Funding is that critical bridge between success and failure, growth and stagnation of many small businesses in South Africa. Yet, not many financial institutions are willing to take the plunge.
InvesTong Group (Pty) Ltd is a multidisciplinary 100% black-owned investment holding company with a group of entities operating in different sectors of the economy and provides Recruitment & Selection, Communications & Exhibitions, Construction, Poultry Farming and Venture Capital to a broad range of public and private sector clients.
Unlike other institutions in the venture capital arena that are overly risk averse, as a dedicated concessions investment, advisory and management team, InvesTong strives to do things differently. Through exercising due diligence, it invests in businesses with huge potential. Via research and developing an understanding of clients’ contemporary financial challenges, it has created a range of products and services. InvesTong invests in small to medium sized businesses in different industries that are innovative, high impact and scalable with high growth potential.
InvesTong buys businesses that are already in existence and owned by someone else, then owns a portion of that business, by ensuring the owner still feels secure in their business.
Danny Tong, the company’s Chairman, says: “We feel fulfilled by helping turnaround a business which was stalling.”
The company’s advantage is that it is under foresighted leadership, with astute operational and financial management skills, in addition to investment analysis, project finance and infrastructure project experience.
Tong expresses firm belief in the company’s abilities to tackle big demanding tasks: “Our concessions are well positioned to leverage the institutional knowledge and project management skills to all InvesTong Group of companies.”
As he navigates InvesTong in venture capital terrain, there are a number of challenges Tong has learnt (and he is surely learning more).
“Firstly, finding the right entrepreneur to work with is a challenge, as entrepreneurs will make you believe that they are driven while they are not; it’s sometimes hard to tell since entrepreneurs are sales people and are generally good at selling themselves. Secondly, a huge number of entrepreneurs are short-term driven, expecting success too soon. Also, once we take companies and resuscitate them, once they start generating revenue the owners think that it will go into their pockets. Another problem is lack of innovation amongst entrepreneurs in South Africa,” he observes.
Fortunately, through lessons learnt; InvesTong has now put together strict measures in place to ensure that the identified businesses are worth of value, can be sustained and grown and understands InvesTong vision and adheres to it.
However, with a pragmatic outlook Tong does not subscribe to the notion that someone can entirely dictate a business’ destiny. He believes that InvesTong’s course is shaped by the economic landscape. “We are just steering the ship, to ensure that structure and vision are executed,” he says.
InvesTong’s strategy is to own and control businesses in different sectors of the economy. “Our growth strategy is to drive the science of innovation and scalability to increase earnings in those businesses. We further seek to grow through partnerships and acquisitions of businesses that increases shareholder value” says Tong.
InvesTong Group adds further value to its stakeholders by identifying strategic and investment opportunities while promoting experience sharing across divisions and fostering synergies and savings through its activities.
Under what has been dubbed “Vision 2022”, a seven year plan, InvesTong aims to achieve a number of objectives, the main one being a listing on the Johannesburg Stock Exchange (JSE) in the next 7 years, Danny reveals. To that end, the company will associate itself with stakeholders, businesses, clients and build relationships across board that will allows it to reach its goal.
Some people have expressed reservations about South Africa’s approach to small business development. In his opinion, Danny recommends that the country should learn how other countries like Israel grooms entrepreneurs. “They (Israel) are way ahead in terms of business. Entrepreneurs are encouraged to be innovative from an early age as part of its culture. They then continue to think broadly and they start businesses that will go globally from a start up stage.”
Tong is the founder of the business but he has partners within different divisions and he reports to an independent board of directors. InvesTong has 20 full time employees and five engaged on a temporary basis.
The company has established a foundation called InvesTong Foundation which its key interest is to drive empowerment for young people within education and entrepreneurship. Thus the foundation rolled out it’s pilot programme few months ago called Kasi Career Expo within three provinces 4 municipalities which aimed at bringing information and knowledge to secluded townships through partnerships with corporates, government departments, institutions, schools, learners and parents. InvesTong Foundation aims at 7 provinces and 9 townships for Kasi Career Expo 2016.
Indeed, it has been an epic journey for Danny, who started his business from his mother’s home inspired by his entrepreneurial father, George Tong. It is evident that InvesTong Group’s business portfolio can only grow bigger under this young Serial Entrepreneur.
I personally know Mr Tong, as we grew up together at the North West Province, from a small village called Molelema. Our grannies are neighbors and have always been from our child wood.
Big ups Mr Chairman, you don’t know how much you inspire me.