Former FNB CEO Michael Jordaan is broadening his investment strategy in South Africa by joining angel seed fund, AngelHub Ventures, which invests in “lean startups with disruptive business models and technologies”.
AngelHub Ventures was restructured in February, following the buy-out of former company AngelHub by two of its angel investors.
AngelHub founder-CEO Brett Commaille said the new fund was established in order to keep up with the demands of fast-changing technology and investor landscapes.
The group has since gained two new angel investors in the form of Jordaan and RMB and Old Mutual finance guy, Kevin Harris.
After leaving FNB at the end of 2013, Jordaan set up his own investment vehicle, MonteGray Capital, which focuses on investments in disruptive technologies and disruptive business models.
Through the firm, Jordaan has made investments in three tech companies in 2014 so far: Multisource, Bright Black and Execmobile.
Jordaan explained that he has been inundated with requests from entrepreneurs and founders to discuss their ventures and potential investments.
AngelHub founder and CEO, Brett Commaille, said: “With Michael and Kevin Harris on board, we can now leverage our extensive network of local startups and our strengths in deal management and focus on what we’re best at – growing great local tech businesses.”
Part of AngelHub Ventures’ strategy is to link startups with investment potential to existing success stories within the broader group’s stable.
The group cites South African social media platform, Mxit and convergence solutions company, Multisource as two of these success stories.
According to the group, in its two years as a business angel group, it facilitated five different investments with the last two having just been completed.
“The new fund, however, allows AngelHub to focus more on the companies rather than raising the funding, which is sure to be a boost for the companies,” it said.
Businesses targeted by AngelHub will be very much in line with Jordaan’s investment line: disruptive businesses enabled by technology, that are scalable and poised for rapid growth.
Both Jordaan and AngelHub have indicated a “sweet spot” investment amount ranging between R500,000 and R2 million, “but we can always syndicate with other investors to increase that size if needed.”