Capital Raising Seminar 2020

On Friday, 13th March 2020, the Kenyan government reported the 1st positive case of the Corona Virus in Kenya. Many parts of the world had been ravished by the deadly virus and to some extent, it seemed a matter of when rather than if. The briefing was short, simple and to the point. The country has to brace itself for tough times ahead. The pandemic thereafter hit each sector gradually. The health sector has been pushed to its capacity trying to cope with the growing numbers, the education sector has been brought to a standstill as schools have remained closed in fear of a spike in the infection numbers among students, the tourism sector has been left lifeless with all international and local flights being cancelled. The same trend has been observed in many other sectors within the country.

Business owners have not been spared either. In May, the Central Bank of Kenya indicated that roughly 75% of the country’s SMEs could face collapse without funding assistance from banks and equity partners. On top of this, the East African reported on 5th June that over 1M have been rendered jobless in Kenya as the Covid-19 pandemic takes its toll on businesses. Some education institutions have declared bankruptcy while other sectors e.g. printing and publishing in the past 6 months have had an over KES 30B decline in revenue.

With a decline in access to distribution networks, customer traffic and sales, businesses are in dire need of supplementary cash to remain afloat. With banks withholding loans disbursements as default risk is on the rise, entrepreneurs therefore need to source different solutions; funding alternatives and solutions in order to sustain operations during this period and consequently grow the business through the pandemic and afterwards.

Funding alternatives can revolve around taking up conventional loans, grant funding, Venture Capital and Angel Investment, Pitch competitions etc. A myriad of bank products are available to SME owners. These include trade financing, invoice discounting, overdraft facilities or debentures. Entrepreneurs however only go for the conventional bank loans yet each financing option is tweaked towards different funding needs.

The ISBI Institute in collaboration with I&M Burbidge Capital is organizing a Capital Raising Seminar as from the 11th of August to 22nd August 2020. The seminar is aimed at addressing how entrepreneurs can attract investors, understanding the different available bank products and which ones to go for. Additionally, the seminar will touch on negotiation; how to prepare for negotiation with investors or the bank and getting the best deal from suitable for the business. In addition, the seminar will touch on valuation; how to value your business, Capital Raising Process, Governance & Professionalization, Succession Planning and Legal Aspects.

With the pandemic affecting cash flow, many entrepreneurs have decided to scale down or completely shut down operations due to the dwindling cash reserves. This seminar however offers an alternative. In order to sustain operations, survive during this period and successfully weather the Covid-19 storm, entrepreneurs must adapt. Getting an investor to inject cash into the business will increase the runway. Register for our Capital Raising Seminar and gain insights on how best to structure your company to attract investors.

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Mastering private enterprise. www.isbi-kenya.org.

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ISBI @ Strathmore Business School

ISBI @ Strathmore Business School

Mastering private enterprise. www.isbi-kenya.org.

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