Grindstone launches R500 million VC fund for African startups

Grindstone Ventures established a R500 million venture capital fund alongside Knife Capital and Thinkroom to support technology-enabled African businesses. The group led by Thandiwe Maqetuka aims to fill a specific gap in funding between early commercial traction and the larger rounds required for expansion. The target initial close is set at R150 million, with plans to invest in 15 to 20 companies primarily based in South Africa. The firm identified the transition from seed to Series A financing as the weakest point in the continent's pipeline where promising firms struggle to secure capital. Maqetuka described this gap as Africa's missing middle and noted that many businesses cannot attract major institutional investors because they are too small or immature. The fund intends to back companies that have already demonstrated commercial demand but remain insufficiently mature for larger backers. Beyond providing capital, the strategy aims to help founders build organizations capable of attracting institutional funding and generating realizable returns.