Finweek English Edition - - ENTREPRENEUR -

Part of the chal­lenge to be­com­ing an en­tre­pre­neur is the gap be­tween early seed fund­ing and for­mal fund­ing from ven­ture cap­i­tal­ists.

Neil McMurchy, man­ag­ing vice-pres­i­dent for ap­pli­ca­tion soft­ware at Gart­ner, says it can be very hard to get fund­ing for prod­uct devel­op­ment. “There are al­ways small amounts of cap­i­tal avail­able from the fam­ily, friends and fools cat­e­gory. But get­ting se­ri­ous ven­ture cap­i­tal would de­pend on the mar­ket you work in.”

Coun­tries in Europe and oth­ers like Australia and South Africa are usu­ally very con­ser­va­tive.

“In­vestors in France would for ex­am­ple only start to back a smaller com­pany once it has made a profit for five years. We see that most of our clients end up in Amer­ica, be­cause they are less con­ser­va­tive in their ap­proach.”

Seed fund­ing is cap­i­tal a small busi­ness re­ceives to sup­port it­self un­til it can gen­er­ate cash on its own. On­line crowd­fund­ing plat­forms that can be used to raise cap­i­tal in­clude SeedIn­vest, See­drs and An­gels Den. start his small busi­nesses, but also pro­vide for his fam­ily while he waits for his busi­nesses to grow.

His big­gest chal­lenge has been to f ind the right peo­ple to ei­ther part­ner with or be­come his cl ients. “It i s dif­fi­cult to get re­li­able peo­ple to work with; peo­ple who have t he guts to be­come en­trepreneurs.

“It is hard work, and scary to know that if you do not work, you do not get paid. To sur­vive as a small busi­ness you need to be­come more per­sonal and sin­cere in your ap­proach. You need to un­der­stand your clients’ prob­lems – and scratch their itches to be­come a suc­cess.”

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.