SA SME Fund invests R150m to commercialise university tech innovation
DURBAN – Corporate South Africa, through its investment in the SA SME Fund has invested R150 million into the University Technology Fund (UTF).
The investment will enable the commercialisation of technology innovations developed by SA universities.
This is the first university technology fund in Africa.
R25 million will be allocated to pre-commercialisation funding, which includes proof of concept and technology development support while R125 million will be used for commercialisation.
Ketso Gordhan, the chief executive of the SA SME Fund said: "This investment is intended to unlock the vast potential located inside our world-class universities by commercialising South African technology. This will not only create viable businesses and jobs, but will also encourage a culture of innovation throughout universities in South Africa. We are exceptionally excited about the potential that this creates."
South Africa punches above its weight in research capability, having doubled its output since 2000. Where the country lags is in the commercialisation of the research and patents, which is the gap that the SA SME Fund’s investment is aiming to address.
While the UTF’s initial university partners are University of Cape Town and Stellenbosch University, who provide pipeline for the Fund and each contributed R20 million to co-invest with the UTF, the SA SME Fund’s next step is to expand the programme to universities across South Africa.
The UTF will be managed by Stocks and Strauss, an independent third party Fund Manager.
The Founders and Directors of Stocks and Strauss, Wayne Stocks and Daniel Strauss have a deep understanding of technology and the early stage investment space, having been investors, founders and operationally involved in early stage technology businesses.
Wayne Stocks, Partner at Stocks and Strauss said: "We are excited to work with Universities to commercialise the world-class intellectual property that has, and is being developed. We will work with them to leverage their research to drive sustainable growth, profit and transformation within the University ecosystem and the broader economy."