Early Stage
Venture Capital Fund
Cape Town
1Thursday, 10October, 13
2
FUND I - SOUTH AFRICA
Fund 1 South Africa: $10 M (R 100 M)
Term:
8 years +
2 x 1 yr extensions
Average Size of Investmen...
3
TEAM
• 19 years experience with startups and venture investments
• Principal at Rare MediumVentures (1999 - 2000)
• Part...
4
AFRICA IS RISING
“Today the rate of return on foreign investment in
Africa is higher than in any other developing region...
5
AFRICAN TECH EXPLOSION
Africa Leads in Mobile Money
35 Tech Hubs
13 Countries
5Thursday, 10October, 13
6
SOUTH AFRICA IS THE PLACE TO BE
$317 Million
• Population: 50.6 M
• GDP (2010): $554.6 B
• Mobile Penetration: 50.3 M
• ...
7
THE WORLD’S TOP PLAYERS KNOW IT
7Thursday, 10October, 13
8
EXISTING FUNDS
Investments
Fund
Size
Vintage
Year
Investment Size Exits
**
6 $18M 2011 $50K - $500K 1
4 $6M 2008 $12K - ...
9
SOUTH AFRICAN STANDOUTS
Exits:
• Fundamo: Mobile money startup, sold toVisa in
2011 ($110 M)
• CSense: enterprise efficie...
10
FUND STRUCTURE
10Thursday, 10October, 13
11
TERMS
Fund Size: $10 M (R 100 M)
Closing Date: Q1 2014
Term: 8 years + 2 x 1 year ext.
GP Commitment: 1% of Subscribed ...
12
CONTACT DETAILS
Zeyn Angamia:
Philip Kiracofe:
philip@horizenventures.com
@pkiracofe (twitter, skype)
Bobby Sanghavi:
b...
APPENDIX
13
13Thursday, 10October, 13
14
TEAM
Since arriving in NYC in 1994, Philip has been deeply immersed in technology, real estate, and
entrepreneurial ven...
15
TEAM
Zeyn Angamia
15Thursday, 10October, 13
16
TEAM
Bobby has been immersed in technology ventures since the first internet boom as a developer,
consultant, and inves...
17
SOUTH AFRICA VS. OTHER BRICS
Ease of Doing Business
5/16/12 3/1/12
17Thursday, 10October, 13
CHINA INDIA
SOUTH
AFRICA
AFRICA
POPULATION 1.34 B 1.24 B 50.6 M 1.03 B
URBANIZATION
RATE 45% 30% 62% 38%
MEDIAN AGE 35.9 2...
19
RISE OF THE AFRICAN CONSUMER
• 35% growth in consumer spending by 2015
• 221 million new consumers by 2015
• Africans w...
20
TECH INFRASTRUCTURE
2010 Undersea Cables
(8 lines)
2014 Undersea Cables
(19 lines)
Broadband Subscriptions
Cape Town
is...
21
MOBILE SUBSCRIPTIONS
Total New in 2012
Africa 699 M 24 M
North America 341 M 4 M
21Thursday, 10October, 13
22
RAPID STARTUP GROWTH
35 TECH HUBS IN 13 COUNTRIES
map by since February 2012
South Africa:
22Thursday, 10October, 13
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Horizen Ventures Africa - $10MM early stage fund

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Horizen Ventures Africa is an early stage fund focused on Technology and Mobile

