Knife Capital, a Cape Town-based growth equity fund manager focusing on technology, plans to invest in what it calls “disruptive innovators” – businesses that are doing things differently and that capture the entrepreneurial spirit – according to a report in HumanIPO.com.
The new start-up accelerator, named Grindstone, claims to be the first of its kind in South Africa and will focus on strengthening management skills and support structures of CEOs to make their businesses more viable and increase their investment potential, the report said.
The fund manager hopes to attract foreign investors.
Tech-based companies “that already have market traction and are generating revenue” are asked to apply for a nine-month program. They must have what the fund manager calls “success story” potential. Ten will qualify.
Businesses fail to thrive, not because they’re bad at what they do, but because they neglect areas outside their comfort zone such as HR management, finances, compliance or sales and marketing, said Knife Capital Director Andrea Böhmert, who is heading up the Grindstone program. “Usually they are very good in their core business but (neglecting other) areas…can inhibit growth and, in some cases, cause a company to fail.”
Knife Capital will make long-term investments in some of the qualifying companies and take a commission from external investment generated through the Grindstone program.