Naspers has shut down the $77 Million South Africa-Focused Technology Investment Fund, Foundry, to slim its operations as venture capital takes a hit globally.
The fund utilised only half of its resources, equivalent to R740 million ($40 million). Nonetheless, the fund will continue to uphold its existing investments in startups.
The global investment environment and the local SA one have changed, and we have made clear the need for our business to adapt. 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. Naspers will continue to support the development of SA’s early-stage tech sector, assessing the market and new opportunities in a way that is consistent with our other global markets.
A Naspers spokesperson
Although the fund was established in 2014, only half of the money has been invested so far. Naspers contributed to three investments, including Planet42’s $100 million in February 2023, Naked’s $17 million in 2023, and WhereIsMyTransport’s $14 million in 2021.
The closure of Foundry is announced a few weeks after Naspers’ decision to cut its workforce by 30%.
As one of South Africa’s major funds shuts down, early-stage startups in the country may experience a funding slowdown in 2023.
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