STRATEGIC FINANCIAL

MANAGEMENT CIA

COMPARISON OF VENTURE CAPITAL SCHEMES

OF :
INDIA AND SOUTH AFRICA

A VIEW INTO THE FUTURE OF DEVELOPING

COUNTRIES
 TECHNOLOGY VENTURE CAPITAL
SCHEME
INDIA SOUTH AFRICA
 The focus of ICICI Venture Funds Management Company Limited is
 eVentures Africa Fund (eVA Fund) is launched in January 2010 by
on the development and financing of indigenous technology.
Vincent Kouwenhoven and Brian Hirman. Both founders combine years
 It prefers innovative and high technology projects. Besides
of experience in  business development, management consulting, online
financing prototypes.
business, digital marketing and venture capital.
 ICICI venture fund also provides finance for setting up and  eVA Fund is dedicated to mobilize capital and experience in the
commercialization of pilot plant and seed capital for research and
Netherlands/Europe to invest in small and medium (SME) sized African
development in a few selected cases.
internet (technology) related companies.
 The financing instruments used are equity participation, conditional
 eVA Fund focusses on development in terms of capital and business
and normal loans. Conditional loans are interest-free loans with a
development support, i.e. knowledge, experience, access to proven
payment of royalty linked to the commercial success of the venture.
business concepts/applications, and network.
 SMALL INDUSTRIES VENTURE CAPITAL
SCHEME
INDIA
 SIDBI has constituted a venture capital fund with an initial
corpus of Rs.10 crores and started operations in 1993.
 The fund was setup as an assistance avenue for
entrepreneurs having innovative ventures, which generally
do not qualify for conventional route of term financing.
 Ventures, involving new and untried processes and
technologies, which have scope for commercial application
with characteristics of high risk and high reward, are
provided assistance from this fund.
 These include projects relating to development of computer
software.
SOUTH AFRICA
 Special Schemes
 The mission of the Development Funds Department is to enhance the
IDC’s developmental outcomes by providing niche and innovative
financial programmes to maximize the achievement of its industrial
development goals.
 Various concessions targeting developmental mandates including job
creation, empowerment of women, youth and black industrialists,
funding of innovation and increasing competitiveness in
manufacturing.
 Schemes administered by the department – MCEP , APCF, CTCP etc.
 AGRIBUSINESS VENTURE CAPITAL
SCHEME
INDIA SOUTH AFRICA
 SFAC is an exclusive Society focused on increasing incomes of small and marginal
 African Capital Scheme - was established in 2004 with the vision of creating an
farmers through aggregation and development of agribusiness.
investment vehicle for channelling finance to small and medium-sized
 SFAC has pioneered the formation and growth of Farmer Producer Organizations/Farmer enterprises (SMEs) in agricultural value chains.
Producer Companies, which is now being implemented across the length and breadth of
 Between microfinance and mega-deals in Africa lies the “missing middle” – a
the country.
lack of small business finance holding back a swathe of high-potential
 SFAC offers Schemes like Equity Grant and Credit Guarantee Fund Scheme to FPCs to enterprises.
improve availability of working capital and development of business activities.
 The social impact of addressing that missing middle is most pronounced in
 SFAC promotes development of small agribusiness through its VCA Scheme for value agriculture, where this type of SMEs contribute to the value chain, supplying
added processing and marketing linkages. seed, pesticide and fertiliser, or offering services such as agricultural processing,
post-harvest storage and distribution to market.
 SFAC is also implementing the National Agriculture Market Electronic Trading (e-Nam)

platform. The purpose is to provide for a single unified market for agricultural products  Thus investing in the growth of these SMEs is also an investment in the large
with much higher price discovery for farmers. numbers of smallholders they buy from or sell to.