Regarded as one of the "Big 4" ecosystems in the African continent, South Africa has arguably the most mature and robust startup ecosystem. Its growing entrepreneurial talent, strong corporate sector, and significant markets have brought forward opportunities to leap on for both startups and investors alike. The local venture capital industry has grown with recent years, with more number of international investors also arriving at the scene. In this article, we have compiled a comprehensive list of the top VC funds and angel investors in South Africa that may be the right funding partner for you.
Topics Covered:
Why Should You Raise Funds in South Africa
Venture Capitalist Funds in South Africa
Angel Investors in South Africa
Closing Thoughts on VCs and Angel Investors in South Africa
Why Should You Raise Funds in South Africa?
Here are a few reasons why startups should consider raising funds in South Africa:
1. Solid Investment Ecosystem
South Africa's access to venture capital and angel investors within and outside of the country has significantly improved in recent years; with availability of funding generally increasing on an annual basis. Between January 2015 and May 2022, at a total of 357 individual South African startups have raised a combined US$993,684,600 in funding, behind only by Nigeria over that time. Furthermore, South African startups by far surpass other regional ecosystems when it comes to successful exits.
2. Increased Entrepreneurial Activity
South Africa has seen a surge in entrepreneurial activity in recent years. There has been a growing number of entrepreneurs and new startups launched across diverse sectors, with at least 490 tch startups operating in South Africa as of May 2022. This has strengthened the local startup ecosystem; garnering significant international recognition and attracting investments from local and international investors.
3. Ample Startup Support
With a growing number of active startup support organizations, startups in South Africa are thriving in the ecosystem. South Africa has always been a pioneer in the startup incubation and acceleration arena, hosting some of the continent's first such programs. Furthermore, the South African government has been active in assisting local startups with various initiatives, such as the Technology Innovation Agency, Support Programme for Industrial Innovation, Technology and Human Resources Programme, Design Innovation Seed Fund, and more. Not lacking is also the collaborations between startups and corporations, with numerous institutions actively engaging in and making investments in the startup ecosystem; forming mutually beneficial partnerships between startups and established companies.
Venture Capitalist Funds in South Africa
The venture capitalist funds below are actively looking for investments in promising companies throughout various stages and sectors. The stages stated do not limit the possibility of getting funding if your company is at any stage other than what is listed.
Year of Inception: 2005
Stage: Pre Seed, Seed
Focus: Technology
Notable Portfolio: Leatt Corporation, Vuhosi MedTech, ShishiGas, Trailblazers
Savant Venture Fund is a hardware-focused early-stage investor with offices in Cape Town and Johannesburg. The venture fund arose from the Savant incubator's experiences, where they witness hardware businesses' challenges in raising funds. Savant helps de-risks these startups and prepare them for commercialization and investment. While Savant's strategy may include numerous stages, some may partner with Savant earlier in the start-up life cycle than other.
Year of Inception: 2011
Stage: Seed, Series A
Focus: Deep Tech, Data, Electronics, Software
Notable Portfolio: Skynamo, Inrange, Farm Ranger, Polymorph
Alphawave is a venture capital fund that invests in deep-tech startups that develops cutting-edge technology in electronics, software, and data. The venture firm takes a distinct strategy to investment, focusing on aligning and assisting the right individuals in generating commercial ideas based on their specific areas of expertise. They are actively involved in the evolution of enterprises through all stages of development, from incubation to scaling to profitability.
Year of Inception: 2012
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Apollo Agriculture, Fairbanc, Demyst Data, Khazna, Magma
Accion Venture Lab is a global pioneer of early-stage investments in inclusive fintech firms. They invest smart capital into fintech and the intersection of financial services in other sectors, with the goal to provide access to well-designed, low-cost financial services that empower low-income people and small enterprises all around the world. Based in the United States, they are primarily interested in possibilities in Latin America and the Caribbean, the Middle East and North Africa, Sub-Saharan Africa, Southeast Asia, and the United States.
Year of Inception: 2016
Stage: Seed, Series A
Focus: Technology
Notable Portfolio: Talk360, GoMetro, Carscan, Mobiz, SMEasy
Kalon Venture Partners invests in high-growth digital firms with innovative business models that cater to established and rising institutions and their consumers. They focus their funding on African entrepreneurs to develop enterprises that are challenging established industries such as banking, insurance, retail, media, and entertainment.
