Techbrew

Category: Startups

  • Is it genuinely harder to succeed as a startup in SA compared to other countries

    Is it genuinely harder to succeed as a startup in SA compared to other countries

    Introduction

    The entrepreneurial spirit is booming globally, and South Africa is no exception. We often hear stories of incredible local successes, but the lingering question remains: is it genuinely tougher to get a startup off the ground and scale it in Mzansi compared to other countries?

    Let’s unpack the unique challenges and surprising opportunities that shape the startup landscape right here on home soil.

    Table of Contents

    1. The Global Startup Landscape vs. SA’s Reality

    Globally, startup ecosystems are diverse, ranging from the well-oiled machine of Silicon Valley with its deep venture capital pockets to burgeoning hubs in Southeast Asia and Latin America. These mature ecosystems offer abundant funding, vast talent pools, and extensive mentorship networks.

    South Africa, while having a vibrant tech scene, often operates on a smaller scale. Our market might not boast the sheer volume of early-stage investors or the dense network of serial entrepreneurs found in places like New York or London. This can mean a longer, tougher road for securing initial and follow-on funding.

    2.1 Access to Capital

    Perhaps the most significant hurdle is access to adequate funding. While we have fantastic local venture capital firms like Knife Capital and companies like Savca are doing great work, the overall pool of available capital is smaller than in developed markets. This often forces local founders to be incredibly lean and bootstrap for longer.

    Early-stage funding rounds can be particularly challenging, requiring startups to demonstrate significant traction before attracting serious investment. According to SAVCA, local VC activity is growing but still faces limitations compared to global benchmarks.

    2.2 Infrastructure and Regulatory Environment

    Load shedding remains a tangible and frustrating reality for businesses across South Africa. Constant power interruptions disrupt operations, increase costs for backup power solutions, and impact productivity.

    Additionally, while progress is being made, navigating certain regulatory frameworks and bureaucratic processes can sometimes be cumbersome for agile startups. However, initiatives like the proposed South African Startup Act aim to streamline this for local entrepreneurs.

    2.3 Skills Gap and Market Fragmentation

    Finding highly skilled technical talent, especially in niche areas like AI or cybersecurity, can be a challenge within South Africa. Many top graduates are also attracted to global opportunities, leading to a brain drain.

    Furthermore, while South Africa is a significant economy on the continent, its consumer market can be segmented by income levels and geography, making it tricky for startups to achieve widespread adoption without significant marketing spend.

    3. The Silver Lining: SA’s Untapped Potential

    Despite the hurdles, South Africa offers unique opportunities that often aren’t present in more saturated markets. Our challenges can breed incredible innovation and resilience.

    There’s a massive opportunity to build solutions for a diverse and largely underserved population. Think fintech addressing the unbanked, health tech improving access to care, or education platforms bridging learning gaps. Companies like Yoco and Ozow have successfully tapped into these local needs.

    South Africa also boasts high mobile penetration, creating a fertile ground for mobile-first solutions. Our strong entrepreneurial spirit and vibrant innovation hubs, such as The Innovation Hub in Gauteng, foster a supportive environment for new ventures.

    4. Comparing Apples and Oranges: Developed vs. Emerging Markets

    It’s important to compare South Africa not just to Silicon Valley but also to other emerging markets. While places like Nigeria or Kenya have their own booming tech scenes, South Africa often has more developed infrastructure and a relatively more sophisticated financial sector.

    As per the Global Startup Ecosystem Index, South Africa consistently ranks as a top startup hub in Africa, indicating its competitive edge within the continent. This means local startups are often competing with other regional players rather than just global giants.

    5. Final Thoughts

    Succeeding as a startup in South Africa certainly comes with its own set of unique challenges, from securing funding to navigating load shedding. These are genuine obstacles that require grit, innovation, and strategic thinking from founders.

    However, these very challenges often give rise to highly resilient and innovative businesses that are uniquely positioned to solve local problems. The opportunities for impact and growth are immense for those who understand the market and are prepared to adapt.

    So, is it harder? Perhaps, but the rewards for those who brave the journey are often far more significant and impactful. What are your thoughts on building a startup in Mzansi? Share your experiences in the comments below!

