Press release [FA NEWS]
Jeff Miller, CEO at Grovest
With the end of tax season fast-approaching, you’ve probably started to hear a lot from Section 12J funds — as several of them head towards their latest capital raising rounds, ending 28 February 2020.
The growing noise around Section 12J comes amid its rising prominence as the fastest growing alternative asset class in South Africa. Ever since Section 12J came into being in 2009, it’s been estimated that over R8bn has been invested in local Venture Capital Companies (VCCs.)
The strength of Section 12J is that it enables investors to receive tax deductions in return for providing much-needed capital to SMEs. At its heart, this legislation is about powering up the South African economy through funding entrepreneurs and helping to create much-needed jobs.
But while this asset class is heating up, many a prospective investor might be wondering where to start. Listed below are four overarching considerations an investor needs to bear in mind;
Want to know more about Section 12J? Visit our Section 12J page
Gareth van Zyl
Fox Street Communications
Tel: +27 83 129 9864