Ethos Private Equity has announced a new venture capital (CV) technology fund, Ethos Tech Fund I, which already has R205 million to invest and more may follow.
Fund investors include Ethos, RMB, Metal Industries and Transnet retirement funds, the German Development Finance Institution (DEG), and Eskom Pension and Provident Fund.
A number of additional investors are expressing interest and the fund will remain open for a period for further commitments.
Claudia Koch, CEO of the new Ethos Tech Fund, says the fund will invest in eight to 10 companies with an investment of about R20 million to R30 million per company in all rounds of financing.
Koch says Ethos is not looking for a quick exit strategy and aims to stay invested in the chosen companies for about three to seven years.
The new technology fund will expand its private equity focus to provide venture capital for predominantly general technology and IT businesses in SA, which are revenue generating but not necessarily profitable.
The focus will be on companies with proprietary intellectual property or differentiated service characteristics. Koch says the fund will search for companies that can offer products or services that can be exported to international markets.
"The timing is excellent for investing in quality early stage technology businesses and we believe we will be able to leverage Ethos` investment experience, investment approach and extensive network of local and international relationships to maximise returns for the investors in our Tech Fund," says Andre Roux, Ethos CEO.
Ethos has invested in companies such as Defy, Dunlop and local radio station Kfm.
As part of the investment approach, Koch says Ethos will have a ground-level interest in the companies, supporting them with their go-to-market strategies as well as having an active interest in day-to-day management.
The Tech Fund team has been evaluating investment opportunities for some time, including opportunities in remote monitoring and telemetry, insurance and healthcare enterprise software, gaming industry software and wireless messaging.
* Contact details: Monica Braganca, Communications Services, Tel: (011) 463 1011 or (011) 463 1323
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