We are currently raising $10MM and intend to close in early 2013

We will be opening the office in Cape Town on 12-12-12

link to http://horizenventures.com/africa

Published in: Economy & Finance, Business
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  • \n
  • one page, 2-3 bullet points\n
  • fdi unctad data\n
  • 35 tech hubs in 13 countries\n\nhttp://www.masterintelligence.com/upload/348/283/Online-Shopping-Infographic_Africav2.jpg\n\nhttp://www.bgr.com/2012/05/09/mobile-internet-usage-doubles/\n\nhttp://www.roycefunds.com/news/global/2012/0125-africa-opportunities-challenges-growing-economy.asp\n
  • \n
  • (Nielsenwire, September 2011)\nhttp://blog.nielsen.com/nielsenwire/global/mobile-phones-dominate-in-south-africa/\n\n\ncheck mobile data usage stats\nhttp://techtalkafrica.com/growth-of-internet-in-south-africa-infographic.html/\n\nopera date 7/309/12\nretype the left side -- 1 decimal point\nasterisk $317 million\nuser growth\ndata growth \npage view growth\nyear over year march 2012 vs march 2011\nby how much is each domain? -- find more \nbesides top 2, they are all african--african solutions\ndelete handsets\n\nput rand in dollars\n\n
  • Vintage year, fund size, avergae and the nnumber of investments\n\nR500 000 to R10-million invenfin\n4di R100k- 5m\n\n8 companies, 4 exits as hbd\n\nvertical side bars on left--categories:\naccelerator\nincubator\nco-working space\ntake out of chart, only differentiating factors\n\ncategories:\ngoal\ncandidates\nvalue proposition\n
  • ONSHORE--OFFSHORE LLCS ETC--LAWYER SLIDE\n
  • \n
  • one page, 2-3 bullet points\n\ndo\n
  • \n
  • one page, 2-3 bullet points\n\ndo\n
  • do\n
  • do\n
  • \n
  • B not bn\n1.5 not 1mil etc\nTOTAL POPULATION wb\nMIDDLE CLASS POPULATION\nURBANIZATION -- world bank\nMEDIAN AGE -- cia\nPER HOUSEHOLD CONSUMPTION WB\nFDI % -- world bank ( want % GROWTH)\n\nGDP PER CAPITA -- cia world fact book\nmobile penetration-- wikipedia\n\n
  • http://www.bain.com/Images/INDUSTRY_BRIEF_Growing_with_Africas_consumers.pdf\n\nhttp://www.mckinseyquarterly.com/Picking_products_for_Africas_growing_consumer_markets_2600\n
  • Total Terabits?\n\n\nhttp://www.roycefunds.com/news/global/2012/0125-africa-opportunities-challenges-growing-economy.asp\n
  • \n
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  • Horizen Ventures Africa - $10MM early stage fund

