South Africa’s Grindstone Ventures has launched a R500 million, approximately $31.2 million, venture capital fund targeting technology-driven African companies seeking to progress from Seed funding to Series A.
Led by Grindstone Ventures CEO Thandiwe Maqetuka, the fund was established in partnership with Knife Capital and Thinkroom. It is targeting an initial close of R150 million and plans to invest in between 15 and 20 companies, with most investments expected to go to South African businesses alongside selected opportunities in other parts of Africa.
The fund will focus on startups that have already demonstrated commercial potential but require additional capital and operational support to achieve the scale needed to attract larger institutional investors. Investments will cover the Seed to Series A stages, with additional follow-on funding available for stronger-performing portfolio companies.
Beyond providing capital, Grindstone Ventures plans to support founders in areas including strategy, governance, commercial growth, market access, fundraising and preparations for potential exits.
The firm’s broader ecosystem reportedly evaluates more than 1,000 businesses annually, while around 50 companies participate in its accelerator programmes each year.
The new fund follows Grindstone Ventures Fund I, which invested in seven companies. According to the firm, its latest fund will place greater emphasis on building businesses capable of generating investor returns through successful exits rather than relying solely on increasing valuations.
Grindstone also plans to expand access to venture capital for underrepresented entrepreneurs. The firm aims to have at least half of its portfolio made up of black-owned businesses, while also pursuing stronger gender representation among founders and leadership teams.
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