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, according to the 2025 Savca VC Survey.
Nicola Gubb, interim executive director of Southern African Venture Capital and Private Equity Association (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,” she said.
Stephan Lamprecht from VS Nova, Savca’s research partner, said, “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.”
A total of R3.29 billion was deployed to startups in 2024, comprising R2.62bn 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.
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.
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,” Mjekevu said.
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.
BUSINESS REPORT
