Kalon Venture Partners, a South African venture capital firm, is planning to launch a $50 million fund to invest in African startups beyond South Africa.
Founded in 2016, Kalon invests in post-revenue startups that have the potential for high growth and impact. To date, the firm has backed 11 South African tech companies, including cybersecurity startup Sendmarc and payment company Ozow.
Kalon's previous fund, which was closed in 2021, was worth ZAR250 million ($17.5 million). However, with the abolishment of the Section 12J tax incentive for South African taxpayers to invest in local companies, the firm is now looking to raise the new Africa-focused fund from institutional investors.
The expansion to other African countries presents both challenges and opportunities, according to CEO Clive Butkow. He noted that differences in culture, the way people buy, and the ideal customer profile will require a product-market fit. The firm is planning to hire individuals in the countries they plan to invest in to ensure they have a presence and understanding of local markets.
The move comes as the African continent continues to experience growth in its tech ecosystem, with more investors seeking to participate in the region's burgeoning startup scene.