Grace Ashiru
Endeavor South Africa has raised R190 million in the initial round of its ambitious R500 million Harvest Fund III, dedicated to investing in African tech startups and companies. This first close not only surpassed the R150 million target but also strengthened Endeavor’s commitment to supporting high-potential tech ventures across the continent, highlighting the growing confidence in Africa’s dynamic tech sector.
The launch of Harvest Fund III comes as Harvest Fund II, launched in 2021, draws to a close after investing R190 million across 17 companies. The participation of prominent investors, such as Standard Bank, Allan Gray, and the SA SME Fund, reflects strong confidence in the fund’s ability to drive significant growth in the African tech ecosystem. The new fund aims to invest in a rigorously vetted pipeline of 135 selected Endeavor companies, with 85% of the capital specifically allocated to South African businesses.
Alison Collier, Managing Director of Endeavor South Africa, emphasized the importance of the comprehensive due diligence process that has shaped the investment pipeline. “We have a deep understanding of the 135 businesses in our pipeline and are confident in their growth potential,” she said. This meticulous selection process, which can take up to two years, ensures that only the most promising companies receive investment.
Harvest Fund III is targeting a 25% return, aiming to achieve three to four times the invested capital, following the successful blueprint of Harvest Fund II. The previous fund saw remarkable outcomes, with 58% annual revenue growth and over R7.7 billion in revenue generated, while creating more than 9,200 jobs.
Previous investments from Endeavor’s funds include notable unicorns like Go1 and TymeBank, alongside high-growth companies such as Clickatell, Sendmarc, and Onafriq. This strategic effort continues to uplift the African tech industry, providing the necessary support for innovative startups to succeed.
The successful close of Harvest Fund III marks a key milestone in Endeavor’s mission to foster entrepreneurship across Africa. By offering vital capital and resources, Endeavor South Africa remains committed to driving impactful growth and transforming the continent’s tech landscape.
