Endeavor South Africa’s Harvest Fund III Secures First Close Commitments

Endeavor South Africa’s Harvest Fund III has achieved its first close, securing commitments of USD 10.8 M as part of its goal to raise R500 million (~ USD 28.4 M). The fund will invest in tech-related companies across Africa, with key investors including Standard Bank, Allan Gray, and the SA SME Fund.

The first close of Harvest Fund III coincides with the completion of the USD 10 M Harvest Fund II, which made 19 investments in 17 companies. Fund II portfolio consists of companies like TymeBank, Pargo, OnAfriq and Ozow.

Harvest Fund III will focus on a curated pipeline of 135 Endeavor companies in Africa, with plans to invest in 20 to 25 companies in Southern Africa, representing 85% of the fund’s value, and five companies in other African regions. The fund targets a 25% return or a three to four multiple on invested capital (MOIC), with typical deal sizes of R15 M (around USD 853 K for Endeavor companies and R7.5 M (around USD 427 K) for early-stage firms.

The fund also received support from Prosper Africa under its Catalytic Investment Facility, which helped the team scale its capital raise.

Feature image courtesy: Endeavor South Africa