Cape Town-based venture capital firm HAVAÍC has successfully completed the third close of its African Innovation Fund 3, securing over USD 30 million in commitments towards its USD 50 million target. This significant milestone was achieved following a new strategic investment from South African impact investor, E Squared Investments. The fund, which focuses on post-revenue African technology startups, continues to attract substantial capital, signaling strong investor confidence in the continent's burgeoning tech landscape.
E Squared Joins as Key Impact Investor
The latest capital injection comes from E Squared Investments, an impact investor established by Allan Gray in 2007 to channel catalytic capital into responsible entrepreneurship. E Squared's participation underscores a shared philosophy focused on fostering sustainable and inclusive economic growth in South Africa. This partnership aligns HAVAÍC's commercial objectives with E Squared's mission to support ventures that generate both financial returns and positive social outcomes.
Pyi Maung, Chief Investment Officer at E Squared, highlighted the strategic alignment between the two organizations. He stated that HAVAÍC’s proven track record of backing African innovation that delivers tangible results strongly reflects their own investment philosophy. Maung emphasized that HAVAÍC's model of providing both capital and strategic support helps African startups scale responsibly and access global markets, which is central to E Squared's focus on long-term value creation.
A Strong Syndicate of Backers
E Squared joins a distinguished group of cornerstone investors who have committed to the African Innovation Fund 3. This includes long-time partners Fireball Capital and Universum Wealth, who have previously invested in HAVAÍC's predecessor funds. The syndicate also features the SA SME Fund and Sanlam Multi-Manager, whose participation marks a significant step for institutional investment in South Africa's venture capital sector.
Fund Deployment and Portfolio Growth
Launched in March 2023, Fund 3 is on track to build a portfolio of up to 15 early-stage, high-growth companies with regional and global potential. To date, the fund has already deployed USD 10 million across eight promising startups. This demonstrates HAVAÍC's proactive approach to identifying and nurturing innovative businesses across the continent, providing them with the necessary resources to scale effectively.
Recent additions to the portfolio include SAPay, a fintech digitizing minibus taxi fares in Johannesburg, and Entersekt, a fraud-prevention technology firm. The fund has also made follow-on investments in existing portfolio companies, including sports data platform Sportable and international calling app Talk360. These investments reflect HAVAÍC's strategy of backing diverse technology solutions that address critical market needs in Africa and beyond.
A Landmark Year and Future Outlook
This successful fund close follows HAVAÍC's strongest year to date, which was highlighted by two landmark exits. The sale of RapidDeploy to Motorola Solutions and the merger of hearX Group with Eargo to form LXE Hearing represent some of the most significant technology transactions in Africa's history. These successful outcomes validate HAVAÍC's investment thesis and its ability to guide portfolio companies toward major international success.
Ian Lessem, Managing Partner at HAVAÍC, expressed his optimism for the future, noting that the firm will leverage E Squared's investment to accelerate its portfolio's impact. He emphasized that the African VC industry possesses the talent and technology to create sustainable jobs and social empowerment. Lessem believes that impact-focused investors should see the continent as a prime destination for deploying capital for meaningful returns.
With the African Innovation Fund 3 on track for its final close in August 2026, HAVAÍC is well-positioned to continue its mission of catalyzing growth in the African tech ecosystem. The firm's ability to attract a diverse range of institutional and impact investors demonstrates a growing recognition of the continent's potential for innovation. This momentum is set to fuel the next generation of African startups poised for global expansion.