Grovest Venture Capital Company is a venture capital trust that specialises in investing in startups, early stage pre and post revenue companies, series A, series B, growth capital, and mature companies.
Grovest is South Africa’s first Venture Capital Company (VCC) incorporated under Section 12J of the Income Tax Act. An investment in Grovest provides investors with direct exposure to the rapidly developing venture capital sector in South Africa, whilst enabling them to write off up to 100% of their investment capital against their taxable income in the year the investment is made.
Grovest’s investment strategy is to utilise the Section 12J Venture Capital Structure as a base to create individual funds that invest in high growth, sector specific verticals. This strategy allows the investor to leverage the tax incentive in order to achieve above average risk adjusted returns.
Grovest provides investee companies with the capital and management support required to optimise their potential and generate value through improved strategic, operational, and human resource capabilities.
Investment Criteria includes:
Grovest typically invests in high growth, scalable, low capex, private companies. The fund seeks to invest in the disruptive digital technology sector in companies located in South Africa; between R0.5 million and R10 million in companies with a net asset value below R20 million. The company may co-invest with other funds and seeks to invest in the form of equity and take a board seat on its portfolio companies.
Depending on the mandate of the fund the investment committee will invest in companies with the following attributes:
- Business models with potential for rapid growth in revenues and profitability;
- Defensive market positions;
- Strong, balanced, and driven management teams that hold meaningful shareholdings in their companies;
- Attractive entry prices;
- Opportunities for the firm to add value; and
- The prospect of exiting with a significant investment surplus above a five year period.
Contact us for more information on funding through Grovest Venture Capital Company.