Investment vehicle Stocks & Strauss Fund Manager has announced the second instalment of the University Technology Fund (UTF).
This, in an effort to extend commercialising technology, research and intellectual property (IP) originating from South African universities, says Stocks & Strauss.
According to a statement, UTF II achieved a milestone in December 2024 with all agreements concluded and a substantial portion of the funds committed, marking a step towards reaching the R400 million target fund size.
The fund’s anchor investors include the SA SME Fund, Stellenbosch University and Allan & Gill Gray Philanthropies Africa. Other key university investors in UTF II include the University of Pretoria, the University of Cape Town and Wits University.
Wayne Stocks, managing partner at Stocks & Strauss, comments: “The potential is immense, both for the companies and for investors. The world is witnessing a shift towards valuing university IP 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.”
The fund’s predecessor, UTF I, demonstrated the potential of university-originated technologies, with investments in Hyrax Biosciences and CubeSpace, says Stocks & Strauss.
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.
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.
Anita Nel, chief director of innovation and commercialisation at Stellenbosch University, comments: “Stellenbosch University partnered with the University Technology Fund II to support innovation on our 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.”
Ketso Gordhan, CEO of the SA SME Fund, emphasised the importance of the UTF’s role in shaping SA’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.
“The UTF Fund II will elevate our innovation landscape further, and we foresee that it will attract both local and international investment interest.”
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