Conducive Capital, a South African venture capital firm, has announced the launch of a new $50 million fund dedicated to investing in early and growth-stage startups across South Africa and the wider African continent.
Co-founded by Clive Butkow, the former CEO of Kalon Venture Partners, and Mitchan Adams, co-founder of the South African fintech enterprise Ozow, Conducive Capital is setting its sights on its initial close of $15 million by July 2024, with an ambitious goal of reaching the $50 million mark within the following 24 months.
The fund’s investment strategy focuses on startups featuring disruptive technologies that are already generating revenue, demonstrate capital efficiency, possess strong unit economics and product-market fit, and have the potential to scale their operations both locally and internationally.
Butkow emphasized the acute need for quality capital to bolster emerging businesses in South Africa, highlighting the fund’s connections to networks that can facilitate access to international ecosystems, mentors, and both local and international investors for subsequent financing rounds.
Clive has been clear from the start: part of our raison d’être is to impart knowledge and hand over the reins to the upcoming generation.
Mitchan Adams, co-founder of tConducive Capital.
A key objective for Conducive Capital is to enhance diversity within the early and growth-stage investment landscape, particularly by fostering the development of the next generation of black female venture capitalists.
Adams underscored the importance of increasing the presence of women, especially black women, in the venture capital sector, noting, “Clive has been clear from the start: part of our raison d’être is to impart knowledge and hand over the reins to the upcoming generation.”
With Kalon Venture Partners recognized for its disruptive role in the digital venture capital space and Ozow as an innovator in the payment industry, the founders bring a wealth of business acumen and technological expertise to Conducive Capital. Adams further elaborated that their approach extends beyond mere financial investments, pledging to provide comprehensive support through strategic advice, operational insights, and mentorship to help startups flourish into leading forces within their respective industries.
