MIC invests $10mn into African innovation companies

The Mineworkers Investment Company (MIC) has committed $10 million to venture capital firm Knife Capital for their new African series expansion fund. This fund is aimed at investing in the aggressive expansion of African innovation-driven companies, filling a critical funding gap in the venture capital sector. In an exclusive conversation with CNBC Africa, Nchaupe Khaole, Chief Investment Officer at the Mineworkers Investment Company, shed light on why they are targeting these companies and the impact they aim to make. Kaolei explained that investing in these breakout companies allows the MIC to diversify its portfolio, gain exposure to high-growth and innovative businesses, and address the funding shortage in the Series B funding round. He highlighted how Knife Capital's offering in this sector drew them in, positioning them as pioneers in supporting South African companies looking for expansion capital. Series B funding round, according to Kaolei, is crucial for companies that have outgrown early-stage funding and require growth equity to scale further. He noted a gap in this stage within South Africa, leading MIC to support local companies that previously had to seek international funding. The fund size is $50 million, with investment ticket sizes ranging between $3 million to $10 million. Kaolei mentioned that the fund will target sectors like software as a service, business-to-business activities, health tech, renewable energy, and themes like circular economy and cryptocurrency. The fund's chosen sectors reflect the current trends and needs in the market, aligning with MIC's investment and return objectives. Kaolei expressed openness to potential pitches, reiterating that they are investors in the fund, while a fund manager handles day-to-day operations. He emphasized that the themes and strategies pursued by Knife Capital resonate with MIC's objectives, leading to their support. Addressing the audience's interest, Kaolei shared that those seeking more information about the Knife Capital fund can find contact details on the MIC website, www.mic.co.za. While MIC's direct focus is on South African companies with African or global expansion plans, they remain open to exploring new opportunities within their investment range of 200 million to 250 million South African Rand. As the conversation concluded, Kaolei encouraged potential partners to reach out, welcoming discussions on how to collaborate towards mutual return objectives. The MIC's commitment to supporting African innovation shines through their strategic investments, signaling a positive outlook for growth and development in the region.