Clive Butkow, a Venture Capitalist, has launched a new venture capital firm, Conducive Capital, in Johannesburg, South Africa. The firm aims to create tech unicorns in South Africa and across Africa by investing in early and growth-stage disruptive technologies that are post-revenue and have a strong product-market fit.
The firm is majority black-owned, reflecting a commitment to diversity and inclusivity. Founding partners include Butkow, the former CEO of Kalon Venture Partners, and Mitchan Adams, the co-founder of Ozow, a South African fintech company, and current CEO of Aions Creative Technology.
Together, Butkow and Adams have invested over R300 million in early-stage funding, yielding an internal rate of return of over 30% over the past seven years.
During the launch of Conducive Capital, Butkow outlined the firm’s financial goals, announcing plans to raise $15 million (approximately R300 million) for its first close in July, with an ultimate goal to close at $50 million (around R1 billion) within the next 24 months.
Conducive Capital, a new majority black-owned, South African venture capital firm, aims to foster development in emerging businesses in South Africa and across Africa. Founding partners Clive Butkow and Mitchan Adams noted a strong demand for quality capital to support these businesses at early and growth stages.
Butkow highlighted that the firm is part of networks that can provide access to international ecosystems and potential investors for further funding. He emphasizes their interest in technologies that offer a tenfold improvement over current market offerings, backed by strong management teams with diverse skills.
Butkow, who has nearly four decades of experience in building technology businesses, stepped down as CEO of Kalon Venture Partners in late 2023. During his tenure, the firm invested in 12 local tech startups across a range of sectors.
Adams asserted that their combined experience would significantly contribute to shaping Africa’s tech SME landscape, and mentioned that they are open to the idea of adding a third partner if they match their stringent criteria.
Beyond providing funding, Conducive Capital also pledges comprehensive support to start-ups, offering strategic guidance, operational expertise, and mentorship to help them become industry leaders. The firm also aims to enhance diversity within the early and growth stage investment sector, and nurture the next generation of black, female venture capitalists.
Despite funding for start-ups having dwindled in recent years, Adams predicts 2024 will herald a period of steady growth. Conducive Capital remains dedicated to fostering innovative technologies which they believe could provide meaningful, sustainable solutions and improve countless lives in South Africa and across Africa.
