Silicon Valley-based Endeavor Catalyst fund recently selected Stellenbosch-based fintech company, Entersekt, for an undisclosed round of funding.
Entersekt, an authentication and app security company led by Endeavor Entrepreneurs Schalk and Dewald Nolte raised a new round of funding this September with participation from Endeavor Catalyst.
The investment marks Endeavor Catalyst’s first ever in South Africa.
“We believe in the growth potential of Entersekt and in the idea that you can potentially build scale-up companies in every market across the world where Endeavor operates,” says Allen Taylor, Managing Director, Endeavor Catalyst. “The leadership of Schalk and Dewald Nolte, and their teams, is exceptional, as are their abilities as entrepreneurs. We are avid supporters of Entersekt and believe that they have what it takes to build a truly high impact global business.”
Endeavor’s goal is to support entrepreneurs who are in the scale-up phase of their company’s growth. Previous Endeavor Catalyst investees span markets such as Latin America and the Middle East, and many have been acquired for hundreds of millions of dollars.
Some have even IPO’d on the New York Stock Exchange.
“Achieving investment is no easy task, every company goes through a rigorous, multi-step selection process as Endeavor screens thousands of entrepreneurs from around the world,” explains Catherine Townshend, Managing Director, Endeavor South Africa.
“We identify those with the best talent and potential for impact during a six- to eight-month due diligence process. At the end, only the very best entrepreneurs are selected to be a part of our portfolio.”
Once applicants have undergone the Endeavor selection process, they are eligible to receive Endeavor Catalyst funding after they have raised an equity financing round of more than $5 million from a professional venture capital or growth equity fund.
“It is a gruelling process underscoring exactly how impressive the Entersekt success story is,” adds Townshend
“We are delighted to welcome another strong partner on board,” says Schalk Nolte, Entersekt’s CEO. “Beyond the investment, which will further help finance our expansion, we hope to accelerate our move into new markets with the support of Endeavor’s very credible network of business leaders.”
Entersekt was founded in Stellenbosch in 2008 by four local entrepreneurs. It has developed innovative and world-leading push-based authentication security technologies. The goal is to use the investment to fund further international expansion and research and development into one of the world’s fastest-growing sectors. The company currently has clients operating in 45 countries.
To date, Endeavor Catalyst has raised $100 million in philanthropically-donated and invested capital, and invested into more than 50 Endeavor companies in 20 countries.
The fund has co-invested alongside leading venture capital and growth equity funds such as Accel Partners, General Atlantic, NEA, Sequioa Capital and Tiger Global. Investments include Globant (GLOB) in Argentina, Yemeksepeti.com in Turkey, Fetchr in the UAE, and, for the first time in South Africa, Entersekt.