South African financial solutions mobile authentication company Entersekt has raised a new round of funding with assistance from Silicon Valley-based co-investment vehicle Endeavor Catalyst.
Founded in Stellenbosch, Entersekt offers authentication systems for online and mobile banking services, with its flagship product Transakt enabling a one-touch user experience.
The company has now received an undisclosed amount as selected members of Endeavor Catalyst, a global investment fund of Endeavor, set up to support and invest in entrepreneurs who are in the scale-up phase of their company’s growth. The investment marks Endeavor Catalyst’s first ever in South Africa.
Once applicants have undergone Endeavor’s selection process, they are eligible to receive Endeavor Catalyst funding. However, they are required to first raise an equity financing round of more than US$5 million from a professional venture capital or growth equity fund. This Entersekt did earlier this year.
“We are delighted to welcome another strong partner on board,” said Entersekt chief executive officer (CEO) Schalk Nolte. “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.”
“As participants of Endeavor, we have learnt on-the-ground knowledge and expertise from our peers in the Endeavor family. Our goal now is to use the investment to fund further international expansion, research and development into new markets.”
To date, Endeavor Catalyst has raised US$100 million in philanthropically-donated and invested capital, and invested in more than 50 Endeavor companies in 20 countries globally.
“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,” said Allen Taylor, managing director of 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 they have what it takes to build a truly high-impact global business.”