Frequently asked questions

This tool is for businesses in the market seeking capital, and for investors looking to refer companies to useful resources.

The content is focused on international institutional investor fundraising for those seeking growth capital (typically equity or quasi-equity). Many of the concepts will still be useful at venture stage but the toolkit is not tailored to those.

No – the content is designed to be used across all sectors. The examples lean towards manufacturing and agri-processing, but the underlying process applies to any growth-stage business.

Yes – a deal process remains broadly consistent across geographies, as does the rigour investors expect. That said, we have built the content with an African lens, reflecting the specific perspectives and realities of investing on the continent.

Yes. The toolkit is intended to remain free for everyone who finds it useful.

We do not recommend running a fundraise without experienced advice. The tools and templates here provide guidance and worked examples, but in practice an experienced advisor (whether in-house or external) is usually required to run a successful process end-to-end.

This toolkit was developed by Manufacturing Africa, which can support manufacturing and agri-processing businesses in Kenya, Nigeria, Ethiopia, Tanzania, Senegal and Rwanda.

Beyond that, you can find further online guides and resources in the Templates section. For a full fundraise, we recommend engaging an experienced advisor in your market.

The content is designed for business leaders – particularly founders and CEOs and their senior management team (most often the CFO).

Please use the Contact Us section and select "Fundraising Toolkit" from the dropdown.

Investor-readiness usually means three things are in place: (1) a clear and credible growth story backed by recent traction, (2) audited or audit-ready financials covering at least the last two years, and (3) a management team with the bandwidth to run a 6–9 month process alongside the day job. The toolkit's Readiness Checklist walks you through each in detail.

For a growth-equity raise in Africa, plan for 12-24 months from kicking off preparation to money in the bank. Preparation (data room, materials, financial model) is typically 3–6 months; investor outreach and term sheet 3–6 months; due diligence and legals a further 3-6 months with further time for finalisation and negotiation. Timelines extend more often than they shorten, so build a buffer.

International institutional investors typically write equity tickets from US$5m upwards, with most growth funds active in Africa targeting US$10–50m. If you are raising less than US$5m, DFI-backed funds, family offices and impact investors are usually a better fit than the large international funds.

A standard process runs: (1) preparation – materials, data room, model; (2) targeting and outreach; (3) first meetings and management presentations; (4) non-binding offers / term sheets; (5) confirmatory due diligence (commercial, financial, legal, ESG); (6) negotiation of long-form documents; (7) signing and closing (including any conditions precedent).

At minimum: a teaser, an information memorandum (IM) or pitch deck, a detailed financial model, a populated data room, and management bios. Investors will also expect audited financials, organisational charts, customer/contract overviews, and ESG/impact data. Templates for each are in the Toolkit.

There is no single answer – dilution depends on the amount raised, your valuation, and the structure (pure equity, convertible, or with downside protection). As a rough guide, a single growth round in Africa often results in 15–35% dilution. Modelling several scenarios before going to market helps avoid surprises.

Direct costs for external advisors typically include advisor fees (a retainer plus a success fee, usually 2–5% of funds raised), legal fees, audit/diligence support, and travel. For a US$10–30m raise, total external costs are commonly 4–7% of the amount raised. Add to that the significant management time required.

Start by mapping investors against three filters: (1) ticket size and stage fit, (2) sector focus, and (3) geography and mandate (DFI, commercial PE, impact, family office). The Toolkit's “Find Investors” lists active growth-capital investors in Africa by sector and geography. Quality of fit matters more than quantity.

Very important, particularly for DFI-backed and impact-oriented funds, which represent a large share of growth capital available in Africa. Most investors will expect at minimum an ESG policy, an environmental and social action plan (ESAP), and the ability to report against IFC Performance Standards or 2X Criteria. The Toolkit covers what to prepare.

The recurring reasons are: starting too late (running out of cash mid-process), an unrealistic valuation expectation, weak or inconsistent financials, an under-resourced management team, and a poorly targeted investor list. Most of these are avoidable with adequate preparation – which is what this toolkit is designed to help with.