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In order to have an investment portfolio of €15-20 million divided over 20-25 companies by 2015 we want to enhance our presence in the East African region. We approach this goal in several manners.

Pro-active search

We source the investments pro-actively through business development trips into the region and our network of business advisers, financial institutions and related organizations active in East Africa. After initial contacts and discussions we expect the potential investee companies to present a business plan. It should include, but is not limited to: the business model, expected societal impact, product and market, management team and institutional setting and financials and growth projections.

Contract models

In order to have access to as many interesting leads as possible and to monitor the investment process on the ground, we propose different models for collaboration between ‘investment brokers’ (consultants, business advisors, financial institutions, enterprise networks,...) and d.o.b foundation.

In our view a broker:
1.       sources funding for an entrepreneur by submitting the business plan to several investors or
2.      presents investments (on an exclusive basis) to d.o.b foundation.

In the first case, we expect the entrepreneur to pay a fee to the broker, for his/her brokerage services. We might consider paying a success fee in the event that we make an investment in a company that was introduced to us. However, this fee would depend entirely on the realisation of the business plan and would be wholly linked to milestones being met after one and three years.

In the second case, d.o.b remunerates the broker with a 'success fee' once the investment is made. Because we want the brokers to bring their best deals to us, we offer a remuneration that is dependent on the success of the investee company. The percentages paid will depend on the investment size: for smaller deals the % will be higher. To give an idea, we propose the following remuneration for an average investment:
-          1% of the investment on deal closing
-          1% of the investment, 1 year after closing on the basis realisation of turnover and profit as projected
-          1% of the investment, 3 years after closing on the basis of milestones to be determined

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Requirements for brokerage

For this remuneration we expect the broker to prepare a structured information package. The package should contain a business plan and a summarised presentation of the investment opportunity with a well-founded explanation of the business and its match with d.o.b’s investment criteria. During the investment process we expect the broker to continue supporting our investment team by providing information and advice as needed.

Partners who have shown an understanding of our focus and investment criteria can be invited to sign a framework agreement with us for deal flow generation. In this agreement we will specify the number of (quality) deals we expect the broker to source and the lump sum fee we would pay per month or quarter for this work.

We are open to discuss other types of contracts based on the assessment and experience in the deal flow brokerage industry, of people who want to contribute to the quality and size of our investment portfolio. Please do not hesitate to contact us for further information.