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Knife Capital Backs South African Edtech Startup, d6 Group, In Latest Funding Round

October 13, 2021

Knife Capital, Hlayisani Growth Fund Stellenbosch, and NuState Ventures have invested an undisclosed amount in Gauteng-based edtech company d6 Group. The cloud-based management and communication platform is reputedly the most frequently used in Africa, and the company intends to use the secured funding to expand its services and company internationally. Furthermore, the funds will be used to enhance product development.

“We are extremely excited about our new investors because of their proven track record and ability to support tech businesses to scale internationally. We have a strong market footprint and technology foundation and with this new strategic investment support, we are now able to pursue our local, as well as international growth aspirations,” Willem Kitshoff, CEO of the EdTech company d6 Group said.

Why The Investors Invested

“Alignment of shareholder interest behind a motivated entrepreneurial team is a critical strategic building block for creating value and Knife Capital is delighted to partner with these credible investors. We liked that d6 wasn’t dependent on the investment from a cash flow runway perspective, but the funds will enable them to scale more rapidly. This is a high-growth business with an amazing product, recurring revenue and a huge addressable market,” Keet van Zyl, the co-founder of Knife Capital said.

According to reports, Knife Capital, Hlayisani, and NuState will be the majority shareholders as a result of the investment.

A Look At What d6 Group Does

d6 Group, which has offices in Gauteng and Pretoria, was founded in 2010 to provide an all-in-one cutting-edge platform for educational institutions to manage all of their operations and conduct complete communication between schools, parents, and students.

Payment facilitation options are included, as well as a fully integrated cloud-based school administration, curriculum, and finance system. Over 2800 schools are currently using the platform.

“The d6 mobile application enables around one million parents to stay up to date with school-related matters. Gone are the days of a one-size-fits-all approach. The chat apps typically used within friendship groups don’t provide for the sophistication and security required for a school environment,” adds Kitshoff.

d6 Group funding d6 Group funding

Knife Capital Invests In South African Industry 4.0 Solution, Stone Three

Knife Capital Invests In South African Industry 4.0 Solution, Stone Three

October 5, 2021

Industry 4.0 solution company Stone Three has raised undisclosed expansion funding from venture capital (VC) firm Knife Capital.

“Actionable insights and sustainable business value from data help fuel the fourth industrial revolution, and Stone Three partners with the firms that built the world of today to create the future of work by leveraging the benefits buried in their industrial data,” said Derick Moolman, Stone Three CEO.

“My former partners and I were fortunate to work closely with the Knife Capital founders in a previous successful venture and I’m excited to have this funder of choice alongside us in Stone Three’s growth journey,” he added.

Business solutions for Industry 4.0 Knife Capital, a venture capital firm, has provided Stone Three with undisclosed expansion funds.

Why Knife Capital Invested

The VC firm notes that the company has been self-funded to date by operations and shareholders, but Knife Funding provided expansion capital this week to help the company improve its enterprise product offerings and accelerate growth by putting the future of work into practice.

CSense Systems, which Moolman co-founded, received money from Mark Shuttleworth’s “Here-Be-Dragons” venture capital fund, which is managed by Knife Capital.

CSense was a process analytics start-up that created software solutions for industrial applications for rapid process diagnostics and process improvement.

CSense’s assets were purchased by GE Intelligent Platforms, a company based in the United States, in 2011.

“It is a tough challenge to successfully blend data analytics with invaluable human experience and institutional knowledge to achieve measurable results in increasing operational productivity,” Keet van Zyl, partner and co-founder at Knife Capital, said.

“Through our previous successful venture capital exit with Derick and CSense, we built a trust relationship and knowing the technology development capability of the Stone Three team, we are excited to be an investor here. We look forward to adding value in their continued growth journey.”

A Look At What Stone Three Does

Based in Cape Town Stone Three is an Industry 4.0 solution company that combines professional services with machine learning to solve problems, boost operational productivity, and make people safer, healthier, and happier.
It mentions software options that scale at the enterprise level, including powerful machine learning, video analytics, healthcare technologies, and deep domain knowledge, as well as AI-augmented digital productivity, health, and workplace safety.

Industry 4.0 Stone Three Industry 4.0 Stone Three

Egyptian Startup, Swvl, Inspires Three Well-Funded Startups Four Years After

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

African Startups Get Additional $10m Series B Fund From Knife Capital, Courtesy Of IFC

April 29, 2021

Good news for African startups looking to close Series B rounds of funding. Knife Capital, a venture capital company based in Cape Town, South Africa has announced that it is nearing the signing of a major Limited Partner for its third fund, which aims to raise $50 million to invest in South African technology startups. The latest addition to the company’s International Fund III is the International Finance Corporation (IFC) — the World Bank’s private-sector investment arm — which will invest up to $10 million in the fund.

