Hlayisani Capital Raises $30M for African Startups
Venture firm Hlayisani Capital has raised a new $30 million fund specifically to address the Series A funding gap in South Africa. The fund signals growing investor interest in providing crucial follow-on capital for promising startups in emerging markets.
The new fund, Hlayisani Venture Fund II (HVF II), has secured R500 million (approximately $30 million) in its first closing. It is anchored by significant institutional investors, including the Public Investment Corporation (PIC) and the SA SME Fund, with additional backing from private investors and family offices. Hlayisani Capital anticipates a final close by June 2026. Hlayisani, a Tsonga word meaning "to nurture and grow," was founded in 2016. The firm is a Black-owned and managed venture capital fund manager, holding a Level 2 B-BBEE certification. The leadership team includes seasoned investors like Brett Commaille, a founder of AngelHub Ventures, and Dr. Reuel Khoza, former chairman of Nedbank. The fund is strategically focused on technology-enabled businesses with global potential that are linked to South Africa. Key investment sectors include artificial intelligence, fintech, healthtech, edtech, and digital infrastructure. The firm targets companies that have already established product-market fit and are prepared for accelerated growth. HVF II has already started deploying capital, making investments in companies like Tractor Outdoor Media, a digital out-of-home advertising company, and Spatialedge, a Stellenbosch-based enterprise AI firm. This follows the firm's previous fund, the Hlayisani Growth Fund, which successfully raised R354 million and is now fully deployed across a portfolio of eight companies. The fund seeks to make equity investments ranging from R10 million to R100 million in exchange for significant minority stakes. Hlayisani's investment thesis centers on identifying strong management teams and innovative business models that are scalable and have clear exit opportunities. This initiative directly confronts a recognized scarcity of growth-stage funding in South Africa's startup landscape. While seed funding has become more available, the Series A gap has remained a significant hurdle for scaling businesses. This new fund signals a move to provide essential follow-on capital to promising ventures.
