ViKtoria actively supports the growth of entrepreneurial ecosystems in various sectors in East Africa and the creative sector is no exception. We are currently partnering with HEVA Fund, ‘an East African Company that believes in the transformative social and economic potential of the creative economy sector in the East African region’. Their sole purpose is to help creative producers of cultural goods and services grow profitable professional businesses.
The process of shortlisting deserving businesses is quite intensive and is dependent on Viktoria’s company valuation know-how and HEVA’s understanding of the creative market.
The first stage involves Viktoria conducting evaluations for businesses shortlisted by HEVA’s creative panel once the application process is close. Selected businesses then get the opportunity to pitch to panel with HEVA and Viktoria specialists. Those who manage to impress and show their growth potential to the panel meet with the Viktoria team of experts who conduct due diligence which includes visiting their business, interviewing the founder and evaluating legal, financial, commercial and tax structures.
With the data collected and using the FAST Standard financial model, ViKtoria assesses the ability of the businesses to absorb HEVA’s investment as well as determine the type of investment best suited for each company. HEVA is then presented with reports to determine who they’ll sign loan agreements with and what types of investment loans have been suggested. The loan types are revenue share, convertible note and term loan products.
Once the final creative companies are selected, negotiations between HEVA and the startups ensue. Upon settling on amicable terms, signing, disbursement and post-investment monitoring then bring the process to a close.
The categories for this year’s funding cycle (the second for HEVA) fell under the following categories:-
- Fashion Retail
- Commercial Photography
- Soft Furnishings, Printing and Retail
Additionally, ViKtoria provides coaching and business support services to the investee companies to help them grow and repay their loans with the ultimate objective being to make them ready for other forms of investment.
