Why would I invest with you?

Sharing experience as an investor

November 2015

Who am I?

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Khaled Ben JilaniSenior Partner @ AfricInvest

Engineering studies in France then in the US

First worked at Barclays Bank in Paris (internship then job)Then at BFI in Tunisia

Went back to study in the USWorked @ Proxicom a start-up in IT strategy

Back to Tunisia with Tuninvest: developed and invested an innovation VC fundThen developed a fund to invest in Financial Institutions in Africa

Invested in over 20 companies in 15 years from start-ups to mature institutions

AfricInvest - A quick story

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Started in 1994 as Tuninvest

Mission: We invest in companies and take an equity stake to help them develop their businesses

We started out of Tunisia with a fund dedicated to Tunisia.

In 2000, we were requested to consider expanding to Morocco and Algeria. Recruited a team in Morocco and covered Algeria from Tunis

In 2004, we expanded to Sub-Saharan Africa: started prudently to cover West Africa

From 2007 started covering other African regions: Central then Eastern and Southern

Now have presence in 6 offices in African hubs: Tunis, Casablanca, Algiers, Nairobi, Abidjan and Lagos and over 1 billion USD of funds under management

What is private equity and venture capital?

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We invest in and grow companies

Raise funds from investors (institutional, high net worth individual) - Funds have a set investment strategy - Funds have specific targets: size of investments or of companies, stages, sectors, banned sectors

We invest using equity or quasi-equity instruments

We help portfolio companies grow by rationalizing their strategy and their operations

We exit from portfolio companies through IPOs, trade sales, sales back to shareholders

Where you should look for funding

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You are starting: Seed funding – your own, friends and family, angels, accelerators, crowdfundingYou are taking off: Love funding again and/or Venture CapitalYou are growing or maturing: Private Equity funding

Some advices for Tunisian entrepreneurs: - More money is invested by friends, family and angels that by VC funds - Model with multiple rounds of funding do not work in Tunisia

-> Ideally, raise what you need to break even - Make a careful use of debt - Fundraising is a long and frustrating process. Be prepared for it!

How to prepare yourself for fundraising

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1. Discuss and write your plans: vision, strategy, financials, needs2. Know the investment strategy of the investor you are meeting with3. Prepare yourself to answer the sensitive questions upfront: valuation, funds needed, go/no go answers

Some advices: - A good investment proposal is not only about IRR, impact counts - Know your strengths but especially your weaknesses - Keep in mind it is a long process, so don’t over stretch your objectives - Value more a quick negative answer that a no answer at all

Phases: - Screening: teaser, information memorandum, term sheet - Offer & Due diligence: term sheet, business plan, financials, bios - Closing: Shareholders Agreement, Bylaws

About the entrepreneurs we invest in

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Love of work and lots of work

5. Knowledgeable about their sector, with a proven experience4. Focused on objectives and especially on bottom line3. Have a prudent vision on the future of their companies2. Have a talent to attract good if not the best people1. Hard workers with a sense of detail0. Must have a very high level of integrity! Just one advice to future or current entrepreneurs: Be yourself!

The Tunisian model of a start up

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The typical story of a successful IT company

Preamble: Start with own funding, often as a side job

Chapter 1: Develop a first software but don’t sell itChapter 2: Propose its software for almost nothing to gain references and start selling servicesChapter 3: Decide to focus on one model: software edition or IT servicesChapter 4: Grow internationally

Morale of the story: Not all successful companies follow the Facebook story. Write your own!

Immeuble Integra, Centre Urbain Nord, 1082 Tunis, Tunisie+216 71 189 800+216 71 189 850www.africinvest.com

Adresse: Phone:Fax:Siteweb:

Contacts

Mr. Khaled Ben JilaniSenior Partnerkhaled.benjilani@africinvest.comMob.:  + 216 22 22 08 73