TechInAfrica – The founder of Kingson Capital, Gavin Reardon, announced that his organization is targeting to invest R400m in black-owned tech startup companies in South Africa. He explained that the rise of startups in Africa keeps increasing, but many of them facing the financial challenge that forces some of them to fail at last.
Financial support is one of the main elements for a long-term business sustainability. Therefore, Kingson Capital launched a new high-growth tech and black-owned SME Fund in order to support these startups that lack of financial support.
Kingson Capital was founded in 2015 by Gavin Reardon. He has ran the SME Fund with his two partners and some of back-office staff. Kingson Capital also provides an advisory board and investment committees who consist of experienced business owners and industry experts.
Reardon said that the fund brings benefits for both sides, investors and startups.
“Investors get risk-adjusted returns, the benefit of Section12J, and in our fund two, the investees get access to capital and the benefit of being venture capital-backed, including mentorship and access to our networks and broad business experience.”
In terms of the sector of startups they prioritize most, Reardon explained, “We invest in start-ups across the fintech, insurtech and healthtech space and principally look for data-driven, market-oriented businesses. We look for entrepreneurs who have big dreams and ambitions, who want to change the world, and are not content with the status quo.”
He continued, “Most often these people are resilient and adaptable to business needs. While we invest across all stages, we preferably look for serial entrepreneurs who have started and run businesses before, even if they weren’t successful. We prefer co-founders, as two people bring different skills and strengths and the weight is not on one person’s shoulders when the going gets tough, as it often does in the start-up world.”
The main purpose of the fund is to bring long-term success and growth for SME black-owned startups that later are selected to receive the fund.
“The socio-economic and financial benefits of the fund are exponential, giving the SME growth potential towards sustainable profitability that can cement job creation and youth employment,” Reardon said.