Here Is What You Need To Know

The fund will assist Knife Capital in investing in technology companies with strong intellectual property and potential for pan-African and global expansion in sectors including platform businesses, applications, tech-enabled business services and fintech.

With the fund, the company is targeting Series B rounds of funding primarily in South Africa because, according to it, there is a looming funding crunch for the crop of startups that manage to get over the Series A funding hump and then require significant risk funding for aggressive growth and scaling.

A US dollar-denominated limited partnership in Jersey and a South African rand-denominated limited partnership in South Africa make up the fund’s major funding vehicles. Both vehicles will invest in portfolio companies together.

Keet van Zyl, Andrea Bohmert, Eben van Heerden, Bob Skinstad, and Davey Gant will oversee the new fund.

IFC’s pledge comes only two months after Mineworkers Investment Company (MIC) made a $10 million commitment to Knife Fund III, establishing MIC as an anchor LP alongside other local and foreign investors.

MIC is a holding firm for investments. The Mineworkers Investment Trust formed it to provide funding for the Trust’s social and educational projects. It makes investments in a variety of industries, including financial services, wellness, recreation, business services, industrials, and media.

A Look At The Venture Capital Firm Knife Capital

Knife Capital operates KNF Ventures I and II’s Section 12J venture capital assets, as well as selected family office portfolios. The aim of Knife Fund III is to raise $50 million to be well placed to directly invest in South African breakout companies’ ambitious expansion and co-invest in companies across the rest of Africa with other reputable funders. Scalable business-to-business technology companies with lucrative exit opportunities would be the target.

Knife Capital is headquartered in Cape Town, with offices in London and Jersey.

Mark Shuttleworth’s HBD Venture Capital Fund was previously run to a profitable exit and closure.

In 2010, the company raised its first investment.

It also launched its Grindstone Accelerator program three years later to cultivate a pool of technology-enabled small and medium-sized businesses.

The company followed up with a second fund in 2016.

It, again, launched the Draper-Gain Family Office as a strategic investor a year later, and expanded to the UK to help portfolio companies develop internationally.

The company launched an extension fund to its second fund last year. This year, it opened its third venture capital fund.

Knife Capital Series B startups Knife Capital Series B startups

A List Of Over 500 Active Startup Investors In Africa In The Last 5 Years

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

South Africa’s Knife Capital Lands $10m From MIC To Fund African Series B Expansion

February 11, 2021

Startups in Africa looking for Series B funding now have additional fund to pitch. Black-owned investment company the Mineworkers Investment Company (MIC) has committed $10-million to venture capital firm Knife Capital’s new African Series B expansion fund − Knife Fund III.

MIC CIO Nchaupe Khaole — *MIC CIO* **Nchaupe Khaole**

“The move to change the way local institutional investors approach venture capital investment has been in the pipeline at MIC for a number of years now. Our venturing into the earlier-stage alternative asset class space makes sense given the slow economic growth in the last three years.

“Our commitment brings to the table the investment, along with many of our strengths as an experienced player. One of which is our ability to influence the companies within our portfolio to partner with us and effect real, tangible change to the South African economy. We are delighted to be a key catalyst in the success of this funding round,” MIC CIO Nchaupe Khaole said.

Here Is What You Need To Know

The fund will assist Knife Capital in investing in the aggressive expansion of African innovation-driven companies as well as fill critical funding gaps.

The company is targeting Series B rounds of funding because, according to it, there is a looming funding crunch for the crop of startups that manage to get over the Series A funding hump and then require significant risk funding for aggressive growth and scaling.

“Successful entrepreneurs on the continent with world-beating innovations are simply under-funded to compete on the global stage. Therefore, while investments and investors are increasing globally, measured in terms of innovation potential, Africa remains under-capitalised,” the company explains.

MIC further notes that the latest commitment will position it as an anchor investor of the fund, alongside other local and international investors.

A Look At The Venture Capital Firm Knife Capital

Knife Capital operates KNF Ventures I and II’s Section 12J venture capital assets, as well as selected family office portfolios. The aim of Knife Fund III is to raise $50 million to be well placed to directly invest in South African breakout companies’ ambitious expansion and co-invest in companies across the rest of Africa with other reputable funders. Scalable business-to-business technology companies with lucrative exit opportunities would be the target.

Knife Capital is now rolling out Knife Fund III to resolve the crucial funding gap in Series B that has defined South Africa’s venture capital asset class, contributing to companies not achieving their full potential or exiting too early. The fund consists of two primary financing vehicles: Jersey’s dollar-denominated limited partnership and South Africa’s rand-denominated limited partnership, which will co-invest in portfolio companies alongside each other.

