Increased inflows of private equity and venture capital funds across East Africa have afforded Ugandan businesses the option of cheaper, long-term capital, but differences in the expectations of foreign investors and local entrepreneurs have led to few transactions being concluded.
While private equity funds usually go to fast-growing businesses that need capital for expansion, venture capital funds are preferred for startup companies that require money to establish production facilities.
Many private equity funds come in for a 3-7 year investment period coupled with targeted returns of investment averaging 20-30 per cent — calculated in US dollar terms. Average funding amounts range from $1 million-$10 million per transaction, industry sources said. Read more. Source | The East African