LionPride Agility VCC
South African Rand
The LionPride VCC invests in compelling businesses, including mature and disruptive technology companies, and is backed by an experienced board and investment committee. The LionPride Agility VCC has a single structure with 2 different classes of shares. Investors are able to invest within each individual theme according to their desired risk allocation. The two themes are impact investing (share class B) and emerging technologies (Share class C). The combination of both structures provides a more compelling risk-weighted return on investment profile. The LionPride VCC aims to achieve the following returns: Share Class B: an investment return of 2.5 to 3 times the risk capital invested within 6 years from date of investment. Share Class C: an IRR of 35% over a 5-year period. An investment in the LionPride VCC is considered a long-term investment with a minimum of 5 years to retain the income tax deduction received by the investor. 1. Impact Investing (Share class B) Focus on SMEs and startups using mature technology to positively impact economic upliftment objectives in South Africa. Unlock value at the bottom of the pyramid (13.5 million South African households). Lower risk, targeting SMEs with largely stable, predictable free cash flows and a defensible moat / large margin of safety. Target sectors include Fintech, Education, Healthcare, Food and 4th Industrial Revolution. 2. Emerging Technologies (Share class C) Focus on South African startups utilizing emerging technologies within highly scalable and disruptive business models. Rapid adoption and higher productivity allows startups built on emerging technologies to reach global scale quickly with lower capital outlay. With high mobile penetration, a low cost base, friendly regulation and being the technology hub of Africa, South Africa is the ideal testbed for startups targeting global expansion and scale. Higher risk, classic Silicon Valley VC model with an asymmetric return profile versus capital deployed. Target sectors include Fintech, Agritech, On-Demand Services, Business Process Outsourcing, Renewables and EdTech.