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Five South African Venture Capital firms
Funding is an integral part of upscaling a startup and one of the main mechanisms to access capital is through venture capital companies.
Securing funding can be an intimidating process and as an entrepreneur finding investors can be a daunting prospect
We have decided to highlight five venture capital firms that have their roots in South Africa. These five companies have assisted various local startups to get off their feet and upscale their business.
Kalon Venture Partners
Founded in 2016, Kalon Venture Partners has invested in and supported the growth of tech startups with ingenious business models. The firm has invested growth capital to established and
high-risk startups that have been founded in South Africa. Many of these startups have upscaled to enter the international market, allowing them to reach a larger customer base and increase their overall revenue.
Their portfolio includes various tech startups such as Mobiz which allows businesses to quickly and easily create specialised digital marketing campaigns. Another tech startup in the portfolio is Sendmarc. Sendmarc aims to assist startups by providing a service that protects their personal information, preventing online scams and phishing.
The FNB Business Banking and Edge Growth established the Vumela Fund in 2009. In the first four years, the fund had invested more than R90 million into small to mid-size enterprises which resulted in more than 400 employment opportunities.
In 2015, the Vumela Fund received a further investment of R100 million from FirstRand and R127 million from the Jobs Fund. Within a year, Vumela was able to provide five investments with R43 million. These investments are set to create more than 1000 jobs.
Knowledge Network Funding
Knowledge Venture Funding (KNF) is a venture capital firm that has been managed by Knife Capital. The venture capital firm was founded in 2010 and has offices in Cape Town and London and was founded in 2010.
The firm has helped tech startups kick start expanding their business from local to international markets. Knife Capital has also managed their (Here Be Dragons) HBD investment portfolio and growth SMEs through their Grindstone Accelerator.
Rising Tide Africa
Rising Tide Africa (RTA) forms part of the international Rising Tide group which consists of female angel investors. RTA is funded by private investors who believe in creating a positive change.
The organisation has been working towards more women becoming angel investors. RTA provides support and investment for tech startups that are aimed at improving the lives of women in Africa. The organisation also educates women about investing.
Kgatelopele Venture Capital and Private Equity Pty (Ltd)
This firm is a 100% black-owned firm that has invested in various businesses, ones that particularly show growth potential. The firms support startups in both the short term and long term, ensuring that their investees are able to reach their full potential.
The firm helps startups find talent for their clients, raise capital, and develop growth strategies.
The firm focuses primarily on black-owned under-developed businesses that have growth potential. According to their website, the Kgatelopele will play an active role in the management and operations of the business.
Read more: Ten important tips for entrepreneurs to raise Venture Capital
Read more: Seven African tech startups receive funding
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