Capital
INVESTORS
INVESTOR
We are a disruptive technology venture capital fund led by a dynamic and highly experienced team with a combined 30 years of expertise.
At Backbone Fund I, we invest in post-revenue startups — not necessarily post-profit ventures — led by entrepreneurs solving African problems with global potential. Our focus is on providing smart capital that drives innovation and delivering smart returns that create long-term value.
If you are interested in investing in our fund, please subscribe through the contact form below, and we will notify you about our upcoming capital raise for Backbone Fund I.
INVESTMENT DETAILS
| Minimum Subscription per investor: | As per prospectus |
| Maximum Subscription per investor: | 20% of the fund size |
| Targeted Returns: | IRR > 30% per annum |
| Times Money: | 5 times over a 6-year period |
| Capital Raising Fee: | 3% of funds raised |
| Management Fee: | 2% per annum of total funds raised paid quarterly in advance |
| Performance Fee: | For every 4 ordinary shares issued to investors, the manager is issued with 1 ‘A’ Ordinary Share. Ordinary Shares and ‘A’ Shares participate equally in the return of capital after distribution of Investor Capital Contributions as per the MOI. |
Investment Management
The Backbone Capital Committee with the assistance of the manager applies rigorous investment criteria in its investment decisions and conducts a rigorous due diligence process before committing to any investment.
Backbone will become actively involved in each of the companies invested in order to mitigate risk. This involvement does not only include the executive directors and staff but also the non-executive directors to ensure the maximum value is unlocked from every asset.
Besides a board seat, the Backbone team will be involved in a number of business building activities (engineering growth) including:
- Strategy Development – help search for a repeatable and scalable business model as well as ensure the strategy has a positive impact on the exit strategy – customer/channel introductions at the right level
- Business Development – assist the companies in identifying strategic partners and distribution channels and networks to help scale the business
- Networks – identify, monitor and continuously evaluate the partner universe
- Corporate Governance – supplementing the board with external experts
- Financial reporting in line with best practices
- Involvement in sourcing and recruiting with hiring human capital
- Sales – guidance with the establishment of a measurable sales process as well as attendance at sales meetings, if required
- Marketing Strategy – clearly articulate value proposition to client base
- Legal compliance with IP and other legal requirements
Backbone EXIT STRATEGIES
At Backbone, EXIT means the full or partial transfer of ownership at the highest possible value.
One of our key investment criteria is a clear and well-defined exit strategy. From the outset, we evaluate the partner ecosystem — including competitors, customers, suppliers, distributors, corporate venturing partners, and other investors or funding sources — to identify and map potential strategic buyers.
Although an exit is the final step in the investment journey, the exit strategy is built into the company’s structure from the moment we invest. We work closely with founders and the board to ensure full alignment on exit objectives and pathways, positioning the business for maximum long-term value creation.
In today’s digital world, companies are being acquired only two or three years after startup. Several factors are driving this change:
- Web 2.0. Google transforming advertising of large corporations.
- Growth in private equity and buyout funds.
- Large numbers of medium-sized companies and individuals buying companies.
- Preference of larger corporations to grow by acquisition rather than incurring internal research and development (R&D).
- Reduction of the costs and time required to build new companies via the Internet.
- The trend toward early exits is creating exciting and lucrative opportunities for entrepreneurs and angel investors.
Backbone INVESTOR INTEREST
Learn More About Our Investment Opportunities. If you’re interested in learning more about our investment approach, portfolio, and future opportunities with Backbone Capital, we’d love to hear from you.
Driving the global growth of African technology-led businesses through strategic funding, expert insights, and powerful networks
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