South Africa’s deeptech investment landscape has reached a significant milestone as Stocks & Strauss announced the final close of University Technology Fund II at R400 million, expanding the total capital available across its university-linked early-stage investment platform to more than R700 million.
The expanded platform represents a strategic shift in how African venture capital approaches innovation sourced directly from tertiary institutions. What makes this expansion particularly meaningful is its potential to transform how South African universities function as economic engines. Rather than limiting focus exclusively to academic research, the fund now actively backs alumni-founded companies alongside university-originated technologies, creating a more interconnected ecosystem reminiscent of Silicon Valley’s model.
Wayne Stocks, managing partner at Stocks & Strauss, explained the rationale behind this broader mandate. He noted that South Africa’s tertiary institutions are producing globally relevant technologies and founders, and the fund’s role is helping turn that potential into scalable companies capable of competing internationally. This philosophy underscores a recognition that universities possess more than intellectual property on paper, they hold the skilled talent, institutional knowledge, and long-term funding capacity necessary to drive meaningful innovation.
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The investor base backing UTF II reflects confidence from major institutional players. The SA SME Fund serves as an anchor investor alongside Stellenbosch University and Allan & Gill Gray Philanthropies Africa. Additional university participation comes from the University of Pretoria, University of Cape Town, and the University of the Witwatersrand. Institutional investors Sanlam and the Technology Innovation Agency also committed capital, signaling broad support for the university-as-assetclass thesis.
Evidence from the fund’s first iteration demonstrates the model’s viability. UTF I backed Hyrax Biosciences, whose bioinformatics software played a critical role in early detection of the Covid-19 Omicron variant, and CubeSpace, a satellite control systems manufacturer now trusted by more than 250 global customers and recognized by NASA. These outcomes show that university-rooted technologies can achieve genuine commercial traction and global relevance.
With UTF II now fully funded, Stocks & Strauss plans to deploy capital across 15 to 20 companies focused on highly scalable technology intellectual property spanning various sectors. The investment timeline spans from company formation and seed stage through early growth, providing patient capital at the precise point where specialist funding can drive the greatest impact.
For South Africa’s innovation ecosystem, the implications extend beyond funding. Universities now have clearer pathways to commercialize research and offer entrepreneurs infrastructure for scaling ideas. The portfolio companies gain access to institutional backing without sacrificing intellectual control. Investors gain exposure to deep-technology opportunities grounded in academic rigor and market-tested solutions addressing real-world challenges
