Under the auspices of its Fund Two initiative, South Africa’s venture capital economy Kingson Capital has launched SAR 400 Mn (approximately USD 30 Mn) with which it will invest in high growth tech assets and black-owned Small and Medium Scale Enterprises (SMEs).
In an official statement related to this development, the Hillcrest-based firm said: “We believe South Africa needs a model that not only facilitates transformation, creates jobs and grows the economy, but gives the investor a sustainable, stable supply chain and a return on their capital”.
Kingson Capital has an eye for entrepreneurs that display unique and scalable business concepts, with products that disrupt the current landscape and existing models. The newly launched fund business support with investments, creating an avenue for investors to score B-BBEE points under Enterprise as well as Supplier Development scorecards.
The company believes that “Building a business is like constructing a high rise building. Before you can go up, you have to dig deep. Solid processes, smooth system integration, and segregated controls form the bedrock to sustainable growth and continued acceleration”. By pairing investments with business support, an economic transformation will be facilitated, ultimately fostering stable and sustainable black-owned enterprises.
While backing innovators and disruptors, Kingson Capital, which was founded in 2015, invests in tech-focused products that fit within the health, engineering and communication technology industries. The firm typically assumed a significant minority in any business it invests in, for which funding usually comprises an amalgam of equity and debt. “We try to keep it as simple as possible”, the company says.