At the every Bants2Business, we have a pitch session; where young entrepreneurs get the opportunity to network with and pitch their business idea directly to other entrepreneurs (potential investors).
The next Bants2Business is the Love in Business Edition.
HOW DOES PITCHING WORK?
The Bants2Business pitch session goes as follows:
Entrepreneurs with viable business ideas apply to be pitchers at the B2B in-person event via our website.
The most tangible businesses are selected for the pitch session.
In a classic speed dating setup, there are several pitchers and several investors sitting adjacent to each other.
Each pitcher gets a chance to pitch their business to each of the investors.
Each pitcher will have a minute to pitch their idea to an investor before moving on to the next one until they have pitched to all the 4 investors.
The B2B team and all investors will have signed NDAs and non-competes on novel* ideas.
The investors then will get to pick which of the business(es) they would like to invest in.
All 4 investors can choose to invest in one business if they all like it. The investors can also invest in a different business each.
The investors will be investing as a partner in the (potential) business, so all business ideas will have to be valued before pitching.
HOW DOES INVESTMENT WORK?
Each investor comes with MWK100,000, to invest in a business of their choice.
This means as a pitcher your part is to persuade and impress all the investors in order to win the whole MWK400,000.
If you impress 1 investor, you get MWK100,000 towards your business, if you impress 2 investors you get MWK200,000 and if you impress 3 investors you get MWK300,000 invested in your business.
On the other end, as an investor, your part is to invest in any one of the businesses. This also means 2 or even all the investors can each invest in the same business.
TERMS OF INVESTMENT
Investors will assist the entrepreneurs they invest in with strategic business decisions, and they may provide mentorship to the investee for the first year of their partnership.
For businesses moving from ideation phase (i.e. valued at MWK0 before initial investment):
The investor and investee will share the cumulative profits of the business at the end of the year on a 51:49 ratio.
49% of the profits go to the investor and 51% to the investee.
For established businesses with proven traction:
The investor and investee will share the cumulative profits of the business at the end of the year as per shareholding ratio.
Profits will be shared between investor and investee as per shareholding ratio in contract.
The investee has the opportunity to buy out the investor annually. The investor cannot decline a buyout.
At buyout, the investor receives a total of % of all profits of the year, plus your initial investment with 50% compounding interest.
Buyout cost: Initial Investment + Interest (50% of principle, compounding) + % of Profits
If the investee fails to buy out the investor shares within the first year of partnership, the interest will be compounded by the same 50% on the principle in the subsequent years.
This means that after 1 year, buyout is valued at MK150,000 + % of profits. After 2 years, buyout is valued at 200,000 + % of profits. After 3 years, buyout is valued at MK250,000 + % of profits; and so on.
In case of business failure
In the event that the business fails (i.e. makes no profits and is closed down); the investee still commits to pay the investor their dues (Principle invested + Relevant interest) at liquidation.
The entire process will be facilitated by overseen by the Bants2Business team. This is to protect the rights of both the investor and investee, and ensure that both parties and upholding their end of the bargain. The B2B will be in charge of drafting and reinforcing contracts.
For facilitating this, Bants2Business will reserve 10% of initial investment, but value of investment will remain the same. This means that if an investor has invested MK100,000; the investee will receive MK90,000, but the value of investment will remain MK100,000. B2B will then require a 10% service fee in initial investment on every compounding year, until the investor and investee choose to either buy each other out, or go into a partnership.
The investor and investee may agree to go into a partnership after the first year, at which point the Bants2Business team will exit, and the investor and investee will come up with their own terms and conditions of the partnership.
Register and Apply below to become a pitcher and stand a chance to win up to MWK400, 000 for your business
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