Here is why SA startups saw an uptick in average valuations in 2023
- South African tech startups saw an average increase of 21% in their valuation in 2023.
- Tougher competition for deal flow at early-stage startup investment drove up valuations in the South African tech ecosystem.
- South Africa also saw a decline in seed investments, but seed-stage deals increased by as much as 40% on a per-deal basis.
The increase in valuations for South African tech startups is a positive sign for the ecosystem, showcasing its resilience and ability to attract investment. However, it is important for startups to not solely rely on valuations and instead prioritize building sustainable and profitable business models. This cautionary advice highlights the need for long-term success rather than short-term hype.
