A new 300 million funding initiative has been launched to support tech-driven start-ups in South Africa. Picture: Pavel Horak /Freepik
South Africa's tech start-up scene has received a major boost with the launch of a R300 million funding initiative, aimed at providing early-stage capital to local tech innovators.
Called the Seed Fund of Funds, the initiative will focus exclusively on start-ups in their early stages, addressing a critical funding gap in South Africa's venture capital ecosystem.
The initiative is backed by the SA SME Fund, the Department of Science and Innovation (DSI), its entity the Technology Innovation Agency (TIA), as well as impact investor E Squared Investments.
According to a joint statement released by the founding partners this week, the focus of the fund will be on innovation and transformation within South Africa's tech landscape.
The fund is set to financially back at least 50 technology-driven start-ups, with an emphasis on innovation and transformation.
Ketso Gordhan, CEO of the SA SME Fund, emphasised the importance of seed funding in fostering entrepreneurial success.
“Seed funding is the cornerstone of entrepreneurial success and the lifeblood of innovation without which many great ideas would never see the light of day,” said Gordhan.
Gordhan said the fund would ensure more brilliant minds had the resources they need to succeed in both the local and global markets.
Technology Innovation Agency’s (TIA) acting CEO, Patrick Krappie, also highlighted the importance of governmental support for innovation ecosystems in South Africa, saying that it will be “building the foundations that will deepen investment into the innovation economy and place the venture capital industry on sustainable footing for the future.”
“The Seed Fund of Funds will catalyse a wave of new start-ups by enabling them to transition from ideas to viable enterprises,” added Krappie.
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