New South African $50m Venture Capital Fund Launches
New South African $50m Venture Capital Fund Launches. A new venture capital fund that blends investment and entrepreneurship launched today. Conducive Capital is a newly formed, majority black-owned, South African venture capital company investing in early- and growth- stage disruptive technologies that are post-revenue, capital efficient, good unit economics with product market fit, and have the ability to scale their businesses both locally and globally.
The company’s founding partners are Clive Butkow, founder and former CEO of Kalon Venture Partner, and Mitchan Adams, co-founder of Ozow, a leading South African fintech company, and current CEO of Aions. Prior to Clive’s role at Kalon he was the COO of Accenture South Africa. Collectively, Butkow and Adams have invested more than R300 million in early-stage funding with an internal rate of return (IRR) of more than 30% during the last seven years.
“There is strong demand for quality capital to support emerging business in South Africa, with the deployment of early- and growth-stage capital,” says Butkow, “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.” The fund aims to raise its first close in July 2024 at US$15 million (approx. R300 million) with a target final close of $50 million (approx. R1 billion) within 24 months.
The fund seeks 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,” says Adams. “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.”
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 adds. “And we go beyond just monetary investments. Alongside funding, Conducive Capital pledges comprehensive support, offering strategic guidance, operational expertise, and mentorship to nurture start-ups, facilitating their growth into industry frontrunners.”
Butkow has close to 40 years’ experience building technology businesses and stressed that Conducive Capital “are the entrepreneurs behind the entrepreneurs”. Butkow believes their operating experience of building technology start-ups gives them a leg up on their South African competition. In 2024, innovation is the key to success and Conducive Capital is committed to fostering groundbreaking technologies that will position them at the forefront of the market. “Conducive Capital is not just an investment; it’s a partnership in growth and innovation – and it’s built for transformation,” says Butkow.
“We have identified a number of major industries and technologies that we believe are building the foundation for empowering corporations and individuals in South Africa, and Africa, to create meaningful and sustainable solutions, and improve millions of lives.” Butkow added.
