Two years after its last funding from South African VC firm, Knife Capital, Cape Town-based startup DataProphet has secured $6 million in Series-A funding round from the same investor, to enable it expand its operational footprint internationally as well as build more strategic partnership across geographies and industry verticals.
“South Africa will remain our engineering and operational hub as we have access to great talent. DataProphet however, is an international business, with hubs located around the world. This funding will enable DataProphet to develop locally located sales and support for customers and partners across the world,’’ says Frans Cronje, CEO and Co-founder of DataProphet.
Here Is What You Need To Know
- This round of funding was led by Knife Capital, previous investor in the startup which is now following on, with the Industrial Development Corporation of South Africa (IDC) and Norican Group, a leading foundry engineering and equipment company, participating.
- The startup raised an undisclosed amount of funding from Knife Capital in 2018; including a previous investment from private investment group Yellowwoods.
- DataProphet has been in the news lately, including being crowned at the World Economic Forum as a Technology Pioneer in 2019, and being listed as 1 of the Top 100 AI Startups globally by CBSInsights, a market intelligence platform analyzes millions of data points to give real-time information on startups and VC firms.
Why The Investors Invested
On why the investment went to DataProphet, Christo Fourie, Head of New Industries at the IDC, says:
“At the core of the future state of Industry 4.0 is the capacity to collect, process, and use data to improve the speed and quality of operational decision-making. Combining the AI capabilities of DataProphet with the vast number of manufacturers the IDC has funded and the access to, could fast-track the company’s growth while also extracting efficiencies from within our current investment portfolio.”
On why Knife Capital invested, Andread Bohmert, Knife Capital’s Managing Partner says:
“We are excited to continue to support DataProphet in this funding round. Since our initial investment in 2018, DataProphet has emerged as a global thought leader in its field and as such is a prime example of the kind of cutting edge technologies South African entrepreneurs are capable of developing with global relevance in a fast-growing market. The expansion capital allows DataProphet to prove out their offering on a global stage,”
Knife Capital invests via a consortium of funding partnerships, including South African Revenue Service Section 12J venture capital company KNF Ventures and select family offices.
Read also: South African Startups Get Newest VC Fund In Town — Grindstone Ventures. How To Apply
A Look At What DataProphet Does
Founded in 2014, by the trio of Daniel Schwartzkopff, Frans Cronje, Richard Craib, Cape Town-based DataProphet uses machine learning and artificial intelligence tools to help manufacturers improve yields through intelligent automation and more dynamic control methods. Their AI-as-a-service. DataProphet PRESCRIBE, proactively prescribes changes to plant control plans to continuously optimise production without the expert human analysis that is typically required.
“Supporting manufacturers on their journey to augment the plant operators with clear, holistic instruction from their data without building increased dependence on limited experts is a strategic rationale that has been reinforced by the effects of COVID-19. Through the application of our technology, each and every one of our clients has reduced non-quality products by more than 50%,’’ Cronje says.
Earlier in 2020, a partnership between Norican and DataProphet was announced to accelerate the adoption of AI in the foundry industry. The partnership followed a number of joint innovation projects carried out with Norican brand DISA, one of the leading suppliers of green sand foundry technology.
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