Investor Updates: May 4, 2022 - SA VC firm HAVAÍC completes final close of $20m fund
3 min Read May 4, 2022 at 3:49 PM UTC
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🇿🇦SA VC firm HAVAÍC completes final close of $20m fund
![](https://blog.dabafinance.com/wp-content/uploads/2022/06/havaic-1024x490-1.png)
Image from Disrupt Africa
Highlights
- South Africa-based VC HAVAÍC has announced the third and final close of the HAVAÍC Universum Core African Fund, a $20 million fund targeting technology companies in South, East, and West Africa.
- The Cape Town-headquartered firm invests in and supports early-stage, high-growth tech businesses with proven concepts and global prospects.
- The Fund is its second pan-African investment fund, and its third and final close comes in partnership with investment management firm Universum Wealth, and institutional investors from South Africa and the United States, including Fireball Capital.
Source: Disrupt Africa
Our Takeaway
In what was a record year for venture funding in Africa, startups on the continent raised more than $4 billion in 2021. This year, African startups have secured more than $2 billion in four months, prompting predictions startup funding in Africa may reach $7-$8 billion at the end of 2022. For HAVAÍC, it sees an opportunity in the fact that despite this growth, African startups still only draw 1% of funding from mostly foreign venture backers, indicating room for further growth and local participation.
🇰🇪The Baobab Network invests in 5 new African startups
Image from Disrupt Africa
Highlights
- Nairobi-based accelerator The Baobab Network, which invests in early-stage tech companies across Africa, has announced its latest cohort of five investees, each of which secures $25,000 in funding.
- The firm has been accelerating startups with capacity building and fundraising since 2019, and now supports 25 startups in 11 countries after making five further investments as part of a new model. The newest cohort joined a three-month intensive growth program at the beginning of March.
- Three of the investees were from Nigeria, namely Sidebrief, Lendha, and GoodTalent. Also selected were Egypt’s Opus Analytics and Zambia’s Mighty Finance.
Source: Disrupt Africa
Our Takeaway
The venture funding landscape in Africa is more saturated with foreign investors than local investors but in recent years, local players are upscaling their operations and increasing their investments in startups. More so, The Baobab Network is one of the leading players addressing the challenges faced by entrepreneurs, startups, and early-stage companies on the continent, from a dearth of funding to a lack of mentorship and support.
🚀 Africa’s top insurer partners with Allianz on a $2.1bn deal
![](https://blog.dabafinance.com/wp-content/uploads/2022/06/Allianz-3.png)
Image from google
Highlights
- South Africa’s Sanlam Ltd. has agreed to form a joint venture with Germany’s Allianz SE that will combine their assets in Africa, valued at $2.1 billion.
- Sanlam and Allianz will fold their respective African operations, excluding those operating in South Africa, into a new unit majority controlled by the Cape Town-based group.
- The combined operations will create a premier pan-African non-banking financial services entity, operating in 29 countries across the continent. Both parties also agreed to remain invested for at least 10 years.
Source: Bloomberg
Our Takeaway
The Sanlam-Allianz partnership aims to increase life and general insurance penetration, accelerate product innovation and drive financial inclusion in high-growth African markets. Africa has an ever-growing need for innovative insurance solutions to address the significant lack of coverage on the continent. As of 2018, the insurance penetration rate in Africa stood at a meager 1.12% or 3% with South Africa. Beyond that, however, the deal clearly shows an increasing global investor appetite for untapped markets (insurance, in this case) in Africa.
This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.
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