AVCA 8th Annual Conference to be held under auspices of Egypt's Ministry of Investment

Investors and fund managers descend on Cairo for the African Venture Capital Association's (AVCA) 8th Annual Conference, which is due to take place here in Cairo on 15th - 17th of November. The prominence of the conference is such that it will be held under the auspices of Egypt's Ministry of Investment.

Citi Venture Capital International investing $25 million into SkyVision Holdings Limited

Citi Venture Capital International (CVCI), is going to invest USD25 million into SkyVision Holdings Limited. The investment will be made through a wholly owned subsidiary of the Citigroup Venture Capital International Africa Fund L.P (CVCIAF), a private equity fund advised by Citi Venture Capital International.

SkyVision is a provider of global IP services over satellite and terrestrial fibre optic systems for enterprise, ISP, and carrier class clients in emerging markets. The company has coverage in over 120 countries and currently operates in more than 50 countries around the world, with sales in 2009 estimated to exceed USD80 million. In Africa, Skyvision services the largest and most respected telcos, mobile operators, corporations and public sector clients. In the past five years, the company has achieved growth rates of approximately 50% per year. The company is controlled by Cyphertech and Shamrock, the investment arm of the Roy E. Disney family. Pursuant to the investment, Cyphertech and Shamrock will hold approximately 30 percent each, CVCIAF will hold approximately 23 percent, and the remainder will be held principally by management and employees. Sunil Nair, Managing Director and Head, Central/Eastern Europe, Middle East & Africa, Citi Venture Capital International, mentioned that investment demonstrates CVCI’s commitment to supporting and further strengthening companies with a proven record of success in Africa.

IMImobile has been picked to provide technology and services to emerging markets telecommunications company MTN Group Ltd.

IMImobile has been chosen to help MTN standardise its mobile phone and online content in 21 markets in which it operates.

IMImobile said the deal was "a major commercial milestone." Financial terms weren't disclosed.

IMImobile is Venuture Capital firm Spark Ventures PLC biggest holding. It has a 38% stake in the company with a book value of GBP13 million.

This Deal will see IMImobile help South African operator standardise mobile, online content.

AllTech Ventures Management Adding Value beyond Capital to Entrepreneur's Project

Good initiative to provide financial, technical and managerial support to ensure long-term success of businesses or entrepreneur's project that will ultimately provide exceptional returns for both the entrepreneur and investors.

AllTech Ventures Management is the Allegiance Technologies Limited (a subsidiary of Steersman Enterprises, Inc.) vehicle for entrepreneurship development for technology creators, and venture creation services and resources for entrepreneurs committed to bridging the gap between technical ideas and viable companies.

AllTech partner with entrepreneurs to build leading evolutionary technology companies. Founders face significant challenges today in planning, staffing, launching, and financing new ventures. AllTech understand the gap that exists between great ideas and sustainable growth companies. AllTech Ventures Management provides extensive services and resources designed to turn great ideas into scalable enterprises. Portfolio companies receive:

• Access to proven funding, team-building, and customer networks
• Hands-on consultation from our experienced venture staff
• Technical expertise, to support product development, from one of the region’s leading research institutions
• Valuable infrastructure, such as advanced computer and biotechnology labs

The AllTech team is drawn from top start-ups, high ranked corporations, and world-class universities. AllTech Ventures Management professionals have an established record of excellence in the tasks they have dedicated themselves to — from academics to operating businesses.

AllTech Ventures Management draws upon the start-up, corporate, venture capital and management consulting experience of its founders to foster successful entrepreneurship and the management of technological innovation.

AllTech Ventures Management venture building activities includes:

VentureAccelerator Program (VA)
VA is a program open to Entrepreneurs committed to creating new companies based on Allegiance Technologies innovations. Once registered into the program,
VA company founders receive intense, hands-on assistance with a range of new business processes, including market validation, business planning, staffing and initial funding through grants and/or equity investment.

Technology Advancement Program (TAP)
TAP is a venture incubator that partners with entrepreneurs to build early-stage companies. TAP expedites the maturation of young firms by providing extensive hands-on business support from experienced and entrepreneurial staff, access to funding sources, technical expertise and turn-key infrastructure.

The Technology Advancement Program (TAP) staff is comprised of seasoned veterans of technology startups and venture capital firms who will provide:

• business advice and support
• product planning
• project management
• program management
• market intelligence
• introductions
• access to funding
• other critical assistance that can accelerate the growth of your technology venture.

AllTech Venture Creation programs provide to entrepreneurs in the emerging markets of Africa. We seek opportunities in multiple industries including wireless, digital media, software and service companies.

Submit business plan: bizplan@steersmanenterprises.com

Unleashing ideas with venture capital

There are many Nigerians with fantastic ideas that require capital to start or grow their existing businesses. Accessing the needed money from banks or other financial institutions is usually difficult not because all the ideas lack credit but there are certain factors that the lenders contend with it. In addition to funds, many people with ideas also need a partner to work with.

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What is Private Equity?

- Private equity can be divided generally into two streams, fund investing and company investing. Fund investing is essentially one level removed from company investing, as the fund will in turn invest in underlying portfolio companies. For this reason company investing is often called "direct" investing.

- Fund investments are in turn divided into primary and secondary. A primary investment is a commitment to invest in a new fund which is as yet unformed. A secondary investment is the purchase and transfer of an interest in an existing fund from another investor.

- Direct private equity investing, i.e., at the company rather than the fund level, can be described as typically being an investment of an equity nature in a company which is not listed on any public equity market. While there are a number of possible exceptions, this definition remains broadly true.

- All private equity investing, whether at the fund or company level, can be subdivided into buyout and venture. Buyout transactions typically include debt and involve established and usually profitable companies. Venture transactions typically do not include debt and involve young, even start-up companies and some element of technological innovation.

- Fundamental to a proper appreciation of how private equity funds work is an understanding of the difference between allocated, committed, drawndown and invested capital. Allocated capital represents that part of the overall asset mix which has been set aside for investment in private equity. Committed capital is that amount of allocated capital which has been committed. Drawndown capital is that part of committed capital which has been paid on demand. Invested capital is that part of drawndown capital which has actually been invested in portfolio companies (the other main use of drwandown capital being the payment of fees and expenses).

- The bulk of private equity funds are these days typically structured as institutional limited partnerships, though other legal forms exist, including some which are quoted and/or aimed at least in part at retail investors.

- A private equity fund may be thought of as a stream of cashflows (both into and out of the fund) which are essentially unpredictable both as to their timing and amount.

- Sole investment powers rest with the GP (manager) of the fund. Thus all private equity fund investors are wholly passive in the strict legal sense.

- Fundraising typically takes at 3-year intervals, although some funds, such as secondary funds, have in recent years been investing more rapidly, and thus fundraising at shorter intervals. This phenomenon also occurred with venture funds during the bubble period.

VCs focus on capital efficiency in new deals
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African Venture Capital Association is a not-for-profit entity founded to promote, develop and stimulate private equity and venture capital in Africa.

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