Wishing you a prosperous and dynamic new year.
As we embark on the start of a new decade, building off the strong foundations HAVAÍC laid in 2019 where we increased our portfolio substantially, deploying ZAR40 million (~USD2.7million) by way of 5 new investments and 1 follow on investment, ever strengthening deal flow, investor demand and portfolio performance as well as growth and success in the African Venture (VC) market as a whole, we are very excited for what 2020 holds. This trend is expected to continue with investments up to ZAR250 million (~USD17 million) being secured and deployed over the next 3 to 5 years. Looking back at 2019, leveraging off our ever growing reputation as a strategic early-stage investor in South Africa, we entered the East African market and invested in 2 new Kenya based companies, MPost and Tanda, and are experiencing a rapid increase in deal flow from the region. Closer to home we invested further funding in AURA which continues to take the SafeTech world by storm, and invested in 3 South African based companies which are already seeing success in international markets, namely HearX, Sortd and 3X4 Genetics (Cipher Genetics).
HAVAÍC targets returns of at least 30% IRR per annum or 5X returns over a 5 year period. However, with our carefully constructed portfolio, pre and post investment support and involvement from our professional management team, as well as expert strategic support, our portfolio companies are performing well above this hurdle, with annual returns sitting at 85%. With our portfolio now comprising of 12 exciting early stage high growth tech companies, and this portfolio doubling year-on-year every year since HAVAÍC first started investing, and being one of the most active VC investors locally, HAVAÍC is well placed to continue delivering these returns to our investors.
To view the full 2019 performance fact sheet, click here. HAVAÍC allows investors to invest in niche opportunities in South Africa and the rest of Africa that have the potential to deliver foreign revenue and generate offshore returns, and we are looking forward to building on our success to date and invite you to join the rising African VC tide and join our investor network. Ian Lessem