It’s raining funds in South Africa! Within a 72-hour period, two Johannesburg Stock Exchange (JSE)-listed companies have announced two separate funds worth a combined USD 32.7 Mn (ZAR 520 Mn) targeted at startups.
The first splash came in on Friday, March 6, when JSE-listed technology investment group, AYO Technology Solutions, launched a USD 12.7 Mn (ZAR 200 Mn) annual fund to help African startups grow.
As was highlighted when word of the development first got out, AYO will fork out ZAR 200 Mn each year to help qualifying companies, organisations and entrepreneurs scale their businesses.
It was also reported that half of the fund is to be allocated to South African companies of which 50 percent will be geared to specifically supporting black-owned startups. The other half will be apportioned to companies founded and operated on the wider African continent.
AYO will invest in organisations that are creating new technologies or using existing ones in novel ways to solve pressing business and everyday needs. Applications are welcome via the AYO website.
March 9, got off to a start with the news that JSE-listed logistics company, Imperial Logistics, which is among the top global logistics players with some 27,000 employees in 30+ countries, has partnered with Newtown partners — the venture capital (VC) firm run by Silicon Valley-based South African entrepreneur, Vinny Lingham — to launch a corporate VC fund.
This new fund will have an initial capitalisation of USD 20 Mn (about ZAR 320 Mn) and will invest in startups in the logistics industry.
In a statement released today, Newtown Partners said that the fund will “identify, invest in, and nurture disruptive, innovative tech startups that present high-growth potential in the global supply chain and logistics technology stack.”