WDB Investment Holdings (WDBIH), the women-owned investment firm, has upped its shareholding in local ICT incubator Seed Engine to 51% from a previous 35%.
This has resulted in Seed Engine being certified as a majority black women-owned firm.
Venture capital company Grovest is the company's second major shareholder, with a 30% stake.
The firms had initially invested in the ICT incubator in August last year, with WDBIH acquiring a 27.5% stake, while Grovest acquired 30%.
Seed Engine is a corporation between Seed Academy, an entrepreneur activation business, and the WDB Seed Fund, a Section 12J fund focused on growth-stage businesses. It is seen to be one of the first ICT accelerators in this country, having been established in 2012.
The WDB Seed Fund was developed with the aim of filling the funding gap for early-stage start-ups and offering significant tax advantages and broad-based black economic empowerment points to corporate investors.
According to WDBIH, the investment underscores the long-standing relationship between WDB and Seed Engine, and their joint commitment to the development of black women and youth entrepreneurs, particularly in the technology space.
"We know that growing entrepreneurship is one of the biggest challenges facing our country," says Donna Rachelson, CEO of Seed Engine.
"We also know that the development of women entrepreneurs is an even greater challenge as only one in three entrepreneurs are women and only 38% of black women-owned businesses are formally funded. WDB and Seed Engine are focused on making a meaningful impact by supporting entrepreneurs who are resilient and able to build sustainable businesses that create jobs."
Faith Khanyile, CEO of WDBIH, adds the investment serves one of the firm's core values, to ensure women are economically self-reliant.
"WDBIH's increased investment in Seed Engine comes from a well-established strategic partnership and we are confident our shared vision will continue to provide strong leadership and advocacy for female entrepreneurs.
"We are fully confident that our mission of ensuring even more women are equipped to compete successfully in the economy will come to full fruition. The fact that women entrepreneurs are currently underrepresented in relation to the population is something we aim to change one success story at a time."
To date, WDBIH has seen more than 180 000 rural-based women benefit from R6.5 billion in investment funds, over 3 000 women have received literacy and basic business skills training, and over 300 permanent jobs had been created by the WDB Group since inception.
"Constructively engaging women entrepreneurs is critical to supporting economic growth. Women entrepreneurs support and uplift their families, their communities, and have the power to profoundly uplift South Africa as a whole," concludes Rachelson.
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