The founders of local authentication mobile security solutions company Entersekt have raised a new round of funding with assistance from Silicon Valley-based co-investment vehicle, Endeavor Catalyst.
Stellenbosch-based fintech entrepreneurs, Schalk and Dewald Nolte, have 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.
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 $5 million from a professional venture capital or growth equity fund.
"We are delighted to welcome another strong partner on board," says Schalk Nolte, Entersekt's CEO. "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."
Founded in Stellenbosch in 2008, Entersekt develops push-based online authentication security technologies, to create a secure channel of communication between users and retailers, providing protection from online fraud. The company has clients operating in 45 countries, including SA, the Middle East and parts of Europe.
"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," notes Nolte.
To date, Endeavor Catalyst says it has raised $100 million in philanthropically-donated and invested capital, and invested in more than 50 Endeavor companies in 20 countries globally.
The fund has co-invested alongside leading venture capital and growth equity funds, such as Accel Partners, General Atlantic, NEA, Sequioa Capital and Tiger Global.
"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," says Allen Taylor, MD 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."
Endeavor's selection process entails screening thousands of entrepreneurs from around the world annually, to identify those with the best talent and potential for impact.
Catherine Townshend, MD of Endeavor SA, explains: "We identify those with the best talent and potential for impact during a six- to eight-month due diligence process. At the end, only the very best entrepreneurs are selected to be part of our portfolio."
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