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Venture capital inflows rise but few deals sealed

Published on July 20, 2015

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