South Africa’s most active venture capital firm.

Endeavor South Africa doubled its initial target of Harvest Fund II with R190 million raised at the fund’s final close. The fund has already invested in 10 companies over the past year, the first being flexible club and the most recent being supported by Sequoia Clickatellmaking him South Africa’s most active VC in the past year.

“What also differentiates our fund is the range of stages it invests in, from pre-Series A to Series D, mimicking the companies Endeavor works with in its portfolio of high-growth entrepreneurs. ” says Harvest fundraising manager Antonia Bothner.

Antonia Botner

Fund II tracks lead investor terms, allowing Endeavor to actively help entrepreneurs raise capital by accessing Endeavor’s network of investors and supporting them with trading terms before joining the round.

“When we designed Fund II, we wanted to stay aligned with Endeavor’s overall mission, but also create a business model that would create a sustainable revenue stream to support the work of Endeavor South Africa, says Bothner. “We were fortunate to win a catalytic grant from USAID that allowed us to build a dedicated team and reduce fees for investors by waiving the standard 1% success fee.”

A unique approach in that 20% of the Fund II carry will be reinvested in Endeavor South Africa’s not-for-profit activities to grow the technology ecosystem. This will contribute to South Africa’s economic growth by fueling a positive cycle of support for the next generation of entrepreneurs. Endeavor’s high growth model has been successfully deployed in 40 countries around the world.

“This is an important milestone for Endeavor South Africa, which, with the support of our Board, partners, mentors and entrepreneurs, is the first country office to launch a local fund which complements our Global Endeavor Catalyst funds. says Herman Bosman Endeavor South Africa Chairman. “Capital remains a critical enabler for our high-growth local entrepreneurial ecosystem. This is a first for Africa and for Endeavor and something we are proud of.

Harvest welcomes three notable new LPs to the Fund, namely Capital Norsad, SME Fund SAand fireball capital.

“We are delighted to be exposed to some of South Africa’s fastest growing businesses and are well aligned with Endeavor’s mission to drive economic growth through entrepreneurship in South Africa and across Africa. “said Matthew Pratt, chief investment officer of Norsad Capital. “As an investor, Norsad’s goal is to ‘build a better Africa’ by supporting partner companies that have substantial social and environmental impact.”

“SA SME Fund is passionate about nurturing our nation’s broad entrepreneurial spirit by providing much-needed capital and thereby stimulating job creation and economic growth. Where there are existing structures that are effective and meant to be strong, we will support them. says Ketso Gordhan, CEO of SA SME Fund.

Ketso Gordhan

“At Fireball Capital, we believe venture capital is growing exponentially across the globe as technology leaders revolutionize the way we work, live and interact. Endeavor and Harvest Fund II are aligned with our goal of building and delivering global networks to enable local businesses to grow internationally and we are delighted to support Fund II, a majority female-led team. Venture capital is the most impactful asset class, as funds flow into the real economy, solving important problems and creating new jobs and GDP growth. says Paula Mokwena, CEO and Head of Direct Investments of Fireball Capital.

The latest three investments include TymeBank, a digital bank offering low-cost banking services; Synatic, a modern data automation platform; and Clickatell, a global mobile messaging API.

Harvest Fund II is expected to be fully invested by the end of 2022, with transactions expected to continue at a similar pace.

Paula Mokwena

“The growth sector in Southern Africa is still nascent and the opportunities are still plentiful and growing. The beauty of how our Harvest Fund II is structured and positioned is that there is ample room for growth and impact,” says Bothner.

The rich investment landscape comes as no surprise, as Partech Africa recorded that in 2021, 640 African tech start-ups raised a total of $5.2 billion in 681 seed rounds, representing 3.6x year-on-year growth and making tech venture capital Africa the fastest growing ecosystem in the world.

“Given this, we look forward to the multitude of returns that the existing fund and Harvest Fund III will bring to our local entrepreneurial ecosystem – entrepreneurs and VCs – and, more importantly, to the broader South African economy. .” DM

About Endeavor

Endeavor is a global non-profit organization headquartered in New York with offices in 40 markets with over 2800 entrepreneurs, +5000 pro bono mentors and +500 investors in its global network. The Endeavor model aims to identify and accelerate the growth of the most innovative and scalable entrepreneurs in emerging markets, as these high-growth companies are key drivers of job creation, revenue growth and hence economic growth and overall prosperity. Herman Bosman is the President of Endeavor South Africa and Alison Collier is the Managing Director.

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