One of the biggest issues facing new startups is securing funding. Getting off the ground requires a lot of capital and not every startup has the ways and means to raise it.
Luckily for South African startups, companies like GroTech is keeping an eye out for any disruptive technology firms that need funding – and it just received a heap of cash to dish out.
The Section 12J Venture Capital company received R62 million in its first round of capital raising, which it will pump exclusively into disruptive technology opportunities. But things are getting better – as part of the funding, wealth and asset management business Caleo Capital will in return push some cash into GroTech.
The R62 million investment is only half of what GroTech aims to spend, so there is definitely a great opportunity for South African startups to get a foot in the door. At the end of it all, the company wants to build up a R200 million portfolio of disruptive high growth technology companies.
“We have funding and are ready for business, so we want to engage quality tech entrepreneurs who aim to disrupt industries and grow rapidly. Once this capital has been deployed, we will open for second round funding to investors who want to take advantage of great returns and the tax relief offered by our Section 12J status,” said Clive Butkow, GroTech’s CEO.
[Image – CC by 2.0/Bobbi Newman]
