• The SA SME Fund has completed the first close for its R1 billion Venture Capital Fund of Funds (VC FoF).
• The Fund says it has secured R600 million in commitments from investors. 
• The organisation is the largest institutional investor into VC funds in South Africa.

The SA SME Fund has this week announced that it has completed the first close of its R1 billion Venture Capital Fund of Funds (VC FoF).

The organisation is the largest institutional investor in venture capital funds in South Africa, and recently surpassed its first close funding goal of R500 million by securing R600 million in commitments from investors.

The first commitments to venture capital funds are expected to be concluded in June 2023. 

“The VC FoF exceeded its First Close target of R500 million, attracting first mover institutional and pension fund capital to the VC asset class. The VC FoF includes a first loss capital layer from the SA SME Fund and USAID, as well as capital commitments from the Department of Science and Innovation, and the Consolidated Retirement Fund for Local Government, represented by Sukha and Associates,” the Fund explained in a press release sent to Hypertext.  

The organisation says that it is currently invested in 16 funds in venture capital, debt and private equity, and has catalysed over R3 billion of additional capital to its partner funds. 

The SA SME Fund also notes that VC FoF will continue its venture capital strategy, focusing on later stage funding in South Africa. “In addition to seeking superior risk adjusted returns, the VC FoF has a well-defined transformation mandate,” according to the Fund.

“The SA SME Fund has been instrumental in scaling the entrepreneurial and start-up ecosystem in our country by providing catalytic capital. The launch of the VC Fund of Funds advances this vision, and further cements venture capital as a credible asset class in South Africa. I am excited to see the impact we have had in realising our country’s potential,” added Adrian Gore, chairperson of the SA SME Fund.

“The SA SME Fund has become the largest institutional investor into VC funds in South Africa and has effectively doubled the size of the VC industry in South Africa through its investment programme. We are grateful for their support of Knife Capital and look forward to a prosperous partnership together,” enthused Keet van Zyl, founder of Knife Capital, which is one of the Fund’s partner funders.

[Image – Photo by Sincerely Media on Unsplash]