TechInAfrica – A private investment company, Ethos has announced its AI Fund called Ethos AI Fund I just a few days ago. The firm is seeking out South African companies that utilize Artificial Intelligence (AI) into their businesses.
Ethos is seeking out more investors to meet its targeted amount of R1 billion and currently has collected R600 million from Ethos Capital and Standard Bank. Moreover, it has also collected the fund from two former insurance industry CEOs, Nic Kohler, and Roger Grobler.
The CEO of Ethos, Stuart MacKenzie commented on the collected fund from its partners, “As part of Ethos‘ ongoing evolution into alternative assets, we are delighted to launch the AI Fund, in partnership with Nic and Roger,”
“This fund will co-invest alongside other Ethos-managed funds, originate proprietary investments, and is expected to generate differentiated value for our investors by helping our portfolio companies to navigate and benefit from artificial intelligence,” MacKenzie added.
Meanwhile, the Ethos AI Fund partner, Roger Grobler said, “For both Nic and I, this fund is the culmination of over two decades of working in data-driven businesses, and leverages the entrepreneurial blood, sweat, and tears that come from starting and managing businesses in South Africa, Australia, and India. We have seen first-hand the immense value of algorithmic decision-making.”
According to Grobler, the AI Fund is meant to support business players who utilize AI that brings advantages, including algorithmic decision-making.
Grobler explained, “As these decisions are not ideally suited to human capabilities, typically due to computational complexity and volume of data utilized, the use of algorithms releases intellectual capacity, allowing people to focus on other rewarding areas of work, such as creativity, relationships, strategy or communication.”
Speaking about his investment on Ethos AI Fund with Grobler, Kohler said, With R600 million in first close commitments, we have already successfully concluded two investments: Channel VAS in the fintech sector, and Vertice, an Ethos-established medtech group,”
“Channel VAS already deploys industry-leading algorithmic decision-making, and we will assist them to diversify and expand their product offering. Vertice seeks to disrupt the medtech value chain by leveraging AI to enable smarter decision-making.”