SME Equity Financing PDF Print E-mail

 

The JE JSMP SME Equity Financing programme is aimed at assisting service SMEs to access equity financing by 1) providing equity intermediation services and 2) executing the venture capital development programme.

1. Equity intermediation services

The first step to benefit form an assistance in the mobilization of equity capital is to fill the Financial Needs Identification that can be downloaded below and send it back to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

You will then be contacted by the JEDCO JSMP equity officer that will devise with you a Detailed Intervention Plan that may result in various activities at the level of the preparation, the identification of potential investors / strategic partners, the fund raising and the negotiations.

2. Venture capital development programme

JEDCO is committed to participate to the development of equity financing in Jordan, notably for early those companies that are structurally underserved.

JEDCO venture capital programme is aimed at:

· Bridging the gap of equity (capital) financing for SMEs;

· Complementing existing SMEs banking instruments;

· Channeling “risk finance” and “patient capital” towards segment of the productive economy identified to be engines for economic and social sustainable growth.

The JE JSMP SME Equity Financing programme consists of sponsoring the establishment of two funds whose management has been subject to international tenders:

2.1  The capital for growth fund

2.2  The early stage fund

Both funds are developed in close coordination with the European Investment Bank.

2.1  The Capital for Growth Fund

 

The objective of the Early Stage Fund is to generate medium term capital appreciation for investors by taking equity or quasi equity participations to ensure the development of mature SMEs incorporated in Jordan and employing less than 250 employees.

 

· Target Companies:

  • Non-listed SMEs that are not –post investment- held for more than 33% by non SME;
  • Considering significant expansion;
  • Well and established position in the market; and
  • Steady cash follow with a strong business plan.

· Fund target size prior first closing of EUR 20 million to finance 7-15 SMEs.

 

· Duration of the Fund: 8 years with possibility of one year extension.

 

· Size of Investments: first or follow-on financing round equity and quasi equity investment that ranges between EUR 300,000- EUR 2,000,000.

 

· Investment period in target companies is to be 3 years with possibility of one year extension.

 

· The roles of the fund manager: the fund manager will mainly have minority participation with minority protection and significant influence (Board Participation/ Shareholders Agreement) in target companies. Target companies will benefit from equity financing in addition to technical support.

 

2.2  Early Stage Fund

 

· The objective of the Early Stage Fund is to generate medium term capital appreciation for investors by taking equity or quasi equity participations to ensure the development of early stage SMEs incorporated in Jordan and employing less than 250 employees.

 

· Target Companies:

 

  • Non-listed SMEs that are not held for more than 33% by non SME;
  • In the early stage of their development;
  • At least have developed and tested a product or service; and
  • With a business model that is commercially viable.

 

· The Early Stage Fund has a minimum Fund target size prior first closing of EUR 5 million to finance 7-15 SMEs.

 

· Duration of the Fund: 8 years with possibility of one year extension.

 

· Size of Investments: first round equity and quasi equity investment that ranges between EUR 100,000- EUR 700,000.

 

· Investment period in target companies is to be 3 years with possibility of one year extension.

 

· The roles of the fund manager: the fund manager will mainly have minority participation with minority protection and significant influence (Board Participation/ Shareholders Agreement) in the target companies. Target companies will benefit from equity financing in addition to technical support.

 

Project funded by the European Union in cooperation
with Jordan Enterprise Development Corporation