Africa News
R1bn VC fund ‘to shape future of African tech’
Two veteran tech and venture capital founders have joined forces, among aiming to increase diversity.
A new venture capital fund that blends investment and entrepreneurship hopes to improve diversity in the early and growth stage investment sector, and to develop the next generation of black woman venture capitalists.
Conducive Capital aims to use a $50-million (about R1-billion) venture capital fund to shape the future of technology by investing in South African and African tech start-ups.
The majority black-owned company plans to invest in early- and growth- stage disruptive technologies that are “post-revenue, capital efficient, good unit economics with product market fit”, and have the ability to scale their businesses both locally and globally.
The company’s founding partners are Clive Butkow, founder and former CEO of Kalon Venture Partner, and Mitchan Adams, co-founder of Ozow, a leading South African fintech company, and current CEO of Aions. Prior to Clive’s role at Kalon he was the COO of Accenture South Africa. Collectively, Butkow and Adams have invested more than R300-million in early-stage funding, with an internal rate of return (IRR) of more than 30% during the last seven years.
Clive Butkow, founder and former CEO of Kalon Venture Partner, and Mitchan Adams, co-founder of Ozow.
“There is strong demand for quality capital to support emerging business in South Africa, with the deployment of early- and growth-stage capital,” says Butkow, “and we are plugged into networks that can open doors to international ecosystem players and mentors, as well as local and global investors for follow-on funding.”
The fund aims to raise its first close in July 2024 at US$15-million (approx. R300-million) with a target final close of $50-million (approx. R1-billion) within 24 months.
The fund seeks to improve diversity in the early and growth stage investment sector as well as develop the next generation of black woman venture capitalists. “We need women in this space in particular,” says Adams. “And black women – there are not nearly enough. And Clive has been clear from the start: part of our reason for existence is to share knowledge and pass the baton to the next generation.”
Kalon Venture Partners is known for its disruptive influence in the digital venture capital sphere and Ozow is a trailblazer in the payments industry.
“It means we bring both business acumen and tech know-how to the equation,” says Adams. “And we go beyond just monetary investments. Alongside funding, Conducive Capital pledges comprehensive support, offering strategic guidance, operational expertise, and mentorship to nurture start-ups, facilitating their growth into industry frontrunners.”
Butkow has close to 40 years’ experience building technology businesses and calls Conducive Capital “the entrepreneurs behind the entrepreneurs”. Butkow believes their operating experience of building technology start-ups gives them a leg up on their South African competition.
“Conducive Capital is not just an investment; it’s a partnership in growth and innovation – and it’s built for transformation,” says Butkow. “We have identified a number of major industries and technologies that we believe are building the foundation for empowering corporations and individuals in South Africa, and Africa, to create meaningful and sustainable solutions, and improve millions of lives.”
