$21.4 M to be invested in university-originated innovations through SA’s University Technology Fund II
According to Stocks & Strauss Fund Manager, the University Technology Fund II (UTF II) reached a significant milestone in December 2024 when all agreements were finalized and a sizable portion of the funds were committed. This was a major step toward the fund’s goal size of ZAR400 million (US $21.4 million).
The enormous potential of university-originated technologies was showcased at UTF I. Among its noteworthy investments were CubeSpace, a globally renowned company recognized by NASA and trusted by over 250 customers worldwide for its cutting-edge satellite control system and related components, and Hyrax Biosciences, a leader in bioinformatics whose software enabled the early detection and comprehension of the Covid-19 Omicron variant.
UTF II seeks to invest in 15–20 businesses, with an emphasis on highly scalable technology intellectual property in a range of industries. The fund will allocate funds towards the commercialization and expansion of technology, guaranteeing a focused strategy for assisting creative endeavors with significant promise.
UTF II has broadened the scope of its mandate to include South African university alumni in order to support the nation’s entrepreneurial ecosystem. This strategy seeks to build an ecosystem around universities that is more interconnected, much like Stanford University did in the development of Silicon Valley.
The SA SME Fund, Stellenbosch University, and Allan & Gill Gray Philanthropies Africa are among the fund’s anchor investors, supporting a co-investment model founded on cooperation and a common goal. The University of Pretoria, the University of Cape Town, and WITS University are among the other significant university investors in UTF II, which further demonstrates the initiative’s dedication to promoting innovation.
“The potential is immense, both for the companies and for investors. The world is witnessing a shift towards valuing university intellectual property 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,” said Wayne Stocks, managing partner at Stocks & Strauss Fund Manager.
The University Technology Fund II has partnered with Stellenbosch University to support innovation on campus and assist students, faculty, and alumni in bringing their ideas to market, according to Anita Nel, chief director for innovation and commercialization at the university.
“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,” she said.
The CEO of the SA SME Fund, Ketso Gordhan, emphasized the significance of UTF’s contribution to the development of South Africa’s economy.
“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. UTF Fund II will elevate our innovation landscape further and we foresee that it will attract both local and international investment interest,” he said.
