Prominent global VC Endeavor Catalyst is raising $300M, sources say

Endeavor Catalyst, the investment arm of the global entrepreneurial network Endeavor Global, is in the process of raising its largest fund to date, a substantial $300 million aimed at enhancing its investments in high-growth startups across Africa, Latin America, the Middle East, and Southeast Asia. Sources indicate that the fundraising effort is still in its early stages. This new initiative follows the closure of its previous fund, which amounted to $292 million and was finalized in 2022. Endeavor Catalyst has already initiated discussions with a variety of limited partners, including family offices, development finance institutions, and tech entrepreneurs from its extensive global network. If successful, this fundraising endeavor would elevate Endeavor Catalyst's total assets under management to over $800 million, reinforcing its status as a prominent player in the emerging markets venture capital landscape. Despite facing challenges such as sluggish exits and a tightening capital environment, Endeavor Catalyst is optimistic about its investment model's resilience amid the downturn. Established in 2012, the firm targets a critical void in venture capital within developing markets by providing access to growth-stage funding. Distinct from traditional venture capital firms, Endeavor Catalyst exclusively invests in entrepreneurs identified by Endeavor Global, referred to as 'high-impact entrepreneurs.' They typically participate in equity rounds with a minimum of $5 million, focusing on Series A through C funding alongside other institutional investors. Linda Rottenberg, co-founder of the organization, recognized early on that underrepresented founders in emerging and frontier markets could achieve significant success with adequate support. This foresight laid the foundation for a global network that has propelled numerous companies into the spotlight long before mainstream investors showed interest. Endeavor Catalyst's investment strategy is yielding positive results. To date, the firm has raised over $540 million across four funds, making over 360 investments in 34 countries. Notably, its portfolio includes 63 companies valued at over $1 billion, such as Turkey’s Insider, Nigeria’s Flutterwave, Colombia’s Rappi, UAE’s Tabby, and Indonesia’s Carro. The fund also supports startups in less active ecosystems in the U.S. and Europe, including Polish AI startup ElevenLabs and Spain's Jobandtalent. The launch of Endeavor Catalyst's fifth fund occurs against a backdrop of a shifting venture capital landscape. Following a surge in 2021, global venture capital activity has slowed significantly, with many crossover investors withdrawing and follow-on funding becoming scarce in emerging markets. Nonetheless, Endeavor Catalyst has remained highly active, particularly in the last quarter of 2024, during which it completed 13 new investments across seven markets, marking one of its most productive quarters yet. With over 30 of its portfolio companies having exited through IPOs or acquisitions, Endeavor Catalyst has demonstrated that high-growth opportunities exist beyond traditional tech hubs like Silicon Valley. Notable exits include Uruguay’s dLocal, Chile’s Cornershop, and Tunisia’s Instadeep. Furthermore, the firm’s unique position as a global VC focused solely on emerging markets plays a vital role in validating the investment potential of tech markets outside established regions. Backed by influential investors, including Bill Ford, Bill Ackman, Michael Dell, and Reid Hoffman, Endeavor Catalyst also counts several notable founders among its limited partners. This includes prominent figures like Marcos Galperin of MercadoLibre and David Velez of Nubank, with approximately 30% of the LPs in its first four funds being Endeavor Entrepreneurs. In addition, firms such as General Atlantic, Tiger Global, QED Investors, and others frequently co-invest in its startups.