Cape Town - He`s been called a `maverick` by some financial commentators, but Harry Harington, the chief executive officer of Prestige Ventures, prefers to view himself as the only true venture capitalist in the country.
Cape Town-based Prestige Ventures has since its inception in 1997 raised some R120 million from ``angel`` investors, or individual investors, for ten venture capital companies, nine of which are barely a year old.
Because of the nature of venture capital investments, Harington freely admits to having to field many calls from irate investors demanding more information about their investments. When Prestige first started operating, venture capital investments were akin to swearing, particularly in South Africa`s conservative corporate and banking environment.
He says the biggest problem is local investors need to know more about the nature of venture capital investments.
In its truest sense, venture capital uses money to start a new business, usually based only on an idea, and usually driven in the main by a single entrepreneur.
Other business funding agencies in South Africa, like Business Partners, would only provide capital to a small business if it has been operating for a reasonable period, or if there is security to cover the loan.
He says in the US the experience is that out of ten ventures over six to eight years two projects will fail, six will perform moderately to very well, and two will be outright winners.
Because of this Harington tries to ensure his investors - he currently has a database of some 4 500 investors - invest only freely available money equally in all ten venture capital companies. By doing this the risk of losing money is minimised.
But how are the ten companies he has funded performing`
Harington says six are performing, while four are not doing well at all. Of the four, Reinet Distillers and Pirate Snacks have gone into liquidation. He is in negotiations with the liquidators of both companies to see if he can buy out the businesses, and get some return for investors.
He says Essential Waters ``could do well`` once Tigon bought it out, while there were plans to join the ailing Penta Diamond Mining Company with Askari Mining and Equipment.
He says Askari is performing well.
Primary Paints and John Daniel Containers still hold good potential, while Jabulani Africa Leisure and Technologies appears to be staging a comebackafter earlier difficulties.
Similarly, the jury is still out on the future of Healthcon and Nexus Connections.
Investing in venture capital companies is certainly not for the faint-hearted.