WDB Seed Fund, a Section 12J Fund, increases the participation of youth and women entrepreneurs in South Africa’s economy by investing in growth-stage businesses. Partnered with Seed Engine, the Fund’s mandate is to address the needs of growth-stage businesses while providing investors with ED/SD recognition and tax benefits.
- The WDB Seed Fund is structured as a Venture Capital Company (‘VCC’) in terms of section 12J of the Income Tax Act
- The Fund offers investors an opportunity to address enterprise supplier development requirements whilst also participating in an innovative funding solution
- The Fund is an actively managed Fund integrated with the development and support of black-owned small businesses (with preferential emphasis on black women and youth- owned businesses)
- The Fund provides capital, technical and post investment business support to investee companies
- Investors who are South African taxpayers are entitled to deduct the full amount of their investment in the Fund from their taxable income at their financial year end. This tax relief mitigates the investment risk and significantly enhances the potential return
- In terms of the Codes, 70% of the subscription value for ED share and/or SD Shares will qualify towards the B-BBEE Scorecard for as long as the investment resides on the Investor balance sheet
- The Fund focuses on the following sectors: ICT, Education, Health, Services, Retail, Manufacturing, Logistics, Property and Agriculture