable the entrepreneurs to focus on building the business rather than fundraising.
VB is also partnering with specialist working capital debt providers to help OpCos secure debt to cover inventory and consumer receivable financing needs.
Enterprise development services
Tailored annual EDS programs are delivered by industry experts over two to three years.
EDS is designed to build capacity in strategic, operational and financial matters, centered on building OpCo systems and human capital to accelerate and sustain growth