Entrepreneurs for Entrepreneurs (E4E) Africa, an entrepreneur-led South African venture capital (VC) firm, has launched its Section 12J offering.
Disrupt Africa reported last year on the launch of E4E, which is backed by a founding investment from the SA SME Fund and has a first close of R135-million (US$8.1 million).
In addition to its regular fund, E4E has now launched a Section 12J facility, which grants investors a 100 per cent write-off for their South African taxes on any investment made in the Section 12J fund.
“The 12J incentive offers South Africans, people or companies, a unique opportunity to invest in high growth, early-stage businesses in a way that lowers risk and increases potential returns through the tax saving – while helping build a better South Africa,” said E4E partner Bas Hochstenbach.
Since its mid-2020 launch, E4E has created a significantly-sized fund, investing in a variety of companies that are innovating across key sectors of the South African economy. These include leading township food solutions enterprise YeboFresh, data annotation and labelling startup Enlabeler, and e-health startup Vula Mobile.
“With our proven track record as entrepreneurs and investors, we believe that E4E is uniquely placed to ensure that anyone using our 12J facility has the best possible chance of achieving real returns,” said E4E managing partner Philani Sangweni. “This is only advanced by the fact that we invest in innovation-led, transformative businesses that have the potential to scale globally.”
