E Squared Invests R316 Million in South African Startups
E Squared Invests R316 Million in South African Startups. Impact investment firm E Squared Investments invested R316 million in South African businesses during 2025, continuing its support for entrepreneurs at a time when access to funding remains constrained.
The figures are contained in the organisation’s 2025 Impact Report, which outlines its investment activity and the performance of its portfolio over the past year.
Since its inception, E Squared has invested a total of R1.34 billion across 227 businesses. According to the report, its portfolio has contributed to the creation, support and beneficiation of 37,756 jobs over the same period.
The report also highlights the firm’s continued focus on transformation. It states that 92% of the value of investments made during 2025 was directed towards Black beneficiaries, while 62% supported Black women-owned businesses.
E Squared chief executive Gladwyn Leeuw said the current funding environment continues to present significant challenges for entrepreneurs, making sustained investment support increasingly important.
“Entrepreneurs continue to build in an environment where capital remains scarce, and the margin for error is limited. That reality reinforces the importance of patient, long-term support,” said Leeuw.
“Our focus is on helping founders build sustainable businesses that can keep trading through difficult cycles, grow into the demands of scale and widen access to opportunity.”
E Squared’s investment strategy spans multiple stages of business development. Its model includes pre-seed programmes, early-stage investments, fund partnerships, social entrepreneurship initiatives and venture philanthropy. The organisation also supports ventures established by Allan Gray Fellowship alumni.
The report points to continued growth across the investment portfolio. E Squared Ventures recorded 16% fair market value growth during the year, while partial exits generated R31 million in realised returns.
Portfolio companies also reached new business milestones. According to the report, 42 companies have surpassed R2 million in revenue. In addition, four businesses have exceeded either R400 million in annual revenue or achieved a market valuation of more than R2 billion.
Looking ahead, E Squared said it plans to strengthen its investment pipeline, expand post-investment support for entrepreneurs and enhance its impact measurement framework as it works towards achieving its objectives for 2030. The organisation said these priorities will guide its future investment activities and broader efforts to support South Africa’s entrepreneurial ecosystem.
