E4E hunting for entrepreneurs who can change the game

Entrepreneurs with big-vision “out the box” problem-solving ideas, possibly considered unworkable by their peers, could have the perfect outlet for their products or services with Entrepreneurs for Entrepreneurs (E4E), the recently created hot box accelerator for innovation.

E4E’s co-founder and managing partner, Philani Sangweni, said though self-employed entrepreneurs were considered the future of job creation and growth, there was little concrete evidence of measurable encouragement to the sector.

He said it was well past the time that all spheres of government and the financial sector should get together to develop strategies that made entry into the entrepreneur sector easier and faster.

E4E is a venture capital fund that aims to provide the cash that gives entrepreneurs the opportunity to make an impact in SA and possibly internationally.

Philani was a senior manager at Accenture, ran Fundi, and cofounded Matsei Technologies and AKRO Accelerate.

His E4E co-founders include Aisha Pandor (home cleaning start-up, SweepSouth), Bas Hochstenbach (venture capitalist linked to e-commerce platform Yebofresh), Bakang Komanyane (private equity, infrastructure and real estate), Neil Watson (co-founder of Digital Planet) and Frederik Gerner (co-founder of Ampelmann).

“E4E is a hands-on operation,” Sangweni said.

“We meet formally twice a week to discuss various deals and operations, but also spend a lot of time together informally.”

“We launched with R125m from Ketso Gordhan’s SA SME Fund and an additional R10m from investors, including E4E, and have already identified several businesses that can light up the entrepreneurial scene.”

He said though the wisdom of the initiative’s timing might be questioned, with the coronavirus pandemic dulling enthusiasm for new ventures, tighter cash flow did not mean that smart investors were suddenly blind to good deals.

“We have already identified several other strong opportunities and as the momentum grows more are knocking on our door.

“In addition, we are confident of announcing another R400m investment into E4E, which should be signed early in 2021.”

“We have a mandate to focus on black and female businesses that can demonstrate their value as investment vehicles, and we can invest up to 50% of our capital in this sector.”

“Aside from our team, we have reached out to several experienced entrepreneurs who are prepared to use their skill and proven track record to act as mentors.

“This gives both the new venture owners and the investors a lot of confidence in the deals.”

He said that though many entrepreneurs had succumbed financially to the virus, others had fought back and had grown, seeing opportunities that might not have been obvious to competitors.  

E4E will consider investments into entrepreneurial ventures that may seem far out of the ordinary, especially if they solve problems, and are driven by passionate people that have a success record in other ventures.