Standard Bank, SA SME Fund commit to 2nd closing of Knife Capital’s $50 M African growth fund

Standard Bank and the SA SME Fund have joined other investors in supporting the new US $50 million African Series B expansion fund Knife Fund III, which has passed its second close, from the South African venture capital company Knife Capital.

Knife Capital is a venture capital and growth equity investment firm with a focus on traction-proven, innovation-driven businesses. Knife Fund III aims to close a crucial financial vacuum and support the growth of African businesses that are powered by innovation.

After the second close of Knife Fund III, the provisional commitments reached a little over US $40 million, and Knife Capital is wrapping up the legal and due diligence processes for a few more donors to reach the US $50 million goal raise.

With its pledge, Standard Bank Group, the largest bank in Africa in terms of assets, joins other domestic and foreign investors as a significant participants in the fund.

“Standard Bank believes in the positive impact that investment into early-stage high-growth businesses can have on innovation, job creation and economic development of South Africa. We have partnered with a number of the leading investors in this space and are excited to add Knife Capital to our venture capital portfolio. With Standard Bank’s expansive African footprint, our suite of bespoke banking products and extensive client base, we can facilitate the growth journey of businesses that scale internationally,” said Akash Maharaj, executive of equity finance and investments at Standard Bank Corporate and Investment Banking.

“We are very excited to gain not only a funder but also a growth partner for our portfolio companies in Standard Bank,” said Keet van Zyl, co-founder at Knife Capital. “With their infrastructure throughout the continent, they are already proving themselves to be a value-adding banking partner that has the funds and experience to responsibly deploy capital as well as the vision to influence positive change in African emerging markets.”

The IFC, Mineworkers Investment Company, the SA SME Fund, foreign development funders, and well-known family offices are a few other reliable financiers who have already committed.