Investment holding company Stocks & Strauss Fund Manager said all agreements for its innovation commercialisation University Technology Fund II (UTF II) have been concluded and a substantial portion of the funds committed, marking a significant step towards reaching the R400-million target fund size.

The aim of the fund is to accelerate the commercialisation of groundbreaking research, technology and intellectual property (IP) originating at South African universities.

UTF II aims to invest in 15 to 20 companies, focusing on highly scalable technology IP across various sectors.

The fund will channel resources into technology commercialisation and growth, thereby ensuring a targeted approach to supporting innovative ventures with high potential.

The fund’s predecessor, UTF I, demonstrated the immense potential of university-originated technologies.

Among UTF I's notable investments were bioinformatics company Hyrax Biosciences that developed software that facilitated the early detection and understanding of the Covid-19 Omicron variant, and satellite control systems and components company CubeSpace, which received global acclaim, including being recognised by the US National Aeronautics and Space Administration (Nasa) and trusted by more than 250 global customers.

These achievements underscore the transformative power of targeted investment in university IP and technological innovation, the investment company said.

“In an effort to strengthen the country’s ecosystem of entrepreneurs, UTF II has expanded its mandate to allocate a portion of the fund to include alumni of South African universities.

“This approach aims to create a more interconnected ecosystem around universities, similar to the role Stanford University played in fostering Silicon Valley. By leveraging the talent and entrepreneurial drive of alumni, UTF II seeks to unlock the potential for innovation and economic growth at a national scale,” Stocks & Strauss said.

“The potential is immense, both for the companies and for investors. The world is witnessing a shift towards valuing university intellectual property as an important asset class and opportunity. These companies are also providing solutions to real-world challenges, which boosts their impact and value,” said Stocks & Strauss Fund Manager managing partner Wayne Stocks.

“Universities are unparalleled hubs for deep-technology investment opportunities in Africa. They possess the capacity, skilled talent, cross-faculty institutional knowledge and long-term funding necessary to drive meaningful innovation and development in this space,” he added.

The fund’s anchor investors include the South African (SA) SME Fund, Stellenbosch University, and Allan & Gill Gray Philanthropies Africa, which reinforces the co-investment model based on collaboration and shared vision.

Other key university investors in UTF II include the University of Pretoria, the University of Cape Town, and the University of the Witwatersrand, thereby further strengthening the initiative’s commitment to fostering innovation, Stocks & Strauss said.

“The UTF has a role in shaping South Africa’s economic future. The UTF Fund I is a powerful example of what can be achieved when we align resources to unlock the potential of South Africa’s brightest minds and world class intellectual property,” said SA SME Fund CEO Ketso Gordhan.

“UTF Fund II will elevate our innovation landscape further and we foresee that it will attract both local and international investment interest,” he said.

“Stellenbosch University partnered with the University Technology Fund II to support innovation on our campus and to help students, staff, and alumni bring their ideas to market,” said Stellenbosch University Innovation and Commercialisation chief director Anita Nel.

“The fund accelerates the development of new technologies and reinforces the university's reputation as a hub for research and innovation and builds on the successful relationship between our university and the UTF I.

“Additionally, the partnership offers potential financial returns that can be reinvested in research and infrastructure,” she said.