Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Apple plans product blitz to reignite growth

      11 July 2025

      Nissan doubles down on South Africa despite plant uncertainty

      11 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Spam call epidemic: operators say their hands are tied

      10 July 2025

      Britehouse unit breaks free from NTT Data

      10 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025

      TCS+ | First Distribution on data governance in hybrid cloud environments

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Investment » Futuregrowth launches start-up fund, targets R600-million raise

    Futuregrowth launches start-up fund, targets R600-million raise

    By Paul Burkhardt30 June 2022
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Andrew Canter. Image: Futuregrowth Asset Management

    Futuregrowth Asset Management, a South African fixed-income money manager with R193-billion of assets, is raising a fund to invest in start-ups with a strong developmental impact.

    The company aims to raise as much as R600-million for the Futuregrowth High Growth Development Equity Fund — a closed-ended, limited-life fund — by the end of the year, according to a statement from Futuregrowth. For the money manager’s Cape Town-based chief investment officer, Andrew Canter, South Africa’s second largest city offers ample opportunities for investment.

    “There are some real hives of activity going on [in Cape Town],” Canter said in an interview, adding that he has seen lot of business action while cycling 30km to work and back. Futuregrowth has invested in companies such as financier of small firms, Retail Capital, which Canter has observed while on his ride to work.

    The company aims to raise as much as R600-million for the fund by the end of the year

    Futuregrowth joins investors such as Naspers in backing start-ups. Early-stage firms attracted more than R12-billion in venture capital last year, a ninefold increase since 2016. To tap the opportunity, Naspers set up Naspers Foundry, which invests in early-stage firms.

    Futuregrowth, backed by Old Mutual, has a 16-year-old Development Equity Fund with R3.4-billion under management that has included about 10 early-stage investments and “can see it works”, Canter said. The fund that’s being launched has a broad mandate that covers infrastructure, social services, clean power, agriculture and regional development.

    The specialist money manager gained attention in 2016, during a period of alleged rife corruption under former President Jacob Zuma, when it stopped lending money to about 20 of South Africa’s largest state companies because of concerns over how they were being run. Futuregrowth lifted the restriction after it recognised adequate oversight and governance.

    The country has moved on and is on the right path now, Canter, who grew up in the US and moved to South Africa three decades ago, said. He expects his nascent start-up fund to grow.

    ‘Sustainable’

    “Don’t promise the earth, do what you can do, deliver it,” he said. “That’s why my infrastructure fund has been going since 1995 — just keep doing it properly in a sustainable, appropriate way. It’s not a get-rich quick scheme, it’s a sustainable business.”

    Futuregrowth’s DEF has investments in companies including Yoco, which provides handheld card payment systems, and participated in a series-B funding round for South African fintech start-up Ozow, joining Tencent Holdings, and agricultural technology firm Inseco, where it led a funding round. It recently sold one of its first early-stage investments, CashConnect, generating a 48% internal rate of return.

    The High Growth fund will have a four- to five-year draw period and five- to six-year payback period, according to the company. “What’s exciting for the rest of my career is establishing this early-stage fund and doing those deals, dealing with those entrepreneurs is much more inspiring than dealing with malfunctioning SOEs,” Canter said.  — (c) 2022 NewsCentral Media



    Andrew Canter Futuregrowth Futuregrowth Asset Management Naspers Naspers Foundry Ozow Yoco
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEskom is killing the rand
    Next Article Datatec to sell Analysys Mason for as much as R4.1-billion

    Related Posts

    Prosus aiming to double revenue in three years

    25 June 2025

    Naspers shifts to an AI-first strategy – and it’s paying off

    23 June 2025

    Prosus profit surges 47% as e-commerce bet pays off

    23 June 2025
    Company News

    $125-trillion traded: Binance redefines global finance in just eight years

    11 July 2025

    LTE Cat 1 vs Cat 1 bis – what’s the difference?

    11 July 2025

    NEC XON welcomes HPE acquisition of Juniper Networks

    11 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.