Overview
Once again, HEVA is rolling out its growth fund facility looking to provide growth capital to medium sized creative businesses in Kenya. To get this strategy on its feet, the Growth Fund has been launched in collaboration with Agence Française de Développement (AFD).
Call for applications is now closed. Stay tuned for later application calls.
Terms
Eligibility and Requirements
Application Process and Timelines
Terms
The fund is a debt facility, and HEVA is looking to invest between KES 5,000,000 and KES 10,000,000 with a repayment period of 48 months maximum, in each successful business.
This facility is designed to provide follow-on growth financing to mature ventures looking to do the following:
Expand production capacity
Enter new markets either in Kenya or across the region
Offer new products in the market
Purchase of equipment or software to allow more efficiency in production
Meet the gap in working capital requirements
Business support remains a key component of our fund strategy, with beneficiaries receiving ongoing business modeling and client support as part of their facilities. Legal accounting and cash flow management support, as well as access to training and international platforms for market access, will also be provided on a case to case basis.
Eligibility and Requirements
Key requirements for each application are:
Your business must be registered and operational in Kenya, and the sole owner or a 51% majority of shareholders must be Kenyan citizens resident in Kenya
Your business must have been in existence for at least 5 years
Your enterprise must be in any of the following creative economy value chains:
Design and home furnishings
Education applications
Cultural tourism
Craft
Food and cuisine
Cultural infrastructure
Fashion, apparel and accessories
Film
Photography
Digital creation
Gaming
Live music and cultural festival
Your business must have a minimum of 3 permanent employees
Your business must have valid financial statements for at least 4 out of the 5 years
Your business must have annual revenues KES 10,000,000 and above
Your business must have assets that can be used as collateral
Application Process and Timelines
The following are the general timelines of the Growth Fund application process from start to finish. Please note that due to the nature of this particular fund, the specific dates of the various processes may change. The dates stated below are thus tentative, and we shall communicate any concrete changes as they arise.
Open For Applications
The Growth Fund opens for applications. Applicants who complete the application form will receive a notification that we have received their application.
First Review
A shortlist of eligible applicants is reviewed by 2 panels, evaluating creativity and business applicability.
Pitch Prep
Successful applicants are notified that they have been selected to come and pitch their business and investment plan. Pitch decks are handed out to successful applicants, who are given a week to prepare. Another message is sent out to facilitate pitch scheduling.
Pitch Time
Pitching sessions happen. A further shortlist is compiled after this.
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At this point, commitment letters are sent out to all successful pitches, detailing the next processes of due diligence and financial modelling which can then move forward once the businesses agree to the given terms.
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Due Diligence
Due diligence visits to applicants with successful pitches are made.
Financial Modelling
Businesses shortlisted after due diligence are called in for collaborative financial modeling meetings.
Finalists
The final list of eligible businesses is made available, and letters of offer are written to the finalists.
Announcement of New Group
Contracts are signed, after which the first disbursements of the investments can proceed.