Catalyst Raises $300M: Global VC Funding News

Endeavor Catalyst Pursues $300 Million Fund for Emerging Market Startups

Endeavor Catalyst, the co-investment fund linked to the global entrepreneurial organization Endeavor Global, is currently raising a new $300 million fund. This represents its fifth fund and will be the largest to date, signifying a strengthened commitment to rapidly expanding startups in Africa, Latin America, the Middle East, and Southeast Asia.

Fundraising Status and Previous Performance

Sources indicate that the fundraising process is in its initial phases. The firm’s prior fund, Fund IV, successfully closed with $292 million in 2022. Discussions with potential limited partners – encompassing family offices, development finance institutions, and tech entrepreneurs within Endeavor’s extensive network – have already commenced.

Successful completion of this fundraising effort would elevate Endeavor Catalyst’s total assets under management to exceed $800 million. This would further solidify its standing as a leading venture capital investor in emerging markets.

Endeavor Catalyst has not released an official statement regarding its fundraising activities.

Navigating a Challenging Investment Landscape

This fundraise occurs during a period of difficulty for many venture investors focused on emerging markets. These challenges include slower exit rates, reduced follow-on funding, and a generally tighter global capital market. However, Endeavor Catalyst believes its unique approach will allow it to overcome these obstacles and support the growth of promising, well-established companies.

A Unique Investment Model

Established in 2012, Endeavor Catalyst addresses a critical need in venture capital within developing economies: access to funding for growth-stage companies. The firm distinguishes itself by exclusively investing in founders identified by Endeavor Global’s network – entrepreneurs recognized for their significant impact.

Endeavor Catalyst participates in equity rounds of at least $5 million, typically at Series A to C stages, and always invests in conjunction with other established institutional VCs.

The Endeavor Global Advantage

Endeavor Global proactively identifies high-potential founders, offering them access to global mentorship and market opportunities. Subsequently, Endeavor Catalyst provides financial backing when these founders seek capital, without leading investment rounds or assuming board positions.

The Vision Behind Endeavor

Linda Rottenberg, a co-founder of Endeavor in 1997, recognized the potential of overlooked founders in emerging markets to build substantial companies with adequate support. This initial insight, originating in Latin America, fostered a global network that has facilitated the scaling of numerous businesses before mainstream investor interest emerged.

Early indications suggest this strategy is proving effective.

Portfolio Performance and Growth

Across its four funds, Endeavor Catalyst has secured over $540 million in funding and completed more than 360 investments in 34 countries. The portfolio currently includes 63 “unicorn” companies – those 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 invests in startups within less prominent startup ecosystems in the U.S. and Europe. Examples include Poland’s ElevenLabs, Spain’s Jobandtalent, and the U.S.’ Altruist.

Adapting to Current Market Conditions

The launch of Endeavor Catalyst’s fifth fund takes place in a markedly different environment than its predecessors. Following a peak in 2021, global venture capital activity significantly decreased between 2022 and 2024, with many crossover investors reducing their involvement and follow-on funding becoming scarce in emerging markets.

Despite this trend, the New York-based investor has maintained a high level of activity, particularly in the last year. Q4 2024 saw the completion of 13 new investments across seven markets – its third most productive quarter on record.

Demonstrated Returns and Credibility

The fund’s historical performance has further enhanced its credibility. Over 30 portfolio companies have achieved successful exits through IPOs or acquisitions, generating returns and demonstrating the viability of high-growth outcomes in markets beyond the U.S., China, Europe, and India. Notable examples include Argentina’s Globant, Chile’s Cornershop, and Tunisia’s InstaDeep.

A Catalyst for Emerging Market Investment

The success of Endeavor Catalyst extends beyond its own financial returns. As a global VC with a dedicated focus on emerging markets and a unique sourcing advantage, it plays a crucial role in validating the investment potential of tech markets outside of Silicon Valley.

Strong Backing from Industry Leaders

Endeavor Catalyst benefits from the support of prominent investors and founders, including Bill Ford, Bill Ackman, Michael Dell, Pierre Omidyar, and Reid Hoffman.

Founders and “Endeavor Entrepreneurs” – such as Marcos Galperin (MercadoLibre), David Vélez (Nubank), and Marcin Zukowski (Snowflake) – also serve as limited partners. Notably, 30% of the limited partners across the first four funds are also “Endeavor Entrepreneurs.”

Frequent co-investors in its startups include firms like General Atlantic, Tiger Global, QED Investors, Kaszek Ventures, Prosus Ventures, Peak XV, and STV.