Johannesburg: South Africa-based business accelerator Grindstone has launched a new venture capital fund called Grindstone Ventures, dedicated to providing early-stage equity funding to its cohorts.
The accelerator takes South African SMEs with proven traction through an intensive year-long review of their strategies and provides them with the necessary support to build a foundation for growth in becoming more investable, sustainable and exit-ready.
Key growth gaps identified are addressed during the programme, opening up early-stage funding opportunities in these companies to accelerate market access. But the availability of risk capital remains one of the main challenges to the growth of South African SMEs.
Hence the launch of Grindstone Ventures, which is an open-ended venture capital fund structure that is set to invest up to ZAR5 million (US$290,000) per opportunity in scalable innovation-driven ventures – likely in co-investment arrangements with angel investors and corporate VCs.