Investment Criteria
what we look for
Investment criteria
- A well-defined product or service offering that is ideally post revenue
- A clearly defined and sizeable target market and customer
- An impressive management team
- High gross margins
- High barriers to entry or an entrenched brand
- Ready to scale
Investment allocation & target returns
| Investment Type | Percentage of Fund (%) | Targeted IRR (%) | Average Time Frame of Investment (Years) |
|---|---|---|---|
| Cash on Hand, Call and Fixed Deposits | 0 - 100 | 4 | 3 |
| Cultivation | 0 - 60 | 20 | 5 |
| Processing and Manufacturing | 0 - 50 | 15 | 7 |
| Supply Chain | 0 - 40 | 15 - 20 | 7 |
| Services | 0 - 50 | 10 - 15 | 5 |
| Product Development and Distribution | 0 - 50 | 15 | 7 |
| Accelerator | 0 - 20 | N/A | 1 |
our investment
Pipeline
Given all the hype in this sector, the SilverLeaf team receives many applications for funding. There’s no shortage of interest in the industry with dozens of applications received each month.
The pipeline selection is focussed on identifying best-of-breed businesses across each segment of the Cannabis supply chain.
Working with the end in mind, the exit strategy is considered with each investee from when we make the initial investment. This ensures that both the company founders and SilverLeaf Investments are aligned on the exit strategy and working toward a common goal.
Contact us for further information on our pipeline.
our incubator
GreenHouse accelerator
Given the ‘pre-dawn’ stage of the industry, we’ve identified the need for building a framework to get some prospects investment-ready. Our intention is to launch this initiative in the 2nd half of 2022.
Our GreenHouse Incubator is a structured entrepreneurship development programme that takes candidates through a mentorship and education process to help them scale, both at a business and personal level. It takes South African SMEs with proven traction through an intensive 3-month review of their strategies and provides them with the necessary support to build a foundation for growth in becoming more investable, sustainable, marketable and exit-ready.
This gives us the opportunity to get to know and nurture the entrepreneur before an investment, and to filter and carefully select the best early stage opportunities.
CONNECT WITH US
Are you a cannabis business looking for funding?
We're always on the lookout for new and exciting investment opportunities.
Administered by Grovest
Grovest is the largest administrator of small cap funds in South Africa, with assets under administration of R3,5 billion. Initially setup as a Section 12J VCC, SilverLeaf Investments is the first cannabis fund in South Africa.