South Africa’s Grindstone Ventures has launched a R500 million, approximately $31.2 million, venture capital fund targeting technology-driven African companies seeking to move 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 elsewhere in Africa.
The fund is focused on startups that have already demonstrated commercial potential but still require capital and operational support to reach the scale needed to attract larger institutional investors. Investments will span Seed to Series A, with additional follow-on capital available for stronger-performing portfolio companies.
Beyond funding, Grindstone Ventures plans to support founders with 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, with around 50 participating in its accelerator programmes each year.
The new vehicle follows Grindstone Ventures Fund I, which invested in seven companies. The firm says its latest fund will place greater emphasis on building businesses capable of delivering investor returns through successful exits rather than relying solely on rising valuations.
Grindstone also intends to increase access to venture capital for underrepresented entrepreneurs, with a goal of having at least half of its portfolio made up of black-owned businesses while pursuing stronger gender representation among founders and leadership teams.
