Cape Town today publicly announced its partnership with PoweredbyVC, a venture fund manager and winner of the Living Labs Global Award 2011 to create a hybrid venture capital fund to support social entrepreneurship in the city and all of Africa. The City is to assist a venture capital fund manager, PoweredbyVC, to implement its programme that was selected winner of the Living Labs Global Award 2011. 11 global cities, including Cape Town, called for innovative strategies to address major socio-economic issues through this global process in which PoweredbyVC was selected as one of 11 winners from 245 entries from around the globe.
“Our City’s economic growth model supports high-growth entrepreneurs who can benefit from venture capital. These are the employers of tomorrow. They provide real business solutions and ensure healthy returns to investors. With its billion people, Africa is the world newest untapped market and Cape Town is the knowledge and innovation gateway to the continent,” says Alderman Belinda Walker, Mayoral Committee Member for Economic, Environmental and Spatial Planning as she handed over the Living Labs Global Award 2011 to PoweredbyVC.
According to Eben van Heerden, CEO of PoweredbyVC, their concept is a new ‘hybrid’ venture capital funding model that combines the proven best practices of a traditional venture capital fund with a new 'business cultivator' funding system for a sustainable impact on innovation, job creation and growth. This second generation venture capital fund will combine funding, business angel investment, incubation and entrepreneurship development initiatives into a structured ecosystem to the benefit of emerging entrepreneurs and providers of funding alike.