How South Africa’s ecosystem has stayed resilient during the funding downturn.
- Between Q1 2023 and Q1 2024, at least five South Africa startups managed to raise follow-on funding rounds.
- South Africa was the only ecosystem in sub-Saharan Africa to see an increase in average valuations in 2023.
- The historical scarcity of capital positively affected the tenacity of South African startups.
The resilience shown by South African startups in raising follow-on funding rounds and maintaining sensible valuations based on real unit economics is impressive. The country's macroeconomic resilience and the principles of good unit economics have contributed to the success of the ecosystem. However, the funding winter and uncertainty in the funding environment pose challenges for the future.
