About Us
17 Years of Experience in THE VC INDUSTRY
Venture Capital Trust Fund (“VCTF” or, the “Trust Fund”) was established by the VCTF Act 2004 (Act 680). VCTF is a Government-backed venture capital fund of funds, which focuses on investing in venture capital funds dedicated to investing in Small and Medium Scale Enterprises (SMEs). The Trust Fund also deploys monies to support other activities and programs, which are aimed at promoting venture capital financing in Ghana. It aims to create a vibrant and well-structured venture capital industry with investments in various sectors, leading to job and wealth creation. Till date, VCTF has invested in Venture Capital Finance Companies which are designed to increase the availability of risk capital to SMEs and are being managed by locally-based fund managers
Mission
Our mission is to provide credit and equity financing to eligible Venture Capital Finance Companies (VCFCs) to support SMEs; and to provide monies to support other activities and programs for the promotion of venture capital financing, as the Board may determine, in consultation with the Minister.”
Vision
Our vision is to create a vibrant and well-structured venture capital industry leading to a thriving private sector.
Who We Are
“We aim to create a vibrant and well-structured venture capital industry in Ghana. We seek to achieve this by leading with investments in various sectors to create and sustain jobs and create wealth. We have investment in eleven (11) Venture Capital Finance Companies (VCFC) which are designed to increase the availability of risk capital to SMEs. So far, all these fund managers have been locally based and domiciled fund managers”.
Mode of Operation
VCTF operates through Venture Capital Finance Companies (VCFC). Each VCFC is managed by a Fund Manager, licensed by the Securities and Exchange Commission (SEC). VCFCs (fund vehicle) act as intermediaries between SMEs requiring funds for viable business projects and the Trust Fund. Investment proposals are received and reviewed by the Managers of the VCFCs, who have the mandate to decide on investments after approval process by the their Investment Committees / Boards.
Each VCFC is responsible for:
- Deal sourcing
- Selection
- Monitoring
- Exit of investments.
VCFCs are encouraged to invest in all sectors of the economy but are precluded from investing in businesses that engage in direct imports to sell.
An SME is defined under the VCTF Act as a business whose total assets base, excluding land and building, does not exceed the cedi equivalent of USD 1million and whose total number of employees do not exceed 100 persons.
SOCIAL IMPACT
Below are some of our direct impact and job impact matrix as a result of our investments:
Without a deliberate and conscious effort at catalysing an industry, no new industry develops. With a dual mandate VCTF has been instrumental in developing the VC/PE industry in Ghana. Some of our industry interventions include the following:
In 2011, VCTF established the Ghana Angel Investor Network (GAIN) to formally organize high net worth individuals to invest in and mentor entrepreneurs. GAIN is the first Angel Investor network in Ghana and aims to promote Angel Investing as an alternative form of financing business start-ups in Ghana.
VCTF supported the establishment of the Ghana Alternative Exchange (GAX). The GAX is to promote Small and Medium Enterprises (SME) listing and also to establish a listing support fund dedicated to helping SMEs to cover the upfront cost re-quired to list on the Market.
The activities of VCTF have placed Ghana on the VC/PE map in Africa by hosting industry related events which continue to attract VC/PE firms into the country.
Other industry institutions that have been established as a direct result of work by the VCTF include:
Other industry institutions that have been established as a direct result of work by the VCTF include:
- Ghana Venture Capital and Private Equity Association (GVCA)
- Impact Investing Ghana (IIGH)
- GIMPA Center for Impact Investing (GCII)