South African venture capital firm Mamor Capital has raised R300 million ($18.8 million) in the first close of its inaugural fund, with the Public Investment Corporation (PIC) serving as the anchor investor.
The black women-owned and managed investment firm is targeting R550 million ($34.4 million) for the fund and plans to invest in South African technology startups that have already secured paying customers.
Mamor Capital said the fund is aimed at addressing a financing gap faced by startups that have moved beyond the early idea stage but still struggle to secure capital to expand their businesses.
Mamokete Ramathe, founder and chief executive officer of Mamor Capital, said the firm spent more than three years raising the fund, during which it found that traditional institutional investors remained cautious about venture capital.
“The fundraising journey reinforced that institutional appetite for venture capital in South Africa is still developing,” Ramathe said.
She said pension funds, banks and other institutional investors often operate under mandates or risk limits that make investing in early-stage companies difficult, while some investors remain wary of startups that have yet to demonstrate strong commercial traction.
Mamor plans to focus on businesses that have already demonstrated market demand rather than companies that are still trying to prove their products or services.
Ramathe said profitability would not be an immediate requirement for investment, but companies would need to show that customers are willing to pay, retain those customers, have room to grow and possess a credible path towards profitability.
“There is a significant funding gap for early-stage, post-revenue businesses in South Africa,” she said.
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Fuzlin Levy-Hassen, Mamor’s co-founder and chief financial officer, said the fund would prioritise startups with evidence of genuine commercial demand.
“We are looking for businesses that have moved beyond proving an idea and can show real commercial demand,” Levy-Hassen said.
The fund will invest in areas including financial access, digital infrastructure and technologies aimed at expanding economic participation by helping individuals and businesses gain better access to financial services and markets.
South Africa’s venture capital market has continued to attract investment, although limited exits and difficulty securing follow-on funding remain challenges for startups and investors.
Data from the Southern African Venture Capital and Private Equity Association showed that the region’s venture capital market recorded R13.35 billion ($834.4 million) in active investments across 1,325 deals in 2024.
Mamor said the presence of paying customers can help reduce some of the risks associated with early-stage investing, particularly for companies that may have progressed beyond product development but remain too small or risky to obtain conventional bank financing.
The PIC’s participation marks a significant institutional commitment to Mamor’s strategy, given the historically cautious approach of large institutional investors towards venture capital.
Leon Smit, acting chief investment officer of the PIC, said the investment would give the asset manager exposure to South Africa’s growing venture capital sector while supporting transformation in the investment industry.
“Mamor Capital brings together an experienced investment team, a clear strategy, and a strong transformation proposition,” Smit said.
The PIC said institutional investors could play a greater role in providing the long-term capital required to strengthen South Africa’s venture capital ecosystem.
Ramathe said some institutions that have not yet invested directly in venture capital are now studying the asset class and exploring ways to participate while managing risk.
Ketso Gordhan, chief executive officer of the South African Small and Medium Enterprise Fund, said increasing the number of local fund managers capable of backing technology companies would be important for the development of the country’s startup ecosystem.
“Our investment is intended to strengthen the pool of local fund managers with the capability to identify and support promising technology businesses,” Gordhan said.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
