FAQ - funding

What is Goodwell’s typical ticket size?  

Our ticket size ranges from USD 250 thousand to 5 million. It is possible to have a smaller ticket size, however, this is a rare exception.  

Our approach is to begin with smaller investments and then participate in subsequent funding rounds, aiming to be a long-term supportive investor for an average duration of 5-7 years. We offer investment opportunities in equity or mezzanine structures. 

At what stages does Goodwell invest? 

We invest in relatively early-stage or fast-growth stage companies. Typically, at this stage the business has shown traction and is post revenue. There should be an existing client base and or a potential sales pipeline. The capital we provide should be required to scale the business operations. A few factors Goodwell looks at when considering investments are: 

• The investee company must be capable of growing in scale and efficiency 
• The investee must have strong founders (team) 
• The investee must be commercially viable 

What sectors does Goodwell focus on?

Goodwell focuses on SMEs that make high quality basic goods and services more affordable and accessible to communities across the African continent. The majority of our investment portfolio falls within the financial services, food and agriculture, mobility and logistics sectors, as well as other high-impact businesses operation in education and healthcare. Additional our funds place an emphasis on the application of technology and increasing opportunities for female stakeholders.

How much equity does Goodwell expect in return?

Depending on the deal size and valuation there is no fixed equity stake, we take a relevant minority stake in the business as an active shareholder. We invest to be a strategic investor, who can provide hands-on support to the business, thus we will always take a board seat. 

What is Goodwell’s exit strategy? 

There are various exit scenarios that Goodwell would participate in. These typically can be initial public offerings (although rare in occurrence); trade sales, transfer/exchange of shareholdings or self-liquidating mechanisms. 

Other than equity capital, what else does Goodwell bring to the table? 

Hands-on support, expertise in the field and better access to strategic investors in the Goodwell network. 

Does Goodwell reduce its profit requirement in order to maximise social impact? 

No. We believe that businesses can both have a social mission and be profitable at the same time. Our aim is to focus on developing these businesses serving mass markets to be commercially scalable businesses on the continent.