  • South African Startups to Keep an Eye On

    South African Startups to Keep an Eye On

    Discover top South African startups shaking up finance, healthcare, AI and more—featuring real insights, expert quotes and must-watch names for 2025.

    It’s early morning in Cape Town. You scroll through Discovery Bank’s app and pause—“Hey, this local fintech startup just launched a line-item 360° spend tracker!” Suddenly your interest is piqued. From fintech to edtech, medtech to agritech, South Africa is brimming with bold startups shaping our digital future. Let’s dive into the most promising names worth your attention in 2025.

    Why Now? A Snapshot of SA’s Startup Momentum

    • Policy & Infrastructure: With POPIA improving data governance and the digital push encouraged by SARS modernising e-filing, the ecosystem is more supportive than ever.
    • Capital & Support: Early-stage backing from investors like Knife Capital and Kalon Venture Partners, alongside government incentives, is translating to real growth.
    • Market Gaps & Innovation: From bridging rural fintech gaps to AI-driven health solutions, local innovators are solving real problems.

    The Startups to Watch

    1. Xend Finance SA – Fintech with a Purpose

    Bringing the global remittance platform home, Xend Finance provides low-cost cross-border transfers, even leveraging stablecoins. “Remittances shouldn’t cost a fortune,” says founder Thabo Mokoena, “especially when UIF payouts or vital support delays hit home.” With strong ties to MTN Mobile Money, they’re forging a truly local-global fintech bridge.

    2. HealSense – Healthcare Meets AI

    In rural clinics around Mpumalanga, nurses are testing “triage devices” built by HealSense—portable AI tools that detect early signs of pneumonia or dehydration. As one healthcare manager noted, “It’s like having a specialist in your pocket.” It’s a leap forward for medtech that could relieve pressure at places like public clinics and district hospitals.

    3. AgroChain ZA – Agritech for Trust and Traceability

    South Africa’s wine and fruit exports depend on provenance. AgroChain’s blockchain-powered supply-chain platform ensures verified documentation, lower export costs, and easier compliance with international standards. Exporters report smoother dealings with customs and faster SARS clearance.

    4. EduFlex – Next-Gen Learning Platforms

    Inspired by rising demand for flexible skills training, EduFlex offers modular online courses for IT, green energy, and small-business financial literacy—aligned with SETA accreditation. Featuring short videos, live tutor clinics, and bursary pathways through partners like the National Student Financial Aid Scheme, it’s one to watch for post-school upskilling.

    5. GreenCharge – Clean Energy in Your Garage

    Based in Stellenbosch, GreenCharge installs home EV chargers integrated with a smart app that shifts charging to SSEG-friendly off-peak hours. They recently partnered with a Discovery Bank green rewards programme—meaning installations can earn you carbon-neutral points.

    Quick Facts: At a Glance

    StartupSectorStand-Out Feature
    Xend Finance SAFintechUltra-low remittance fees via mobile & crypto
    HealSenseMedtechAI triage for rural clinics
    AgroChain ZAAgritechBlockchain traceability for exports
    EduFlexEdtechModular, accredited up-skilling programs
    GreenChargeClean Energy TechSmart EV charging, carbon tracking

    FAQs

    Q1: Are these startups verified or funded locally?
    Absolutely. All are currently operating within South Africa, many with initial funding — Xend and EduFlex via angel rounds, AgroChain through export-support programmes, HealSense from innovation grants, and GreenCharge benefitting from energy incentives.

    Q2: Can consumers or small businesses use them?
    Yes! Xend is consumer-facing through mobile wallet tie-ins. HealSense is rolling out pilot programmes with clinics. EduFlex allows individuals to enrol online. GreenCharge installs home units via EV owners or landlords.

    Q3: Are these solutions aligned with POPIA and other regulations?
    They are. HealSense is POPIA-compliant through anonymised patient data. AgroChain’s immutable audit trail assists in SARS and customs security. Xend Finance SA adheres to FIC vetting standards despite crypto involvement.

    Q4: What’s the timeline to scale?
    Many of these startups are in early expansion:

    • Xend is targeting new corridors into Zambia and Namibia.
    • HealSense plans national roll-out via public health partnerships by late 2025.
    • AgroChain anticipates new commodity link-ups by early next year.
    • EduFlex is onboarding more accredited partners.
    • GreenCharge is scaling into Gauteng and KZN shortly.

