Convergence Partners has joined 4Di Capital Fund 1, as an equal limited partner alongside Reinet Fund S.C.A., F.I.S., and E. Oppenheimer & Son in a move expected to unlock South African entrepreneurial talent.
4Di Capital will also take over Convergence Partners’ current portfolio of technology venture investments which include Integrat, Bloodhound Technologies and Skillpod Media.
In a statement Said Brandon Doyle, CEO of Convergence Partners said: “Historically, we have focused on ICT investments across the full spectrum from smaller early stage companies through to large multinationals and infrastructure projects. With the successful launch late last year of the Convergence Partners Communications Infrastructure Fund, our focus has increasingly been shifting to big ticket pan- African ICT investments that accelerate digital access and development across the continent. The partnership with 4Di will allow us to channel our efforts through experienced experts who will also take over management of our existing VC interests.”
Below is the press release
Convergence Partners invests in technology venture capital firm 4Di Capital
CAPE TOWN, 13 February 2014 – 4Di Capital today announced that Convergence Partners will join as the newest investor in 4Di Capital Fund 1, as an equal limited partner alongside Reinet Fund S.C.A., F.I.S., and E. Oppenheimer & Son.
“We are delighted to welcome the addition of Convergence Partners to our investor base. We both believe in the opportunity offered by the emerging South African technology start-up ecosystem.
Leveraging the accomplished capabilities of such highly regarded investors with our team’s dynamic and unique approach is a powerful combination for unlocking South African entrepreneurial talent in an increasingly globally integrated technology market place.
This vote of confidence from a leading local investor comes at a time when it is challenging to raise capital for this asset class globally, particularly in South Africa,” said Justin Stanford, a founding partner of 4Di Capital and co-founder of the Silicon Cape Initiative.
As a result of the investment, 4Di Capital’s assets under management will double, as the firm will also take over Convergence Partners’ current portfolio of technology venture investments in the form of Integrat, Bloodhound Technologies and Skillpod Media.
Said Brandon Doyle, CEO of Convergence Partners: “Historically, we have focused on ICT investments across the full spectrum from smaller early stage companies through to large multinationals and infrastructure projects. With the successful launch late last year of the Convergence Partners Communications Infrastructure Fund, our focus has increasingly been shifting to big ticket pan- African ICT investments that accelerate digital access and development across the continent. The partnership with 4Di will allow us to channel our efforts through experienced experts who will also take over management of our existing VC interests.”
“We have spent many years assessing the global VC environment and have built a deep understanding of the ecosystem and key players involved,” Andile Ngcaba, Chairman of Convergence Partners, continued. “We were thus looking for partners who have themselves started up successful early stage tech ventures and, importantly, who have built a strong bridge into the global VC market, particularly in the U.S. We believe this transaction aligns us with an experienced and passionate management team as well as other investors who support South African technology innovation.”
Laurie Olivier, U.S based partner of 4Di Capital commented, “We couldn’t think of better partners to add to our already stellar investor base than Andile Ngcaba
and his team, who have the vision and deep technological understanding to get behind our ideas, and who share our values of partnership and collaboration.
The alliance between Convergence Partners, a well-respectedpan-African ICT investment manager, and the highly entrepreneurial 4Di team with its emerging market orientation and solid global beachhead, represents a unique blend of diverse networks and seasoned value-adding experience.”
About 4Di Capital
4Di Capital is an independent early-stage technology venture capital firm based in South Africa’s “Silicon Cape”.
Nurture capital is the term that best describes 4Di Capital’s purpose and philosophy. We understand that in the early days of any business, support, mentoring and access to networks is just as important as seed capital.
Using tried and tested international venture capital best practices, adapted for local use, we believe in agile entrepreneur-friendly finance without frills, and in working as a team with our investees to achieve their true potential.
4Di Capital Fund 1 targets early stage technology startup investment opportunities with high growth potential at the seed- and early-stages in the mobile, enterprise software and web sectors. We look for founder teams with hungry passion, commitment, domain expertise and deep insights into the large market problems they wish to solve with their technology solutions.
About Convergence Partners
Convergence Partners, founded in 2006, is an investment management firm focused on the telecommunications, media and technology sector in Africa. Convergence Partners has a proven track record of developing new investment opportunities, as well as adding value to investments across the life cycle of ICT assets. As impact investors, Convergence Partners is dedicated to catalysing investment capital to accelerate communications access and ICT infrastructure development on the continent, focusing on initiatives that increase availability of communications, broadband services and new technology offerings to the people of Africa. Convergence Partners has two pools of capital under its management; viz.: an on-balance sheet proprietary portfolio and the Convergence Partners Communications Infrastructure Fund.
Convergence Partners has played a leading role in landmark African ICT infrastructure investments, such as:
●SEACOM, the first undersea fibre system serving East Africa and the first independent investor-led undersea system for Africa;
●New Dawn, the first ever African private sector communications satellite; and
●FibreCo Telecommunications, the first independent, open access national fibre network in South Africa and the first provider of a managed long haul fibre product in Africa.
Find out more at: http://www.convergencepartners.com
About E. Oppenheimer & Son:
E. Oppenheimer & Son International is the investment holding company of the Oppenheimer Family interests, founders of the global mining company Anglo American (www.angloamerican.com), and managing shareholders of De Beers (www.debeersgroup.com), the world’s leading diamond company, until its recent acquisition by Anglo American.
E. Oppenheimer & Son International has an extensive private equity portfolio through Stockdale Street, an investment company that invests in leading private equity funds in the United States, Europe and Asia; and through Stockdale Street South Africa, which invests directly in South African companies, often working alongside leading South African corporations and private equity firms.
The Oppenheimer Family interests have deep African roots, with four generations of investing experience on the continent. They have an intimate understanding of doing business in Africa, and a commitment to furthering the socio-economic development of the continent.
About Reinet Fund S.C.A, F.I.S.:
Based in Luxembourg, Reinet Fund is a listed private equity investment fund. The Fund is managed by Reinet Fund Manager SA under the Chairmanship of Mr Johann Rupert.