FAQs
General
Who are the people behind Backbone Capital?
Please visit the About Us section for more information about the team, click here.
investor
Which companies has Backbone Capital invested in so far?
Please refer to the portfolio page for more information, click here.
What is the maximum the fund is expecting to raise?
Backbone aims to be the leading disruptive technology fund with assets over $1 billion.
What are the fees involved with this investment?
There will be a once-off capital raising fee of 3% on all funds raised by the Manager on behalf of the Company as well as an asset management fee of 2,5% per annum payable quarterly in advance.
What is the minimum and maximum subscription per investor?
The minimum is $5,788 with a maximum of $1,157,788, however this is subject to change and will be set out in the prospectus.
How do I report this investment to SARS for the allowable tax refund?
Investors will be entitled to deduct the full amount of their investment in Backbone from their taxable income in the tax year that the investment was made. A certificate to substantiate a claim for tax deduction will be sent to investors within 6 weeks of the closing date. Investors can claim the tax relief by claiming the deduction in their Income Tax returns.
How often will I be updated on this investment?
Investors will receive updated quarterly statements. There will also be an annual general meeting
When can we exit the investment?
You can exit the investment at any time, however if you exit before a period of 5 years, you will be required to pay the relevant tax rebate you received, this is set out by the section 12J act.
What do we receive once we invest?
Once you invest, you will receive a share and tax certificate. (This will also provide SARS with the proof it needs to allow for the relevant tax break).
What is the process to invest in Backbone fund?
Please see the Investor section of our website, click here.
ENTREPRENEUR
At what stage will Backbone consider investing in a business?
Backbone typically invests in companies that are revenue producing. However, we are open to investing in companies which have a proven model and can show traction.
Who qualifies for investment?
We typically invest in companies with:
- Strong management team
- Clearly defined exit strategy
- Scalable business model (profits increase faster than revenue)
- Early stage with a revenue and profitability track record which require growth capital – a large percentage of the overall portfolio
- Early stage businesses with revenue but not yet profitable
- Traction with a referenced client base
- High growth potential market opportunities – cross border growth prospects with export potential, incl. business models with potential for significant scale both within South Africa and abroad
- High gross margins and potential for recurring revenue
- High revenue and profit growth potential
- Strong competitive position within their targeted sector with differentiated Intellectual Property (IP) – unique products
What industries does Backbone invest in?
Backbone invests in disruptive digital technology high growth companies, that provide technology based solutions. Backbone invests in technology companies across all industries.
Who are the people behind Backbone Capital?
Please visit the About Us section for more information about the team, click here.
Which companies has Backbone Capital invested in so far?
Please refer to the portfolio page for more information, click here.
What is the maximum the fund is expecting to raise?
Backbone aims to be the leading disruptive technology fund with assets over $1 billion.
What are the fees involved with this investment?
There will be a once-off capital raising fee of 3% on all funds raised by the Manager on behalf of the Company as well as an asset management fee of 2,5% per annum payable quarterly in advance.
What is the minimum and maximum subscription per investor?
The minimum is $5,788 with a maximum of $1,157,788, however this is subject to change and will be set out in the prospectus.
How do I report this investment to SARS for the allowable tax refund?
Investors will be entitled to deduct the full amount of their investment in Backbone from their taxable income in the tax year that the investment was made. A certificate to substantiate a claim for tax deduction will be sent to investors within 6 weeks of the closing date. Investors can claim the tax relief by claiming the deduction in their Income Tax returns.
How often will I be updated on this investment?
Investors will receive updated quarterly statements. There will also be an annual general meeting
When can we exit the investment?
You can exit the investment at any time, however if you exit before a period of 5 years, you will be required to pay the relevant tax rebate you received, this is set out by the section 12J act.
What do we receive once we invest?
Once you invest, you will receive a share and tax certificate. (This will also provide SARS with the proof it needs to allow for the relevant tax break).
What is the process to invest in Backbone fund?
Please see the Investor section of our website, click here.
At what stage will Backbone consider investing in a business?
Backbone typically invests in companies that are revenue producing. However, we are open to investing in companies which have a proven model and can show traction.
Who qualifies for investment?
We typically invest in companies with:
- Strong management team
- Clearly defined exit strategy
- Scalable business model (profits increase faster than revenue)
- Early stage with a revenue and profitability track record which require growth capital – a large percentage of the overall portfolio
- Early stage businesses with revenue but not yet profitable
- Traction with a referenced client base
- High growth potential market opportunities – cross border growth prospects with export potential, incl. business models with potential for significant scale both within South Africa and abroad
- High gross margins and potential for recurring revenue
- High revenue and profit growth potential
- Strong competitive position within their targeted sector with differentiated Intellectual Property (IP) – unique products
What industries does Backbone invest in?
Backbone invests in disruptive digital technology high growth companies, that provide technology based solutions. Backbone invests in technology companies across all industries.
Driving the global growth of African technology-led businesses through strategic funding, expert insights, and powerful networks
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