JOHANNESBURG, Sept 1 – Mamor Capital has raised $18.8 million in the first close of its debut venture capital fund, with South Africa’s Public Investment Corporation (PIC) serving as the anchor investor as the firm targets a funding gap facing growing technology businesses.
The black women-owned and managed investment firm raised R300 million ($18.8 million) and is still working towards its R550 million ($34.375 million) target. The fund will invest in South African technology companies that already have paying customers but need more capital to expand.
Mamor founder and Chief Executive Officer Mamokete Ramathe said the firm spent more than three years raising the fund, with traditional investors such as pension funds and banks remaining cautious about venture capital.
Some investors have mandates or risk limits that make early-stage investments difficult, while others continue to associate venture capital with companies that have yet to prove that their products work.
“The fundraising journey reinforced that institutional appetite for venture capital in South Africa is still developing,” Ramathe told TechCabal in an interview on Monday.
Mamor is seeking to reduce some of that investment risk by focusing on businesses that have already demonstrated that customers are willing to pay for their products or services. The companies do not need to be profitable, but they must have paying customers, be able to retain them, have room to grow and show a realistic path to profitability.
The approach comes as Southern Africa’s venture capital market continues to attract investment, although challenges remain. The region recorded R13.35 billion ($834.4 million) in active investments across 1,325 deals in 2024, but limited exits and follow-on funding continue to make it difficult for some startups to raise their next round.
“There is a significant funding gap for early-stage, post-revenue businesses in South Africa,” Ramathe said.
Mamor co-founder and Chief Financial Officer Fuzlin Levy-Hassen said the fund will focus on companies with evidence of real demand rather than businesses built mainly around future growth expectations.
The fund will invest in areas including financial access, digital infrastructure and technology that can help more people and businesses participate in financial services and markets.
The PIC’s backing is significant as institutional investors have traditionally been cautious about venture capital because investments can take years to deliver returns and some may fail.
PIC Acting Chief Investment Officer Leon Smit said the investment gives the organisation exposure to South Africa’s growing venture capital market while supporting transformation.
The South African Small and Medium Enterprise Fund also invested through its High Impact Seed Fund of Funds. Its CEO, Ketso Gordhan, said supporting more local fund managers with the ability to identify and back technology companies would strengthen the country’s startup ecosystem.
Mamor’s fund comes as institutional interest in venture capital gradually develops, with some investors that are not yet active in the sector researching ways to participate while managing the risks involved.
