SA’s Crossfin, Investec to back early-stage fintech startups
By Tom Jackson on June 1, 2018
South African investment fund Crossfin has concluded a deal with banking and asset management group Investec that will see the two companies identify early-stage fintech startups in which to invest through Crossfin’s angel funding arm Blue Garnet Investments.
The Crossfin fund, which has a particular focus on fintech startups, was formed in June of last year after South Africa-based private equity and venture capital firm Capital Eye and the Multiply Group signed a strategic investment partnership.
The partnership between Crossfin and Investec will see the companies co-invest in early-stage African fintech startups via Blue Garnet Investments, with funded entrepreneurship also set to receive mentorship support.
Crossfin co-founder Anton Gaylard said it was looking to make between three and five new investments over the next 12 months.
“Investec provides a great team of astute investors and a reputable brand with which to be associated. They also provide access to additional financial services and support for our entrepreneurs as and where required,” he said.
“With additional capital, resources and focus, this can only be a positive step forward, encouraging growth in the sector.”
Akash Maharaj head of emerging companies at Investec, said the financial needs and requirements of consumers and businesses are constantly evolving.
“They demand innovative, cost-effective technology solutions to help them easily transact, save and invest, both locally and abroad,” he said.
“As an international organisation, rooted firmly in South Africa, we’re excited to work with reputable, proven partners like Crossfin. We see it as a strategic investment in entrepreneurs, their innovative ideas and in the future of financial services.”
Disrupt Africa published a guest post by Gaylard yesterday (May 31) in which he laid out what investors are looking for in the fintech space, while you can read our interview with him as part of our “Meet the Investor” series here.