Grindstone, MIC Partner To Fund Four Black, Woman-Owned Businesses

Mineworkers Investment Company (MIC), a 100% black-owned broad-based investment holding company, announced a partnership with Grindstone, a global growth-engineer, respected for the pivotal role it plays in creating impact through engineering growth for startups.

With a total of sixteen cohorts completed to date, Grindstone continues to expand its impact footprint and is excited about this next cohort in collaboration with MIC. This strategic collaboration marks the initiation of a new chapter of GrindstoneX, a specialised accelerator programme that fosters the growth of high-growth, innovation-driven, woman-owned startups.

From the first cohort to the sixteenth, Grindstone’s alumni companies have raised over R2.2 billion in funding, and grown revenue by across cohorts by over R532 million.

In terms of demographics, Grindstone is particularly proud of the increasingly inclusive demographic split among male/female representation and the overall rise in female founded businesses: From 19% male/female representation across the first four cohorts by 2018, to 47% female representation across cohorts five to sixteen, and overall showing 40% female-founded representation to date.

Grindstone is also particularly proud of the increase over the last decade in the number of black-owned startups participating in the programme from 7% to 60 from the first to most recent cohort.

GrindstoneX has contributed greatly to female-founded business impact over the last two years, and the MIC programme will continue to bolster our efforts to grow female founded businesses equally. GrindstoneX is an initiative specifically focused on female-founded businesses that continues to gain momentum.

“We are thrilled with the progress we’ve made and the impact we’ve had on the entrepreneurial landscape to date. The partnership with MIC enables us to continue drive impact and momentum,” said Catherine Young. “Our focus remains on empowering startups, particularly female-led businesses, to achieve remarkable growth and sustainability.”

Looking forward: The next GrindstoneX Programme

The X-factor to Grindstone’s third GrindstoneX programme is pre-Series A funding from MIC to the successful four woman-owned startups at the end of the programme. While the Mastercard Index of Women Entrepreneurs (MIWE) for South Africa noted that there has been a slight increase in the percentage of women embarking on entrepreneurial ventures, South Africa ranked 55th in Knowledge Assets and Financial Access. This rating is calculated according to five sub-indicators: SME operational financing, SME-supportive taxes and bureaucracy, availability of venture capital, access to entrepreneurial finance, and gender bias in access to financial services. These sub-indicators clarify where interventions should be focused in South Africa, highlighting gaps that the programme aims to address.

The four tech and tech-enabled companies selected to be part of the programme, will be receiving funding from MIC, along with some deep interventions to grow the business by Grindstone. The structured growth engineering programme will start recruiting South African startups that are 50% or more female-owned at the end of July, with the programme to commence in August 2024. If you are eligible, apply here.

For MIC the partnership is an extension to impact investment and extension of early-stage investment vehicle MIC Khulisani Ventures. While the businesses that are being supported fall under the investment threshold for Khulisani, MIC believes this partnership is an opportunity to positively impact female owned businesses that are sometimes overlooked.

“As an active equity partner, MIC is committed to identifying, supporting, and growing, technology-driven, innovative, high-growth businesses owned by Black women in South Africa. Our collaboration with Grindstone X is a step towards levelling the playing field, ensuring that smaller Black female-owned enterprises receive the attention and resources they deserve. It is also an investment in the future, helping narrow the gender investment gap, increase diversity in funding, and, in doing so, contributing to the growth of the South African economy,” said Nchaupe Khaole, Chief Investment Officer of MIC.

“Grindstone has proven success in Africa,” Khaole added. “This initiative will reward black-owned, female-led businesses by giving participating companies unparalleled access to profitable markets and networks as well as provide funding and capacity building opportunities to empower sustainable growth.”

Grindstone has been growth engineering early-stage innovative startups since 2013, starting in South Africa and expanding globally. Their experience over the years has witnessed female founders securing less funding than men – and this is supported by empirical evidence. Despite this gender bias in funding, women have a very distinctive, never-say-die attitude – and work harder to prove their worth. Together with MIC, Grindstone will help women scale their businesses. MIC is an active impact investor with shared values and a strong desire for transformation.

“When we invest in women, we know we grow economies, boost employment, and support inclusivity. More so, what we’re doing with MIC to support entrepreneurs at the seed and post-seed stages is certain to uplift and inspire other women,” said Young.