Endeavor South Africa has successfully raised R190 million in the first funding round of its ambitious R500 million Harvest Fund III, aimed at investing in African tech startups and companies. This initial close not only exceeded the target of R150 million but also reinforces Endeavor’s commitment to nurturing high-potential tech enterprises across the continent, underscoring the growing confidence in Africa’s vibrant tech landscape.
The launch of Harvest Fund III coincides with the conclusion of Harvest Fund II, established in 2021, which invested R190 million across 17 companies. The involvement of major investors, including Standard Bank, Allan Gray, and the SA SME Fund, highlights the belief in the fund’s ability to drive significant growth in the African tech ecosystem. This latest fund plans to invest in a carefully vetted pipeline of 135 selected Endeavor companies, with a substantial 85% of the funding earmarked for South African businesses.
Alison Collier, Managing Director of Endeavor South Africa, stressed the significance of a rigorous due diligence process that has shaped the investment pipeline. She stated, “We have a deep understanding of the 135 businesses in our pipeline and are confident in their growth potential.” This thorough selection process, which can take up to two years, ensures that only the most promising companies receive backing.
Harvest Fund III aims for a target return of 25%, equating to three to four times the invested capital, following the successful model of Harvest Fund II. The previous fund achieved impressive results, boasting a 58% annual revenue growth and generating over R7.7 billion in revenue while creating more than 9,200 jobs.
Previous investments from Endeavor’s funds include notable unicorns like Go1 and TymeBank, as well as high-growth companies such as Clickatell, Sendmarc, and Onafriq. This strategic initiative continues to empower and elevate the African tech sector, ensuring that innovative startups receive the support they need to thrive.
The successful close of Harvest Fund III marks a significant milestone in Endeavor’s mission to foster entrepreneurship in Africa. By providing essential capital and resources, Endeavor South Africa remains dedicated to driving impactful growth and transforming the tech landscape across the continent.
EndeavorSouthAfrica #HarvestFundIII #TechInvestment #AfricanStartups #VentureCapital #Entrepreneurship #Innovation #EconomicGrowth
