Titanium VC1 Fund scores a first by listing on ZAR X
The venture capital company blazes the trail for other tax-efficient section 12J venture capital funds
The first tax-efficient venture capital company is set to list on the ZAR X exchange in early 2019. The Titanium VC1 Fund, an SA Revenue Services -compliant section 12J fund, which will invest in technology converting carbon-rich feed stocks into alternative energy sources, is looking to raise as much as R250m at its listing. “Where there’s energy there’s growth and opening the section 12 J venture capital regime to an exchange like ZAR X gives the everyday person the opportunity to invest not only in a section 12J company but in South Africa’s future,” says Titanium’s financial director, Melinda Malan. Section 12J funds were established to spur investment in certain early stage businesses by offering investors the ability to deduct up to a maximum of 45% of their tax liability in any one year with which to invest in approved 12J funds. The move could be replicated by other operators in the burgeoning 12J venture capital industry as it might solve one of the largest challenges for i...
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