Venture capital firm Havaíc has announced a significant fundraising to back African startups ecosystem with the first close of its $50 million (R912 million) African Innovation Fund 3. The fund, which aims to invest in 15 early-stage African companies with global growth potential, secured $15 million in commitments from investors including Universum Wealth and SA SME Fund.
This latest fund marks a substantial increase from Havaíc’s previous ventures. The firm, which has a proven track record with two successful funds, has already exited five investments, generating substantial returns. The company’s focus on South Africa, Kenya, and Nigeria aligns with these countries’ burgeoning tech scenes.
The investment from SA SME Fund underscores the growing interest of institutional investors in Africa’s venture capital landscape. This trend, coupled with the influx of new funds, is fostering a robust ecosystem for startups on the continent.
“Our deepening relationship with institutional investors enables us to support more African tech entrepreneurs in scaling into new markets,” said Ian Lessem, managing partner at Havaíc. “A thriving VC ecosystem translates into economic growth and the creation of skilled local jobs.”
Havaíc’s 2023 results highlight the firm’s success, with a 400% increase in total annual revenue and impressive returns on investments. Recent investments include sports data company Sportable and follow-on funding for RNR, RapidDeploy, hearX Group, and AURA.
“We continue to be impressed with Havaíc’s ability to source compelling opportunities,” said Jonathan Sieff, managing partner at Universum Wealth. “Supporting their team has been a key part of our client offering.”
Ketso Gordhan, CEO of SA SME Fund, emphasized the fund’s commitment to backing leading VC firms like Havaíc. “These VC funds are at the forefront of finding innovative solutions to intractable social problems,” she said.
The firm’s new fund is expected to fuel innovation and job creation across Africa, contributing to the continent’s economic development. As African startups continue to mature, investment from Havaíc will be crucial in supporting the next generation of African entrepreneurs.