Agritech funding application
Terms and conditions
Please read through the terms and conditions before submitting your application:
A Section 12J VCC may invest in most sectors, however, the legislation outlines which sectors are prohibited. Accordingly, The Impakt Fund would need to determine whether any of the following elements exist and if so, we would be prohibited from investing:
- The gross asset value of the target company exceeds R50 million on the date of the investment from The Impakt Fund;
- The target company earns more than 20% of its income from investments (for example, an investment in an investment holding company would not be permissible);
- The target company operates with a majority of its trade outside of South Africa;
- The target company carries on one of the following “Impermissible Trades”:
- any trade carried in respect of immovable property, other than a trade carried on as a hotel keeper (i.e. an investment in hotels, serviced apartments, and student residences may very well comply);
- any trade in the financial services sector (for example, banking, insurance, money lending, hire-purchase arrangements, however, this does not prevent The Impakt Fund from investing in technology within this sector);
- any trade carried on in respect of financial or advisory services, including trade in respect of legal services, tax advisory services, stock broking services, management consulting services, auditing or accounting services; and
- any trade carried on in respect of gambling, liquor, tobacco, arms or ammunition.
Our investment mandate:
The Impakt Fund will invest in a diversified portfolio of companies that will help realise the vision of The Impakt Fund and each Share Class. These companies will be Qualifying Companies in accordance with Section 12J of the South African Income Tax Act.
Investments will be carefully selected from a pipeline of promising opportunities, which meets the investment mandate of each Share Class. (Refer to our website for each Share Class’ specific investment mandate.)
The Impakt Fund will acquire no more than 69.9% of the equity in a Qualifying Company to ensure that the current management team stay interested and committed to the success of the investee.
The following characteristics will be typical of investments considered:
- Revenue positive with a growth forecast.
- A management team that believes in the investee’s vision and that has the required skills to run the company.
- Providing a solution that is relevant, demonstrated by measurements such as market share and/or global trends.
- Strategic positioning of the solution (heavily weighted).
- Solution(s) that have the potential to scale.