South Africa’s technology solutions firm Ayo has raised the bar in efforts aimed at encouraging techie startups across Africa with the launching of a $12.7 million (R200 Million) fund to bridge the skills and innovative gap in Africa. The Johannesburg Stock Exchange listed Ayo Technology Solutions which currently is at the center of a controversy around a $274 million (R4.3-billion) transaction from South Africa’s Public Investment Corporation (PIC), made the announcement before the weekend insisting that there is nothing untoward about the PIC transaction.
The fund which it dubbed Technology Innovation Fund was announced by Ayo’s Chairman Wallace Mgoqi and Ayo Technology and Innovation Fund’s head of talent Snow Mokgalabone who maintained that the Fund would be an annual amount and that it would be allocated to qualifying companies, organizations and entrepreneurs to help scale their businesses. Ayo’s Technology Innovation Fund would have R200m to annually invest in equity stakes in startups. The Fund will make equity investments in those businesses it identifies for funding.
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The fund which it dubbed Technology Innovation Fund was announced by Ayo’s Chairman Wallace Mgoqi and Ayo Technology and Innovation Fund’s head of talent Snow Mokgalabone who maintained that the Fund would be an annual amount and that it would be allocated to qualifying companies, organisations and entrepreneurs to help scale their businesses. Ayo’s Technology Innovation Fund would have R200m to annually invest in equity stakes in startups. The Fund will make equity investments in those businesses it identifies for funding.
Ayo said in the earlier statement that half of the fund would be allocated to SA companies of which, 50% will be geared to specifically supporting black-owned startups. The remaining half will go to help grow companies founded and operated on the African continent beyond South Africa’s borders. Ayo also stressed that the fund is aimed at second round funding opportunities for companies that have a proof of concept and that are ready to scale.
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It said applications would be accepted by its website from today, adding that strict criteria and appropriate due diligence measures would be followed in assessing applications. It said Ayo will also use its stable of companies to offer beneficiaries a variety of opportunities for self and business acceleration, through access to professionals, services, and marketplaces within the Group. “Investee companies will also be in a position to offer their own skills and support to companies within the greater Ayo group,” it said.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry