South Africa’s VC Landscape Strengthens as Hlayisani Launches $29.9M Fund II

Precious Olowookere

Mar 12, 2026 • 1 min read

As local investors increase their efforts to promote the upcoming generation of African technology businesses, South Africa's venture capital ecosystem is becoming stronger, as seen by the formation of this fund. The startup ecosystem in the area is projected to gain from deeper capital pools and increased institutional involvement as more investments like Hlayisani's appear.

South African venture capital firm Hlayisani Capital has announced its second fund Hlayisani Venture Fund II (HVF II), with an initial commitment of $29.9 million (ZAR500 million).

A variety of institutional and private investors have supported the new fund, with the SA SME Fund and South Africa's Public Investment Corporation (PIC) being two of the major contributors.

This round was held in South Africa with the funds targeted at high-growth technology which enables small business scale across sectors such as AI, fintech, healthtech, edtech, and digital infrastructure. These medium-sized businesses must have shown a significant track record of market traction with both funding and strategic advice.

The company intends to invest mostly in Series A-stage startups that have already attained product-market fit and are prepared to expand both domestically and globally with its second fund. Hlayisani Capital anticipates reaching a complete close by June 2026 and is still in talks with other institutional investors.

Hlayisani Capital is expected to have a significant impact on the development of South Africa's SME and tech sector. The fund's focus on Series A-stage businesses guarantees that entrepreneurs with proven product-market fit get the funding required in order to improve growth, scale operations, and go global.

About Hlayisani Capital

Hlayisani Capital is a South African venture capital and private investment firm that focuses on supporting high-growth businesses and entrepreneurs across South Africa and the broader sub-Saharan African region.

Hlayisani Capital was established in 2016–2017 through a collaboration between Angelhub Ventures, one of Africa’s early angel investment networks, and Dzana Investments, the investment vehicle of the Khoza family led by South African business leader Dr. Reuel Khoza.

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