Fundraising and access to capital for African SMEs
A fundraising does not start with the search for an investor. It starts with a clear, quantified project that is ready to be assessed. Pharaon Advisory supports SMEs in Douala, Cameroon and the CEMAC zone in preparing their fundraising: a consistent capital need, investor file and financial model. We prepare your project; we do not replace the investor or the investor’s judgement.
Why a fundraising fails
A fundraising rarely fails because investors are hard to find. It often fails because the project is not yet ready to be assessed. Before opening the discussion, the following points must be settled; they can also be reworked with a financing file structuring.
- A poorly defined capital need or an unclear use of funds.
- Projections that are unrealistic or undocumented.
- A business model that is hard to understand.
- A team or governance that is insufficiently structured.
- A lack of evidence: traction, orders, customers, indicators.
An investor looks for an understandable project, an identifiable market, a team able to execute and a credible financial trajectory.
The different sources of capital
A fundraising is not limited to one investor. The right financing depends on your stage, your cash needs, your ability to repay and your willingness to share equity. We help you understand the options compatible with your project, without steering you to a single solution.
| Source | Suited to | Point of attention |
|---|---|---|
| Own funds or partners | Start-up or initial reinforcement | Limited financial capacity |
| Bank loan | Company with a track record, security or predictable flows. See the bank loan file. | Repayment and security |
| Microfinance | Cash needs or smaller financings | Cost and term to analyse |
| Business angel | Early-stage or growth projects | Partial loss of control, return expectations |
| Investment fund | Companies with strong growth potential | Demanding process, high expectations |
| Grants and support programmes | Impact, innovation and employment projects | Selective process, variable timetable |
| Strategic partnership | Access to a market, technology or distribution | Strategic alignment to be secured |
How we help you prepare your fundraising
- Analysis of the project, the market and the business model.
- Defining the amount to raise and its use.
- The investor business plan and the financial model, using our business plan and forecast methods.
- The pitch deck, the executive summary and the investment note.
- Preparing for investors’ questions.
| Document | Main use |
|---|---|
| Executive summary | Quick first contact: project, market, traction, team, need |
| Pitch deck | Oral presentation or meeting: a short, visual, decision-oriented support |
| Investor business plan | In-depth analysis: strategy, market, operations, finances, risks |
| Financial model | Checking assumptions: revenue, costs, cash flow, scenarios |
Our 5-step method
- Project and capital need analysisWe determine whether the project is ready for a fundraising and what amount is realistic.
- Growth strategyValue proposition, target customers, channels, revenue model, development plan.
- Financial modelProjections, explicit and documented assumptions, consistent with the strategy.
- Investor documentsBusiness plan, pitch deck, executive summary, financial model and investment note.
- Preparing the discussionsWhy now, why you, use of funds, risks, expected return, exit path.
For which companies?
- Growing SMEs looking to finance their development.
- Industrial, agro-industrial, technology or service projects.
- Companies preparing a regional expansion in Central Africa.
- Managers preparing a first fundraising.
Our track record
The firm reports 100 bn FCFA secured for its clients. Several of our engagements are publicly documented:
- Our case studies
- Article: can a business grow sustainably without structuring itself?
- DBS TV case study (PDF)
What we do not do
Frequently asked questions
When can a company raise funds?
When it has a clear growth project, a justified capital need and elements that let its potential be assessed: market, team, traction, business model and financial projections.
What is the difference between a bank loan and a fundraising?
A bank loan is debt repaid on a defined schedule. A fundraising from an investor may involve an equity stake and a sharing of the growth potential. The choice depends on your situation and your ability to repay.
Do I need customers already to raise funds?
No, but you must be able to show market interest: studies, tests, letters of intent, pre-orders, partnerships, pilot users or other validation signals.
Do you prepare the pitch deck?
Yes. We prepare or improve a clear, concise pitch deck adapted to your audience: investor, fund, strategic partner or support institution.
How much can be raised?
The amount depends on the stage of the project, the sector, growth potential, traction and market conditions. We first help you define a need consistent with your strategy.
Do you guarantee introductions to investors?
No. We guarantee neither introductions nor financing. We prepare your project and documents so that they are clearer, stronger and more convincing.
Submit my file
Do you have a project to finance, a file to rework or numbers to make reliable? Send us the first information about your company and your need. Our team analyses your situation and tells you the next steps.