South African VC exits show early signs of a maturing venture capital ecosystem
- The SA SME Fund and Endeavor South Africa report that South African venture-backed scale-ups are generating successful exits.
- The broader analysis found that realised cash returns from South African venture capital exceeded invested capital, with returns ranging from 2.01x to 2.45x.
- The Exit Case Studies Analysis revealed a median gross internal rate of return (IRR) of 54% and a median gross money-on-invested-capital (MOIC) of 3.5x.
The emerging success of exits in South Africa's venture capital landscape is a critical development that could reshape the investment ecosystem. It indicates a shift towards a more mature market that not only attracts local investors but also global interest. Continued support for founders and scale-ups is essential to maintain this momentum and ensure sustainable economic growth.
