Endeavor South Africa
Dream Big. Scale Up. Pay it forward
March 2021 Newsletter
Dear Friends of Endeavor,
2021 is off to a strong start for Endeavor SA and our Endeavor Entrepreneurs.
Our Harvest Fund II has announced it's first close and its first investment into Flexclub. The Fund, a first of its kind in Africa given its rules-based strategy, is targeting a total raise of R100m to invest a capped amount in many high-growth Endeavor Entrepreneurs. It is well on its way to the final close, with entrepreneurs and mentors in Endeavor’s network leading the raise, and Sphere Holdings joining as the first institutional investor. The Fund was also awarded financial support from the U.S. Agency for International Development (USAID) to attract private capital into Southern African entrepreneurs in order to drive inclusive economic growth. This has enabled Endeavor to fast-track timelines and reduce costs for investors — waiving success fees and capping management fees at 2%. (Read more here)
Another exciting initiative has been the launch of Endeavor Local Scale-Up in partnership with the SA SME Fund. Local Scale Up is a one-year structured mentoring programme for the best up-and-coming SA entrepreneurs in the Endeavor Selection process, giving them full access to Endeavor SA’s local network and servicing while they prepare to become Endeavor Entrepreneurs.
We are proud to announce that our Endeavor portfolio of 28 continued to perform well in 2020 despite COVID-19, led by our tech-enabled entrepreneurs. Between 2017 and 2020, Endeavor companies collectively increased their annual revenue 24% on a weighted average basis, with an average of R200 million in annual revenue per business. In addition, they created over 4,200 new jobs over this period (16% CAGR), driving transformation as more than 75% of the 11,535 employed are black South Africans. The 23 medium-sized (annual revenue R20m-R500m) tech-enabled entrepreneurs achieved 36% growth in annual revenue and 29% growth in headcount over the same 3 year period — and were the most resilient in the COVID-19 crisis. The businesses are also enjoying a significant increase in capital raises given the growing opportunity and interest in this sector. In 2020, the 28 businesses collectively raised R2bn, more than double the capital raised in 2019, and 2021 is forecast at around the R3bn mark. This was aided by the facilitation of +110 fundraising and commercial introductions for SA Endeavor Entrepreneurs. (Read more here)
Last year, the 28 Endeavor businesses received 773 mentoring hours — equivalent to 3 hours per day. Thank you to all our mentors for your generous time investment and a special shout out to Endeavor board member, Ernst Gouws, who donated the most mentoring time in 2020!
Some particularly noteworthy achievements amongst the portfolio over the past quarter include the funding rounds secured by Aerobotics (Benji Meltzer and James Paterson) with Endeavor Catalyst being part of the investment; SPARK Schools (Stacey Brewer) receiving funding led by Creadev; and lastly, Flexclub (Tinashe Ruzane) raising capital through strong local and international VCs and family offices including Kindred Ventures, CRE Venture Capital, Naspers, AfricInvest and Endeavor Catalyst and Harvest Funds.
It’s news like this that makes me look forward to what Q2 has in store.
Kind regards,
Alison Collier
Managing Director: Endeavor South Africa
Top VC Investing Predictions For 2021
Endeavor Catalyst Fund released its top predictions for 2021. While the macro-economic backdrop continues to be challenging for many, there has never been a better time to back great entrepreneurs who are leveraging technology to create the jobs of the future. Learn more here.
Global and Endeavor South Africa Impact Reports
Endeavor Global released its 2020 Impact Report which found that last year, Endeavor Entrepreneurs pivoted their businesses to contribute novel solutions to the pandemic, kept much-needed jobs intact, developed new products that will continue to shape our lives for years to come, and continued to scale despite the odds. Read more here.
Similarly, Endeavor South Africa’s 2020 Impact Report has revealed that local entrepreneurs achieved impressive performance despite last year’s difficult trading conditions. Learn more here.
Go1 Makes Y Combinator’s Top Companies 2021 List
Endeavor Entrepreneur go1 was included in Y Combinator’s Top 2021 Companies List alongside giants like Airbnb, Dropbox and Instacart. Similarly, go1 was named as a business to watch in ‘Corporate Learning Startups 2021’, a curated list of the most promising startups leading the corporate learning industry from across the globe.
