South African venture capital firm, HAVAÍC has announced the third close of its third fund, a US$50 million vehicle, marking a significant step forward in its mission to back Africa-born technology startups with global potential.
With more than US$30 million already secured in commitments and new capital flowing from impact investor E Squared Investments, the Cape Town-headquartered firm is accelerating deployments into high-growth startups including SAPay, Entersekt, Sportable, and Talk360.
Fund III is targeting up to 15 investments, reinforcing HAVAÍC’s strategy of pairing capital with strategic support to scale African innovation beyond the continent’s borders.
A Third Close Signals Growing Institutional Confidence
The third close of Fund III represents more than a routine capital update, it underscores growing institutional belief in Africa’s venture capital ecosystem. Having now secured over US$30 million toward its US$50 million target, HAVAÍC has drawn support from a mix of private and institutional backers.
The latest entrant, E Squared Investments, was established in 2007 by Allan Gray and focuses on deploying catalytic capital to drive responsible entrepreneurship and inclusive economic growth in South Africa.
Explaining the rationale behind the investment, Pyi Maung, chief investment officer at E Squared, said:
“HAVAÍC’s track record of backing African innovation that translates into sustainable, real-world outcomes strongly reflects our investment philosophy. Their combination of capital and strategic support enables Africa-born startups to scale responsibly and access global markets, which aligns closely with E Squared’s focus on long-term value creation. We look forward to being a part of their continued impact through our investment in Fund 3.”
The entry of an impact-driven institutional investor at this stage reflects rising confidence not just in HAVAÍC’s execution, but in the long-term viability of African venture capital as an asset class.
Building a Track Record of Global Scale
HAVAÍC positions itself as a leading African VC investment manager focused on early-stage, high-growth, Africa-born technology businesses. But beyond positioning statements, its performance metrics tell a compelling story.
From its headquarters in Cape Town, the firm has built a portfolio whose companies now serve more than 20 million customers across 190 countries worldwide. That reach is critical in a market where local scalability alone often limits startup valuation and long-term sustainability.
By actively helping founders access international markets, HAVAÍC has differentiated itself from capital-only investors.
The firm’s model blends funding with strategic guidance, network access, and operational support, an approach increasingly seen as essential for African startups navigating global expansion.
Strategic Deployments Across Fintech, Payments, and Data
To date, Fund III has deployed US$10 million into eight companies. Recent new investments include SAPay, a Johannesburg-based fintech digitising minibus taxi fares, and Stellenbosch-born fraud prevention fintech Entersekt.
These investments highlight two enduring themes in African tech: digitisation of informal economies and financial security infrastructure. SAPay’s digitisation of minibus taxi payments targets one of the continent’s most ubiquitous but cash-heavy transport systems.
Entersekt, meanwhile, addresses the growing need for secure digital transactions in a rapidly expanding fintech ecosystem. HAVAÍC has also made follow-on investments, effectively doubling down on companies already showing traction, in sports data and analytics platform Sportable and international calling app Talk360.
Earlier Fund III investments include pan-African payments platform NjiaPay and livestock trading marketplace SwiftVEE, both of which illustrate the diversity of Africa’s technology innovation landscape, spanning financial services, agritech, and cross-border commerce.
Institutional Investors Step Into African VC
E Squared joins a roster of cornerstone investors including Fireball Capital, Universum Wealth, the SA SME Fund, and Sanlam Multi-Manager.
Notably, Sanlam Multi-Manager’s 2024 investment marked its first allocation to South Africa’s venture capital industry, a milestone for institutional participation in what has historically been a developing asset class on the continent.
Such institutional backing is critical. Venture capital ecosystems mature when pension funds, asset managers, and structured investment vehicles begin allocating capital at scale.
Their participation reduces volatility, enhances governance standards, and signals credibility to international co-investors. In this context, Fund III’s progress suggests that African VC is entering a more structured and institutionally trusted phase.
Unlocking International Markets for Local Innovation
For HAVAÍC, the core thesis remains clear, African innovation must compete globally, and managing partner Ian Lessem emphasised this ambition, stating:
“We look forward to accelerating our portfolio’s impact with the support of E Squared’s investment and doubling down on our strategy to grow local innovation by unlocking international markets.”
He further argued that Africa’s venture ecosystem is primed for broader transformation.
“As evidenced by our portfolio companies’ growth and enduring positive returns, the African VC industry has the talent, technology, and opportunities to catalyse sustainable job creation and social empowerment on the continent. This is where investors with a strong appetite for creating impact should be deploying their capital.”
Lessem’s remarks reflect a wider industry narrative: that Africa’s technology sector is not merely a high-growth frontier, but a driver of structural economic change.
A Maturing Ecosystem With Global Ambitions
HAVAÍC’s Fund III momentum arrives at a time when African startups face both capital constraints and global opportunity. While funding cycles have tightened worldwide, investors with long-term conviction are positioning themselves for durable value creation rather than short-term returns.
By securing over US$30 million toward its US$50 million target and deploying capital into fintech, payments, sports analytics, and communications platforms, HAVAÍC is reinforcing its belief that Africa-born startups can compete, and win, on the global stage.
More importantly, the fund’s progress signals that African venture capital is no longer peripheral. With institutional capital entering the market and portfolio companies reaching customers in nearly every corner of the world, the ecosystem appears increasingly capable of delivering both financial returns and measurable socio-economic impact.
For founders building in Africa with international ambitions, the message is clear, that’s, serious capital is not only available, it is aligning itself with long-term global scale.
Talking Points
HAVAÍC’s Fund III momentum reflects a maturing African venture capital ecosystem, but it also highlights the structural tensions within it.
On one hand, securing over US$30 million toward a US$50 million target, with backing from institutions like E Squared Investments and Sanlam Multi-Manager, showcases growing institutional confidence in African VC as a legitimate asset class rather than a speculative frontier bet.
The firm’s emphasis on helping Africa-born startups scale globally, and its portfolio reach across 190 countries, demonstrates a pragmatic recognition that local market limitations often constrain valuation and exit potential.
However, the relatively modest size of the fund by global standards underscores a persistent capital gap when compared to emerging markets in Asia or Latin America, raising questions about whether African VCs can consistently support startups through late-stage growth without foreign lead investors.
Additionally, the concentration in fintech and payments, while commercially rational, reflects an ecosystem still heavily skewed toward financial infrastructure rather than deep tech or industrial innovation.
Ultimately, while HAVAÍC represents a strong example of disciplined, impact-aligned venture building on the continent, sustained ecosystem transformation will depend on larger fund sizes, deeper institutional participation, stronger exit pipelines, and broader sector diversification beyond fintech dominance.
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