Cape Town-based Venture Capital firm HAVAÍC has announced the second close of its African Innovation Fund 3, securing US$25 million in commitments from leading institutional investors.This milestone brings the fund’s total commitments to US$50 million, marking another significant step in HAVAÍC’s mission to support high-growth, African-born technology startups with global potential.
Strategic Partnerships with Leading Institutional Investors
The second close features notable participation from Sanlam Multi-Manager, marking one of the financial services group’s first allocations to South Africa’s venture capital industry. This represents a significant milestone for the local ecosystem, demonstrating growing institutional confidence in African venture capital as an asset class.
The fund also secured follow-on investments from cornerstone partners Fireball Capital and the SA SME Fund, showcasing continued confidence in HAVAÍC’s track record of building diversified portfolios and delivering successful exits. The SA SME Fund’s continued participation aligns with its mission to channel capital into South Africa’s venture capital industry, supporting the broader development of the continent’s entrepreneurial ecosystem.
Recent Portfolio Investments Drive Fund Momentum
The second close coincides with HAVAÍC’s latest investment activities, including a US$1 million investment in SAPay during July. Acting as lead investor in the fintech’s first external funding round, HAVAÍC backed the early-stage company that is pioneering digital payment solutions for South Africa’s taxi industry, enhancing financial inclusion and operational efficiency in the transport sector.
HAVAÍC also completed a US$1 million follow-on investment in Sportable, leading their bridge to Series B funding round. The VC firm first invested in the sports data collection and analytics platform in October 2023, further supporting their rapid international expansion while creating skilled employment opportunities in South Africa.
Earlier this year, the fund made strategic investments in Pan-African payments platform NjiaPay and livestock trading platform SwiftVEE. These investments expand HAVAÍC’s 22-strong portfolio across its three funds, collectively serving 22 million customers in 183 countries worldwide.
Industry Leadership Recognizes Fund’s Strategic Value
Sanan Pillay, Head of Private Markets at Sanlam Multi-Manager, highlighted HAVAÍC’s proven ability to support African businesses in scaling and internationalizing their operations. This capability proves essential for success in the technology sector, where global expansion often determines long-term viability.
Claudia Manning, Principal at the SA SME Fund, praised HAVAÍC’s disciplined investment strategy and professional fund management approach. The firm’s extensive industry expertise and robust network have enabled them to build a standout portfolio of high-potential startups while maintaining investor confidence through transparent operations.
Ian Lessem, Managing Partner at HAVAÍC, emphasized how the institutional participation validates the firm’s dual approach of delivering leading returns while creating meaningful social and economic impact. This alignment of financial performance with development outcomes positions HAVAÍC to continue supporting Africa’s dynamic technology entrepreneurs.
Building on Landmark Exit Success
The fund announcement follows HAVAÍC’s recent landmark achievements from its fully deployed earlier funds. RapidDeploy’s acquisition by US-listed Motorola Solutions represents one of the largest technology exits in South African history, demonstrating HAVAÍC’s ability to nurture African startups to global scale.
The hearX Group’s merger with Eargo to form LXE Hearing in April, raising US$100 million in fresh capital, stands as another significant tech merger in African history. These exits validate HAVAÍC’s investment thesis and showcase the growing international recognition of African technology innovation.
Strategic Focus on African Innovation
Launched in August 2024, the African Innovation Fund 3 targets 15 investments in early-stage, high-growth, post-revenue companies born in Africa with regional and global growth potential.This strategy aligns with broader trends in African venture capital, where institutional investors increasingly recognize the continent’s technology potential.
The fund’s approach reflects HAVAÍC’s understanding that successful African startups must demonstrate both local market relevance and global scalability. By supporting companies like RNR in fleet management and maintaining a diversified sector approach, HAVAÍC continues building a portfolio positioned for sustainable growth.
Strengthening Africa’s Venture Capital Ecosystem
HAVAÍC’s milestone comes at a time when African venture capital is experiencing renewed investor interest, with funding showing signs of recovery after recent challenging periods. The institutional participation in Fund 3 demonstrates growing confidence in African venture capital as a legitimate asset class for sophisticated investors.
The fund’s success reflects broader ecosystem development, where established African VC firms are attracting institutional capital and delivering exits that validate their investment strategies. This progression supports the continent’s position as an emerging technology hub with significant growth potential.
With US$25 million secured in the second close, HAVAÍC continues its mission to support African-born technology companies in achieving local success and international expansion. Through strategic partnerships with leading institutional investors and a proven track record of successful exits, the firm reinforces its position as a key driver of African technology innovation and economic development.
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