IFC invests in Knife Capital Fund III
To support growth in South Africa’s digital economy and increase access to financing for the country’s tech entrepreneurs, IFC has invested in Knife Fund III, a new fund managed by Cape Town-based venture capital firm Knife Capital.
IFC’s $10 million investment in Knife Fund III will provide financial support to tech startups in high-growth sectors in South Africa with strong potential for expansion across Africa and internationally, including enterprise technology, software, health-tech, and fintech.
Knife aims to raise $50 million for Fund III, which will primarily target investments in the series B (second round of funding) stage. Fund III follows Knife Fund II, which was launched in 2016, and Fund I, which was launched in 2010.
”We are excited to welcome IFC as an investor to our new Fund III and sincerely appreciate the endorsement that comes with the commitment,” said Andrea Bohmert, partner at Knife Capital. ”With the first close of Fund III, we are finally able to support entrepreneurs on the next stage of the scale-up journey and thereby address a significant gap that currently exists in the African entrepreneurial ecosystem.”
”Increasing access to venture capital promotes digital entrepreneurship and innovative tech solutions that enable better delivery of vital services such as healthcare, fintech, and logistics,” said Adamou Labara, IFC’s country manager for South Africa. ”By supporting funds such as Knife III, IFC can help more startups and digital entrepreneurs innovate and expand in South Africa and beyond.”
In South Africa, the level of fundraising volume is relatively high compared to the rest of sub-Saharan Africa, but most venture capital supports early-stage companies in the country, with limited funding available for Series B or later stages of investment.
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