Knife Capital, a South African venture capital firm, has announced its fourth Grindstone Accelerator cohort grew revenue by 36% created 27 new jobs and increased business fundamentals by 33%.
The future is bright for these companies with growth prospects of 88% over the next 3 years fuelled by Venture Capital and Angel Investment already raised by some added Knife Capital.
“We initially set out to prove that by offering the right guidance and support to coachable entrepreneurs, we can engineer growth on a significant and sustainable scale,” says Andrea Bӧhmert, Co-Managing Partner at Knife Capital. “The fact another cohort of Grindstone companies have experienced significant growth and investment while increasing their business fundamentals clearly demonstrates that it is possible. We are extremely proud of how this cohort of entrepreneurs embraced the Grindstone learnings from all our value-adding partners and we built lasting relationships and had fun in the process.”
The fourth Grindstone Accelerator cohort just concluded and helped the participating SMEs circumvent the challenging South African economic environment. In just 1 year, 10 SA SMEs grew revenue by 36% (collectively adding R35m to their top line), created 27 new jobs and increased business fundamentals by 33% while becoming more efficient in doing so. The future is also looking bright for these companies with growth prospects of 88% over the next 3 years fuelled by Venture Capital and Angel Investment already raised by some.
From the 4th Grindstone companies, Granite WMS expanded internationally and geospatial data analytics company Locstat Systems achieved the highest growth and won the Grindstone prize of R100,000 to spend on an international business development initiative of their choice.
Some of South Africa’s best scale-up companies have been through Grindstone, including radar startup iKubu (acquired by Garmin), augmented reality animation & gaming company SeaMonster, online payment gateway Payfast (recently acquired by DPO Group), financial inclusion business Picsa and Bitcoin blockchain anti-piracy solution Custos. Knife Capital invested in ticketing solutions provider Quicket and warehouse management software company Granite via its SARS Section 12J Venture Capital Company: KNF Ventures.
The year-long programme takes ten South African SMEs with proven traction through an intensive review of their strategies and provides them with the necessary support to build a foundation for growth in becoming more investable, sustainable and exit-ready.
Grindstone 5 programme is currently underway in Johannesburg.