The South African business market is growing at a steady pace. The expanding middle class market continues to be targeted by entrepreneurs and business owners, who see the potential purchasing power it possesses.
A number of these entrepreneurs have entities that often require vast amounts of money as capital injections. Grovest Venture Capital is a leading company servicing these capital needs. As South Africa’s first venture capital company incorporated under section 12J of the Income Tax Act, Grovest is a pioneer capital management organisation.
Grovest is operated by individuals with extensive experience in building private companies. It offers the prospect of lucrative returns for the sophisticated investor, whilst fostering entrepreneurship. The investment portfolios that Grovest focuses on are required to have high growth potential, be scalable and low capex.
Grovest seeks to invest in entities with a high rate of return; with potential for rapid and profitable growth. The company’s ability to add significant revenue without being constrained by its own structure and resources is a necessity for consideration. Funds required for upgrading or asset purchasing purposes should be low. Grovest’s stringent standards further stipulate requirements for portfolios to be desirable:
Potential for growth in revenues and profitability:
- Defensible market positions
- Strong management that holds meaningful shareholdings in other companies
- Attractive entry prices
- Opportunities for Grovest to add value
- The prospect of Grovest exiting with a meaningful investment surplus over a 5-year period
Potential investment opportunities are investigated by Venture Capital Management Services (VCMS.) A review of the market in which the investment applicant operates is conducted; its competitive position determined; opportunities and risks assessed. Grovest claims to “partner with exceptional entrepreneurs, building and growing pioneering businesses.”
An advantage of investing in Grovest is a 40% tax break (for an individual tax payer at the maximum marginal rate) at the time of investment. Investors are also able to write off up to 100% of their investment capital against taxable income. This results in long term returns greater than those available from investing in a portfolio of listed companies.
Call Grovest on 011 262 6433