A new R300-million ($15.6 million) Seed Fund of Funds has been launched to provide crucial early-stage capital for South African tech startups.
This initiative, backed by the SA SME Fund, the Department of Science and Innovation (DSI), the Technology Innovation Agency (TIA), and impact investor E Squared Investments, aims to fund at least 50 technology-driven startups.
The fund seeks to address a gap in South Africa’s venture capital landscape, which has historically favored later-stage investments.
By focusing on seed capital, it will help budding entrepreneurs transition their ideas into viable businesses, a key move for South Africa’s innovation economy.
A Boost to South Africa’s Innovation Ecosystem
TIA acting CEO Patrick Krappie says the seed fund of funds will catalyse a wave of new startups by enabling them to transition from ideas to viable enterprises
“Governments across the globe play a crucial role in fostering innovation ecosystems, and South Africa is no different. The partnership with SA SME Fund aims to bolster funds towards start-ups and SMMEs through a fund of funds approach,” he stated according to ITWeb.
“This presents an opportunity for the fund to deepen investment into the innovation economy and place the venture capital industry on sustainable footing for the future.”
Partnerships to Drive Economic Growth
The partnership with experienced fund managers, alongside the involvement of impact investor E Squared Investments, reinforces the fund’s ambition to promote sustainable economic growth and transformation.
Gladwyn Leeuw, CEO of E Squared Investments, expressed confidence in the initiative, stating that it aligns with their mission to foster innovation and ensure South Africa’s tech sector reflects its diverse talent pool.
“Partnering with experienced fund managers and leveraging synergies with entities like the SA SME Fund, we are confident in driving the success of numerous tech startups, paving the way for sustainable economic growth and transformation,” Leeuw said according to Creamer’s Media.
By providing early-stage capital, this initiative aims to empower South African entrepreneurs, creating new opportunities in the technology sector while boosting job creation and economic development.
Feature Image Credit: TIAORGZA/X
Source link : https://peopleofcolorintech.com/articles/new-15-6m-seed-fund-launches-to-support-south-african-tech-startups/
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Publish date : 2024-10-02 14:55:50
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