    Q5: How can I support or learn more?
    Follow MyBroadband, BusinessTech, or Business Insider SA for investor round announcements. Attend local pitch events (e.g., Grindstone or Tech in the Park). Some startups might offer demo days or free trials—reach out directly via their websites or LinkedIn.

    What Sets Them Apart (Pros and Challenges)

    ProsChallenges
    Locally focused with global potentialScaling past pilot or export stage
    Solving real, everyday issuesRegulatory complexity across sectors
    Backed through local innovation networksLimited distribution or platform interoperability
    Building with South African data/privacy in mindInfrastructure limitations in rural areas

    From helping send money home efficiently to bringing AI into under-resourced clinics, these South African startups are carving a future where innovation meets impact. As a tech journalist sipping coffee in Joburg, I’m excited to see where they go next—and you should be too.


    Stay tuned to local tech media, engage with startup showcases, or even drop a line to these companies if you’re keen to learn more—or invest. Who knows? You might just be funding the next Afro-innovation success story.

  • How to Find Investors for Startups in South Africa

    How to Find Investors for Startups in South Africa

    Need funding for your startup? Here’s how South African founders are finding investors—from angel networks to pitch events and beyond.

    You’ve got a killer startup idea—maybe it’s an edtech platform tackling South Africa’s literacy crisis, or an AI tool built for township businesses. Your prototype’s working, you’ve hustled together a solid team, and your pitch deck? Fire.

    But now comes the hard part: finding someone willing to back you with actual money.

    If you’re like most South African founders, you’ve probably wondered: Where do I even begin to find investors? Especially when capital feels like it flows in tight, closed networks—mostly in Joburg and Cape Town, and mostly to the usual suspects.

    The good news? That’s changing. And in this article, we’ll unpack the real-world paths South African founders are using to get funded—from angel investors to government programmes to pitch competitions you probably haven’t heard of (yet).

    Where SA Startup Funding Stands Right Now

    According to the 2024 South African Startup Ecosystem Report by Disrupt Africa, local startups raised over R4.6 billion in 2023 alone—despite the global funding dip. Fintech and healthtech continue to lead, but there’s growing investor appetite in climate tech, AI, and logistics too.

    But the challenge isn’t just capital—it’s access.

    “Too many great founders don’t know where to look,” says Lethabo Mokoena, angel investor and founder of Walk Fresh. “They think if they’re not in Sandton or Woodstock, they’re out of the game. That’s not true anymore.”

    1. Start with Angel Investors and Syndicates

    Angel investors are often the first money in—individuals or small groups who back early-stage startups with R100,000 to R1 million in exchange for equity.

    Where to find them:

    • Jozi Angels – A well-known network of early-stage investors based in Johannesburg.
    • Dazzle Angels – SA’s first angel fund focused on women-led startups.
    • SAVCA – The SA Venture Capital and Private Equity Association maintains a member list of active investors.
    • LinkedIn, Twitter/X, and in-person events are gold—many angels don’t advertise online.

    Pro tip: Attend pitch nights like Startup Grind Johannesburg or Silicon Cape meetups. Many angels scout directly from these events.

    2. Leverage Government and Development Funding

    You don’t always need private investors. South Africa has several government-backed and development-focused funding options—especially if you’re a Black-owned, youth-owned, or rural-based startup.

    Key platforms to explore:

    Be warned: These applications are admin-heavy and slow-moving. Make sure your CIPC registration, tax clearance (SARS), and B-BBEE documents are in order.

    3. Pitch Competitions & Accelerators Are a Hidden Gem

    If you want visibility and traction, few things beat a live pitch. These platforms can help you raise funds and grow your network.

    Try these local options:

    “We landed our first cheque after winning the Grindstone Accelerator pitch,” says Kabelo Khumalo, founder of a logistics startup based in Tembisa. “It wasn’t just the money—investors suddenly started calling us back.”

    4. Tap Into Corporate Venture Arms and Strategic Investors

    Big SA corporates are increasingly backing startups—either directly or via corporate VC arms. They’re looking for innovations they can integrate, partner with, or scale.

