Craig Wing, an entrepreneur who also runs a small consulting business called Wing Nuts, has been trying to get a corporate social investment business idea off the ground for three years.
The project, designed initially as part of the requirements for a Master's degree, which he finished in 2003, is a device that helps the partially sighted see. Called Revision, it works by digitally scanning in the image, manipulating it and displaying it on a screen.
Wing tested an early prototype a few years ago at a Vaal-based primary school that caters for the partially sighted. Based on those results, he decided to take the project further and bought himself out of a Murray and Roberts bursary to concentrate on taking it further.
Challenge
He says it took him a year to further develop the software, functionality and business plan and - at the end of 2004 - he started enquiring about funding, to no avail.
Wing says he has approached every major financial and venture capital organisation he can think off, including government's own innovation fund. Despite winning three awards for the project, and SA National Council for the Blind endorsement, he has had no luck.
JP Fourie, who heads up the Southern African Venture Capital and Private Equity Association (SAVCA) finding funding is a key challenge for entrepreneurs. However, he denies that there simply is not enough funding around. The problem, he says, is finding those people willing to inject cash into your idea.
"There is a misconception among entrepreneurs in SA that there is simply no financing available - a misconception that contributes to insufficient business development and an intolerably high level of entrepreneurial burnout," says Fourie.
Prototypes
Wing says he is hoping to secure R1.85 million in funding to develop three prototypes. The first would be PC, or notebook, based. A camera would capture the image, the algorithm-based software would allow it to be manipulated, and the output would be readable on screen.
The software, says Wing, allow the partially sighted to zoom in, split the image, correct the lighting or correct the illumination as needed.
Wing's second prototype involves a cellular phone. He says the software could be embedded on a chip and phones generally come standard with a camera, allowing for capturing of the image to be read. In this instance, he says, a television would make for an ideal output. His third concept is a standalone handheld device.
Fourie says, in total - between 1999 and 2005 - 12% of the total cash invested into business by private equity and venture capital companies was into start ups. He says it is important that entrepreneurs understand what financiers are looking for when pitching their proposals. In 2005, the latest available figures, R43.9 billion was invested by private equity firms.
Wing has orders in principle, and a board that can be called together at any point once funding has been secured.
There is hope
Despite Wing's disillusionment, Julia Long, CEO of venture capital firm HBD, says there is hope for entrepreneurs. While the market is still immature, investors are seeing opportunities in the local market.
Long explains investment generally moves into higher risk areas when the less risky investment arena becomes saturated. She says, at this point, investors will look into companies that do not have an established track record. However, such investors generally take a stake in such firms and usually seek attractive returns on their investment because of the risk.
Internationally, there are networks of investors - called angels - who are willing to invest in start up companies. These individuals are usually high net worth people who want to give back. Locally, there are no known networks, but Long says the SAVCA is looking into the possibility of starting up a network.
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