Stocks & Strauss raises R400m for university technology fund

South African investment firm Stocks & Strauss has completed the final close of its University Technology Fund (UTF) II at R400 million, bringing the total capital raised across its university-focused early-stage venture funds to more than R700 million.

The fund is designed to support the commercialisation of globally competitive technologies, intellectual property (IP) and high-growth start-ups emerging from South Africa’s tertiary institutions and their expansive alumni networks.

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UTF II has attracted backing from a diverse mix of public and private capital, including the SA SME Fund, Stellenbosch University, Allan & Gill Gray Philanthropies, Sanlam, Fireball Capital, the Technology Innovation Agency (TIA), the University of Pretoria, Wits University and the University of Cape Town.

Multi-tiered funding structure

The addition of the R400 million UTF II vehicle strengthens the firm’s capacity to provide uninterrupted, multi-stage support to localised innovations.

The broader S&S investment platform now strategically captures corporate lifecycles across three distinct funds:

• UTF I: Fully deployed with R230 million, serving early foundational portfolios;
• UTF Seed Fund: Capitalised at R86 million to anchor early start-up creation; and
• UTF II: Capitalised at R400 million to drive early-growth and international scaling.

The three-tier structure enables Stocks & Strauss to back businesses from inception through to early growth, helping to bridge funding gaps that often constrain promising start-ups.

The firm focuses on companies with the potential to scale internationally from an early stage.

Wayne Stocks, managing partner at Stocks & Strauss, said access to specialised, long-term capital remains critical to transforming academic research into commercially successful businesses.

“UTF II gives us the capital base to back more companies at the point where patient, specialist funding can make the greatest difference. South Africa’s tertiary institutions are producing globally relevant technologies and founders.

“Our role is to help turn that potential into scalable companies that can compete internationally,” he said.

Commercial momentum in spinoff vintages

The strategic rationale for focusing heavily on university IP pipelines is increasingly validated by the operational performance of S&S’s earlier portfolio selections.

Having initially built its early-stage deployment track record as a prominent backer of the fintech infrastructure provider Stitch, the firm’s specialised UTF platform has since moved to anchor high-tech ventures like satellite systems manufacturer CubeSpace, employee-benefits platform Jem, and agricultural biotechnology company Immobazyme.

Several of these university-linked ventures are demonstrating strong international traction.

Aerospace player CubeSpace is actively expanding its global footprints within the commercial satellite systems market, while biotechnology startup Immobazyme has already achieved standalone profitability on the back of a rapidly scaling international customer base.

Simultaneously, mobile-first HR platform Jem continues to scale its operations to address deskless workforces across emerging economies.

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Simon Ellis, chief executive and co-founder of Jem, detailed the strategic value of partnering with an institutional platform tailored around corporate expansion.

“S&S has been an exceptional partner to Jem. Beyond the capital, their counsel has already shaped a major decision and opened doors we’d never have reached alone.

“They understand (and back) our mission to unlock the deskless workforce across emerging markets, and they share in the impact we’re chasing,” he said.

With the R400 million capital pool finalised, Stocks & Strauss intends to immediately intensify its deployment velocity across the South African ecosystem, deploying patient capital into scalable business models primed to export local intellectual property into international consumer markets.

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