South African VC Firm Knife Capital Secures 2nd Close Of $50m African Expansion Fund

Knife Capital, a South African venture capital investment firm that accelerates the international expansion of African innovation-driven businesses, has secured a $50 million African series B expansion fund.

Major South African Bank Standard Bank and the SA SME recently joined other investors, such as Mineworkers Investment Company, IFC, international development funders, and prominent family offices, to enable Knife Capital to complete the second close of its new $50 million African Series B expansion fund, Knife Fund III.

This round brings provisional commitments to just over $40 million and Knife Capital is finalizing the due diligence and legal process of a few remaining funders to close out on the $50 million target raise. 

With the fund raised, Knife Capital aims to invest in the expansion of African innovation-driven companies and fill a critical follow-on funding gap.

Executive Equity Finance and Investments at Standard Bank Corporate and Investment Banking Akash Maharaj, Speaking on the commitment, stated that the bank believes in the positive impact that investment into early-stage, high-growth businesses can have on innovation, job creation, and economic development of South Africa.

 His words, “We have partnered with a number of the leading investors in this space and are excited to add Knife Capital to our venture capital portfolio.

“With Standard Bank’s expansive African footprint, our suite of bespoke banking products, and extensive client base, we can facilitate the growth journey of businesses that scale internationally”.

Also commenting on Knife’s Capital recent funds raised, SA SME Fund CEO Ketso Gordhan said: “We nurture South Africa’s vast entrepreneurial spirit through long-term partnerships and are delighted to follow on into Fund III to continue supporting Knife Capital.”

Founded in 2010, Knife Capital started as the incarnation of the South African venture capital division of ‘Here Be Dragons’, a privately owned emerging market investment group.

The venture capital investment firm provides market access and accelerates invested traction by leveraging a dynamic partner network to provide solutions to the myriad of problems confronting sub-Saharan high-growth businesses.