Mamor Capital raises R300 million for first VC fund
Mamor Capital raises R300 million for first VC fund — what it actually costs, who it squeezes out, and the moves an early-stage founder can borrow this quarter.
Mamor Capital Pic
- The core development and why it matters for African business right now
- The real numbers behind the story — costs, valuations or growth figures
- A concrete, actionable takeaway founders and operators can apply this quarter
South African venture capital firm Mamor Capital has raised R300 million ($18.8 million) in the first close of its inaugural fund.
The Public Investment Corporation (PIC) is the anchor investor, while Mamor is continuing to raise money towards a R550 million ($34.4 million) target.
The firm plans to invest in South African technology companies that already have paying customers.
- The core development and why it matters for African business right now
- The real numbers behind the story — costs, valuations or growth figures
- A concrete, actionable takeaway founders and operators can apply this quarter
AI-generated summary. It can miss nuance — read the full story above for the complete picture.
South African venture capital firm Mamor Capital has raised R300 million ($18.8 million) in the first close of its inaugural fund. The Public Investment Corporation (PIC) is the anchor investor. Mamor is targeting R550 million ($34.4 million) for the fund. The firm plans to invest in South African technology companies that already have paying customers. Mamor is targeting businesses that have moved beyond the idea stage. These companies are generating revenue but may still struggle to raise money to expand.
Mamor spent three years raising the fund
Founder and CEO Mamokete Ramathe said it took Mamor more than three years to raise the fund. The process also showed how cautious some institutional investors remain about venture capital. “The fundraising journey reinforced that institutional appetite for venture capital in South Africa is still developing,” Ramathe told TechCabal. Some pension funds and banks have mandates or risk limits. These can make it difficult to invest in early-stage companies.
“There is a significant funding gap for early-stage, post revenue businesses in South Africa.” — Mamokete Ramathe, CEO of Mamor Capital
Paying customers matter more than profitability
Mamor does not require companies to be profitable before investing. Instead, it looks at whether customers are paying for the product or service. It also considers whether those customers stay with the business. The firm also looks at whether there is enough room for the company to grow. “There is a significant funding gap for early-stage, post-revenue businesses in South Africa,” Ramathe said. Mamor is targeting companies that have already built a business. Some may still be too small or risky for conventional bank finance.
The fund will target South African technology companies
Mamor co-founder and CFO Fuzlin Levy-Hassen said the fund wants companies with paying customers. “We are looking for businesses that have moved beyond proving an idea and can show real commercial demand,” Levy-Hassen said. The fund will invest in areas including financial access, digital infrastructure and technology. Mamor is not only looking at companies with high revenue. It will also consider customer retention and the path to profitability.
Venture capital funding is growing
The Southern African venture capital market has grown in recent years. The Southern African Venture Capital and Private Equity Association recorded R13.35 billion ($834.4 million) in active venture capital investments in 2024. The investments were spread across 1,325 deals. But raising the next round remains difficult for some startups. Limited exits and follow on funding continue to affect the sector. Some businesses therefore struggle to raise more money after they start generating revenue. Bank finance can also be difficult to access. Some venture capital investors may also consider these companies too far beyond the earliest stage.
PIC anchors Mamor's first fund
The PIC's investment makes it the anchor investor in Mamor's first fund. Leon Smit, the PIC's acting chief investment officer, said the investment gives the asset manager exposure to South Africa's venture capital market. “Mamor Capital brings together an experienced investment team, a clear strategy, and a strong transformation proposition,” Smit said. The South African SME Fund has also invested through its High Impact Seed Fund of Funds. Its CEO, Ketso Gordhan, said the investment will help increase the number of local fund managers investing in technology businesses. Mamor has not yet reached its R550 million target. The firm is continuing to raise capital. It will use the fund to invest in South African technology companies with paying customers.
