What is the first step before raising capital in Africa?
Start by defining the amount you need, what it will fund and when it is required. Review your business or project model, cash flow, ownership and existing commitments. Gracen Law helps turn that assessment into a funding strategy and a preparation plan before investor, lender or donor engagement begins.
How do I choose between equity, debt, grants and blended finance?
The choice depends on repayment capacity, growth stage, ownership preferences, project risk and funding eligibility. We compare the options using financial models and capital structuring analysis alongside the legal consequences. The aim is to understand dilution, control, repayment, security and reporting obligations before selecting a route.
What does investor readiness include, and can you help before we approach funders?
Yes. Readiness can include financial modelling, valuation logic, unit economics, investment materials, governance and a data room. The legal review addresses ownership, contracts, licences, intellectual property and other diligence issues. We prioritise material gaps and organise the information needed for a credible funding discussion.
Do you support blended finance and development finance mandates?
Yes. We help assess capital structures combining commercial debt or equity with grants, concessional funding, catalytic capital or public support. The work can include DFI positioning, financial preparation, risk allocation and alignment of funding conditions, impact expectations, governance and transaction documents.
Can you support grant funding and donor readiness?
Yes. We help assess eligibility, prepare the funding case and budgets, and organise governance and application materials. We also review award terms, co-funding, expenditure restrictions, reporting, audit rights, intellectual property and partner responsibilities, so your organisation understands the commitments it may accept.
Can you support institutions after capital has been raised?
Yes. An agreed mandate can include investor reporting, performance indicators, board documentation, shareholder communications and donor compliance. We help connect those processes with the signed funding agreements and maintain the records needed for follow-on funding, refinancing or future due diligence.
Do you work only with startups?
No. We advise growing and established businesses, project sponsors, cooperatives, SACCOs, funds, portfolio companies, social enterprises and nonprofits. Mandates can cover expansion, working capital, projects, acquisitions, strategic exits, grants, refinancing and capital restructuring, as well as early-stage investment.
When should I involve a capital raising and financing lawyer?
Seek advice before accepting terms that may affect ownership, repayment, guarantees, security or business decisions. Early involvement can identify gaps and existing consent requirements before negotiation. If you already have an offer, share the documents and deadline so we can assess the binding commitments and immediate priorities.
Can you review a term sheet, loan offer or grant agreement?
Yes. We review binding and indicative provisions, costs, conditions and negotiation points. Depending on the proposal, this includes valuation, dilution, exclusivity, investor rights, repayment, covenants, default, security, permitted use of funds and continuing obligations. We also assess how the proposal interacts with your existing agreements.
Do you advise investors and lenders as well as businesses raising funds?
Yes. We advise on due diligence, transaction structures, documentation and protections relevant to the client's role. Each engagement is subject to conflict checks and an agreed scope. The work may support an investor or lender assessing a proposal, or a business or institution seeking capital.
Can you help us identify and engage investors or lenders?
An agreed capital raising mandate can include investor and lender mapping, targeting, pipeline development, engagement materials and negotiation support. The relevant providers may include venture capital, private equity, family offices, strategic investors, banks and DFIs. We help structure the process and prepare the transaction; each funder decides whether to proceed.
Do you arrange or guarantee funding?
Our mandate can cover capital strategy, financial preparation, funder engagement, negotiations and legal execution. It does not guarantee an investment, loan or grant. The engagement defines the services and responsibilities involved, while funding remains subject to the relevant provider's assessment, approval and conditions.
Can you advise on funding involving international investors or lenders?
Yes. Our Nairobi team supports transactions involving international capital providers and financing across African markets. We assess structure, funding terms, approvals, security and completion requirements, and coordinate relevant local counsel and financial, tax or technical specialists where the transaction requires them.
What is the difference between capital raising and financing transactions?
Capital raising concerns obtaining funds for a business, project or institution. Financing transactions cover the structures and agreements through which funding is provided, including equity, loans, leases, receivables arrangements and project finance. Gracen Law connects the funding strategy with financial preparation, governance and legal implementation.
Can equity, debt and grants be combined?
Yes, where the funding terms and applicable requirements allow it. We help design the capital structure and align shareholder rights, repayment priorities, covenants, security, grant conditions and intercreditor arrangements. This includes reviewing whether one funding source restricts the use or availability of another.
When should refinancing or distressed financing be considered?
Seek advice when existing facilities no longer fit the business, a maturity or covenant issue is approaching, or new liquidity is needed under repayment pressure. We assess cash flow, creditor permissions, security priorities, guarantees and restructuring options before new commitments are made.