$50 M VC fund launched by Conducive Capital to invest in early-stage startups

A $50 million fund has been established by the South African venture capital firm Conducive Capital to finance early- and growth-stage businesses throughout Africa and South Africa.

Conducive Capital was founded by Clive Butkow, the former CEO of Kalon Venture Partners, and Mitchan Adams, the co-founder of the fintech company Ozow in South Africa. The company plans to raise $15 million for its first close in July 2024 and $50 million for its final close in less than a year.

The fund will make investments in innovative technologies that can grow their businesses both domestically and internationally, have strong unit economics with product market fit, and are capital-efficient and post-revenue.

“There is strong demand for quality capital to support emerging business in South Africa, with the deployment of early- and growth-stage capital, and we are plugged into networks that can open doors to international ecosystem players and mentors, as well as local and global investors for follow-on funding,” said Butkow.

Along with nurturing the next wave of black female venture capitalists, Conducive Capital will work to increase diversity in the early- and growth-stage investment industry.

“We need women in this space in particular. And black women – there are not nearly enough. And Clive has been clear from the start: part of our reason for existence is to share knowledge and pass the baton to the next generation,” said Adams.

Ozow is a trailblazer in the payments sector, and Kalon Venture Partners is renowned for its disruptive influence in the digital venture capital space.

“It means we bring both business acumen and tech know-how to the equation,” Adams said. “And we go beyond just monetary investments. Alongside funding, Conducive Capital pledges comprehensive support, offering strategic guidance, operational expertise, and mentorship to nurture startups, facilitating their growth into industry frontrunners.”