Enterprise Venture Capital: A Strategic Opportunity to Bridge Africa's Financing Gap
Enterprise venture capital focuses on both strategic benefits and financial returns, offering a chance to address the financing deficit in Africa, according to Martin Maina, Head of Enterprise Venture Capital at Dream VC.
Speaking at the SA Innovation Summit in Cape Town, Maina noted that although still in its early stages in Africa, enterprise venture capital has the potential to connect startups with companies seeking to secure their future in the region.
"Whenever you meet an enterprise venture capital firm, they want to know 'how do you contribute to ensuring the sustainability of my business?' and not just 'how do you make me money?'" Maina said.
As such, the pitch that startups should present to venture capital firms is: "I will reduce the risks associated with innovation for you and give you access to the strategic benefits of this innovation."
Enterprise venture capital is still in its infancy in Africa, but given the continent's financing deficit, Maina believes it could play a crucial role in the ecosystem.
He notes that enterprise venture capital is growing, particularly in South Africa, where it has increased over the past decade, although it remains largely untapped and has significant growth potential.
Maina advises African businesses: "If you want to get in at the right time and at the right price, now is the time to do it."
