South African venture capital firm 4Di Capital has announced the first closing of R256m ($16.96m) in initial commitments for a new technology venture capital fund.

The major investor in the fund has been revealed to be Exponential Ventures, the externally focused innovation unit of JSE listed insurance group MMI Holdings.

Justin Stanford, co-founding General Partner of 4Di Capital, said: “We are very pleased to welcome MMI Holdings to our stable of highly regarded investors.”

“The depth and breadth of the venture market has grown substantially in South Africa since we first launched The Silicon Cape Initiative in 2009, and there is more opportunity than ever before, to partner with great local talent and participate in this rapidly growing industry on a global scale,” he said.

"It is very good to see innovation-minded corporates in South Africa beginning to acknowledge the benefits of having a stake in the venture sector, as is common in the US, and we've been impressed by the constructive and enlightened engagement we’ve had with MMI management. We look forward to working together with them to leverage their strengths as well for our future portfolio companies’ benefit,” he added.

The fund’s mandate will include early- and growth-stage investments, focusing principally on scalable technology opportunities in the fintech, insurtech and healthtech verticals, particularly those with ambitions to reach international markets.

Jonathan Stewart, Managing Partner, Africa Investments at Exponential Ventures, said that 4Di Capital has a proven track record and has garnered significant respect from the tech start-up community in South Africa.

“We look forward to working together with them and the entrepreneurs that we ultimately invest in through the Fund.  Our philosophy is strongly win-win and a key aim of Exponential Ventures is to foster a productive environment of collaboration and learning that drives progress and competitiveness for both the start-ups concerned and MMI,” he said.

4Di Capital is an independent venture capital firm based in South Africa’s “Silicon Cape”, specialising in high-growth technology venture opportunities with international ambitions, principally in the early funding stages.

The firm has offices in Cape Town, South Africa and Atlanta, Georgia, in the US, and counts among its investors Reinet Fund S.C.A., E. Oppenheimer & Sons, and Convergence Partners.

Among others 4Di Capital has invested in enterprise web platforms, cloud scaling infrastructure, bio-mathematical health technology and financial technology ventures.

4Di funds are managed by the GP partnership team of Anton van Vlaanderen, Douglas Cherry, Erik van Vlaanderen, Justin Stanford and Laurie Olivier.

“We look forward to making a tangible difference to the tech start-up community and to SA as we align behind our ultimate goal, namely to leverage powerful new technologies and business models to bring about an exponential leap towards universal financial wellness,” Stewart said.