Grindstone launches R500 million fund to target Africa's 'missing middle' startups
Grindstone Ventures partnered with Knife Capital and Thinkroom to create a R500 million venture capital vehicle focusing on African tech companies between seed and Series A stages. The fund aims to bridge the financing gap for businesses that have proven commercial traction but remain too small for major institutional investors.
Grindstone Ventures has established a R500 million venture capital fund dedicated to technology-enabled African businesses transitioning from seed to Series A rounds. Led by chief executive Thandiwe Maqetuka and created jointly with Knife Capital and Thinkroom, the vehicle currently targets an initial close of R150 million. The strategy prioritizes 15 to 20 companies primarily located in South Africa, with selective investments possible across the continent. Grindstone identified this specific growth phase as a critical weakness in Africa's venture capital pipeline, noting many promising firms fail to secure necessary capital for scaling revenue and governance before reaching larger institutional thresholds. Maqetuka described this demographic as the continent's missing middle. The fund plans to offer follow-on financing to stronger performers while helping founders build organizations capable of attracting further investment and generating realizable returns.
