Old Mutual pushes for venture capital fund

RYAN CHIGOCHE

Zimbabwe’ largest financial services group, Old Mutual Zimbabwe is pushing for a venture capital fund to support the innovation ecosystem  in the country.

According to the  2021 World Intellectual Property Organisation’s Global Innovation Index report, Zimbabwe is ranked 113 out of 132 countries.

“There is so much that needs to be done to enrich the innovation ecosystem. Currently there is a huge gap in venture funds. There is a need for a venture fund to support the innovation ecosystem in Zimbabwe which is currently fragmented,” Old Mutual head of marketing and innovation Lillian Mbayiwa told delegates at the  African Regional Intellectual Property Organisation in the capital last week.

She added: ‘’As Old Mutual we want to do more equity deals and be able to work more closely with start-ups so that their ideas have enough capital.”

A venture fund is a form of private equity and a type of financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potential.

Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.

Zimbabwe’s entrepreneurs have come together at digital hubs and incubators to share ideas and drum up support, despite the fact that only a few have been able to acquire funding.

Old Mutual’s Eight2Five Innovation Hub, provides a modern, professional, and energetic work environment to stimulate the creativity and productivity of entrepreneurial businesses and their teams.

Mbayiwa called on local corporations to embrace the idea of co-creation for the benefit of everyone including the public sector in order to promote innovation.

“Co-creation fosters and strengthens innovation and results in a more coordinated and aligned entrepreneurial ecosystem. A more enriched ecosystem benefits all involved: corporates, start-ups, public sector,” Mbayiwa said.

She said successful companies globally have embraced the concept of co-creation. Subsidiaries of industry giants such as Disney, Unilever and Meta demonstrate that they do not solely depend on internal capabilities for agility, Mbayiwa said.

At its core, entrepreneurship is one of Old Mutual Zimbabwe’s primary strategic pillars. Since 2016, the company has provided office space, coaching, skills development, capacity building, and a network to entrepreneurs running small businesses and having a positive difference in their value chain and in Zimbabwe.

Some of the start-ups which emerged from Old Mutual initiatives include Golix and 263Chat, among others.