Despite global economic uncertainties and constrained exit environments, Southern Africa’s venture capital (VC) sector closed off 2024 with a record R13.35 billion in active investments across 1,325 deals, up 24% year-on-year.

The survey, conducted by the Southern African Venture Capital and Private Equity Association (SAVCA) in partnership with research firm VS Nova, is the industry’s most comprehensive annual analysis of VC activity in the region. These results have been unveiled in the 2025 SAVCA VC Survey.

Speaking about the report, Nicola Gubb, Interim Executive Director of SAVCA, said the findings reflect an industry that has demonstrated remarkable tenacity and resilience. “Behind these numbers lies the story of a maturing market, more sophisticated capital deployment, deeper investor networks, and an encouraging shift toward early-growth stage funding, especially Series A, which speaks to a growing confidence in scalable local innovation.”

Growth in capital deployed, uptick in deals

A total of R3.29 billion was deployed to startups in 2024, comprising R2.62 billion in equity deals. The survey this year reported for the first time on debt made available by VC fund managers, alongside their equity investments. This amounted to R670 million for 2024. Notably, Series A funding surged to 42.5% of all deals – more than double the proportion recorded in 2023 – indicating a decisive shift toward early-growth capital.

The number of investment rounds climbed to 222, up 20% from the previous year, into 110 companies – the highest ever recorded. While the overall equity deal value declined year-on-year, the increase in deal volume reflects a broader diversification of funding activity, including more co-investors and growing use of alternative instruments like venture debt.

ICT remains the largest sector focus, with a rebound in health deals

The ICT sector continued to attract the lion’s share of capital, accounting for 65.9% of deal value, three times more than the next sector. Within ICT, the top-performing sub-sectors were software (20%), FinTech (15.9%), and online markets (7.6%).

The health sector was the only other major area of growth, rising to 20% of deal value – its highest share since 2015 – driven by renewed investor interest in life sciences, biotechnology and medical devices. The consolidation of capital into ICT and health reflects a maturing, digitally focused VC ecosystem that is aligned with global investment trends. It also raises important questions about sector diversification, which remains a priority for long-term sustainability.

Commenting on some of the prominent findings from this year’s survey launch, Reabetswe Mjekevu, Investment Principal at SA SME Fund said this year’s survey is reflective of the current downturn in the exit environment. “However, the findings also point to a maturing VC landscape that is laying the groundwork for an environment that is ripe for stronger, more sustainable exits in the future, signalling a promising outlook for both investors and founders alike.

Independent funds and angel investors take the lead

The fund manager landscape also saw notable shifts. Independent funds accounted for 80.8% of deals and 85.2% of total deal value – the highest ever recorded since the survey’s inception. Angel investors made a notable comeback, contributing 10.3% of deal volume and value – their strongest showing since 2019.

By contrast, participation from captive corporate funds and government-linked funds dropped to historic lows, with corporate investors accounting for just 5.8% of deals and 3.2% of capital deployed. This year’s data shows a return to the core principles of independent, agile capital, especially as larger institutional players recalibrate their risk appetite. The survey also saw renewed energy from angel investors, who are vital for supporting the earlier-stage pipeline.

Another positive development has been the increased presence of women-led funds, black-owned firms and B-BBEE-compliant managers. This proves that the sector is not only growing in size, but it is also maturing in character and demonstrating commitment to transformation.

Some 42.1% of fund managers had at least one female founder, while 41.7% had at least one black founder. Female CEOs accounted for 21.1% of leadership, and nearly a quarter of respondents achieved B-BBEE Level 4 or better.

The road ahead: a call for global ambition

Despite the strong momentum, the survey confirms that exit activity remains a major constraint, with just three exits noted in 2024 – the lowest on record. Fund managers cited the lack of follow-on capital, limited buyer universe and regulatory hurdles, including exchange controls, as key barriers to exit.

To unlock the next phase of growth, survey respondents have identified several strategic priorities. These include attracting foreign direct investment, building international networks to help startups scale globally, and increasing the supply of quality, fundable deals.

While direct government-backed deals reported in 2024 were modest, co-investments suggest broader support. “South Africa’s VC landscape is showing promising growth, with renewed government involvement - particularly through fund-of-funds initiatives - being closely watched for its potential to transform the asset class and even encourage greater participation from pension funds and insurers,” says Stephan Lamprecht from VS Nova, SAVCA’s research partner.

The survey demonstrates that local VC managers continue to display entrepreneurial leadership, fostering collaboration, attracting co-investors, and helping startups scale with hands-on strategic and governance support.

Sharing his thoughts on this year’s launch was Francois Malan, Partner at Savant, “The 2025 SAVCA VC Survey launch was not only insightful, but it was also marked by deep, engaging discussions about the future of the sector. The survey revealed a decline in the value of equity investments, but a notable rise in venture debt activity - highlighting the evolving dynamics of the VC landscape. A key challenge we will face ahead is unlocking greater private sector participation and fostering stronger collaboration with international investors to scale local fund sizes. Congratulations to Stephan and the SAVCA team for once again delivering a credible and impactful survey.”

Concluding her thoughts for this year’s launch, Gubb said “Let this report serve not only as a snapshot of where we are, but as a call to action for where we can go. If 2024 has shown us anything, it’s that Southern Africa’s venture capital sector is steadily shifting gears from promise to performance. I remain deeply optimistic about the future we're building together.”

Feel free to let me know if you have any questions about the report’s findings – or if you’d like to set up time with Nicola Gubb, SAVCA’s Interim Executive Director.

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