The Johannesburg Stock Exchange (JSE) and the Technology Innovation Agency (TIA) announced a four-month pilot aimed at preparing ten small and medium-size technology enterprises to raise capital, according to TechCentral. Patrick Krappie, TIA’s executive for innovation enabling, told the outlet that the programme does not provide direct grant funding but focuses on business development, investment readiness and market access.
The initiative runs under the JSE’s SME Rise banner and will work with companies in health, agriculture and financial technology over 16 weeks. Participants receive support in business diagnostics, growth planning, pitch development and technology commercialisation, culminating in a funding-ready pitch pack. They will also gain access to sector-specific engagements and a market-access day designed to build relationships with potential investors.
Krappie said that, subject to meeting the relevant requirements, participants may be considered for a JSE private placement (a digital platform for raising debt and equity for unlisted and listed companies) or an AltX screening (AltX is the exchange’s parallel market for small and medium-size high-growth companies). Selection was described as competitive and evidence-based. TIA supplied a database of 43 SMEs, 16 applied, 14 completed a 30-minute interview and a cohort of ten was recommended by the JSE and confirmed by TIA.
The pilot arrives at a time when the JSE has contracted dramatically, from more than 800 listed companies in the 1990s to roughly 280 today, according to a recent column. A pipeline of promising smaller firms could help reverse that trend by feeding the market with future listings.
Earlier this year TIA received a US$72.9-million settlement (about R1.2 billion) from the sale of a 49 % stake in biotech start-up Kapa Biosystems. CEO Titus Mathe said R137.3 million would support TIA’s seed fund and commercialisation hubs, while R300 million would be used for a fund-of-funds approach to unlock private capital. Although the pilot does not dispense grants, the settlement money underpins TIA’s broader effort to strengthen the innovation ecosystem.
For founders of tech SMEs, the programme offers a structured pathway to become investment-ready without relying on grant money. Successful participants could emerge with a polished pitch, market contacts and the possibility of listing on AltX or raising funds through a private placement, potentially accelerating growth and creating jobs in the technology sector.
Read more about similar initiatives in the Tech & Telco section.
The cohort was chosen after a structured 30-minute interview that assessed innovation, market potential, business readiness, leadership, identified risks and alignment with the programme’s objectives. From a database of 43 invited SMEs, sixteen submitted applications and fourteen completed the interview, after which the JSE moderated the results and recommended ten firms based on proven service offerings, operating maturity and commercial potential. The remaining candidates were placed on reserve or marked as non-recommended, illustrating the competitive and evidence-based nature of the selection process that underpins the pilot’s focus on readiness rather than grant provision.
The pilot is financially underpinned by a US$72.9-million settlement stemming from TIA’s 2015 sale of a 49 % stake in biotech start-up Kapa Biosystems for $4.9 million, eight months before Kapa’s shareholders sold the company to Roche for $445 million. The settlement comprises a $39.5 million arbitration award plus interest and additional legal costs. CEO Titus Mathe announced that R137.3 million will support TIA’s seed fund and commercialisation hubs, while R300 million is earmarked for a fund-of-funds approach designed to unlock private capital for the broader innovation ecosystem.
JSE Private Placements, launched in December 2021, operates as a digital platform that enables both unlisted and listed companies to raise debt or equity through a streamlined online process. Companies upload a funding-ready pitch pack, undergo a compliance check and then present the opportunity to accredited investors who can commit capital directly on the platform. The system reduces the administrative burden of traditional fundraising, shortens timelines and provides a transparent record of investor interest, positioning participating SMEs for quicker access to the capital markets once they meet the platform’s eligibility criteria.
AltX, established in 2003, functions as the JSE’s parallel market dedicated to small and medium-size high-growth companies seeking a public listing. Firms must demonstrate a scalable business model, robust governance structures and a track record of revenue growth before they can be screened for admission. Successful screening leads to a listing on AltX, granting companies visibility among institutional investors and the broader market while still benefiting from lighter regulatory requirements compared with the main board. This route offers a viable pathway for pilot participants to transition from private fundraising to a public equity market.
The four-month pilot also serves as a trial for the broader TIA-JSE partnership, allowing both organisations to test a structured model of support that bridges the gap between technology development and commercialisation. Patrick Krappie, who acted as TIA’s CEO for more than four years from June 2020, highlighted the collaboration as an opportunity to combine TIA’s expertise in technology development with the JSE’s capital-markets knowledge, governance experience and investor networks, thereby creating a more cohesive pathway for South African tech SMEs to scale.
