Kalon Venture Partners, a digital technology venture capital firm based in South Africa, has successfully concluded its final Section 12J capital raise, with assets under management totaling over a quarter of a billion rand. Kalon’s first fund, which launched in 2016, invested in nine disruptive technology businesses, and its second fund, which launched in 2017, invested in seven of them. Kalon is now looking for South African entrepreneurs who can help it deploy its cash reserves.
“The Section 12 J initiative enabled South African investors to participate in the exciting venture capital asset class. The Section 12 J initiative was born in 2009 to raise capital to assist early-stage entrepreneurs to grow their businesses,” CEO Clive Butkow said.
“During the last few years, there have been many accusations of the initiative being abused by certain fund managers”. Butkow noted on the premature ending of the Section 12 J sunset clause, “it was short-sighted and I believe the government through the baby out with the bathwater rather than extending the legitimate 12 J’s”.
Kalon’s investments have already resulted in the creation of over 200 employment.
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What Kalon Venture Partners Offers
Kalon invests in South African entrepreneurs with breakthrough technological solutions and helps them scale their businesses both locally and globally. Kalon’s senior and non-executive teams have extensive expertise creating and scaling 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 noted.
In South Africa, there are a few seasoned tech venture capital (VC) firms. Kalon Venture Partners provides more than just finance; it also provides mentorship, relationships, and assistance.
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“Great VCs understand that investing in companies marks the beginning of the journey and not the end of the process”, Butkow said.
Clive issues a caution before granting access to Kalon’s abilities.
“We look for the best entrepreneurs and teams, the technology we invest in must have a competitive edge that are 10 X better, faster, cheaper than their competitors. Kalon also look for businesses that display good traction with a large addressable market.”
Kalon’s criteria ensure that they exclusively invest in the greatest technology firms in South Africa.
Kalon Venture Partners Kalon Venture Partners
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer