Blab Tech
Grindstone Ventures Launches 500-Million-Rand Fund to Bridge Seed-to-Series A Gap for African Tech Startups
On 11 September 2026, South African venture‑capital firm Grindstone Ventures announced a new fund of 500 million rand (about US$31.2 million). The vehicle, created in partnership with Knife Capital and Thinkroom, is aimed at technology‑driven companies across Africa that have proven commercial traction but are too small to attract large institutional investors.
The fund will close its first round at 150 million rand (≈US$9.3 million) and plans to build a portfolio of 15 to 20 companies. Most investments will be made in South Africa, with a selective openness to opportunities in other African markets. The fund will invest from seed stage through Series A and will set aside capital for follow‑on rounds for the best‑performing companies.
Beyond capital, selected portfolio companies will receive support in strategy, governance, market access, fundraising preparation and exit planning. The program builds on Grindstone’s acceleration ecosystem, which screens more than a thousand companies each year.
Grindstone’s new vehicle extends a previous fund that invested in seven companies. Several of those, including Locstat, Welo and AgriLogiQ, have subsequently raised capital from international investors. The firm says it is working toward its first exit to return capital to its subscribers.
The fund’s investment thesis focuses on businesses that can quickly convert commercial traction into sustainable growth. According to reports, Grindstone will take meaningful minority positions and concentrate additional capital behind companies that perform strongly. The firm also maintains diversity goals: at least 50 % of portfolio companies are expected to be owned by black entrepreneurs, and the fund seeks to increase representation of women among founders and executive teams.
Knife Capital, one of the fund’s partners, has a long history of accelerating African innovation. The firm co‑owns Grindstone Accelerator, a structured entrepreneurship programme launched in 2013. Thinkroom, the other partner, is a South African consultancy that specialises in ecosystem building and has supported high‑growth startups across the continent.
The launch comes amid a broader effort to address the funding gap that many African tech companies face between seed and Series A rounds. According to industry data, early‑stage funding in Africa remains limited compared with global averages, and many founders struggle to secure the capital needed to scale.
Grindstone’s approach is to provide both capital and operational support. The firm’s acceleration programme evaluates companies on commercial potential, scalability, and team strength. By combining funding with governance and market‑access expertise, Grindstone aims to accelerate the growth trajectory of its portfolio.
The fund’s first close of 150 million rand will be used to seed a mix of early‑stage companies that have demonstrated revenue or user growth. The remaining capital will be deployed over the next two to three years, with follow‑on investments earmarked for the top performers.
In a statement, Grindstone’s CEO Thandiwe Maqetuka said the firm is “committed to building a pipeline of companies that can scale quickly and create lasting impact.” The statement also highlighted the firm’s focus on diversity and inclusion.
The announcement was covered by several African tech news outlets, including Disrupt Africa and InclusiFund. The coverage noted that the fund’s launch is a significant development for the South African startup ecosystem, which has seen a steady rise in venture activity but still lags behind other emerging markets in terms of available capital.
As of today, Grindstone has not yet announced specific portfolio companies. The firm is expected to begin sourcing deals in the coming weeks, with an eye toward closing the fund’s initial round by the end of 2026.
The launch of the 500‑million‑rand fund represents a concrete step toward bridging the early‑stage funding gap in Africa. By combining capital with strategic support and a clear focus on diversity, Grindstone, Knife Capital and Thinkroom aim to nurture the next generation of high‑growth tech companies on the continent.
The fund’s progress will be closely watched by investors, founders and policy makers interested in the evolving dynamics of African venture capital. Future updates will likely include details on portfolio composition, follow‑on investment plans and any early exits that may signal the fund’s return on investment.
The fund will close its first round at 150 million rand (≈US$9.3 million) and plans to build a portfolio of 15 to 20 companies. Most investments will be made in South Africa, with a selective openness to opportunities in other African markets. The fund will invest from seed stage through Series A and will set aside capital for follow‑on rounds for the best‑performing companies.
Beyond capital, selected portfolio companies will receive support in strategy, governance, market access, fundraising preparation and exit planning. The program builds on Grindstone’s acceleration ecosystem, which screens more than a thousand companies each year.
Grindstone’s new vehicle extends a previous fund that invested in seven companies. Several of those, including Locstat, Welo and AgriLogiQ, have subsequently raised capital from international investors. The firm says it is working toward its first exit to return capital to its subscribers.
The fund’s investment thesis focuses on businesses that can quickly convert commercial traction into sustainable growth. According to reports, Grindstone will take meaningful minority positions and concentrate additional capital behind companies that perform strongly. The firm also maintains diversity goals: at least 50 % of portfolio companies are expected to be owned by black entrepreneurs, and the fund seeks to increase representation of women among founders and executive teams.
Knife Capital, one of the fund’s partners, has a long history of accelerating African innovation. The firm co‑owns Grindstone Accelerator, a structured entrepreneurship programme launched in 2013. Thinkroom, the other partner, is a South African consultancy that specialises in ecosystem building and has supported high‑growth startups across the continent.
The launch comes amid a broader effort to address the funding gap that many African tech companies face between seed and Series A rounds. According to industry data, early‑stage funding in Africa remains limited compared with global averages, and many founders struggle to secure the capital needed to scale.
Grindstone’s approach is to provide both capital and operational support. The firm’s acceleration programme evaluates companies on commercial potential, scalability, and team strength. By combining funding with governance and market‑access expertise, Grindstone aims to accelerate the growth trajectory of its portfolio.
The fund’s first close of 150 million rand will be used to seed a mix of early‑stage companies that have demonstrated revenue or user growth. The remaining capital will be deployed over the next two to three years, with follow‑on investments earmarked for the top performers.
In a statement, Grindstone’s CEO Thandiwe Maqetuka said the firm is “committed to building a pipeline of companies that can scale quickly and create lasting impact.” The statement also highlighted the firm’s focus on diversity and inclusion.
The announcement was covered by several African tech news outlets, including Disrupt Africa and InclusiFund. The coverage noted that the fund’s launch is a significant development for the South African startup ecosystem, which has seen a steady rise in venture activity but still lags behind other emerging markets in terms of available capital.
As of today, Grindstone has not yet announced specific portfolio companies. The firm is expected to begin sourcing deals in the coming weeks, with an eye toward closing the fund’s initial round by the end of 2026.
The launch of the 500‑million‑rand fund represents a concrete step toward bridging the early‑stage funding gap in Africa. By combining capital with strategic support and a clear focus on diversity, Grindstone, Knife Capital and Thinkroom aim to nurture the next generation of high‑growth tech companies on the continent.
The fund’s progress will be closely watched by investors, founders and policy makers interested in the evolving dynamics of African venture capital. Future updates will likely include details on portfolio composition, follow‑on investment plans and any early exits that may signal the fund’s return on investment.
