Stocks & Strauss Fund Manager has announced the University Technology Fund II (UTF II), which achieved a major milestone in December 2024 with all agreements concluded and a substantial portion of the funds committed, marking a significant step towards reaching the ZAR400 million (US$21.4 million) target fund size.
UTF I demonstrated the immense potential of university-originated technologies. Among its notable investments were Hyrax Biosciences, a leader in bioinformatics, whose software facilitated the early detection and understanding of the Covid-19 Omicron variant, and CubeSpace, a globally acclaimed company recognised by NASA and trusted by more than 250 global customers for its advanced satellite control system and related components.
UTF II aims to invest in 15 to 20 companies, focusing on highly scalable technology IP across various sectors. The fund will channel resources into technology commercialisation and growth, ensuring a targeted approach to supporting innovative ventures with high potential.
In an effort to strengthen the country’s ecosystem of entrepreneurs, UTF II has expanded its mandate to allocate a portion of the fund to include alumni of South African universities. This approach aims to create a more interconnected ecosystem around universities, similar to the role Stanford University played in fostering Silicon Valley.
The fund’s anchor investors include the SA SME Fund, Stellenbosch University, and Allan & Gill Gray Philanthropies Africa, reinforcing a co-investment model based on collaboration and shared vision. Other key university investors in UTF II include the University of Pretoria, the University of Cape Town, and WITS University, further strengthening the initiative’s commitment to fostering innovation.
“The potential is immense, both for the companies and for investors. The world is witnessing a shift towards valuing university intellectual property as an important asset class and opportunity. These companies are also providing solutions to real-world challenges, which boosts their impact and value. If you’re seeking deep-tech investment opportunities in Africa, universities are unparalleled hubs. They possess the capacity, skilled talent, cross-faculty institutional knowledge, and long-term funding necessary to drive meaningful innovation and development in this space,” said Wayne Stocks, managing partner at Stocks & Strauss Fund Manager.
Anita Nel, chief director for innovation and commercialisation at Stellenbosch University, said her university had partnered with the University Technology Fund II to support innovation on its campus and to help students, staff, and alumni bring their ideas to market.
“The fund accelerates the development of new technologies and reinforces the university’s reputation as a hub for research and innovation and builds on the successful relationship between our university and the UTF I. Additionally, the partnership offers potential financial returns that can be reinvested in research and infrastructure,” she said.
Ketso Gordhan, CEO of the SA SME Fund, emphasised the importance of UTF’s role in shaping South Africa’s economic future.
“UTF Fund I is a powerful example of what can be achieved when we align resources to unlock the potential of South Africa’s brightest minds and world class intellectual property. UTF Fund II will elevate our innovation landscape further and we foresee that it will attract both local and international investment interest,” he said.
