Syndicate Investment

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Ortus Africa Capital Syndicates

Ortus Africa Capital Syndicates is an investment option where Ortus Africa Capital allows for investors to co-invest alongside us as a Lead investor, other lead investors and network groups in select opportunities across the African continent. These opportunities are carefully screened by ourselves and or other lead investors (angels, startup founders and other industry professionals) to make sure that they represent the best investable startup opportunities. The companies invested in are high growth companies with a technological bias in the fields of agriculture, healthcare, media, education, infrastructure, finance, transport & logistics, energy and IT.

Our syndicate pool consists of people with common investment interests such as supporting young entrepreneurs as well as encouraging innovation. We encourage investors into our syndicates to look out for the following about any opportunity: 1) a credible team; 2) a clear path to large annual revenues or strong cashflows and profitability; 3) investor’s ability to help the company/investee in some material way; and 4) impact the company/investee can make (each investor may have their own impact metrics and criteria).

Both the entrepreneur and the investor via the syndicate benefit from this transparent vehicle whereby the turmoil that comes with capital raising (on the company side) as well as selecting viable investment opportunities (the investor) is greatly reduced by the lead investor – who charges a carry (a percentage of the positive returns from the investment).

For a minimum investment of $2000 per year, you can join us as a syndicate investor.

 


What you will get from us:

  1. A detailed description of the company highlighting industry specifics, the problem and solution, business model, traction and management team.
  2. Company pitch deck
  3. Name of the Lead Investor, Lead Investor Investment Memo
  4. Company data room for your own due diligence (financials and commercials, operations, strategy and team, legal and regulatory compliance etc)
  5. Monthly, quarterly and annual reporting on the investment made.
 


How the syndicate process will work:

  1. Every month or quarter, the Lead Investor shall identify prospective investment opportunities, including evaluation and finalistion of the opportunities
  2. The identified opportunities are presented to other investors interested in participating in the syndicate
  3. Individual investors who are members of the syndicate then have the option (but not the obligation) to pro-actively participate in the investment on a deal-by-deal basis
  4. Individual investors then carry out their own due diligence (a pitch session, review of the company data room, a follow up call with the company/founders, FAQs)
  5. With the Lead Investor, agree pricing and investment terms – such as equity, SAFE, convertible, debt
  6. For investors opting into the syndicate, the Lead Investor shall complete the transaction documentation and investment into the opportunities – investment is made through a Special Purpose Vehicle (SPV) i.e. a legal entity created to make a single investment in a single opportunity
  7. The Lead Investor commences monthly, quarterly and annual reporting and management of the investment made to exit.
 

 Apply to invest as a syndicate investor at https://www.ortusafricacapital.com/join-as-an-investor/

 

In case of any inquiries please contact us at securities@ortusafrica.com

To learn more about Ortus Africa Capital visit our website at https://www.ortusafricacapital.com/


FAQs

 

Q: What are the risks involved?

A: Investing in early stage companies carries a high degree of risk. Venture capital is a risky asset class and several risks exist within this class of investment which may result in investors losing all or some of the principal sum invested. Regardless of how rigorous the due diligence process is, it may not give you all the required information to make a decision. It is advised that you assess further the information provided to attain the level of comfort required to proceed with the investment.

 

Q: What is the investment horizon of the syndicate?

A: Investing in early growth companies takes considerably longer timeframes as business life cycles vary from one business to another. On the global scale, it usually takes between 5 – 10 years and the syndicate shall seek to match the same.

 

Q: When can I exit? 

A: Exits typically happen in 5 – 10 years via IPO, strategic buyouts, mergers or acquisitions, recapitalisation and repayments (dividends, revenue share, principal + interest). With this said, Ortus Africa Capital as Lead Investor and manager of the syndicate has the sole discretion on when participants can exit. However, special exit considerations can be made in the situation of secondary sales to new or existing investors.

 

Q: Should I Invest in the companies sent to me?

A: Not necessarily. Choosing a company to invest in is entirely up to you. The Lead Investor presents you with the companies we are investing in on a deal-by-deal basis and then you choose which companies fit your style / criteria best. 

 

Q: What is the syndicate fee structure?

A: There shall be a one-off administration fee that covers the relevant diligence and background checks as well as relevant processes during the investors onboarding process into the syndicate. A transaction fee shall be charged with every investment made in an entity brought to the syndicate. There are no ongoing management fees. However, the Lead Investor earns a 20% carried interest when your investment in any investment opportunity is successfully exited.

 

Q: What is carry?

A: Carry is the share of the profit/excess return generated by the investment. If say, a deal is worth $100,000 and is exited after 10 years valued at $1,000,000 with a carry of 20%; Investors would first receive the principal of $100,000 and then receive in aggregate the sum of $720,000; Ortus Africa Capital and or the Lead Investor would receive its carry of $180,000 (20%).

 

The content here is for informational purposes only, and should not be taken as investment advice. All views contained herein are the views of Ortus Africa Capital and do not represent the views of any other organisation.