Aerobotics Secures $17-million in Funding
Endeavor Entrepreneur Aerobotics received a whopping $17-million in an oversubscribed Series B round led by tech giant Naspers with participation from Endeavor Catalyst, Platform Investment Partners, FMO: Entrepreneurial Development Bank, and Cathay AfricInvest Innovation. Read more here.
Creadev, Finnfund and Imaginable Futures Support SPARK Schools in its Mission to Revolutionise K-12 Education in Africa
Endeavor Entrepreneur SPARK Schools announced the closing of its Series C funding round to support the company’s next phase of growth. This funding will be instrumental in consolidating SPARK’s existing network and expanding primary and secondary schools across Africa to reach 35,000+ scholars in the next 10 years. The round was led by Creadev, together with the Finnish development finance institution, Finnfund, and existing SPARK shareholder Imaginable Futures.
Endeavor Local Scale Up
By joining the Endeavor Local Scale Up, South African entrepreneurs become part of Endeavor South Africa’s network of top global business leaders. Typically, the programme lasts 12 to 18 months depending on the company’s readiness for the International Selection Panel (ISP). The Endeavor South Africa team will support the entrepreneurs in reaching agreed-upon milestones to move towards the ISP. They will also provide select services to support business growth. Learn more here.
Endeavor Entrepreneur in The Spotlight
In this month’s newsletter, we shine the spotlight on Endeavor Entrepreneur, Pieter de Villiers, co-founder and CEO of Clickatell. Read more here about how under Pieter’s guiding hand, Clickatell has developed a global footprint and reputation for innovation through achieving a number of world-firsts.
HelloPaisa Launches App to Address Food Shortages in Zimbabwe
The launch of Malaicha.com in Zimbabwe helps Zimbabweans living in other countries buy groceries and essential items for their families back home. Hello Group have created a thriving e-commerce platform for basic goods over the past 18 months. Learn more here.
Skynamo Acquires mSeller to Expand its UK Footprint
Endeavor Entrepreneur Skynamo has acquired UK mobile field sales technology provider, mSeller, to grow their market share in the UK and enhance their order management functionality for field sales teams. The acquisition of mSeller comes a year after Skynamo secured $30million in funding from US-based software investment firm, Five Elms Capital, to accelerate the adoption of its field sales management platform worldwide. Read more here.
IsoMetrix Ranked as a Leader in EHS Software for the Second Consecutive Year
Verdantix, an independent analyst firm, has recognised IsoMetrix, a prominent environmental, health and safety (EHS) software company, as one of the leaders in the Verdantix Green Quadrant EHS Software 2021 Report for the second consecutive year. Learn more here.
CallForce Partners with the Youth Employment Service (YES) South Africa to Tackle Youth Unemployment
Endeavor Entrepreneur CallForce teamed up with YES to support the company’s vision of creating a minimum of 500 000 career opportunities for the youth of South Africa, while also contributing to the growth of the South African GBS sector by 2030. Read more here.
Stellenbosch-based Clevva Goes Global After Signing UK Deal with International Leader
Endeavor Entrepreneur Clevva has partnered with world-leading robotic process automation (RPA) firm Blue Prism, in a collaboration that will see the Stellenbosch-based firm going global. Read more here.
Merchant Capital and Altron Healthtech Launch Business Funding for Medical Professionals
Endeavor Entrepreneur Merchant Capital has launched a partnership with Altron HealthTech to provide a bespoke financing solution to South African medical professionals looking to grow their practices or meet the challenges brought about by Covid-19. Click here for more details.
Customer Journey Management company inQuba raises funding round from Knife Capital and RMB
Endeavor Entrepreneurs inQuba, which has established itself as a world-leader in customer journey management, has secured a round of expansion capital to help it enhance the capabilities of its platform and accelerate its international expansion. Read more here.
Exchange Control Loop Restrictions Lifted
Thanks to Endeavor Entrepreneur Pieter de Villiers, the Southern African Venture Capital and Private Equity Association (SAVCA), Endeavor, the SA SME Fund and others, the Exchange Control Loop Restrictions were lifted in SA. This will be specifically attractive to South African entrepreneurs looking for foreign investors and expanding internationally.
