Venture Capital Firms in South Africa

Updated on 13 June 2024

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Venture capital firms in South Africa

South Africa has a number of small businesses and start-ups that cannot access funding. These companies have great new ideas but need money to grow. Venture capitalist firms can help by providing funding for their innovations.

Venture capital is a type of funding for new businesses with potential for long-term growth. A venture capitalist is an investor that provides capital to these companies. These investors like to invest in businesses that are already making money and need funding to grow their businesses. Venture capitalists prefer this over investing in start-ups.

Small businesses benefit from venture capital investments in the following ways:

  • They receive financial support,
  • Gain access to a wide network of investors, and
  • Expert advice on how to scale quickly.

Here are some venture capital firms in South Africa that provide funding to small and medium sized-enterprises (SMEs) and start-ups.

The Angel Investment Network

The Investment Network is a South African venture capital firm founded in 2004. The firm focuses on helping entrepreneurs, start-ups and SMEs get access to funding. The company has a global network of investors across 90 different countries. According to its website, the venture capital firm has over 1,9 million members, including 343 474 investors and over 1,5 million entrepreneurs.

Through its platform, the company has raised R 4 billion for start-ups. The company has supported the growing South African online coding bootcamp provider HyperionDev. The company raised R 595 million in total growth funding through the South African Investment Network.

 

Kalon Venture Partners

Kalon Venture Partners is a South African venture capitalist firm that invests in high-growth technology companies. The company’s strategy is to provide growth capital and acquire a minority stake in digital technology companies. Kalon Venture Partners supports African entrepreneurs in growing businesses that are changing traditional industries, such as banking, insurance, retail, media and entertainment.

The company’s website states its investors are focused on South African businesses. They want to expand these businesses throughout Africa and worldwide. In South Africa, the company has invested in GoMetro. The tech company specialises in fleet management and recently raised £ 9 million in funding during a Series A round. Kalon Venture Partners also invested in GoMetro.

Spear Capital

Spear Capital provides high-growth SMEs in select SADC countries with capital. These countries include Zimbabwe, South Africa, and Malawi amongst many others. The company uses its experience to achieve the best returns for investors in financial, economic, social, and environmental aspects. It also focuses on long-term growth for start-ups.

The venture capital firm primarily focuses on businesses operating in the manufacturing and retail sectors. Spear Capital provides between $ 2-10 million in growth capital. The company has helped raise $ 5,67 million for the South African online retail platform, MyRunway.

WZ Capital

WZ Capital is a venture capital fund established by the Ntsabula family. The company offers help with planning, connections, and up to R 1 million in funding for new businesses in the start-up stage. The firm focuses on companies that have a technology-first approach. WZ Capital also assists start-ups with business development.

Currently, the company has invested in six companies in the health-tech, online marketplace and EdTech sectors. One of its investments is RecoMed.

RecoMed is an online healthcare booking platform and marketplace. The company’s online booking platform and marketplace are its core products. It has also developed white-labelled solutions for Discovery, Medicross (owned by Netcare) and Clicks.

These venture capital firms have a focus on developing small businesses in South Africa and across Africa. Beyond financial assistance, they also provide strategic support in the form of a large investment network, business experience and capacity to help turn your business into a global brand.

If you think venture capital is the best way to grow your business, you should understand what these firms want. Currently, most venture capital firms are looking for businesses that use technology as part of their services. For example, in South Africa, the fintech sector receives the most funding in comparison to other sectors. They also look at which sector you are operating in.

Additionally, venture capitalists like to invest in companies that disrupt sectors with exciting and innovative businesses.

If you believe your business stands out like a sore thumb, apply for venture capital funding today!

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