Cape Town-based 4Di Capital has announced the successful first closing of a new technology venture capital fund. The fund has raised R256m for investment in the sector.
The major investor in the fund is Exponential Ventures, the externally focused innovation arm of JSE-listed insurance group MMI Holdings.
4Di Capital co-founder Justin Stanford said it is gratifying that the corporate sector in South Africa is showing more interest in providing funds for venture capital investment.
They are beginning to acknowledge the benefits of having a stake in the venture sector, as is common in the US, Stanford said.
“We’ve been impressed by the constructive and enlightened engagement we’ve had with MMI management.”
The new fund’s mandate will include early- and growth-stage investments, focusing mainly on scalable technology opportunities in financial technology, insurance technology and health technology, particularly in start-up businesses that have ambitions to reach international markets, 4Di Capital said.
“Our philosophy is strongly win-win and a key aim of Exponential Ventures is to foster a productive environment of collaboration and learning that drives progress and competitiveness for both the start-ups concerned and MMI,” said Jonathan Stewart, managing partner of Africa investments at Exponential Ventures, in a statement.
“We look forward to making a tangible difference to the tech start-up community and to South Africa as we align behind our ultimate goal, namely to leverage powerful new technologies and business models to bring about an exponential leap towards universal financial wellness,” Stewart said.
Start-up businesses that have been funded through 4Di Capital funds include LifeQ, Snapt and SMEasy. — © 2016 NewsCentral Media