WDB Investment Holdings and venture capital company Grovest have both invested in ICT accelerator Seed Engine to provide support and address challenges faced by SMEs.
WDB Investment Holdings has bought a 27.5% stake, while Grovest has bought a 30% stake in Seed Engine (incorporating Seed Academy), an investment which brings together a common concern that these organisations are working to address: the transformation of South Africa's economy by developing sustainable entrepreneurial businesses, says WDB Investment Holdings.
Donna Rachelson, CEO of Seed Engine and Seed Academy, says entrepreneurs are the job creators of the future and these investments have created strategic partnerships that will amplify her company's training, support and funding mechanisms at every stage of the entrepreneurial lifecycle.
"It will help unlock well-known barriers the small business sector faces, like access to markets and access to funding.
"Incubation is not producing the results SA needs and entrepreneurs are battling to build, scale their businesses and create jobs. We take a fresh look at our entrepreneurial system and make quick, sustainable changes that result in jobs, wealth and certainty. Through the WDB and Grovest we will be able to tap into corporate and government relationships and networks that will help Seed Engine reach deeper into the communities and sectors that need the most urgent support," she explains.
Seed Engine, she notes, was impressed that some 180 000 rural women had benefited from WDB Trust loans worth more than R400 million, 3 000 women had received literacy and basic business skills training, and over 300 permanent jobs had been created by the WDB Group since inception.
Faith Khanyile, CEO of WDB, says the WDB's 25-year track record is aligned with the future vision of Seed Engine to deliver high-impact socio-economic programmes which directly improve people's lives, especially the poorest and most neglected.
"We needed a strategic partner that would instantly allow us to scale up our efforts around entrepreneurship in SA, especially amongst women. Seed Engine was one of the first ICT accelerators in this country, and this dynamic for-profit social enterprise is now supporting the entire entrepreneurial ecosystem from start-up through to supplier."
The WDB investment, she adds, is likely to increase to 51% as the company has an appropriate bias towards empowering female entrepreneurs and being a meaningful active investor. The partnership serves both the business and social agenda of WDB.
Jeff Miller, CEO of Grovest, points out that his organisation brings an in-depth understanding of the entrepreneur and venture capital ecosystems, a solid track record of successful investments and over 100 years combined management experience in capital raising, listings, MBOs and trade sales.
Share