IDENTITY DEVELOPMENT FUND (IDF)  

Identity Development Fund is an organisation that leads in developing innovative financial products with the additional benefit of being integrated with non-financial support. The aim of IDF is to focus on unlocking the value of the entrepreneurial sector through investment instruments and advisory services for institutional and corporate services.

Products offered

The IDF fund is categorised into two sections namely; investment instruments which is a fund that targets the entrepreneurial SME investment and development and advisory services on strategy implementation of a new project which is a fund that targets the development of entrepreneurs. These investment instruments are listed below as follows: 

  • Cash flow financing
    • Cash flow financing is a form of bridging finance, which allows businesses to manage their cash flow and working capital more efficiently. The short-term loans are for a period of 7 days to 12 months and the loan size amount from R50 000.00 to R1 000,000.00
  • Qualifying criteria:

For your business to qualify for IDF capital cash flow financing you need to:

  • Be a qualifying supplier linked to an established corporate supply chain.
  • Have a verifiable debtor partner invoice.
  • Generate at least R1 million in annual turnover.
  • Have a minimum of 6 months trading history.
  • Have personal sureties required of directors and shareholders.
  • Have loans secured by the cession of invoice or purchase order.
  • The business should be solvent and sound.
  • Term debt financing
    • Term-debt financing allows investing in asset finance, contract finance and franchises. The term of the loans are between 1 year to 5 years with a loan size from R250 000.00 to R5 000 000.00
  • Qualifying criteria

For your business to qualify for IDF capital term-debt financing you need to:

  • Have contracted future sales and stable forecasted profits.
  • Have strong visibility of cash flows.
  • Show solid and stable profit history.
  • Have a minimum of 6 months trading history or a solid off-take agreement.
  • Private equity
    • Private equity is finance for established firms that can benefit greatly from a change in management and an injection of new capital. This funding is for established businesses with a 3-5 year track record and the investment size range from R250 000.00 to R20 million.
  • Qualifying criteria:
    • For your business to qualify for IDF capital private equity financing you need to:
    • Be an established but high-growth potential business.
    • Have a strong and committed management team.
    • Offer a clear exit strategy.
  • Venture capital 
    • Is capital invested in early-stage projects with a substantial element of risk, typically ICT businesses when they are at their early stages. The funding is for businesses in their early-stage growth as well as for start-up finance applications. The investment size is from R250 000 to R10 million.
  • Qualifying criteria:
  • For your business to qualify for venture capital financing you need to:
  • Be a high-growth business, with a clear unique selling proposition.
  • In ICT, have a proof of concept.
  • Have a clear market entry strategy.
  • Offer a clear exit strategy.

Required documentation

IDF Capital requires the following paperwork from your business before consideration for any of the above-mentioned investments instruments:

  • Detailed business plan (including technical and feasibility).
  • Management CVs.
  • Where applicable, at least the last three years annual financial statements (duly signed).
  • Management accounts (up to the latest two months).
  • Projections for the next twelve months.
  • Company incorporation documents.
  • Certified FICA documents (i.e. proof of residence, ids of directors and shareholders).
  • Valid SARS tax clearance certificate.
  • Twelve months business bank statements.
  • Contracts and related support documents.
  • Other information may be required.

Funding criteria

  • Black-owned and managed (51% or more); or
  • Growth centric sectors and businesses.
  • Minimum six months post revenue operational track record (exceptions made for businesses in the technology industry).
  • Potential for profitability and commercial sustainability.
  • Scalable business models.
  • Sound management and good governance in place.
  • Are willing to receive post-investment value-added services.
  • A clear exit strategy it is important to note that in agriculture, this fund only finances the businesses involved in agro-processing, it does not fund primary agriculture.

Contact details

 Location

Physical address

Contact number

Johannesburg

33 Fricker Road, 
2nd Floor Illovo
Sandton, 2196, South Africa

Tel: 011 772 7945
Email Address: info@idf.co.za

 

 

 

 

 

 

 

 

 

 

 

Alternatively you can visit: www.idf.co.za