New develoPPP Ventures funding program for SA startups

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) has launched develoPPP Ventures, a new funding scheme for startups in South Africa.

The program supports the growth phase of innovative South African small and growing businesses (SGBs) that have the potential to generate a measurable, positive social or environmental impact alongside financial returns.

The funding is decided within the framework of regular competitions, which will take place twice in 2024. If the application is successful, startups can receive a grant of up to €100,000 (US$106,950) toward a growth investment to scale up their development-relevant business model.

Prerequisites are that the startups already generate initial revenues with their products or services and acquire additional funds from other sources of at least the same amount via a matching fund model.

develoPPP Ventures financing is tailored to raise these companies above the first threshold of becoming attractive enough for commercial (impact) investors and/or financial institutions.

The SGB must be registered in South Africa, have a relevant product or service already on the market and prove first sales figures by providing at least one annual financial statement.

In addition, they must provide sound financial and strategic business planning documents over three years going forward. The financial planning should provide insight into how the funds will be used to grow, become financially sound and reach breakeven.

Besides funding, the companies will receive technical assistance based on their specific needs to maximize their chances of success.

GIZ is supported by the international startup ecosystem-building organization VC4A and the local community-driven angel investment group Jozi Angels, with develoPPP Ventures implementing in South Africa.

Additional requirements and due diligence processes are part of the overall selection process and that additional legal considerations will be taken into account before an engagement by GIZ.

Entries for the first develoPPP Ventures competition for South Africa close on June 30, 2024.

Those interested in the develoPPP Ventures funding scheme can apply here.

There is a free info webinar happening on June 25, 2024, during which companies looking to apply can ask questions.

*Top image source: Image by senivpetro on Freepik.