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There is much discussion about the funding landscape in South Africa, but far too little attention is given to what is known as the “missing middle.” Early-stage capital exits, grants, competitions, and angel investments help founders get started. At the other end of the spectrum, there are institutional investors waiting for companies that are Series A-ready. But what about the ventures caught in between? Too advanced for seed, but not yet ready for Series A? This is where too many promising businesses stall.
Grindstone Ventures was designed to close that gap, to invest in companies with proven product-market fit that need capital and support to reach their next growth milestone. Locstat, for example, has taken on the challenge of delivering complex, connected-data solutions for industries grappling with inefficiency and high costs. Their ability to secure traction shows their business is ready for scale, but without post-seed funding, their momentum could easily plateau.
The “missing middle” isn’t just about capital. It’s also about confidence. Many investors hesitate at this stage, worried about risk, when in fact this is the point at which smart money can have the most impact. Grindstone Ventures provides not just funding but access to networks, mentorship, and strategic guidance. By bridging this middle ground, the fund ensures that companies with real potential don’t fall through the cracks.
If South Africa is to truly scale its innovation economy, more investors need to step into this space. It’s not about backing ideas anymore, it’s about backing companies with evidence, momentum, and ambition.
