E Squared Invests R316 Million in South African Start-ups in 2025
Updated
Updated · businessday.co.za · Jun 29
E Squared Invests R316 Million in South African Start-ups in 2025
1 articles · Updated · businessday.co.za · Jun 29
Summary
R316 million went into South African start-ups in 2025, with E Squared channeling R160 million to high-growth ventures, R32 million to pre-seed companies and R36 million to social enterprises.
92% of that investment value went to black beneficiaries and 62% backed black-women-owned businesses, reflecting the firm's long-term impact-investing model in a market where early-stage capital remains scarce.
R137 million in returns has been realized through partial exits since inception, including R31 million in 2025, while the venture portfolio's fair value rose 16% year on year to R987 million.
Since 2017, the Allan Gray-backed investor has deployed R1.37 billion to 227 African ventures that have created, supported or sustained more than 32,000 jobs; 42 portfolio companies now exceed R2 million in revenue.
How will E Squared turn its impressive 44% paper return into real cash within Africa's illiquid startup market?
Can a dividend-funded investment model truly solve Africa's systemic gap in early-stage venture capital?
What does it take for a founder to become one of the 'responsible entrepreneurs' backed by E Squared's patient capital?
E Squared Investments 2025 Impact Report: 42 Ventures Surpass R2 Million Revenue, Driving Inclusive Growth in South Africa
Overview
In 2025, E Squared Investments made significant progress within its ecosystem, driven by a strong strategic focus that led to impressive portfolio growth and financial returns. The firm saw substantial expansion, with 42 ventures surpassing R2 million in revenue and four businesses exceeding R400 million in revenue or reaching a market value of R2 billion. These achievements highlight a robust year for E Squared Investments, as its supported ventures successfully scaled and delivered notable financial results, underscoring the positive impact of its investment approach.