Innovation Bridge: Section 12J Digital Technologies Fund

Department of Science and Technology


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 utilised 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.


Kalon invests in start-ups that have a proven customer base, technology development offerings, are post-revenue and have a large target addressable market. Our Section 12J disruptive technology fund invests in entrepreneurs solving African problems with the potential to scale into global markets. We focus on providing smart capital, as well as on delivering smart returns.

Kalon Venture Partners’ overall investment strategy is to provide growth capital and acquire a minority stake in high growth innovative digital technology companies that provide technology-based solutions with innovative business models.

Through our “high-touch” methodology and approach, our fund assists these companies through hands-on involvement to help build the businesses into assets of value that can be exited to trade buyers, private equity firms or through an Initial Public Offering (IPO).

Our fundamental strategy is to invest the majority of our capital in support of entrepreneurs who are disrupting traditional industries. We look to invest in companies with high margins and unique intellectual property (IP), a clearly defined and agreed-upon exit strategy and repeat customers through annuity and another revenue stream.


The fund invests in growth capital and companies that have already achieved a product-market fit and are seeking growth capital to scale in the form of revamped and re-assessed execution strategies; hiring additional human capital, marketing, sales, operations, etc.


– The company must be South African;
– The company must not be a controlled group company in relation to a group of companies;
– The company’s tax affairs must be in order (a tax clearance certificate must be requested from SARS to support this requirement);
– The company must be an unlisted company (section 41 of the Act) or a junior mining company; A junior mining company may be listed on the Alternative Exchange Division (AltX) of the JSE Limited;
– During any year of assessment, the sum of the “investment income” derived by the company must not exceed 20% of its gross income for that year of assessment;
– The company must not carry on any of the following impermissible trades:
– Any trade carried on in respect of immovable property, except trade as a hotel keeper (includes bed and breakfast establishments);
– Financial service activities such as banking, insurance, money-lending and hire purchase financing;
– Provision of financial or advisory services, including legal, tax advisory, stock broking, management consulting, auditing, or accounting;
– Operating casinos or other gambling-related activities including any other games of chance;
– Manufacturing, buying or selling liquor, tobacco products, arms or ammunition; or
– Any trade carried on mainly outside the Republic.


Access the online funding application at the following address: 

To view the funding opportunity on Innovation Bridges website please click here.