Multibillion-dollar Foundry fund for investing in local startups shut down by SA’s Naspers

Naspers, a South African firm, has shut down Naspers Foundry, a locally oriented venture capital fund, citing the “global investment climate” as the cause.

In October 2018, Naspers announced the opening of the Foundry fund, a ZAR1.4 billion (then worth US $96 million, currently US $76.8 million) investment vehicle designed to strengthen South Africa’s innovation ecosystem by funding and assisting high-potential software companies that solve social problems.

“We believe that developing South Africa’s early-stage tech ecosystem will have a lasting impact on the broader South African economy,” Fabian Whate, head of Naspers Foundry, told in September 2021 as per reports.

“We’re convinced that the best way to achieve that is to help build great local tech businesses that focus on improving people’s everyday lives. So, at Naspers Foundry, our mission is to find, fund, and then help grow the next big South African tech companies.”

That was back then, and according to BusinessDay, less than 18 months later Naspers closed its fund and stopped accepting new investors. The company will continue to make its investments, including by issuing follow-up checks. Such companies as SweepSouth, Aerobotics, Food Supply Network, The Student Hub, WhereIsMyTransport, Ctrl, Naked Insurance, Nile, Floatpays, and Planet42 are among those in its portfolio.

“The global investment environment, as well as the local South African one, has changed, and we have made clear the need for our business to adapt. In line with changes across the wider business, we have reviewed our early-stage investment strategy within South Africa to bring it in line with our international approach,” a Naspers spokesperson said. “Naspers will continue to support the development of South Africa’s early-stage tech sector, assessing the market and new opportunities in a way that is consistent with our other global markets.”