In an effort to spur the development of high-potential tech companies throughout Africa, Endeavor South Africa has announced the first close of its ZAR500 million (US $28.8 million) Harvest Fund III, raising ZAR190 million (US $11 million).
Having established its offices in 2004, Endeavor South Africa provides capital, global connections, and mentorship through connecting investors in its Harvest Fund, Endeavor Global Catalyst Fund, and global network.
Just now, the third Harvest Fund edition came within just ZAR190 million of its ZAR500 million goal. Standard Bank, Allan Gray, and the SA SME Fund are among the major investors. The inaugural close aligns with the last investment made by the immensely profitable ZAR190 million Harvest Fund II, which made 19 investments in 17 different companies.
“In Harvest Fund III, we are doubling down on a strategy that is working, investing in Endeavor’s existing portfolio of high-growth entrepreneurs who run market-leading founder-led companies with exceptionally strong local and global growth, scalable IP, robust returns, and a pay-it-forward mindset,” said Antonia Bothner, Endeavor SA capital markets lead.
A pipeline of 135 carefully chosen Endeavor companies in Africa will be the only asset type in which the fund will invest. Twenty to twenty-five businesses from Southern Africa and five from other African regions will make up this group.
“We have a deep understanding of the 135 businesses in our pipeline and are confident in their growth potential, as they have been selected through Endeavor’s rigorous two-stage international selection process, which spans one-to-two years. We engage with them continuously and will assess their capital needs to guide the fund’s investments,” said Endeavor South Africa managing director Alison Collier.
