A new Venture Capital technology fund has launched in South Africa, called Grotech, which will focus exclusively on disruptive innovative technologies with global reach.
The new fund aims to achieve an investment return of five times the risk capital invested with a targeted IRR in excess of 30% per annum, it said.
The fund has been structured so at to benefit from the Section 12 J tax benefit.
Section 12 J of the Income Tax Act, affords investors the opportunity to obtain 100% deduction from their taxable income of the amount invested in the tax year ending 28th February, 2016.
An investment made by a trust, a company or an individual tax payer is able to take advantage of this opportunity.
The Grotech Board is made up of Clive Butkow, a former COO at Accenture, Craig McLeod, a tech entrepreneur, Malcolm Segal and Fatima Habib.
Investors can subscribe for any amount between R200,000 and R10 million.
“There is a significant opportunity in South Africa for a venture capital fund to provide capital to the disruptive innovation, we are seeing in the ecosystem. Grotech aims to invest in and build a portfolio of high growth disruptive digital technology companies, with a buy, build and exit strategy,” Grotech said.
“We believe by injecting capital and helping build these businesses, we will make a significant impact on the economy by creating jobs whilst enabling South African entrepreneurs to build and export their technology to Africa and abroad,” the company said.
More on tech in SA