South Africa’s University Technology Fund II (UTF II) is set to invest $21.4 million in university-driven innovations, aiming to support the commercialisation of cutting-edge technology with global impact. Building on the success of its predecessor, UTF II seeks to accelerate the growth of scalable intellectual property (IP) across multiple sectors.
Investing in University Innovation
UTF I made significant strides in advancing university-developed technology, backing companies like Hyrax Biosciences, whose bioinformatics software helped detect the Covid-19 Omicron variant, and CubeSpace, a satellite control technology company trusted by NASA and over 250 international clients.
With UTF II, the fund aims to invest in 15 to 20 companies, ensuring that promising innovations receive the necessary resources for expansion. The initiative will also extend support beyond current university research, incorporating alumni-founded ventures to strengthen South Africa’s entrepreneurial ecosystem.
“The world is witnessing a shift towards valuing university intellectual property as an important asset class and opportunity,” said Wayne Stocks, managing partner at Stocks & Strauss Fund Manager. “These companies are providing solutions to real-world challenges, which boosts their impact and value.”
A Collaborative Approach to Growth
The fund’s anchor investors include the SA SME Fund, Stellenbosch University, and Allan & Gill Gray Philanthropies Africa. Additional backing comes from leading institutions such as the University of Pretoria, the University of Cape Town, and WITS University, reinforcing the shared commitment to fostering technological advancements.
Anita Nel, chief director for innovation and commercialisation at Stellenbosch University, highlighted the university’s enthusiasm for the initiative. “The fund accelerates the development of new technologies and reinforces the university’s reputation as a hub for research and innovation,” she said.
UTF II is expected to attract both local and international investors, positioning South Africa as a key player in the global deep-tech investment space. “UTF Fund II will elevate our innovation landscape further, and we foresee that it will attract investment interest from across the world,” said Ketso Gordhan, CEO of the SA SME Fund.
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