Snapchat has launched a new feature for Snaps that enables users to incorporate music into their videos. The feature, announced on the company’s newsroom,…
Section 12J Venture Capital company GroTech has raised an attractive R62-million in its first round of capital raising for disruptive tech investments.
GroTech is looking to invest in entrepreneurs with disruptive businesses. These companies need to be scalable and looking for growth capital in order to disrupt the likes of traditional banking, insurance, and retail industries, among others.
In a press release sent to Ventureburn, CEO of GroTech, Clive Butkow, says there is funding ready for businesses, though they want to look at disruptive models within tech.
Wealth and management business Cale Capital has invested a significant, though unspecified amount, in GroTech for this reason.
According to co-founder and joint CEO of Caleo Capital, Garth Wellman, the tech sector’s disrupters and GroTeche’s experience in the industry were enough reason to invest. “The directors have extensive experience in the technology ecosystem, have committed their own funds and will be actively involved post investment to reduce the risk,” says Wellman.
“We made a decision that a partnership with the strong GroTech team would be a good way to build on the success of our venture capital interests,” says co-founder and joint CEO of Caleo Capital, Nicholas Liebmann.
The partnership looks to build an R200m portfolio of disruptive high-growth tech companies, as well as achieve a five times investment return on risk capital with a 30% per annum target IRR. There is a minimum amount of R100 000 required for those looking to invest.
“Once this capital has been deployed, we will open for second round funding to investors who want to take advantage of great returns and the tax relief offered by our Section 12J status,” says Butkow.