South African company Naspers has closed its locally-focused venture capital fund Naspers Foundry, citing the “global investment environment” as the reason.
Naspers announced the launch of its ZAR1.4 billion (then worth US$96 million, now US$76.8 million) Foundry fund, an investment vehicle aiming to boost South Africa’s tech ecosystem by investing in and supporting high-potential tech businesses that address societal needs, in October 2018.
“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 Disrupt Africa in September 2021.
“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 then, but barely 18 months later Naspers has shuttered its fund, with no further investments to be made, according to BusinessDay. The firm will maintain its investments, including writing follow-on checks. Its portfolio includes the likes of SweepSouth, Aerobotics, Food Supply Network, The Student Hub, WhereIsMyTransport, Ctrl, Naked Insurance, Nile, Floatpays and Planet42.
“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.”
