A group of South African entrepreneurs has launched a venture capital company that will invest in early-stage start-ups and nurture them through each phase of their growth cycle with the aim of eventually readying them to launch in international markets.
Called Futureneers, the new company will provide capital as well as management and professional support services to start-ups. It will be supported by mentors who will guide them and connect them to opportunities in South Africa and abroad.
“The company will be filling the current gap that exists after early angel investors exit, to where start-ups require an additional injection of capital and experience to achieve recurring revenue generation,” Futureneers said in a statement.
“It is also capitalising on the rise of emerging-market technologies, usually born out of necessity, that are finding resonance in more established markets.”
South African investors often lack the time, knowledge and resources to screen, manage and grow promising start-ups, and so tend to invest in more mature, post-revenue businesses, it said. “The team behind Futureneers believes the dearth of real deal-flow in South Africa can be attributed primarily to perceptions of risk.”
Futureneers is headed by Johannes Booysen, best known as founder of Yonder Media (acquired by WPP’s Group M in 2015), the B-One Group (currently owned by Steinhoff Group) and Hot Dog Café Group. Other backers include ex-PwC partner Jaco Gerber and Cipla Nutrition co-founder Deon Lewis.
There’s also an advisory board, which includes Los Angeles-based Brent Cohen, the former head of Packard Bell, who has experience with Internet start-ups, turnarounds, raising capital and managing initial public offerings, as well as mergers and acquisitions in the global technology sector.
Local advisors include Gustav Praekelt of the Praekelt Foundation, Martin Venter of Val de Vie and Derek White of the Clearwater Group. Other advisors are Jake Mendelsohn, Derek White, Hans Hawinkels, Nishant Sexana, Albé Geldenhuys, Greg Voigt, Corné Klem and Renier Kriel.
“The start-up space, and especially the technology sector, has always been an exciting place to be. But today, more than ever — provided the risks are mitigated — it offers incredible returns. For us, the objective is simple: finding, nurturing and guiding the next Roelof Botha or Elon Musk, then introducing them to our influencer and funding networks around the world,” said Booysen in the statement.
“With our ‘start-up machine’, international footprint and strategy, South African entrepreneurs and investors can experience what we believe is ‘real VC’ for the first time — financial support for early start-ups, professional services, and guaranteed access to a global ecosystem, along with all of the opportunities that this provides.” — © 2016 NewsCentral Media
