Futuregrowth, a South African venture capital firm, has announced plans to create its Futuregrowth High Growth Development Equity Fund (HGDEF), which would focus on making investments in startups with a high developmental effect.
With more than 50 fund products, more than 25 years of experience, and more than 100 employees, Futuregrowth is a top developmental investor and the eighth biggest asset management company in South Africa.
A variety of impact sectors, including infrastructure, social services, clean energy, agriculture, regional development, and more, are covered by Futuregrowth’s suite of developmental investment funds, which includes the Futuregrowth HGDEF.
The fund will coexist with the Futuregrowth Development Equities Fund (DEF), which has a 16-year history of making investments in unlisted developmental equity.
“Through the DEF, we have been investing in early-stage equity transactions for over nine years,” said Amrish Narrandes, head of private equity and venture capital at Futuregrowth.
“The new Futuregrowth High Growth Development Equity Fund aims to support South African entrepreneurs who push the boundaries with innovative technologies that change how we live. We believe that by backing South African startups, we can play our part in job creation and in growing our economy.”
The Futuregrowth HGDEF will seek to invest in a variety of investments, including early-stage or highly scalable businesses that offer new services or products, niche markets, or disruptive technologies in growth markets. It was born out of the DEF’s strong investment process and developmental focus. Futuregrowth intends to assist organizations with outstanding teams who require funding to expand. The Futuregrowth HGDEF will look for investment possibilities in early-stage private equity, venture capital, and other unique situations.
“We have been considering an early-stage equity fund for several years, watching the evolution of the South African market, considering South Africa’s strategic position for disruptive enterprises, and investing in several high-growth equity transactions, and we believe the time is right for a risk-seeking offering,” said Andrew Canter, a chief investment officer of Futuregrowth.
