Innovation Fund: First Time and Emerging Fund Managers (South Africa)

Purpose and Objectives

• The Fund Manager will be required to establish and manage the VC Fund and will be responsible for investment and exit decisions. The VC Fund Manager will be responsible for: actively seeking other deals; fundraising; Establishing their investment committee, which must have TIA representative presenting deals to their investment committee; monitoring performance of approved investments; reporting; and supporting portfolio companies. The VC Manager must be willing to comply with all reporting, monitoring and evaluation requirements of investments.
• The Fund Manager’s constructure should address all sectors, however, priority will be given to sustainable energy, water security, climate resilience technologies, bioeconomy, health innovation, high-tech industrialisation, information, and communication technologies (ICTs) and smart systems.

Funding Information

• Funding towards investments to be held in a warehousing capacity prior to the first fund close. Such warehoused investments (in the name of TIA) will be repayable to TIA or invested into the Fund as a Seed investment at the sole  discretion of TIA.
  • Funding instrument: Equity or convertible equity instruments
  • Funding limit per application: R30m (towards maximum of three (3) investments of no more than R10m each)
  • Anticipated number of awards to be made: 5 Fund Managers
  • Exit horizon: 3 to 5 years.
• Funding towards working capital requirements during the period of fund raising however not later than first fund close.
  • Funding instrument: Grant
  • Funding limit per application: R9m (towards maximum of R3m per annum)
  • Anticipated number of awards to be made: 5 Fund Managers
  • Duration: 3 years.
• Mentorship and guidance to be provided by specialist skills in order to assist Fund Managers in the appropriate positioning and establishment of a venture capital fund.
  • Anticipated number of awards to be made: 5 Fund Managers
  • Duration: 3 to 5 years.

Eligibility Criteria

• A 51% black majority owned fund
• Preference to Female led or owned fund
• Have a registered or must be in the process of registering a Fund vehicle
• The fund manager must be domiciled in SA.
• Investments can only be in SA
• Organised under the Law of South Africa and
• Headquarters in South Africa
• Individual applicants must be South African citizens with valid identity documents.
• In the case of legal entities:
  • Must be registered or in the process of registering with the Companies and Intellectual Properties Commission.
  • Must be registered or in the process of registering on the National Treasury’s Central Supplier Database.

Assessment Criteria

• Applications will be assessed against the following:
  • Alignment with government’s socio-economic objectives
  • Transformation e.g. composition of team (diversity) and gender.
  • Existing fundable pipeline
  • Deal origination strategy
  • Track record of individual team members in early-stage companies.
  • Capacity and capability to support the investees companies to become commercially viable entities
  • Local and/or international networks and connections.
  • FAIS compliance strategy and approach
  • Team track record, experience and expertise.
  • Corporate governance, compliance, accounting and reporting knowledge and experience
  • Feedback from potential partners engaged with in respect of fund-raising efforts
  • Working capital requirements (at detailed level)
  • Funding model (for both fund manager and fund)
  • Applicants must declare all sources of previous funding received from both the private and/or public sectors towards support in the establishment of their fund.
  • All activities and domicilium must be within South Africa
  • Applicants must attend a compulsory briefing session.

For more information, visit TIA.