South Africa’s HAVAÍC: $25M Second Fund Close

When Cape Town-based venture capital firm HAVAÍC announced the second close of its African Innovation Fund 3, securing $25 million in fresh commitments, their funding milestone was a definitive statement about the maturation of Africa’s tech ecosystem and the growing institutional appetite for homegrown innovation with global reach.

When Your Numbers That Tell a Story

HAVAÍC’s $50 million African Innovation Fund 3 has now secured $25 million in its second close, supported by financial services group Sanlam Multi-Manager and with follow-on investments from cornerstone investors Fireball Capital and the SA SME Fund. This represents exactly half of the fund’s target size, achieved within a year of its August 2024 launch.

The progression from first to second close reveals telling momentum dynamics. The fund’s first close in July 2024 secured $15 million in partnership with cornerstone investors Universum Wealth and The SA SME Fund, as well as local and international family offices. The additional $10 million raised in the second close demonstrates not just sustained investor interest, but accelerating confidence in HAVAÍC’s thesis.

Strategic Investment Velocity: Four Portfolio Additions Signal Active Deployment

HAVAÍC isn’t sitting on capital but have been deploying it with incredible precision across Africa’s most promising verticals. The firm has made new and follow-on investments in SAPay, Sportable, NjiaPay, and SwiftVEE, positioning itself on course to complete up to 15 investments in Africa-born technology startups with global potential.
The recent investment activity reveals a sophisticated sector diversification strategy:

• Fintech Infrastructure: SAPay received a $1 million lead investment as a South African fintech transforming the minibus taxi industry with real-time digital payments. NjiaPay, a pan-African payments platform, was backed earlier in 2025, demonstrating HAVAÍC’s conviction in African payment rail innovation.
•  Sports Technology: Sportable secured a $1 million follow-on investment as a sports tech startup developing real-time data tracking tools, indicating both the firm’s confidence in existing portfolio companies and the global scalability of African sports tech.
•  AgTech Innovation: SwiftVEE, a livestock trading startup, represents HAVAÍC’s bet on digitizing Africa’s agricultural value chains, targeting a sector that remains largely analog across the continent.

The Institutional Validation Moment

Sanlam Multi-Manager’s participation in the second close represents a significant institutional validation. As one of South Africa’s largest financial services groups, Sanlam’s commitment signals that established financial institutions are moving beyond cautious observation to active participation in African venture capital. This institutional embrace suggests a recognition that African tech has moved beyond speculative early-stage plays into a legitimate asset class worthy of institutional allocation.

The presence of follow-on commitments from Fireball Capital and the SA SME Fund demonstrates LP satisfaction with HAVAÍC’s deployment strategy and portfolio performance. In venture capital, follow-on commitments from existing LPs are among the strongest indicators of fund manager competence and strategy execution.

Portfolio Track Record: The RapidDeploy Precedent

The recent acquisition of HAVAÍC portfolio company RapidDeploy by Motorola Solutions stands as one of South Africa’s largest tech exits to date. This exit provides crucial proof-of-concept for HAVAÍC’s investment thesis: African-born companies can achieve global scale and attract multinational acquirers.

RapidDeploy’s acquisition by Motorola Solutions—a Fortune 500 company—validates the global scalability potential that HAVAÍC seeks in its portfolio companies. For institutional investors like Sanlam Multi-Manager, such exits demonstrate that African tech investments can generate returns comparable to established venture markets.

Investment Thesis: Post-Revenue Focus Reduces Risk Profile

The African Innovation Fund 3 targets 15 investments in early-stage, high-growth, and post-revenue investments born in Africa with regional and global growth potential. The post-revenue requirement represents a sophisticated risk management approach that differentiates HAVAÍC from purely speculative early-stage funds.

By focusing on companies that have already achieved revenue generation, HAVAÍC reduces the binary outcome risk typical of pre-revenue venture investments. This approach appeals to institutional investors who require more predictable risk-return profiles while still capturing the high-growth potential of African tech companies.

Macro Context: African VC Maturation

This strategy aligns with broader trends in African venture capital, where institutional investors increasingly recognize the continent’s tech potential. The participation of established financial institutions like Sanlam Multi-Manager reflects a broader shift in African venture capital from pioneer investors and development finance institutions toward mainstream institutional capital.

The $50 million fund size positions HAVAÍC to make meaningful follow-on investments while maintaining portfolio concentration. With 15 planned investments, the average initial check size approaches $3.3 million—sufficient to achieve meaningful ownership stakes in early-stage African companies while reserving capital for follow-on rounds.

Looking Forward: Continental Ambitions

HAVAÍC’s investment philosophy centers on early-stage, high-growth businesses offering access to local investments with global prospects. This dual focus, local relevance with global scalability, represents the optimal investment approach for African tech companies seeking to address massive local market opportunities while building exportable technology platforms.

The firm’s current deployment pace suggests the fund will be fully invested within 18-24 months, positioning HAVAÍC to raise a fourth fund by 2026-2027. With institutional investors like Sanlam Multi-Manager now in their LP base, future fundraising cycles should benefit from enhanced credibility and expanded institutional networks.

As Institutional Capital Meets African Innovation

HAVAÍC’s successful second close represents capital raising and signals the maturation of African venture capital as an institutional asset class. With proven exits like RapidDeploy, diversified sector exposure, and disciplined post-revenue investment criteria, HAVAÍC has positioned itself at the intersection of institutional capital and African innovation.

For the broader African tech ecosystem, HAVAÍC’s momentum demonstrates that patient, strategic capital deployment can attract institutional co-investors and generate meaningful returns. As the fund approaches its final close, the real test will be portfolio company execution and the ability to replicate the RapidDeploy success across multiple portfolio companies.