Endeavor Catalyst Announces Full Deployment of Its $80M+ Fund II and Plans for Fund III
Tags: Emerging Markets, Investing, Startup, Entrepreneurship, VC

Endeavor Catalyst Announces Full Deployment of Its $80M+ Fund II and Plans for Fund III Endeavor Jan 14, 2020·3 min read

Endeavor Co-founder and CEO Linda Rottenberg updates Endeavor Catalyst LPs at the 2019 Endeavor Catalyst Investor Meeting

Endeavor Catalyst announced the full deployment of Endeavor Catalyst II at the end of 2019, investing the $80M+ fund in 78 companies led by 122 Endeavor Entrepreneurs in 26 growth markets globally.

Endeavor Catalyst’s second fund (“Fund II”) saw a significant increase in the pace of investment as well as in geographic and industry diversity among investments. Launched in March 2017, Fund II was fully deployed in less than three years.

“With its second fund now fully committed, Endeavor Catalyst has proven itself a win-win-win benefit for our entrepreneurs, LPs, and Endeavor as an organization,” said Linda Rottenberg, Co-founder and CEO of Endeavor. “Endeavor Catalyst provides Endeavor Entrepreneurs with the additional support they need while taking on the challenge of fundraising, and enables its LPs to share in their success; all while fostering Endeavor’s goal of becoming a self-sustaining organization worldwide.”

Endeavor Catalyst, which initially launched in 2012 as a concept, made between five and ten investments in each of its first four years, including investments in Globant (NYSE: GLOB) in Argentina and Yemeksepeti.com in Turkey (acquired for $589M in 2015). That rate has increased dramatically over the past three years, as Endeavor expands around the world and Endeavor Entrepreneurs increasingly raise capital from top tier global investors. Endeavor Catalyst invested in over 30 companies per year in calendar years 2018 and 2019.

Today, Endeavor Catalyst’s portfolio includes companies operating in eight distinct industry verticals, from Fintech and Smart Cities to Healthcare and Education. Fintech was the fastest growing area of investment over the past two years. Notably, around 12% of the companies are led by women (in the United States, just 2% of VC dollars went to female founders in 2018).

Endeavor Catalyst’s pioneering model has largely facilitated this diversity. Endeavor Catalyst follows a rules-based approach, investing exclusively in Endeavor Entrepreneur-led companies raising equity rounds of $5M+ that are led by professional venture capital and growth equity funds. Following this approach, Fund II has joined record-breaking rounds from some of the fastest-growing companies around the world, including app-based mobility company SWVL, which raised the largest ever funding round for an Egyptian company; payments platform Cellulant, which raised one of the largest ever funding rounds in Africa; and Checkout.com, which raised the largest ever fintech Series A round in Europe catapulting it to unicorn status with a valuation of over $2B. Other unicorns in the Fund II portfolio include Brazil’s EBANX, Spain’s Cabify, Indonesia’s Bukalapak, and Colombia’s Rappi, which also achieved a partial exit in August 2019.

“In markets around the world, Endeavor Entrepreneurs are not only solving problems at scale and disrupting traditional industries, but also fundamentally changing the way investors view entrepreneurship outside of Silicon Valley,” said Endeavor Catalyst Managing Director Allen Taylor.

Endeavor Catalyst has invested in rounds led by many of the world’s leading venture capital and growth equity funds, providing its own LPs access and exposure to some of the fastest-growing companies all over the world. In Latin America, the MENA region, and parts of Europe, Endeavor Catalyst has been recognized as one of the most active equity investors.

“Seeing firms like Sequoia Capital and Andreessen Horowitz investing in Latin America, TPG investing in Africa, and General Atlantic investing in the MENA region tells you a lot about the potential in these markets,” noted Taylor.

In turn, Endeavor Catalyst has become a powerful platform for Endeavor Entrepreneurs to reinvest their success and personal gains in their peers. Today, 50+ Endeavor Entrepreneurs have become investors in the Endeavor Catalyst funds, including in Endeavor Catalyst III, which is currently being raised and is targeted to be a $120M+ fund.

And while Endeavor Catalyst has gained significant momentum, Jackie Carmel, Endeavor Catalyst Managing Director, notes: “We are just getting started! Endeavor continues to raise the bar in its selection process and the Endeavor Catalyst pipeline is as active as it has ever been. As Endeavor continues to grow and expand its global reach, so does Endeavor Catalyst.”