The final closing of Endeavor South Africa’s Harvest Fund II has raised R190 million ($12.9m) in excess of its initial target. Since its first closing in 2021, the fund has invested in ten companies, with notable participation in Clickatell and Flexclub.
Endeavor Entrepreneurs from South Africa that are enrolled in the worldwide program will be co-invested in the Harvest Fund II. This is a fund that is aligned with the founders and rules-based. One of the most efficient funds in Africa because of its co-investment and rules-based character is Fund II.
What makes our Fund unique, says Harvest Fundraising head Antonia Bothner, is that it invests in companies at all stages of their development, from pre-Series A to Series D. This mirrors the portfolio of high-growth entrepreneurs that Endeavor works with.
In order for Endeavor to actively assist entrepreneurs in raising financing, Fund II adheres to the lead investor’s terms, allowing Endeavor to help entrepreneurs negotiate terms with the lead investor before Fund II joins in the round.
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These funds can be quickly deployed within the Endeavor Entrepreneurs network and remain connected with the founder.
We wanted to keep true to the overarching objective of Endeavor while also creating an income stream that would fund the work that Endeavor South Africa performs, says Bothner.
Endeavor South Africa’s non-profit activities receive 20 percent of Fund II’s carry, a unique growth strategy that has been implemented in 40 nations. By fostering a positive cycle of support for the next generation of entrepreneurs, this will contribute to South Africa’s economic progress.
It’s an important milestone for Endeavor South Africa’s board and partners, mentors, and entrepreneurs as the first national office to introduce a local fund that complements our Global Endeavor Catalyst funds,” says Herman Boesman Endeavor South Africa Chairman.
It is expected that Harvest Fund II will be fully invested by the end of 2022, and that deals will continue at the same rate as they have.
“Southern Africa’s growth sector is still in its infancy, and there are still numerous and expanding opportunities. The Harvest Fund II’s structure and positioning allow for both growth and impact, making it an ideal vehicle for philanthropy “says Bothner
African digital start-ups received $5.2 billion in equity rounds in 2021, 3.6x year-on-year growth and making the African tech venture capital ecosystem the fastest-growing internationally, according to Partech Africa’s data.
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Given this, Harvest Fund III and the existing fund will deliver a variety of benefits to our local entrepreneurial ecosystem, which includes entrepreneurs and venture capitalists, as well as the South African economy as a whole.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh