South African VC firm Kalon raises $17.5m fund as Section 12J initiative draws to a close

South African venture capital firm Kalon Venture Partners has announced the completion of its Section 12 J capital raise with Assets Under Management of over $17.5m.

Kalon Venture Partners was founded in 2016, the VC firm is one of the leading South African venture capital funds, the firm invests in post-revenue start-ups with high growth potential, and has backed nine South African tech startups so far.

The Section 12J scheme was introduced in 2008 as part of Section 12J of the Income Tax Act to encourage investments in startups and SMEs, riskier investments that nonetheless could help to create jobs and stimulate economic growth.

Kalon invests in South African entrepreneurs with innovative technology solutions and assists them in scaling both locally and into global markets. Kalon’s executive and non-executive teams have years of experience in building and scaling international businesses.

chief executive officer (CEO) Clive Butkow speaking on the funding said that the firm provides more that financial assistance to startups adding that the model is what entrepreneurs need.

“Having been involved in building many technology businesses, we provide more than financial capital but operational skills in helping scale the businesses. We are the operators behind the entrepreneurs and our “High Touch” approach is what many entrepreneurs are looking for to scale their businesses” Butkow said.