SAP founder's fund seeks SA innovators

By Leon Engelbrecht for SAP
Johannesburg, 09 May 2008

Hasso Plattner Ventures Africa is searching for innovative South African companies that are seeking to expand abroad and that need a venture capital partner.

Hasso Plattner Ventures Africa managing partner Andrea Bohmert says although the fund was founded - and largely financed - by SAP cofounder Hasso Plattner three years ago, it is technology and vendor agnostic.

"What is our relationship with SAP? We are totally independent and can invest in competition. But although we have different mothers, we have the same father," she said to laughter at a SAP partner awards ceremony.

Bohmert says the fund opened its South African office in Stellenbosch, in February, and has a kitty of "between R300 million and R400 million".

"Why am I telling you this? First, I want you to know about this fund. Secondly, I want you to refer clients you think are appropriate our way. Since our launch, we have received about 90 applications. In my job, you can't be pessimistic about the future of SA because the amount of innovation, of passion, is incredible. But we need more great companies to come talk to us."

She says the German-owned fund wants to invest between R1 million and R35 million per company. "We are investing in ICT, mobile and clean technology. The companies we are investing in are either in their early stage or expanding, which means they can be pre-profit or post turnover, [but] they need to demonstrate at least some successful sales.

"What is our differentiator? It is definitely not the money. If you need money, go somewhere else, like your bank. It will be far cheaper than going to a venture capital company. These take equity which is very extensive."

Getting help

Bohmert adds that South African companies face a number of hurdles expanding abroad. "It doesn't matter how good you are in SA, how profitable you are, how many clients you have, if you are expanding into the UK or US, your SA track record doesn't help you. Unfortunately, in the rest of the world, SA is perceived as the country of Mandela and good wine; it is not associated with innovation - and this is something we want to change.

"Many companies have tried to expand oversees and some have succeeded, but others have failed. Many found it was difficult to reach the right decision-makers. This is what we want to help change. Our differentiator is helping finance this process, because it is not easy for a company earning rands to finance expansion into areas where you have to pay in dollars or euro. We want to make accessible our network, access to key decision-makers around the world."

Bohmert says her organisation has "offices in 128 countries".

"We want to give SA companies with real cutting-edge technology the network, the credibility and the money to fast-track and accelerate expansion and growth overseas."

Plattner is a noted philanthropist with strong links with SA, where he owns the Fancourt golfing estate, near George.