Technology-enabled businesses in South Africa that are looking for funding to help them scale can now apply to the Edge Impact Fund.
The Edge Impact Fund (EIF) is an innovative catalytic debt fund to support established, technology-enabled scale-ups and is managed by Edge Growth Ventures. It provides catalytic debt and hybrid capital to qualifying businesses. The fund was set up more than three years ago and has now reached R350 million.
It will invest in growth-stage businesses, typically at Series A to C funding rounds, that have proven their business models but require flexible growth capital to scale at a time when valuations are evolving. The EIF also aims to address a significant funding gap, serving scale-ups not yet suitable for traditional debt and providing much-needed non-dilutive capital for founders.
Some of the financing options that the fund provides include, but are not limited to, term loans, working capital finance, venture debt, convertible loans and revenue-based finance.
Eligible Businesses
Entrepreneurs who would like to apply to the fund need to meet the following criteria:
- Stage: Series A to C technology-enabled business
- Revenue: R20 million or more in annual revenue
- Revenue Model: Predictable and/or recurring revenue streams
- Fundamentals: Strong unit economics and a clear path to profitability (or already profitable)
- Geography: South African focus, with openness to investments across Africa, particularly Kenya and the broader East Africa region
- Ticket size: R20 million to R60 million per investment
The business would also need to fall into one of the following sectors:
- Fintech
- Healthtech
- Edtech
- Greentech
- Other impact sectors aligned to the UN Sustainable Development Goals
Edge Growth suggests the following ideal use cases on their website:
- Extend runway with minimal equity dilution
- Fund working capital or expansion
- Bridge to your next funding round
- Support customer acquisition and scaling
- Embedded finance/on-lending
Businesses that meet the above criteria can apply through the website.
Why the Edge Impact Fund?
Founders who have invested money as well as blood, sweat and tears into their enterprises rarely want to give up a share of what they’ve built. Yet, this is sometimes what happens when the business needs capital to scale
With the EIF, the fund was created with founders in mind; it is non-dilutive or minimally dilutive capital, so founders keep more of what they’ve built. It provides flexible structuring, tailored to how your business actually generates cash.
What’s more, the fund and its managers view themselves as growth partners, not just funders. They recognise that some scale-ups aren’t yet a natural fit for traditional bank debt, and by providing flexible, non-dilutive capital to help founders grow, they can fill this gap.
Behind the fund is over fifteen years of track record of early-stage investing across debt, equity and hybrid instruments. It’s an all-women management team, reflecting our commitment to diverse leadership backing the next generation of African businesses
The EIF is managed by Edge Growth Ventures and builds on more than 15 years of early-stage investing experience, including South Africa’s first dedicated venture debt fund.
“At Edge Growth, we have established an extensive track record in venture debt, having launched South Africa’s first dedicated venture debt fund in 2022. The launch of the EIF is another important step in providing bespoke, fit-for-purpose funding to high-potential, impactful and scalable businesses,” says Noluvo Nela, Partner and Fund Head at Edge Growth Ventures, who will be heading up the EIF.
The launch of the EIF marks a strategic evolution for Edge Growth Ventures – from managing funds that were mostly backed by corporate Enterprise and Supplier Development (ESD) programmes to a model that appeals to major institutional investors. “This is both a landmark in our expansion strategy and a vote of confidence in the SME funding value proposition by the wider investment community,” says Janice Johnston, Chief Executive of Edge Growth Ventures.
Since 2009, Edge Growth Ventures has raised approximately R2,9 billion in funds under management, supported more than 200 small and medium-sized businesses, completed around 90 investment realisations and helped create over 9 000 jobs. Backed by nearly two decades of investment experience, the team has extensive expertise in debt, equity, and hybrid financing solutions.
Following the R350 million first close, the fund is targeting a final close of R750 million by December 2027.
The EIF is not the only fund that Edge Growth Venture manages. It is also responsible for the Vumela ESD Fund, ASISA ESD Fund, Edge Action ESD Fund, SAB Thrive Fund, Abadali EEIP Fund and the Edge Ignite Fund.