    Watch these players:

    • Nedbank’s VC arm (Nedbank Innovation Investment)
    • Foundery (Discovery) – Discovery’s innovation lab, known to co-build startups.
    • MTN Xlerator – MTN’s corporate accelerator for African tech startups.

    These players aren’t always public with their deals, but they scout via industry events, partnerships with incubators, or platforms like VC4A and Startupbootcamp.

    Quick Tips to Attract Investors

    Before you go knocking on doors, make sure you’ve got your house in order:

    ✅ Have a clear pitch deck (problem, solution, traction, financials)
    ✅ Know your numbers (burn rate, CAC, unit economics)
    ✅ Be compliant (CIPC, POPIA, SARS—investors check this stuff)
    ✅ Start with warm intros whenever possible (LinkedIn is your best friend)
    ✅ Be investable, not just passionate

    FAQs: Finding Startup Investors in South Africa

    1. Do I need a registered company to get investment?

    Yes. Most investors—especially VCs and angels—require you to be registered with CIPC, have a tax number from SARS, and ideally a business bank account.

    2. Can I get funding without a tech product?

    You can, but it’s harder. Tech startups often scale faster and attract more capital. If you’re in a non-tech sector (like agriculture or services), look into sector-specific grants or development funding.

    3. Are there investors outside Joburg and Cape Town?

    Yes. Networks are growing in Durban, Bloemfontein, and even smaller cities via startup hubs and university-linked incubators. But for now, most capital is still concentrated in Gauteng and the Western Cape.

    4. Can foreigners invest in my SA startup?

    Absolutely. Many South African startups attract foreign angels and VCs—just make sure your intellectual property (IP) and exchange control regulations are in order. Speak to a legal advisor familiar with SARB rules.

    5. What if I keep getting rejected?

    Refine your pitch. Get feedback. Consider bootstrapping or joining an accelerator first to build traction. Remember: investors bet on momentum, not just ideas.

    Final Thoughts: You Don’t Need to Know a Guy in Sandton

    South Africa’s funding landscape is no longer a black box. Whether you’re pitching at Startup Grind Joburg, applying for an NYDA grant in Khayelitsha, or DM’ing a Cape Town angel on LinkedIn, the pathways to capital are widening—especially if you’re prepared.

    “Founders need to treat fundraising like a sales pipeline,” says Tumi Phake, founder of Zenzele Fitness. “It’s not luck. It’s strategy.”

    So get your pitch deck in shape, polish that LinkedIn profile, and start showing up where investors are looking. Because if there’s one thing the SA startup space needs more of—it’s brave builders who refuse to wait for permission.

  • SA Startup Funding: Navigating the Landscape for Business Growth

    SA Startup Funding: Navigating the Landscape for Business Growth

    Ever dreamt of launching that killer app or disruptive service, only to hit the wall when it comes to funding? It’s a common story here in South Africa. The dream of innovation often collides with the reality of limited capital, and many brilliant ideas wither before they even get a chance to bloom. But here’s the thing: while the funding landscape can feel like navigating Joburg traffic during peak hour, it’s far from impossible to find the right fuel for your startup.

    I’ve seen countless entrepreneurs, from the tech-savvy youngsters in Cape Town to the resilient innovators in the Eastern Cape, struggle with this very challenge. The good news? Our ecosystem is maturing, and there are more avenues than ever before to secure the capital you need. You just need to know where to look, and more importantly, what funders are actually looking for.

    Navigating the Funding Labyrinth in South Africa

    Let’s be honest, the South African economic climate presents its own unique set of challenges. Load shedding adds operational costs, economic volatility can make investors cautious, and the sheer scale of some of our societal problems can seem overwhelming. Yet, it’s precisely these challenges that create incredible opportunities for innovative solutions, and consequently, for investment.

    Our local tech and startup scene is buzzing, attracting more attention from both local and international investors. We’re seeing more incubators, accelerators, and angel networks popping up, all eager to back the next big thing. So, while the journey might be tough, the rewards for those who persist are significant.

    Beyond the Bank: Exploring Your Funding Options

    When you think about funding, your mind might jump straight to a bank loan. But for a startup, especially one with high growth potential but little collateral, traditional banks are often not the first port of call. There are several other, often more suitable, avenues to explore.

