SA VC Firm Kalon Raises $17.5m to Invest in Startups and SMEs
Kalon Venture Partners, a South African venture capital firm, has concluded its final Section 12 J capital fundraising, with assets under management totalling over ZAR250 million (US$17.5 million).
Founded in 2016, Kalon Venture Partners is a major South African venture capital firm that works under the Section 12J initiative, which provided tax benefits to investors in registered funds until recently.
The business backs post-revenue start-ups with significant growth and impact potential, and has funded nine revolutionary South African technology firms to far.
The Section 12J scheme, so-called because it was part of Section 12J of the Income Tax Act, was introduced in 2008 to encourage investments in startups and SMEs, riskier investments that nonetheless could help to create jobs and stimulate economic growth.
South Africa’s Treasury stated in February that it will be disbanded as of June 30 since it had failed to meet its aims, with much of this money being used to invest in property rather than job-creating enterprises. Kalon was able to close up a ZAR250 million war chest ahead of the initiative’s termination, although CEO Clive Butkow was critical of the choice to discontinue it.
“It was shortsighted and I believe the government threw the baby out with the bath water rather than extending the legitimate 12Js,” he said.
Kalon invests in South African entrepreneurs with unique technological solutions and helps them scale their businesses both locally and globally. Kalon’s senior and non-executive teams have extensive expertise developing and expanding global enterprises.
“Having been involved in building many technology businesses, we provide more than financial capital but operational skills in helping scale the businesses. We are the operators behind the entrepreneurs and our “High Touch” approach is what many entrepreneurs are looking for to scale their businesses,” Butkow said.
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