South African Section 12J venture capital company Kingson Capital announced on Monday it has launched its second fund, which will provide venture capital for high growth tech and black-owned small and medium-sized enterprises (SMEs).
The fund will enable high growth tech and black-owned SMEs to accelerate their growth potential.
We interviewed Gavin Reardon, Founder of Kingson Capital
- Who is behind the fund?
The Kingson team consists of our founder, Gavin Reardon, his two partners and back office staff who assist in managing our portfolio companies. We also have an Advisory Board and Investment Committees, made up of experienced businesspeople and industry experts.
- Where is the capital being sourced from?
For Fund Two, the majority of our funds will be from corporate investors.
- How big is the fund size?
The target fund size is R400m
- Who will benefit from the fund?
The fund benefits both investors and the businesses we invest in. Investors get risk adjusted returns, the benefit of s12J and in our Fund Two, a supply chain leg; and the investees get access to capital and the benefit of being venture capital backed – including mentorship and access to our networks and broad business experience.
- What types of businesses will benefit and how many?
Fund Two will look to invest in anything from 30 to 50 tech startups and black SME’s, depending on the size of each investment required and the requirements of our investors.
- What type of tech assets do you invest in?
We invest in startups across the fintech, insuretech and healthtech space and principally look for data driven, market-oriented businesses.
- Who are some of Kingson’s current portfolio companies?
In our Fund One, we invested in 10 companies including Finfind – a matching platform for lenders and businesses seeking funding, Spazapp – an online ordering system for the informal marketplace and Healthcloud – a data aggregator in the healthtech space.
- What is the ethos behind Kingson Capital?
We value integrity highly, and what we call “multi-generational impact”. This means that we don’t just serve our investees and our investors, we serve the greater good. Our country desperately needs men and women to stand up and be counted for the greater good, to make a difference, particularly men and women of our generation.
- What do you look for when investing in entrepreneurs?
We look for entrepreneurs who have big dreams and ambitions, who want to change the world, and are not content with the status quo. Most often these people are resilient and adaptable to business needs. While we invest across all stages, we preferably look for serial entrepreneurs who have started and run businesses before, even if they weren’t successful. We prefer co-founders, as two people bring different skills and strengths and the weight is not on one person’s shoulders when the going gets tough – as it often does in the startup world.