SA startups returned $17 million in exit returns to investors in 2022
- Exits in the South African ecosystem returned investors R318 million (~$17 million), representing a 3.8x return multiple on the R83 million (~$4.4 million) invested.
- The total number of losses incurred on exits was R80 million (~$4.2 million).
- Most exits in the SA ecosystem over the last five years have been loss-making.
The high number of loss-making exits in the South African ecosystem is concerning for VC investors. Exiting too early and a lack of available growth capital have been identified as potential reasons for these results. However, the announcement of Knife Capital's expansion fund shows that there are still opportunities for investment in the region.
