Cape Town-headquartered Venture Capital (VC) firm HAVAÍC has announced the second close of its $50-million African Innovation Fund 3. Supported by financial services group Sanlam Multi-Manager and with follow-on investments from cornerstone investors Fireball Capital and the SA SME Fund, the fund has secured $25-million in commitments.
This marks one of Sanlam Multi-Manager’s first allocations to South Africa’s VC industry, representing a significant milestone for the local ecosystem. The group’s commitment to HAVAIC reinforces the increasing participation of leading local institutions and corporates in African VC.
Further follow-on allocations from long-time partner Fireball Capital and the SA SME Fund demonstrate confidence in HAVAÍC’s track record of building a diversified and high-returning portfolio, as well as exiting investments internationally. Most recently, the VC’s portfolio company RapidDeploy was acquired by US-listed Motorola Solutions, marking one of the largest tech exits in South Africa’s history.
Launched in August 2024, The African Innovation Fund 3 is earmarking 15 investments in early-stage, high-growth, and impactful post-revenue investments born in Africa with regional and global growth potential. The second close coincides with the fund’s latest investments into SAPay and a follow-on investment into Sportable.
Acting as a lead investor in the fintech’s first external funding round, HAVAÍC backed SAPay with a US$1 million investment in July as part of a larger funding round. The early-stage business is leading the way in digitising payments in the SA taxi industry, creating greater access to financial inclusion and efficiencies in the sector.
HAVAÍC also concluded a second $1-million follow-on investment in Sportable, acting as the lead investor in their bridge to series B funding round during July. The VC first invested in the sports data collection and analytics platform in October 2023, further fuelling their rapid international expansion while growing skilled and representative employment in South Africa.
This follows Q1 investments in pan-African payments platform NjiaPay and fast-growing livestock trading platform SwiftVEE, which bolsters HAVAÍC’s 22-strong portfolio across its three funds, serving 22-million customers in 183 countries.
Ian Lessem, managing partner at HAVAÍC, says: “Welcoming Sanlam Multi-Manager into our Fund 3, along with added commitments from the SA SME Fund and Fireball Capital, is a testament to our track record for not only delivering leading returns by supporting African-born businesses, but also creating meaningful social and economic change through our investments. Together, we can continue supporting our continent’s dynamic tech entrepreneurs and grow African VC to new heights.”
Sanan Pillay, head of private markets at Sanlam Multi-Manager, adds: “Our due diligence showed that HAVAÍC has an extensive track record of successfully investing in the local tech space. They are also very capable of supporting businesses to scale and internationalise their operations – this is key to succeeding in the tech sector.”
Claudia Manning, principal at the SA SME Fund, comments: “HAVAÍC has leveraged its deep industry expertise, extensive network, and disciplined investment strategy to build a standout portfolio of high-potential start-ups. Their professional approach to fund management and attentiveness to investors offers reassurance that our needs will be met.”