South African venture capital fund Grotech has rebranded to Kalon Venture Partners, and will shortly open a capital raising round to investors, as well as continue its search for startups to invest in.
Kalon Venture Partners will focus on identifying companies who are dis-intermediating various industries through disruptive tech solutions. Three new deals are already set to close imminently, while the search is on for high-growth digital companies for future investments.
The fund will target returns of more than 30 per cent per year, and a minimum of five times the money invested over five to seven years.
The Kalon fund will continue the work of its predecessor Grotech, which last year announced an initial close at ZAR62 million (US$4.8 million), of the then target ZAR200 million (US$15.4 million).
“The Kalon board decided to rebrand to better reflect the vision of being the pre-eminent digital technology venture capital company in Africa by investing in and growing entrepreneurs who solve African and global problems,” said Clive Butkow, chief executive officer (CEO) of Kalon Venture Partners.
“The revised Kalon mission is to create as much non-financial as financial value, by investing smart capital, supported by smart interventions resulting in enhanced returns for both investors and entrepreneurs.”
A new capital raising round will shortly be opened to accommodate new investors wishing to get involved with the fund; which has now raised its target total to ZAR250 million (US$19.3 million).
Kalon is in particular inviting investors wanting to take advantage of Section 12J tax benefits in time for August-September provisional tax payments.
“Through Section 12J Venture Capital Companies, such as Kalon Venture Partners, the South African government aims to stimulate the economy and promote investment in small and medium-sized businesses, whilst providing tax benefits to investors,” the fund said.
The opportunity is particularly exciting “if you are a South African tax payer looking to save tax through the benefits of Section 12J, where the investment will be 100 per cent deductible from your taxable income, whist adding to your portfolio of investments with disruptive digital technology.”
Applications are now open to both investors looking to invest into the fund, as well as entrepreneurs seeking funding.
