Thato Ntseare, Investment Manager, E Squared Investments. 
In South Africa’s dynamic startup landscape, access to funding remains one of the biggest barriers to scale. Yet, the real challenge for many founders isn’t only where to find capital, it's how to become ready for it.
Too often, entrepreneurs focus on securing investment before establishing the fundamentals that make their ventures fundable. Funding readiness isn’t a single milestone; it’s an ongoing process of structure, discipline, and transparency. Getting that right can be the difference between staying small and scaling sustainably.
Good governance is frequently misunderstood as unnecessary bureaucracy. In reality, it provides the structure and accountability that allow startups to grow with intent.
The Startup Graveyard Report identifies governance as one of the most critical differentiators between businesses that thrive and those that falter. Governance is the backbone of sustainable entrepreneurship, an approach validated by startups such as Fintr, which introduced an advisory board early in its journey. That decision brought structure, discipline, and transparency, establishing the kind of maturity that builds investor confidence.
Investors don’t fund ideas but people
Behind every successful business is a capable team that can deliver on its vision. Strong founding teams demonstrate resilience, complementary skills, and the ability to execute at scale.
Entrepreneurs that ensure their startups include specific roles and responsibilities within their teams to ensure they are able to handle challenges are the ones that position themselves for success. This structure signals to investors that the business can operate effectively and independently, even as it grows.
Transparency builds trust
Investors don’t expect perfection, but they do value openness. Startups that communicate honestly about both progress, challenges and updated investor-ready data to inspire long-term confidence.
A great example of this is Seller’s Plug, an innovative E Squared portfolio business that supplies home improvement materials to rural and peri-urban markets, demonstrates this well. What sets them apart is how they communicate through their monthly reports, openly sharing their progress, and making sure every team member understands the company’s goals and achievements. Through these actions, the company has built a culture of accountability that reinforces investor trust even during challenging periods. One way to ensure consistent and transparent reporting is through company data such as strategies, policies, financials, and reports.
That culture of transparency doesn’t just build trust, it builds resilience. When communication flows freely, even during challenges, it reassures investors that the business is well managed and adaptable.
An investor-ready data room isn’t just an administrative requirement; it's a reflection of how well a founder understands their business. Financials, management accounts, KPIs, and forecasts form the foundation of strategic decision-making.
When a startup can confidently present clear, consistent data and explain what it reveals about performance and growth it sends a powerful message of credibility and control. It shows investors that the business is managed with insight and foresight.
Seek guidance: early mentorship is momentum
Entrepreneurs who engage with mentors and advisory boards early in their journey gain valuable perspective, improve decision-making, and prepare for investor engagement. Fintr’s approach to establishing a formal advisory board early on reflects the kind of foresight that accelerates growth and strengthens governance, resulting in smoother funding journeys.
Funding readiness extends beyond financials. Investors are drawn to founders who can articulate a clear purpose, why the business exists, who it serves, and how it plans to scale sustainably.
A defined mission, measurable milestones, and demonstrated traction show that a business is both visionary and grounded in execution. When governance, team capability, reporting discipline, and purpose align, a startup naturally positions itself as investable.
Ultimately, funding isn’t just about attracting capital, it’s about building a business that inspires confidence. Because investors don’t just fund ideas; they fund capable, prepared, and purpose-driven founders who are ready to execute them.
Author: Thato Ntseare, Investment Manager, E Squared Investments