Banking on entrepreneurs: E Squared invests nearly R370 million in startups in 2024
The impact investing company, started by Allan Gray, has disbursed R1 billion since 2017.
Entrepreneurs, small business. Pexels/Ivan Samkov
Stephen Grootes talks to Gladwyn Leeuw, CEO of E Squared Investments, on The Money Show.
'Empowering and investing in responsible entrepreneurs who become the catalysts for economic development, transformation and social upliftment in Africa'
That's how E Squared Investments describes its mission in impact investing.
Established in 2007 as an Allan Gray BEE partner, the company says it has invested R1 billion since launch.
Its annual impact report declares a total of R369.7 million invested in startups in 2024.
'Over 32,000 jobs have now been created, supported or beneficiated by E Squared, while the fair market value of the E Squared Ventures portfolio grew by 44% year-on-year', says board chairperson Nazeem Martin.
Talking to Stephen Grootes, Gladwyn Leeuw says the best way to describe impact investing in a nutshell is: We want to do good while doing well.
"You want to invest in the early stages of where businesses are formed and harnessed, in order to build those big businesses that will eventually become the engines that drive our economy."
Gladwyn Leeuw, CEO - E Squared Investments
While they do look at their returns in the traditional sense as an investment business at the core, they do also look at other forms of returns, Leeuw says.
"We look at transformation in the form of more equitable distribution, investing in black and female founders... We look at job creation, at particularly businesses on the ed-tech, health-tech and infrastructure side of things."
Gladwyn Leeuw, CEO - E Squared Investments
While they do see entrepreneurs fail as they're investing at this very early stage, the rewards lie in seeing businesses flourish, Leeuw says.
He cites the growth of agri-tech startup Khula as just one example.
"We led their Series A funding round this year and that was quite significant for us... Seeing that business go from being a small digital platform to winning awards and raising their Series A was just so rewarding."
Gladwyn Leeuw, CEO - E Squared Investments
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