Standard Bank and the SA SME Fund have joined other investors in backing South African venture capital firm Knife Capital’s new US$50 million African Series B expansion fund Knife Fund III, which has reached its second close.
Knife Capital is a venture capital and growth equity investment manager focusing on innovation-driven ventures with proven traction. Knife Fund III aims to invest behind the expansion of African innovation-driven companies and fill a critical follow-on funding gap.
The second close of Knife Fund III brings provisional commitments to just over US$40 million and Knife Capital is finalising the due diligence and legal process of a few remaining funders to close out on the US$50 million target raise.
The commitment from Standard Bank Group, the largest African bank by assets, makes the bank a key investor in the fund alongside other local and international investors.
“Standard Bank believes in the positive impact that investment into early-stage high-growth businesses can have on innovation, job creation and economic development of South Africa. We have partnered with a number of the leading investors in this space and are excited to add Knife Capital to our venture capital portfolio. With Standard Bank’s expansive African footprint, our suite of bespoke banking products and extensive client base, we can facilitate the growth journey of businesses that scale internationally,” said Akash Maharaj, executive of equity finance and investments at Standard Bank Corporate and Investment Banking.
“We are very excited to gain not only a funder, but also a growth partner for our portfolio companies in Standard Bank,” said Keet van Zyl, co-founder at Knife Capital. “With their infrastructure throughout the continent they are already proving themselves to be a value-adding banking partner that have the funds and experience to responsibly deploy capital as well as the vison to influence positive change in African emerging markets.”
Other credible funders already committed include the IFC, Mineworkers Investment Company, the SA SME Fund, international development funders and prominent family offices.
