Our Vision

Kalon Venture Partners invests in and builds a portfolio of high growth technology companies, with innovative business models, geared to existing and emerging institutions and their customers.

Kalon Venture Partners invests growth capital in the form of equity to be used to assist established, but still high-risk ventures in expanding activity such as creating additional traction in South Africa, launching into Africa and then foreign markets, as well as creating new product / technology lines.

Our overriding strategy is to provide growth capital and acquire a minority stake in high growth innovative digital technology companies. We assist these companies with hands on involvement, to help build the businesses into assets of value and exit the business to trade buyers or through an IPO (a buy to flip strategy).

Kalon Venture Partners will invest most of its capital in support of African entrepreneurs who are looking for growth capital to scale their businesses, which are disrupting traditional industries, e.g. banking, insurance, retail, media and entertainment.

We have a highly experienced team to conduct detailed due diligences of potential investments to help reduce the business risk. The outcome of the DD will be presented to our Investment Committee for a decision.

These companies will most likely operate initially in South Africa with the intention to scale them to Africa and globally. We target potential returns of a minimum of 5X money (IRR > 30%) on each investment.

Our detailed investment criteria
include, businesses with / at:

Strong management team
Clearly defined exit strategy
Scalable business model (profits increase faster than revenue)
Early stage with a revenue and profitability track record which require growth capital - a large percentage of the overall portfolio
Early stage businesses with revenue but not yet profitable
Traction with a referenceable client base
High growth potential market opportunities - cross border growth prospects with export potential, incl. business models with potential for significant scale both within South Africa and abroad
High gross margins and potential for recurring revenue
High revenue and profit growth potential
Strong competitive position within their targeted sector with differentiated Intellectual Property (IP) – unique products

The recent amendments to Section 12J of the Income Tax Act permit registered VCC’s to invest in companies
such that the book value of assets post investment does not exceed R 50 million.
This threshold allows Kalon Venture Partners to invest in larger and more established entities.