• HAVAÍC’s African Innovation Fund reached \$50M after a second close with $25M from Sanlam and others.

• The fund backs high-impact African startups; recent investments include SAPay and Sportable.

• Amid weak VC recovery, HAVAÍC targets scalable tech growth across fintech, healthtech, and more.

South African venture capital firm HAVAÍC announced on Tuesday, July 29, the second close of its African Innovation Fund, which now totals $50 million. This latest phase secured an additional $25 million from Sanlam Multi-Manager and existing investors, including Fireball Capital and the SA SME Fund.

These supports are “testament to our track record for not only delivering leading returns by supporting African-born businesses, but also creating meaningful social and economic change through our investments. Together, we can continue supporting our continent’s dynamic tech entrepreneurs and grow African VC to new heights," said Ian Lessem, managing partner at HAVAÍC.

Launched in August 2024, this third fund targets post-revenue African startups that show high growth potential and measurable impact. The fund recently invested $1 million in SAPay, a South African financial technology firm that digitizes payments in the minibus taxi sector. HAVAÍC also increased its stake in Sportable, a startup developing real-time sports tracking technologies.

A Rebound in African Venture Capital That Remains Fragile

The year 2023 saw a sharp halt in funding for African startups, with a 36% decline and less than $3.2 billion raised overall, down from over $6 billion in 2022, according to Africa: The Big Deal. In 2024, amounts raised remained modest at $2.2 billion, the same sources reported.

HAVAÍC's portfolio includes 22 startups active in 183 countries, with six notable exits. These exits include the sale of RapidDeploy to Motorola Solutions in February 2025 and the merger between hearX and U.S.-based Eargo. HAVAÍC continues to pursue a strategy focused on building globally scalable African tech champions.

Beyond just funding access, the capital raised by HAVAÍC is expected to bolster the African tech ecosystem. It aims to support the scalability of innovative companies in key sectors such as financial technology, agricultural technology, health technology, and education technology. For institutional investors like Sanlam, this move seeks to capture the long-term potential of a developing market by relying on experienced local partners.

The challenge remains substantial. According to the African Private Capital Association, the continent still attracts less than 1% of global venture capital. Initiatives like HAVAÍC's Fund II therefore, act as catalysts to draw both local and international capital towards Africa's most promising companies.

Samira Njoya