Stocks & Strauss has announced the final close of the University Technology Fund II at R400 million, taking total capital across its university-linked early-stage investment platform to more than R700 million and deepening a dedicated pathway for commercialising innovation emerging from tertiary institutions.
Investors in UTF II include the SA SME Fund, Stellenbosch University, Allan & Gill Gray Philanthropies, Sanlam, Fireball Capital, the Technology Innovation Agency (TIA), the University of Pretoria, Wits University and the University of Cape Town.
The close comes as universities and their alumni networks are increasingly being recognised as critical sources of investable technology, intellectual property and high-growth company formation in South Africa.
The platform now spans UTF I, fully deployed at R230 million, the UTF Seed Fund at R86 million, and UTF II at R400 million. Together, the funds give S&S the ability to support companies from formation and seed stage through to early growth.
S&S focuses on companies originating from local tertiary institutions, as well as businesses founded by alumni of those institutions. The platform is designed to support ventures with the potential to scale beyond South Africa from the outset.
“UTF II gives us the capital base to back more companies at the point where patient, specialist funding can make the greatest difference,” said Wayne Stocks, Managing Partner at Stocks & Strauss. “South Africa’s tertiary institutions are producing globally relevant technologies and founders. Our role is to help turn that potential into scalable companies that can compete internationally.“
S&S built its early-stage investment track record before the launch of UTF, including as an early investor in fintech infrastructure company Stitch. The UTF platform has since invested in companies including CubeSpace, Jem and biotechnology company Immobazyme.
Several portfolio companies are already showing strong commercial momentum. CubeSpace is expanding internationally in the satellite systems market. Immobazyme is a profitable biotechnology company with a rapidly growing international customer base and plans to scale further globally. Jem continues to grow as a platform serving deskless workforces.
“S&S was the first to invest in CubeSpace. Since then they’ve felt less like investors and more like part of the team, the kind of partners who care about the people as much as the business,” said Mike-Alec Kearney, CEO and Co-Founder of CubeSpace.
“S&S has been an exceptional partner to Jem. Beyond the capital, their counsel has already shaped a major decision and opened doors we’d never have reached alone. They understand (and back) our mission to unlock the deskless workforce across emerging markets, and they share in the impact we’re chasing,” said Simon Ellis, CEO and Co-Founder of Jem.
With UTF II closed, S&S plans to increase its activity across South Africa’s early-stage ecosystem, backing more companies linked to local tertiary institutions and alumni networks, with a focus on technologies and business models that can scale into international markets.