Our Investment Thesis for Early-stage Investing
We source innovative and high-growth startup businesses that are driven by excellent teams in need of capital and help them grow to the next level. We look for start-ups that offer disruptive technologies in growth markets.
Through the Development Equity Fund investment mandate, Futuregrowth has been investing in early-stage businesses for over nine years and has established a strong track record. Our diverse Venture Capital investment portfolio is made up of a range of high-growth early-stage tech businesses.
Our approach is centred around six key principles, with a strong emphasis on management quality:
- Competitive Moat
- Developmental Impact
- Attractive Market
- Post-Revenue Stage
- Strong Management Team
- Scalable business
Invest in our High Growth Development Equity Fund
We are pleased to announce our intention to launch the Futuregrowth High Growth Development Equity Fund. The Fund will seek investment opportunities in high-growth early-stage businesses with a strong developmental impact.
Futuregrowth has a track record of more than 25 years of investing in developmental deals, 16 years of investing in unlisted equity businesses, and nine years of investing in early-stage equity businesses.
The Fund will be a closed-ended, limited life fund
4 to 5 year draw period, with 5 to 6 year payback period
Committed capital target of R500 million to R600 million
Indicated fee: 2% on committed capital + 20% incentive (cash-on-cash returns) above base return
A warm-start, with no asset transfers from the Development Equity Fund
The fund will be managed alongside all other funds in the Futuregrowth ecosystem