A new venture capital fund that blends investing and entrepreneurship hopes to improve diversity in the early-stage and growth-stage investing industry, and develop the next generation of Black women venture capitalists.
Conducive Capital aims to use a $50 million (about R1 billion) venture capital fund to shape the future of technology by investing in technology startups in South Africa and Africa.
The majority-Black-owned company plans to invest in disruptive early- and growth-stage technologies that have “beyond revenue, capital efficiency, good unit economics with product market fit,” and has the potential to scale its business domestically and globally.
The company's founding partners are Clive Butko, founder and former CEO of Kalon Venture Partner, and Michan Adams, co-founder of Ozow, a leading South African fintech company, and current CEO of Aions. Prior to Clive's role at Kalon, he was Chief Operating Officer at Accenture South Africa. Putko and Adams have collectively invested more than R300 million in early-stage funding, with an IRR of more than 30% over the past seven years.
Clive Butko, founder and former CEO of Kalon Venture Partner, and Michan Adams, co-founder of Ozow.
“There is strong demand for high-quality capital to support emerging businesses in South Africa, with capital being deployed at early stage and growth stage,” says Butko. “We are connected to networks that can open doors for international green players and mentors, as well as local and global investors to pursue funding.”
The fund aims to raise its first close in July 2024 at US$15 million (about R300 million) with a targeted final close of $50 million (about R1 billion) within 24 months.
The fund seeks to improve diversity in the early- and growth-stage investing industry as well as develop the next generation of Black women venture capitalists. “We need women in this field in particular,” Adams says. “And black women — there's not enough. Clive has been clear from the beginning: part of our raison d'être is to share knowledge and pass the baton on to the next generation.
Kalon Venture Partners is known for its disruptive influence in the digital venture capital space, and Ozow is a pioneer in the payments industry.
“This means we bring business acumen and technical knowledge to the equation,” says Adams. “We go beyond just cash investments. Along with funding, Conducive Capital pledges to provide comprehensive support and provide strategic guidance, operational expertise and mentorship to nurture startups, facilitating their growth into industry leaders.
Butko has nearly 40 years of experience building technology companies and calls Conducive Capital “the entrepreneurs behind the entrepreneurs.” Putko believes their operational experience in building technology startups gives them an advantage over the competition in South Africa.
“Enabling capital is not just an investment; it is a partnership in growth and innovation – and it is designed to transform,” says Butko. “We have identified a number of key industries and technologies that we believe are building the foundation to enable businesses and individuals in South Africa and Africa, to find meaningful and sustainable solutions. Improving the lives of millions.”
