Investment selection criteria

The GroTech Investment Committee with the assistance of the manager applies rigorous investment criteria in its investment decisions and conducts a rigorous due diligence process before committing to any investment
There is a R200 000 minimum investment and a maximum of R10 million.

Post investment management

GroTech will become actively involved in each of the companies invested in order to mitigate risk. This involvement does not only include the executive directors and staff but also the non-executive directors to ensure the maximum value is unlocked from every asset.

Besides a board seat, the GroTech team will be involved in a number of business building activities (engineering growth) including:

  • Strategy development – help search for a repeatable and scalable business model as well as ensure the strategy has a positive impact on the exit strategy – customer/channel introductions at the right level
  • Business development – assist the companies in identifying strategic partners and distribution channels and networks to help scale the business
  • Networks – identify, monitor and continuously evaluate the partner universe
  • Corporate governance – supplementing the board with external experts
  • Financial reporting in line with best practices
  • Involvement in sourcing and recruiting with hiring human capital
  • Sales – guidance with the establishment of a measurable sales process as well as attendance at sales meetings, if required
  • Marketing strategy – clearly articulate value proposition to client base
  • Legal compliance with IP and other legal requirements

Exit Strategies

Our definition of EXIT = full or partial transfer of ownership for (the highest possible) value.

One of GroTech’s key criteria for investment in an underlying company is identifying a clear exit strategy.

We look at the ‘partner ecosystem’ including; competitors, customers, suppliers, distributors, corporate venturing partners, other investors/other sources of funding, etc. and compile a list of these potential strategic buyers.

Even though the exit comes last, the exit strategy is built into the structure of the company from when we make the initial investment. We ensure that the company founders and board are aligned on the exit strategy.

We have found during the past several years, in this increasingly digital and connected world, large enterprises and small enterprises alike are exploring the value that can be created by closer and deeper collaboration with each other. This collaboration has resulted in a dramatic shift toward earlier exits where large enterprises gain new skills, ideas, talent and markets, while entrepreneurs tap into large company’s distribution channels and customer’s bases.

Experience shows that it is the optimum time to exit an investment because large South African companies (trade exits) are accumulating cash on their balance sheets. The good news is that these exits can often be completed in just a few years from startup.

In today’s digital world, companies are being acquired only two or three years after startup. Several factors are driving this change:

  • Web 2.0. Google transforming advertising of large corporations.
  • Growth in private equity and buyout funds.
  • Large numbers of medium-sized companies and individuals buying companies.
  • Preference of larger corporations to grow by acquisition rather than incurring internal research and development (R&D).
  • Reduction of the costs and time required to build new companies via the Internet.
  • The trend toward early exits is creating exciting and lucrative opportunities for entrepreneurs and angel investors.


1) Read detailed information contained in the Prospectus
2) Accept and sign the attached ‘Mandate and Application’ form,
(initial each page, sign in full on page 2 and 3) with 2 witnesses.
3) Compile FICA documents
a) Copy of ID
b) Proof of residence (not older than 3 months)
c) Proof of tax number (SARS document reflecting such)
d) Proof of bank account (not older than 3 months)
4) Scan and email the documents to and cc (Mandate and Application form, FICA documents, and proof of payment), Alternatively fax to: 086 630 2556 or hand deliver to: Grovest, 164 Katherine Street, Building 2, Pinmill Office Farm, Strathavon, mark Attention – Cindy Hale, to be delivered by no later than 17h00 on 27th February 2017.
5) Pay by Electronic transfer to the bank account below:
Bank: Standard Bank
Branch: Sandton
Branch Code: 019205
Account Name: Grovest Tech Ltd
Account Number: 220718148
Reference: “Initials, Surname of Investor”