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GroTech looks to raise additional R38-million for funding
VC firm GroTech is looking to raise an additional R38-million in funding. This comes after the company received R62-million in its last round.
GroTech invests in companies using technological innovations to disrupt industries such as banking, insurance, health, and media among others.
“The investment pipeline is healthy. Since the close of the first round of capital raising which closed on 29 February 2016, GroTech has reviewed in excess of 170 business plans. To date we have made one investment and are currently evaluating another three, one of which is at term sheet stage,” says CEO of GroTech Clive Butkow in a press release to Ventureburn.
According to Butkow, the target reinvestment return of larger than 30% IRR (internal rate of return) is attainable.
Read more: Grotech: this new fund aims to pump R100m into disruptive SA tech
GroTech is a section 12J VC company and was established at the end of 2015. It entitles investors to a 100% taxable income deduction from the amount invested.
Its board of directors consists of Malcom Segal, Arnold Basserabie, Nicholas Liebmann, Gil Oved, Gil Sperling, Romeo Kumalo, Clive Butkow and Fatima Habib.
South Africa is currently experiencing significant growth, according to the latest South African Venture Capital Association survey. The SA VC industry now represents almost R2-billion in assets under management.
Feature image: CafeCredit.com via Flickr.