Cape Town-headquartered venture capital (VC) firm HAVAÍC has announced the third close of its US$50 million African Innovation Fund 3 (“Fund 3”).
Fund 3 has now secured over US$30 million in commitments following the entry of South African impact investor E Squared Investments. Established by Allan Gray in 2007, E Squared channels catalytic capital in support of responsible entrepreneurship and inclusive economic growth in South Africa.
“HAVAÍC’s track record of backing African innovation that translates into sustainable, real-world outcomes strongly reflects our investment philosophy,” says Pyi Maung, Chief Investment Officer at E Squared. “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.”
E Squared joins existing cornerstone investors Fireball Capital, Universum Wealth, the SA SME Fund, and Sanlam Multi-Manager. Sanlam Multi-Manager’s 2024 investment, ahead of Fund 3’s second close in July 2025, marked the group’s first allocation to South Africa’s VC industry and a notable step for institutional participation in this burgeoning asset class. Commitments from long-time partners Fireball Capital and Universum Wealth build on their investments in HAVAÍC’s predecessor funds, while the SA SME Fund’s backing underscores its continued commitment to unlocking institutional capital in the local VC ecosystem.
Launched in March 2023, the US$50 million African Innovation Fund 3 is on track to complete up to 15 investments in early-stage, high-growth, post-revenue African startups with regional and global growth potential.
To date, Fund 3 has deployed US$10 million in eight companies. Recent investments include SAPay, the Johannesburg-based fintech digitising minibus taxi fares, and Stellenbosch-born fraud-prevention fintech Entersekt.
Recent follow-on investments include doubling down on sports data and analytics platform Sportable and international calling app Talk360. Earlier Fund 3 investments saw Pan-African payments platform NjiaPay and fast-growing livestock trading platform SwiftVEE join HAVAÍC’s 23-strong portfolio of African technology startups. Earlier follow-on investments include RNR App, RapidDeploy, hearX Group, and AURA.
Ian Lessem, Managing Partner at HAVAÍC, said, “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. 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.”
The African Innovation Fund 3 is on track to achieve its US$50 million target for its fourth and final close in August this year.
The announcement follows HAVAÍC’s strongest year to date, underpinned by RapidDeploy’s sale to U.S.-listed Motorola Solutions and the hearX Group’s merger with Eargo to form LXE Hearing, representing two of the most significant technology transactions in Africa’s history.
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