Silvertree Capital, the investment arm of South Africa-based Silvertree Internet Holdings, has $10 million earmarked for investment in African e-commerce and tech startups in 2016, doubling the level of investment in acquisitions and business-building initiatives the consumer internet investment platform made in 2015.
The investment company, which will invest in deals from $50,000 to several million dollars, are long term investors who are in “the business of building businesses” to quote co-founder and Managing Director Peter Allerstorfer, will look for deals in a number of consumer-related sectors, including ecommerce, ad technology, comparison sites, travel, food technology and classifieds. The investment team will source deals in South Africa as well as for any suitable opportunities in other emerging markets in the continent, particularly Nigeria and Kenya.
Commenting on the strategy, Paul Cook, co-Founder and Managing Director of Silvertree Internet Holdings said “Through our operations across the continent, we are seeing first-hand that the African consumer market creates ‘leapfrog’ tech opportunities that our portfolio companies, with their expertise and deep understanding of their markets, are poised to capitalize on and grow.”
Silvertree looks for opportunities to invest and scale companies across small, rapidly-growing niches. In 2015, the firm’s B2C portfolio companies which include the recently acquired Pricecheck, reached 25 million unique consumers in 2015, a jump of approximately 50% on the prior year.
Since its founding in 2013, the South Africa-based business incubator has backed at least nine companies, including Click n Compare, Faithful to Nature, Cyber Cellar and Healthcart. It also recently acquired PriceCheck from Naspers, and put its original founder, Kevin Tucker back at the helm.