In 2017, the global information technology industry surpassed $4.5 trillion, according to the research consultancy IDC. If growth expectations materialise in the year ahead, spending will surpass the $4.8 trillion mark.
One of the other basic truths of equities is that tech investments frequently sport higher premiums than almost any other market category. In theory, this high level of valuation is recognition of the above-average growth rates that successful technology companies post.
Products and services are being disseminated throughout the economy; there is no sector of the modern economy that technology does not touch and that does not rely upon the technology sector to improve quality, productivity, and/or profitability. The pace of change in the fields of artificial intelligence, renewable energy and the “internet of things”, for instance, can make it hard for investors to keep up.
According to the Disrupt Africa report, within South Africa Fintech has proved to be by far the most attractive sector for investors, with 45 fintech startups raising almost one-third of the total funding going to African tech ventures in 2017. Interest in e-commerce rebounded – spiking 350% on the previous year to see startups raise over R200 Million. Meanwhile, agri-tech raced to the front of the stage, with funding of the sector growing 203% in 2016.
Through Kalon Venture Partners, the preeminent digital technology venture capital company, individuals and trusts are able to invest in these exciting technology companies through the Section 12J VCC* regime. Although a higher risk investment class, the return on capital invested in technology venture capital companies is generally higher than the common investment options such as property investments.
2018 looks to be another highly profitable year for the technology sector worldwide and for tech investors alike.
*The full amount invested in Kalon Venture Partners is 100% deductible from your taxable income in the year in which the investment is made. An investor in Kalon Venture Partners will therefore obtain a 45 % tax break (for an individual tax payer at maximum marginal rate) at the time of investment.