Fundraising Strategy
A two-track plan combining EU public capital with patient-private capital — sequenced so the public stack anchors and de-risks the equity round.
Strategic Overview
Songbird needs $25–28M of blended capital over 18 months. Large enough to require a structured plan, small enough that no single institution will write the entire cheque. Two parallel tracks — public capital and patient private capital — sequenced so each track's success de-risks the other.
60% public, 40% private. ~€15–17M of grants and concessional debt from European public sources; $8–11M of patient capital and DFI senior debt from private/quasi-public sources.
Sequencing matters: public stack anchors first (months 0–9), then patient capital closes against it (months 10–18). This is the inverse of how startups normally raise — and it is correct for an infrastructure project with a mission firewall.
Why this split
- ▸Foundation governance limits dilutive equity to ~30% of cap table — beyond that, the firewall becomes harder to defend in investor relations.
- ▸Public capital is non-dilutive but slow. Patient private capital is faster but more expensive. Combined: blended cost of capital 4–6% with credible institutional speed.
- ▸Public stack is what makes the equity round closable. Convergence will not lead $5M alone, but will close behind €10M of public anchor capital.
- ▸Private stack is what makes the public stack disbursable. Most EU public instruments require evidence of co-investment.
18-Month Timeline
| Months | Track A — Public | Track B — Private | Cumulative |
|---|---|---|---|
| 0–3 | AECID/FEDES proposal submitted; Foundation entity formed | Convergence + Proparco initial conversations | $0 |
| 3–6 | FEDES letter of interest; EIB Global pre-screening; AFD initial meeting | Investor deck circulated; term-sheet negotiations begin | $2–3M (LOIs) |
| 6–9 | EIB Global application; AFD grant request; Italian Mattei Plan submission | Convergence indicative term sheet; DFI co-investor identification | $5–8M (LOIs + soft commits) |
| 9–12 | AECID disbursement; EIB Global committee approval; KfW conversations | Convergence-led Series A close; Proparco/BII confirmed | $15–18M (signed) |
| 12–15 | EIB Global drawdown; Nordic + Italian closes | EAIF senior debt term sheet | $22–25M |
| 15–18 | Phase 2 funding (additional EU member state grants) | EAIF first drawdown; potential strategic co-invest | $25–28M complete |
Track A — European Public Capital
European public capital for African digital infrastructure has never been more available. Global Gateway commits €300B by 2027, with €150B for Africa by 2030. Medusa cable — which Songbird sits directly on — is the EU's flagship digital infrastructure project in the Mediterranean. The challenge is structuring 4–5 coherent applications, not finding capital.
Tier 1 anchors — EFSD+ via EIB Global
EFSD+ is the main financing instrument supporting Global Gateway, with €135B of capacity for 2021–27 and a €26.7B guarantee envelope supporting EIB Global lending outside the EU. EIB Global is the largest EFSD+ implementation partner. Direct EIB Global loan with EFSD+ guarantee cover: typical ticket €15–50M, 12–20yr tenor, well below market rate.
Track B — Patient Private Capital
Convergence Partners or Proparco are the natural leads for the equity round. The strategy is not to chase a single $5M cheque but to assemble a syndicate where the lead's diligence anchors smaller DFI co-investors.
| Source | Type | Indicative | Probability | Note |
|---|---|---|---|---|
| Convergence Partners (lead) | Equity | $5M | Medium | Joburg-based African digital infra fund — natural lead |
| Proparco / BII | Equity | $3M | Medium | DFI equity, Foundation governance compatible |
| EAIF (Emerging Africa Infra Fund) | Senior debt | $8M | Medium | Tickets $10–50M, 12–20yr tenor |
| FMO / DEG | Equity / debt | $2–3M | Low-med | Dutch/German DFI overlap with Track A |
| Strategic co-invest | Equity | $2M | Low | Hyperscaler or telco strategic — late-cycle |
Key contacts
- ▸Brandon Doyle — CEO, Convergence Partners (Joburg). Approach: warm intro via African digital infra network.
- ▸Carola Bose — Head of, EAIF. Senior debt anchor.
- ▸Michael Jongeneel — CEO, FMO. Track B overlap with Tier 2 Netherlands.
- ▸Proparco senior partner — French DFI, AFD-aligned.
- ▸Norfund / Swedfund / Finnfund / NIB — Nordic syndicate.
Sequencing & Execution
Months 0–9 are public-stack anchored: AECID/FEDES, EIB Global, AFD, KfW. The public LOIs become the credibility evidence for Track B's lead investor. Months 10–18 close patient capital against signed public commitments. EAIF senior debt comes last — it requires both equity close and revenue line-of-sight.
Scenarios
Annexes
Comparable transactions
- ▸AMN (Africa Mobile Networks) — $35M Series B, EAIF + IFC + DFC, 2022.
- ▸CSquared — pan-African open-access fibre, Convergence Partners + Mitsui + Soros Economic Development Fund.
- ▸Liquid Intelligent Tech — Helios + IFC growth equity.
- ▸Sonatel digital infra — AFD/Proparco + EIB.
Pitch deck checklist
- ▸Reference list — Giga leadership, Wilson Sonsini, anchor partners
- ▸Track A LOIs as of date of approach (anchor the deck)
- ▸v0.4 financial model (xlsx) attached
- ▸Wilson Sonsini Foundation governance memo
- ▸Phase 1 site survey results
- ▸18-month milestone timeline with kill-switches