South African growth-stage investor, Knife Capital, has successfully closed its $50 million fund, Knife Capital III, addressing a funding gap in growth stages where local investors have historically fallen short. The fund aims to support South African entrepreneurs in the Series B stage, focusing on startups with high exit potential and strong returns through exit optionality. It also plans to co-invest in businesses from other African countries alongside local investors. Knife Capital's track record, including successful exits, has attracted a broad range of investors for this fund. The fund will invest in 10-12 firms, primarily in South Africa but with opportunistic investments in other African countries where value can be added. The focus sectors include B2B businesses in edtech, healthtech, fintech, AI, and agritech. The shortage of growth capital from local VCs is seen as a challenge, and Knife Capital aims to contribute to filling this gap with its new fund.

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