The Bodibeng Technology Incubator (BTI) has launched the South African Technology Entrepreneur Fund (SATEF) to provide seed capital for entrepreneurs in the Information Technology, Communications Technology and Electronics sectors. The fund aims to help early phase entrepreneurs by providing funds for start up expenses and technology development.
Brian Brown, BTI Node Manager, says, "South Africa is placed at a critical place in its development path with a small, skilled, ICT literate community, living adjacent to a large part of the population that is poverty-stricken and who do not have access to the economic benefits of information technology. The new fund strives to bring the benefits and opportunities of technology-based business entrepreneurship to the greater South African community".
The ICT Sector is a strategic sector, seen as vital to the future social and economic welfare of South Africa. President Thabo Mbeki has established a high-level advisory council on ICT and a key area for action is Small, Medium and Micro Enterprises (SMME`s). The goals of the SATEF fund are in line with the South African government`s desire to stimulate the economy and create long-term gainful employment in the ICT&E market sector.
The SATEF is an R5 million revolving fund allocated to technology entrepreneurs via loans and debt/equity investments. The fund`s purpose is to enhance the current capacities of existing and established high technology entrepreneurial companies, as well as to finance and support start-up high technology ventures that have a viable and well-developed business plan.
The SATEF makes loans or investments up to a maximum of R150,000.00 to qualifying entrepreneurs. The fund requires a matching contribution from the entrepreneur in the form of other loans, existing capital or sweat equity. Intellectual Property concepts are favoured, however, the SATEF will consider non-IP concepts that have substantial job creation and poverty reduction benefits.
Brown says, "The financed entities are expected to participate in the BTI incubation program, which includes coaching, mentoring and marketing assistance. The combination of SATEF funding and BTI business incubation has a measurable impact on the success rate of these entrepreneurs.
"The result of this BTI / SATEF combination of mentoring and funding includes the advancement of technology, promotion of technology focused business ventures, stimulation of the South African economy, job creation, alleviation of poverty, dissemination of technology business skills and by extension, the upliftment of people, particularly those from previously disadvantaged groups".
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