Havaíc Secures $25M in Second Close for African Innovation Fund 3

Ian Lessem, Havaíc Managing Partner

South African venture capital firm Havaíc has announced the second closing of its latest fund, securing an additional $25 million in commitments for its pan-African investment vehicle. The new capital raised for its African Innovation Fund 3 moves the VC firm closer to its ultimate target of $50 million.

The recent funding round was notably supported by Sanlam Multi-Manager, one of South Africa’s largest financial services groups, which made its first-ever allocation to the nation’s venture capital industry. The round also saw follow-on investments from existing backers, including Fireball Capital and the government-supported SA SME Fund.

“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,” said Ian Lessem, managing partner at Havaíc. He emphasized the firm’s goal of “not only delivering leading returns by supporting African-born businesses, but also creating meaningful social and economic change through our investments.”

Launched in August 2024, the African Innovation Fund 3 is Havaíc’s largest fund to date, following a $6 million Fund 1 in 2016 and a $20 million Fund 2 in 2020. The firm focuses on early-stage, post-revenue technology companies across Africa that demonstrate potential for international expansion.

For Sanlam, the investment followed a rigorous evaluation process. “Our due diligence showed that Havaíc has an extensive track record of successfully investing in the local tech space,” stated Sanan Pillay, head of private markets at Sanlam Multi-Manager. “They are also very capable of supporting businesses to scale and internationalise their operations — this is key to succeeding in the tech sector.”

The fund is set to make 15 investments in total. This second closing coincides with its latest commitments: a $1 million investment in South African payments company SAPay and a follow-on investment of the same amount in the sports technology firm Sportable. These join earlier 2024 investments in Pan-African payments platform NjiaPay and livestock trading platform SwiftVEE, expanding Havaíc’s portfolio to 22 companies across its three funds.

The continued support from institutional players like the SA SME Fund highlights a growing confidence in Africa’s venture capital landscape. Claudia Manning, a principal at the SA SME Fund, commented on the partnership, stating, “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.”

As investment in the continent’s tech sector matures, firms like Havaíc play a critical role in providing the capital and strategic support necessary for startups to scale and compete on a global stage, contributing to broader economic development and job creation.

Source: Launch Base Africa