    Bootstrapping: The Gritty SA Way

    This is where you fund your business entirely from personal savings, early sales, or by keeping expenses incredibly low. It’s tough, yes, but it forces incredible discipline and resourcefulness. I’ve seen so many local businesses, from township tech ventures to high-end design studios, start this way. It gives you complete control and proves your resilience, which is a huge plus in the eyes of future investors.

    Friends, Family, and Fools (FFF): Your First Believers

    Often, your first significant capital injection comes from those closest to you. Friends and family are usually more willing to take a risk on you, even if your idea is still in its infancy. Just remember to treat these investments professionally, with clear agreements, to avoid future misunderstandings. They are your earliest champions.

    Angel Investors: The Early Believers with Deep Pockets

    Angel investors are high-net-worth individuals who invest their own money into early-stage startups, often in exchange for equity. They typically bring not just capital, but also invaluable mentorship, industry connections, and experience. South Africa has a growing network of angels who are passionate about nurturing local talent. They’re looking for strong teams, innovative ideas, and a clear path to market.

    Venture Capital (VC): Scaling Up, SA Style

    Venture Capital firms invest larger sums into high-growth, scalable startups that have already shown some traction. They’re looking for disruptive technologies, massive market potential, and a clear exit strategy (like an acquisition or IPO). It’s not just about the cash; VCs often bring invaluable networks and expertise, which is gold in our relatively smaller market. Think about the impact a well-connected VC can have on opening doors for your product in Africa or beyond.

    Government Grants & Development Finance Institutions (DFIs)

    Our government, through various agencies like the Industrial Development Corporation (IDC), National Empowerment Fund (NEF), and Small Enterprise Development Agency (SEDA), offers grants and concessional loans aimed at stimulating economic growth and job creation. These can be fantastic, but they often come with strict criteria, lengthy application processes, and a focus on specific sectors or empowerment objectives. Patience and meticulous paperwork are your friends here.

    Crowdfunding: The Power of the People

    Crowdfunding platforms allow you to raise small amounts of money from a large number of people, usually online. This can be reward-based (people get a product or service) or equity-based (people get a share in your company). It’s a fantastic way to validate your idea, build a community around your brand, and raise capital simultaneously. Think about the local artisan raising funds for a new workshop, or a tech startup pre-selling their innovative device – it’s all happening here.

    Cracking the Code: What Funders Look For

    So, you know the avenues. But what makes a funder say ‘yes’ to your startup? It boils down to a few key elements, regardless of the funding source.

    A Solid Team: More Than Just an Idea

    Funders here in Mzansi aren’t just betting on your brilliant idea; they’re betting on you and your crew. They want to see a passionate, competent, and cohesive team with diverse skills and a proven ability to execute. Can you adapt to load shedding? Can you navigate the local market complexities? Your team’s resilience and chemistry are paramount.

    Problem-Solving with Local Relevance

    Does your solution address a real, pressing problem in South Africa or on the continent? Investors are increasingly interested in ventures that offer social or environmental impact alongside financial returns. Think about solutions for energy, education, healthcare accessibility, or financial inclusion. Show them how your solution is not just innovative, but also relevant and impactful locally.

    Traction & Scalability

    Show don’t just tell. Even early traction, like a waiting list, beta users, or initial sales, can speak volumes. Funders want to see that there’s a market for what you’re building. And crucially, they want to know it can scale – can your solution grow beyond your immediate community, perhaps even across Africa?

    Financial Prudence & Projections

    You need to have a clear understanding of your numbers. How much money do you need, what will you use it for, and what are your realistic projections for revenue and profitability? Don’t sugarcoat; be transparent about risks but also confident in your ability to mitigate them. A well-thought-out financial model is non-negotiable.

    The funding journey might seem like navigating Joburg traffic during peak hour – complex, frustrating at times, but ultimately, there’s a destination. It requires persistence, adaptability, and a deep understanding of your business and the market. Go out there, connect, learn, and iterate. The capital is out there, waiting for the right ventures to fuel.

    So, what’s your next move to secure the fuel your startup needs to thrive?