funding in geoscience nlb for uj - ecopartners.co.za sources in mining and... · for a leading role...
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TOGETHER IN AFRICA FOR A LEADING ROLE IN GEOSCIENCE
Neale BaartjesManagement Consultant: Resources
11 JANUARY 2011
Financing Projects in Industry
TO THE READER:
This document can best be read with the
list of funders also found on the
EcoPartners websiteEcoPartners website
www.ecopartners.co.za
EcoPartners
• Management Consulting -Mineral Resources
-Environment
-Quality Systems
• Authorisations
• Strategies
• Training and Mentoring
Start with the end in mind.
End Goal
Need a job
Be a business owner
ListedIPO
Sell Business
Need a job
•What am I Selling / Developing?
•Who wants it?
•How much will they pay for it?
OVERVIEW OF YOUR IDEA
•How do I get it into their hands?
•What can go wrong?
•What are my fixes?
•Do I need other people to help me?
Business Plan
OutputNo
Activity
Target
Generation
Pre-
Feasibility
Feasibility Commissioning Mining Expansion Mine
Closure
Revenue
0
8 STAGES IN THE LIFE OF A DEPOSIT
Ou
tpu
t
Growth
Established
Expansion
Exit
Decline
LIFE CYCLE OF A BUSINESS
0
Ou
tpu
t
Seed Start-Up
Growth
Ou
tpu
t
LIFE CYCLE OF A BUSINESS
GROWTHProfitsPartnersShareholdersDevelopment FundsBanksHigh risk VC
EXPANSIONProfitsShareholdersDevelopment FundsBanksVCUnions/Government
DECLINEOwnersSuppliersShareholdersVCGovernment
0
Ou
tpu
t
SEEDOwn FFFGrant FundingDevelopment Funds
START-UPOwn FFFGrant FundingCustomersSuppliersRegional Agencies
FUNDING OPTIONS
FFF
Owner
Grants
Government
Interest
FFF
0% 100%50%
Angel
ESOP’s
VC
Partnerships
Banks
SOURCES OF FUNDING
Short Term Long Term Fixed Interest
Floating Interest
Percent of Profits
Share of Company
Owner × ×
Family, Fools, Friends
× × × × ×
Suppliers × ×Suppliers × ×
Commercial Banks
× × ×
DevelopmentBanks
× × × ×
Venture Capital
× ×
Government Sources
×
10 COMMON MISTAKES MADE IN FUNDRAISING
1. Poor preparation and poor support (team/material)
2. Approaching the wrong investors
3. Not knowing the basic answers
4. Approaching just one investor4. Approaching just one investor
5. Not going to see the investor
6. Asking only when you need
7. Size of the project/property
8. Thinking that it will be easy
9. Vague disclosure
10.No sales pitch
REGIONAL AGENCIES
Gauteng Economic Development Agency (GEDA)
011 833 8750
www.geda.co.za
Ithala Bank (Ithala)
031 907 8911
www.ithala.co.za
(WESGRO)
021 487 8600
www.wesgro.co.za
Eastern Cape Development Corporation (ECDC)
043 704 5600
www.ecdc.co.za
DEVELOPMENT BANKS
Industrial Development Corporation (IDC)086 069 [email protected]
Development Bank of South Africa (DBSA)011 313 [email protected] www.dbsa.org
VENTURE CAPITALISTS
Basileus Capital
021 431 [email protected]
Kwanda Capital
021 [email protected]. kwandacapital.com
IDC VC Capital
011 269 [email protected]. idc.co.za
Musa Capital
011 771 [email protected]
UNIONS
Kopana Ke Matla Investment
011 684 1112
www.kopanokkm.co.za
NUMSA Investment Company (NIC)
011 783-3578
www.numsainvestment.co.za
Mineworkers Investment Company (MIC)
011 484 6814
www.mic.co.za
Nehawu Investment Holdings (NIH)
011 883 8605
www.mic.co.za
GOVERNMENT
National Empowerment Fund
011 305 8000
www.nefcorp.co.za
Khula Finance Enterprise
012 394 5560
www.khula.org.za
Small Enterprise Development Agency (SEDA)
012 441 1000
www.seda.org.za
Neale Baartjeswww.ecopartners.co.za
Environmental Economics Resource EconomicsEnvironmental Economics Resource EconomicsEnvironmental Authorisation Cost Benefit AnalysisCleaner Production Commodity Strategy