Endeavor South Africa has announced the first close of its ZAR500 million (US$28.8 million) Harvest Fund III, securing ZAR190 million (US$11 million) as it aims to catalyse growth in high-potential tech-related companies across the African continent.
Endeavor South Africa, which opened its offices in 2004, offers access to mentorship, a global network, and capital, via introductions to investors in its global network, the Endeavor Global Catalyst Fund, and its own Harvest Fund.
The third edition of the Harvest Fund has just made a first close of ZAR190 million to its ZAR500 million target. Major investors include Standard Bank, Allan Gray, and the SA SME Fund. The first close coincides with the final investment of the highly successful ZAR190 million Harvest Fund II, which made 19 investments in 17 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,” saidAntonia Bothner, Endeavor SA capital markets lead.
The fund plans to invest exclusively in a vetted pipeline of 135 selected Endeavor companies in Africa. This will comprise 20 to 25 companies in Southern Africa, and five companies in other African regions.
“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.
