Naspers Foundry, the South Africa-focused venture capital fund of Africa’s most valuable tech company by market capitalization, Naspers, has been shut down due to challenges in the venture capital industry, according to local news outlet BusinessDay. The firm will maintain its investments, including writing follow-on checks, in its nine portfolio companies. These include Planet42, SweepSouth, Naked Insurance, Aerobotics and WhereIsMyTransport.
Naspers Foundry, which launched in 2019, was established to back South African startups in Series A and B stages. Its investment strategy was aligned with Naspers’ focus on internet businesses, such as food, payments or classifieds, as well as any other digital ventures that addressed societal needs. The fund had only deployed half its $100 million allocation before its shutdown.
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Naspers will continue to support the development of South Africa’s early-stage tech sector, assessing the market and new opportunities in a way that is consistent with its other global markets. The company is aligning its efforts with the approach of Prosus Ventures, which now carries the mandate of maintaining Naspers’ local investments. Naspers will no longer have a dedicated team focused on South African startups.
“The global investment environment, as well as the local SA one, has changed and we have made clear the need for our business to adapt”, said a Naspers spokesperson. “In line with changes across the wider business, we have reviewed our early-stage investment strategy within SA to bring it in line with our international approach”.