    1. 1. Early Stage Venture Capital Fund Cape Town 1Thursday, 10October, 13
    2. 2. 2 FUND I - SOUTH AFRICA Fund 1 South Africa: $10 M (R 100 M) Term: 8 years + 2 x 1 yr extensions Average Size of Investments: $500 K - $1.5 M Early-stage venture capital fund focused on South African technology and mobile startups with continental and global growth potential. 2Thursday, 10October, 13
    3. 3. 3 TEAM • 19 years experience with startups and venture investments • Principal at Rare MediumVentures (1999 - 2000) • Partner in HorizenVentures (2004-present) • Advisor and mentor to South African startups (2011-present) Philip Kiracofe • 12 years experience in auditing, corporate finance, and private equity • Principal/Partner (?) at Medu Capital • BCom and BCom (Honours) Univ of Witwatersrand Zeyn Angamia • 11 years experience with technology companies • SVP at HorizenVentures Singapore - 11 portfolio companies • 5 years at Bently Nevada (funded by GEVentures) • Launched Elucido Media Networks Singapore (funded by Trident Capital) Bobby Sanghavi Investment Analyst -- local hire with relevant investment experience 3Thursday, 10October, 13
    4. 4. 4 AFRICA IS RISING “Today the rate of return on foreign investment in Africa is higher than in any other developing region.” -McKinsey Global Institute: Lions on the Move 2010 Africa’s Economic Output • Median age: 20 • 38% of Africans live in cities • African middle class: 313 million • GDP: $1.86 T • Consumer Spending: $1.0 T • Foreign Investment: $60 billion/yr Sources: World Bank, CIA World Fact Book, UNCTAD, Mobithinking; 2011 Statistics 4Thursday, 10October, 13
    5. 5. 5 AFRICAN TECH EXPLOSION Africa Leads in Mobile Money 35 Tech Hubs 13 Countries 5Thursday, 10October, 13
    6. 6. 6 SOUTH AFRICA IS THE PLACE TO BE $317 Million • Population: 50.6 M • GDP (2010): $554.6 B • Mobile Penetration: 50.3 M • Fixed line penetration: 4.23 M • User Growth: 35% • Page view growth: 24% • Data Usage Growth: 30% • South Africa ranks 5th in the world for mobile data usage (US is 7th) Top 10 Domains 1.Facebook.com 2.Google.com 3.Zamob.com 4.Gumtree.co.za 5.Zonkewap.com 6.Smiggle.mobi 7.Mxit.com 8.Soccerladuma.mobi 9.News24.com 10. Spbo.com *Year overYear, March 2012 vs. March 2011 8 of 10 are African 6Thursday, 10October, 13
    7. 7. 7 THE WORLD’S TOP PLAYERS KNOW IT 7Thursday, 10October, 13
    8. 8. 8 EXISTING FUNDS Investments Fund Size Vintage Year Investment Size Exits ** 6 $18M 2011 $50K - $500K 1 4 $6M 2008 $12K - $600K 0 8 $38M 2008 $500K - $3.5M 0 8* n/a 2000 4 0 $14M target size 2013 $1M - $3M n/a *Knife manages remaining portfolio for Here Be Dragons 8Thursday, 10October, 13
    9. 9. 9 SOUTH AFRICAN STANDOUTS Exits: • Fundamo: Mobile money startup, sold toVisa in 2011 ($110 M) • CSense: enterprise efficiency solution, sold to GE Intelligent Platforms • MXit: South Africa’s largest social network, sold to World of Avatar in 2011 ($80 M) Prospective Investments • Social media platform to power enterprise photo campaigns • Design crowdsourcing and marketing platform for brands and agencies • Designer flash sales site for retailers 9Thursday, 10October, 13
    10. 10. 10 FUND STRUCTURE 10Thursday, 10October, 13
    11. 11. 11 TERMS Fund Size: $10 M (R 100 M) Closing Date: Q1 2014 Term: 8 years + 2 x 1 year ext. GP Commitment: 1% of Subscribed Capital Setup Fees: 1% of Fund Size (one-time) Management Fee: 2.5% per year Carried Interest: 20% to GP, 80% to LPs (proportional to capital commitments) 11Thursday, 10October, 13
    12. 12. 12 CONTACT DETAILS Zeyn Angamia: Philip Kiracofe: philip@horizenventures.com @pkiracofe (twitter, skype) Bobby Sanghavi: bobby@horizenventures.com 12Thursday, 10October, 13
    13. 13. APPENDIX 13 13Thursday, 10October, 13
    14. 14. 14 TEAM Since arriving in NYC in 1994, Philip has been deeply immersed in technology, real estate, and entrepreneurial ventures. He has co-founded or led a diverse range of companies including a pioneer online grocery service company, a dot com 1.0 incubator fund, the first large-scale social networking site, and a NY-based property development firm. In 2004, he co-founded Horizen Ventures as a US-India fund which subsequently partnered with Softbank China India. Horizen is now raising its first fund in Africa, a $10MM early stage fund based in Cape Town, and Philip is the lead partner. Since 2011, he has advised South African start-ups and served as an international mentor at entrepreneurial events. In his free time, Philip’s interests range from adventure and endurance events (he has climbed Mt Kilimanjaro, completed Ironman triathlon and Comrades Marathon) to charitable pursuits (Carnegie Hall Notables, Service Space). He sits on the Board of Directors for the Manhattan Chamber of Commerce and has served as President of the Manhattan Association of Realtors. Philip attended the United States Air Force Academy, where he studied Computer Science and Behavioral Science. He currently splits his time between Cape Town and midtown Manhattan. Philip Kiracofe, Managing Partner 14Thursday, 10October, 13
    15. 15. 15 TEAM Zeyn Angamia 15Thursday, 10October, 13
    16. 16. 16 TEAM Bobby has been immersed in technology ventures since the first internet boom as a developer, consultant, and investor. He spent nearly five years at a Bently Nevada, a start-up backed by GE, and launched the Singapore office for Elucido Media Networks, a Trident Capital portfolio company. Most recently, he spent three years as a Strategy Consultant for Accenture Singapore, focused on media and telecom. On the Horizen Ventures team, he is a primary manager for six portfolio companies. Bobby received a BS Degree from University of Pune in India, and he earned an MBA from the National Institute of Singapore. Bobby Sanghavi 16Thursday, 10October, 13
    17. 17. 17 SOUTH AFRICA VS. OTHER BRICS Ease of Doing Business 5/16/12 3/1/12 17Thursday, 10October, 13
    18. 18. CHINA INDIA SOUTH AFRICA AFRICA POPULATION 1.34 B 1.24 B 50.6 M 1.03 B URBANIZATION RATE 45% 30% 62% 38% MEDIAN AGE 35.9 26.5 25.3 20 GDP PER CAPITA (2011, CURRENT $, PPP) $8,500 $3,700 $11, 100 $1,800 FOREIGN DIRECT INVESTMENT (annual) $185 B $24.1 B $5.7 B $60 B MOBILE PENETRATION 76% 75% >100% 63% BRICS vs. AFRICA 18Sources: World Bank, CIA World Fact Book, UNCTAD, Mobithinking; 2011 Statistics 18Thursday, 10October, 13
    19. 19. 19 RISE OF THE AFRICAN CONSUMER • 35% growth in consumer spending by 2015 • 221 million new consumers by 2015 • Africans with clean drinking water: 61% • Africans with mobile phones: 66% 19Thursday, 10October, 13
    20. 20. 20 TECH INFRASTRUCTURE 2010 Undersea Cables (8 lines) 2014 Undersea Cables (19 lines) Broadband Subscriptions Cape Town is the hub 20Thursday, 10October, 13
    21. 21. 21 MOBILE SUBSCRIPTIONS Total New in 2012 Africa 699 M 24 M North America 341 M 4 M 21Thursday, 10October, 13
    22. 22. 22 RAPID STARTUP GROWTH 35 TECH HUBS IN 13 COUNTRIES map by since February 2012 South Africa: 22Thursday, 10October, 13

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