South African tech companies raising billions in investment funding

[Jan]

Billions flowing into South Africa's tech scene

While many segments of South Africa's economy have been struggling to keep heads above water amid the Covid-19 pandemic, one has been flourishing — tech.

Across the world, technology firms have generally benefitted from the disruption that came from the crisis, with their innovative solutions offering alternatives to the ways of life that were no longer possible due to strict curbs on movement and business activity.

 

[keru]

South Africa's tech and startup scene is a minnow compared to many other countries. In this case billions are flowing into a handful of companies. Otherwise very little traction in the start up ecosystem.
Compare that to India where there have been close to 70,000 startups in 2021-22.

 

[hj007]

South Africa's tech and startup scene is a minnow compared to many other countries. In this case billions are flowing into a handful of companies. Otherwise very little traction in the start up ecosystem.
Compare that to India where there have been close to 70,000 startups in 2021-22.

indeed - where's our Y-combinator equivalent?

 

[Botha22]

South Africa's tech and startup scene is a minnow compared to many other countries. In this case billions are flowing into a handful of companies. Otherwise very little traction in the start up ecosystem.
Compare that to India where there have been close to 70,000 startups in 2021-22.

I am no expert on this - but does it not start with money flowing into the more established companies, then later on trickling down to start-ups?

 

[krycor]

To have a start up ecosystem you need customers.. to have customers for e-commerce and other electronic services you need cheap data.

Don’t get me wrong the backbone of e-commerce is payment services, logistics, supply chain etc. in these Sa was mature excl payments which, like telecoms, has monopoly operators.. the push for “cheap accounts” has had the same impact something like m-Pesa had for Kenya.. except.. oh that’s right our data is still a problem.

Wrt money flowing to big companies and then little ones.. that’s the trickle down bs. There is a reason why Africa has a few unicorn start ups and Sa has what? None? That narrative of of intelligence and money flow now makes sense? Guess not..

 

[neoprema]

I hope all that money is going into proper countries bank accounts. Because bringing it here is as useful as burning it.