R25m up for grabs in VC funds

By Siyabonga Africa, ITWeb junior journalist

Johannesburg, 26 Mar 2009

Mark Shuttleworth`s venture capital company (VC), Here Be Dragons (HBD), is looking to make an investment of between R10 million and R25 million in an early stage business this year.

The VC is searching for companies with innovative ideas, which can be expanded internationally.

HBD CEO Julia Fourie says, in a statement, the VC believes tough economic times can make or break young companies, but at the same time adverse market conditions present great opportunities to invest in those with fresh ideas.

"If we can partner with quality companies through tough times, there should be substantial rewards to be reaped in later years. As HBD takes a three- to five-year outlook on the business potential of an investment, we not only focus on this year`s problems, but also next year`s opportunities."

The VC has invested in various technology companies, such as mobile financial service provider Fundamo, search marketing company Clicks2Customers and 3D radar tracking systems developer EDH.

Local goes global

EDH is moving its main operations offices from Stellenbosch, in the Western Cape, to Orlando, in the US. The local 3D radar tracking systems developer says it is gearing to attack the sports tracking market, particularly baseball, in that country.

"We already have offices open in SA, the UK and Poland, and this US office will officially handle our front-end business while product development will happen at Stellenbosch," says EDH group operations executive Tom Johnson.

The company, which was formed in 1989, says it is shifting its business focus from military ammunitions tracking and industrial quality control solutions to the sports realm. EDH is already rolling out its golf solution, comprised of software and sensors, to a number of unspecified Pro Shops around the country.

"We believe the world of sports can benefit from our technology, which is focused on improving the quality of sport through our various instruments that are adapted for each different game, whether it be tennis, soccer, golf or baseball."