South Africa: A $17m Seed Fund of Funds Launched to Back South African Ventures

3 October 2024
Daba Finance (Abidjan)

TLDR

  • SA SME Fund, DSI, TIA, and E Squared Investments launch $17.3 million Seed Fund of Funds for South African tech startups.
  • Fund targets 50 tech startups emphasizing innovation and transformation for early-stage capital investments.
  • Aims to address the lack of seed capital in South Africa's venture capital ecosystem, supporting startup success and de-risking investments.

The SA SME Fund, in collaboration with the Department of Science and Innovation (DSI), the Technology Innovation Agency (TIA), and impact investor E Squared Investments, has launched a $17.3 million "Seed Fund of Funds" to provide early-stage capital to South African tech startups.

The fund aims to invest in at least 50 technology-driven startups, focusing on innovation and transformation, and is expected to help de-risk investments in the sector. It is expected to help startups succeed.

The initiative addresses a key gap in South Africa's venture capital ecosystem, where later-stage funding has traditionally been more accessible than seed capital.

Key Takeaways

The launch of the "Seed Fund of Funds" marks a significant boost for South Africa's tech startup ecosystem, addressing the critical need for early-stage capital, and comes at a time when venture capital investors have retreated due to macro headwinds. By investing in innovation and supporting startups at a foundational level, the fund aims to develop a sustainable venture capital environment, fostering the growth of new industry leaders in South Africa's innovation economy.

Read the original article on Daba Finance.

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