Cape Town tech company Digital Cabinet has landed R5-million in equity funding, local venture capital (VC) company HAVAÍC announced today.
The investment was secured from a consortium of individuals led by HAVAÍC, with a smaller stake from Growth Grid Venture Capital Partners, a registered section 12J VC fund founded by Roy Fine and Rob Ferguson.
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The company, which was founded in 2011, offers companies cloud-based paperless document and workflow management solutions.
The deal was revealed in a press release today from HAVAÍC. When contacted by Ventureburn, HAVAÍC executive director Grant Rock said he did not want to disclose the equity stake each partner has taken in Digital Cabinet.
‘The proceeds of the capital raise will be used by Digital Cabinet to increase its staff capacity, cover marketing and for product development’
In July the VC company announced that it had started a capital raise for the Digital Cabinet. At the time Rock confirmed that the VC firm had a minority stake of “less than 20%” in the tech company.
Read more: HAVAÍC to undertake a R5m capital raise for SA company Digital Cabinet
The proceeds of the capital raise will be used by Digital Cabinet to increase its staff capacity, undertake a concerted marketing exercise with the objective of creating product and brand awareness and implementing further product development.
Since the commencement of the capital raising exercise, Digital Cabinet’s joint venture partnership with Computershare, an Australian share registrar, has deepened and the two companies are exploring new product areas on which they can collaborate. Digital Cabinet also has a distribution agreement with US resellers Digital Workflows.
Digital Cabinet founder and CEO Daniel Kritzas said the company currently distributes share and dividends statements to 900 000 users on behalf of Computershare.
The South African company, which Kritzas who founded the company with Asaf Ben-Nathan, presently has eight employees including the two founders.
Though Kritzas confirmed that the company has received interest from other markets outside South Africa and the US, he said he did not want to comment more on this.
