South African venture capital company Conducive Capital has launched a US$50 million fund to invest in early- and growth- stage startups in South Africa and Africa.
Founding by Clive Butkow, founder and former CEO of Kalon Venture Partners, and Mitchan Adams, co-founder of South African fintech company Ozow, Conducive Capital aims to raise its first close in July 2024 at US$15 million, with a target final close of US$50 million within 24 months.
The fund will invest in disruptive technologies that are post-revenue and capital efficient, have good unit economics with product market fit, and have the ability to scale their businesses both locally and globally.
“There is strong demand for quality capital to support emerging business in South Africa, with the deployment of early- and growth-stage capital, and we are plugged into networks that can open doors to international ecosystem players and mentors, as well as local and global investors for follow-on funding,” said Butkow.
Conducive Capital will also seek to improve diversity in the early and growth stage investment sector as well as develop the next generation of black woman venture capitalists.
“We need women in this space in particular. And black women – there are not nearly enough. And Clive has been clear from the start: part of our reason for existence is to share knowledge and pass the baton to the next generation,” said Adams.
Kalon Venture Partners is known for its disruptive influence in the digital venture capital sphere and Ozow is a trailblazer in the payments industry.
“It means we bring both business acumen and tech know-how to the equation,” Adams said. “And we go beyond just monetary investments. Alongside funding, Conducive Capital pledges comprehensive support, offering strategic guidance, operational expertise, and mentorship to nurture startups, facilitating their growth into industry frontrunners.”