Year of Inception: 2014
Stage: Seed, Series A
Focus: Technology
Notable Portfolio: Civic, SweepSouth, Bloomable
Newtown Partners is an early-stage venture capital firm that invests in innovative technology startup companies. Founded by two Dragon's Den investors and seasoned entrepreneurs Vinny Lingham and Llew Claasen, they have a solid track record in entrepreneurship and investing; having successfully founded, developed, and sold technology startups. The team is based in Cape Town, South Africa, and San Diego, California.
Year of Inception: 2016
Stage: Seed, Series A
Focus: Technology
Notable Portfolio: CompariSure, CrowdForce, Tanda, Aura
HAVAÍC is a prominent African VC firm that invests in early-stage, high-growth tech companies. Headquartered in Cape Town, they focus their investments in South Africa, Nigeria, and Kenya. They invest in impactful technological products, processes, or platforms that deliver real-world solutions that have the capacity to disrupt traditional markets and successfully scale into markets both locally and globally.
Year of Inception: 2004
Stage: Seed, Series A, Series B, Series C
Focus: Digital Inclusion, Financial Inclusion, Agribusiness
Notable Portfolio: Baobab, Copia, GN Bank, Inclusivity Solutions, PagaTech, Sendy
Goodwell Investments believes in establishing a more inclusive society via investments in entrepreneurs who are addressing common concerns in their communities. Goodwell works to enhance the low-income population's access to high-quality goods and services in India and Africa by investing in financial services, food and agriculture, mobility and logistics, and other enterprises with high-impact potential.
Year of Inception: 2009
Stage: Seed, Series A, Series B, Series C
Focus: Technology
Notable Portfolio: Talk360, CompariSure, Cloudline, LifeQ, Sendmarc
Launched 2009. 4Di Capital is one of the most renowned brands in the South African venture capital market. They invest in early-stage technology firms with a focus on Southern and Eastern Africa. Formed by formers founders and entrepreneurs with firsthand knowledge of developing companies, they are actively sought after as an investor by company owners and co-investors alike.
Year of Inception: 2010
Stage: Series A, Series B
Focus: Technology
Notable Portfolio: Data Prophet, Pharma Scout, SkillUp, Quicket
Knife Capital invests in innovative companies with deep technological competence and leverages their knowledge, networks, and funding to speed up the internationalization of African startups. From discovering growing entrepreneurs to offering mentorship and strategic advice to a successful exit, the team delivers proactive value-add development.
Angel Investors in South Africa
The Angel investors listed below are part of an Angel community located throughout South Africa. They may act as an individual or as a syndicate to fund projects of their preference, so these networks are the best opportunity for you to find a potential Angel with an aligned vision and interests.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
South Africa Investment Network is a platform that connects South African entrepreneurs with angel investors. Through the platform, founders can post their projects and gain visibility from investors with the capital, contacts, and knowledge to help founders succeed.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
Founded in 2015, the African Business Angel Network (ABAN) is a Pan-African angel investor network organization. Founded a group of six pioneer African angel networks, they connect various angel networks across Africa to support new investors and maximize their impact. Though not an angel network that connects founders with angel investors directly, founders can browse through their network directory to find other angel networks in the continent.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Locum Base, Contro, Jobox, Bookt
Jozi Angels is a South African angel investment network situated in Johannesburg. They invest their personal funds into innovative early-stage startups and assist them in growing by providing capital, knowledge, and networks. Through their larger network, they have collectively invested in over 50 firms through our larger network.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
Part of the global Rising Tide movement, Rising Tide Africa is a trans-border women-oriented investment initiative focused on the African continent. Formed by a group of female angel investors, they invest in early-stage, digitally and technologically enabled firms to better positively affect the lives of Africans and create a new Africa.
Stage: Seed, Series A
Focus: Sector Agnostic, Female Founders
Notable Portfolio: -
By women, for women, and empowering women, Dazzle Angels is a female-focused angel fund that generates inclusive funding for early-stage, women-led and women-empowering businesses. Their angels are experienced entrepreneurs who commit not just capital but also their expertise, skills, and networks to assist firms in developing the next generation of female-led businesses.
Closing Thoughts on VCs and Angel Investors in South Africa
The South African startup ecosystem has effectively transitioned through an emerging phase gained its footing in the continent's startup landscape. A rise in entrepreneurial spirit combined with increased availability of investments have yielded results in terms of ecosystem growth.
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