The MIC invests investing in the rand-denominated relationship.

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

Knife Capital Series B African startups Knife Capital Series B African startups

South African Startups Get Newest VC Fund In Town — Grindstone Ventures. How To Apply

August 4, 2020

South Africa looks to consolidate its lead on the number of VC funds present in the country and in Africa, at large. Cape Town and Johannesburg based business accelerator, Grindstone has launched a new Venture Capital Fund, Grindstone Ventures, dedicated to providing early-stage equity funding to its cohorts of companies and alumni. By far, this is certainly going to increase the number of funds available to local startups at a time when the coronavirus has held off North American, European and Asian investors who accounted for more than 80% of all VC funds in Africa between 2014 and 2019.

“Linking a funding vehicle to our Accelerator model complements the Knife Capital value chain approach where companies can be de-risked before raising follow-on capital from our Series A and later-stage funds. The Grindstone Programme is essentially a thorough due diligence exercise to identify the best opportunities — already narrowed down from hundreds of applications,” Andrea Bӧhmert, Partner at Knife Capital said.

What Needs Would Grindstone Ventures Meet?

Grindstone Ventures, which is part of Grindstone Accelerator will be open-ended, investing in all categories of early stage startups.
However, it should be noted that the fund will be made available to startups that have participated in the Grindstone Accelerator programme, meaning that Grindstone Accelerator will, for a long time, be backing startups with funds at the end of every Grindstone Accelerator programme, instead of only providing guidance and knowledge to startups.
The latest fund’s lowest investment ticket size is R5-million ($288k) and it targets scalable innovation-driven startups. The fund will most likely participate in investments alongside other Angel Investors and Corporate VCs which may therefore see it increase its investment size.
The fund will not stop at only investing. It will also assist startups in their growth efforts, and management if necessary; as well as provide a network where entrepreneurs within its cohorts can benefit from among themselves or even mentorship and guidance by established business leaders.

“A few of our past Grindstone entrepreneurs have subsequently exited their businesses and became VC Investors with Knife Capital. We are now starting to teach our investee companies to think like investors early on — because we back them to succeed,” says Böhmert.

Nevertheless, given that startups that participate in the Accelerator programme are now given funds (lowest $288k) at the end of the programme, the criteria for selection to the accelerator may be stiffened.
However, the quality of previous participants in the accelerator has never been in doubt. Companies which have previously been through Grindstone Accelerator are relatively performing well and have raised funding, including radar startup iKubu; augmented reality animation & gaming company SeaMonster; online payment gateway Payfast; financial inclusion business Picsa; geospatial data analytics company Locstatand on-demand grocery delivery service OneCart. Knife Capital invested in ticketing solutions provider Quicket and warehouse management software company Granite via its SARS Section 12J Venture Capital Company: KNF Ventures.

What Does Grindstone Accelerator Do And How Can Startups Participate In The Program?

Grindstone Accelerator is a structured entrepreneurship development programme that is jointly owned by leading venture capital fund manager Knife Capital and market access specialist Thinkroom Consulting.
The programme assists South African SMEs with proven traction through an intensive year-long review of their strategies and provides them with the necessary support to build a foundation for growth to become investable, sustainable and exit-ready.
During the programme, key growth gaps are identified and addressed which can open up early-stage funding opportunities in order for these startups to accelerate market access.
Keet van Zyl, Partner at Knife Capital says the first Grindstone Ventures investments are imminent.

“The initial capital contributions are from Knife Capital, Thinkroom and our programme partners, but encouragingly, past Grindstone cohort entrepreneurs are coming on board and respected Angel Investors in the SA startup ecosystem are looking to invest. We already identified the first investment opportunities.”

The new Grindstone Accelerator cohorts 6 and 7 of ten companies each in Cape Town and Johannesburg are currently being finalised and will be announced soon.

To be eligible to join Grindstone, the company needs to be:

A South African registered company
Post-revenue with some customer traction
A dynamic team of awesome people
Innovative business offering with a clear competitive differentiaton.
Scalable business model’

Interested South African startups can always check this link for when the next edition of the cohort will open; or contact the company for more information through: www.knifecap.com or follow them on Twitter: @KnifeCap @GrindstoneXL @KNF_VC

Does This Stop Knife Capital From Investing In Other Companies Outside The Grindstone Accelerator?

Aside co-hosting the accelerator program, Knife Capital is also a later stage VC investing in startups outside its accelerator cohorts. The VC had, last year, made later stage investments in Snapplify, a Cape Town-based content and media technology solutions provider which focuses on distribution and mobile publishing. It is noteworthy that Knife Capital was not part of the startup’s seed financing.

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