Early-stage companies investment firm Stocks & Strauss has reached final close of the R400-million University Technology Fund (UTF) II.

The close raises the total capital across its university-linked early-stage investment platform to more than R700-million and deepens a dedicated pathway for commercialising innovation emerging from tertiary institutions, the company says.

Universities and their alumni networks are increasingly being recognised as critical sources of investable technology, intellectual property and high-growth company formation in South Africa, it points out.

The firm's platform now spans UTF I, fully deployed at R230-million; the UTF Seed Fund at R86-million; and UTF II at R400-million. These enable Stocks & Strauss to support companies from formation and seed stage through to early growth.

The platform is designed to support ventures with the potential to scale beyond South Africa from the outset.

“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,” says Stocks & Strauss managing partner Wayne Stocks.

“UTF II gives us the capital base to back more companies at the point where patient, specialist funding can make the greatest difference,” he says.

With UTF II closed, the firm plans to increase its activity across South Africa’s early-stage ecosystem by backing more companies linked to local tertiary institutions and alumni networks, with a focus on technologies and business models that can scale into international markets.

Investors in UTF II include the venture capital company SA SME Fund, Stellenbosch University, Allan & Gill Gray Philanthropies, Sanlam, Fireball Capital, the Technology Innovation Agency, the University of Pretoria, the University of the Witwatersrand and the University of Cape Town.

Further, the UTF platform has invested in companies including CubeSpace, Jem and biotechnology company Immobazyme, which are demonstrating strong commercial momentum.

CubeSpace is expanding internationally in the satellite systems market. Immobazyme is a profitable biotechnology company with a rapidly growing international customer base and plans to scale further globally.

Jem continues to grow as a platform serving deskless workforces, says Stocks & Strauss.