Cape Town’s HAVAÍC has launched its third African Innovation Fund, aiming to invest $50 million. The firm has announced a successful first close after securing $15 million in July 2024. This fund will support 15 early-stage, high-growth companies from Africa with regional and global potential.
HAVAÍC partners with Universum Wealth, The SA SME Fund, and various family offices. Their joint efforts mark the largest fund HAVAÍC has managed to date. They have already invested in startups ranging from seed stage to Series A and B.
HAVAÍC’s previous funds, Fund 1 and Fund 2, have been fully deployed. Fund 1 started in 2016 with $6 million, and Fund 2 followed in 2020 with $20 million. Both funds are expected to yield additional exits. Last year, HAVAÍC celebrated its fifth exit.
The SA SME Fund is joining a growing trend of investors supporting Africa’s VC industry. This increase in funding boosts the startup ecosystem in South Africa, Kenya, and Nigeria.
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Strengthening Africa’s Tech Ecosystem
Ian Lessem, Managing Partner at HAVAÍC, said they are excited about this new fund. He emphasized their commitment to supporting African tech entrepreneurs. By investing in new markets, they aim to generate diversified revenue. This, in turn, will benefit Africa’s economy and create local jobs.
Jonathan Sieff, Managing Partner at Universum Wealth, praised HAVAÍC’s expertise. He highlighted the firm’s ability to find valuable investment opportunities. Sieff noted that alternative assets help diversify portfolios and increase returns.
Ketso Gordhan, CEO of The SA SME Fund, mentioned their continued support for HAVAÍC. He stressed that these investments address social issues while offering commercial returns.
HAVAÍC recently reported impressive results for 2023. The firm saw a 400 percent increase in annual revenue. It also achieved a landmark fifth exit. During this period, they delivered 193 percent in total realized returns and 120 percent in unrealized carrying returns.
HAVAÍC made notable investments in Sportable, RNR, RapidDeploy, hearX Group, and AURA. Fast Company recognized RapidDeploy as one of the Most Innovative Companies. The Financial Times featured hearX Group, FairMoney, and AURA on its list of Africa’s fastest-growing companies.