South Africa’s startup funding is recovering, but founders still struggle to find fit
That sounds like a contradiction in a country where startup funding is recovering. According to Disrupt Africa, South African startups raised $335.9 million in 2025, more than three times the $100.4 million raised in 2024. Forty-two startups secured funding, up from 25 the previous year, while the average deal size nearly doubled to $7.99 million from $4.02 million.
South African startups have seen a surge in funding, raising $335.9 million in 2025, a significant increase from $100.4 million in 2024. However, the growth is uneven, with only 63.2% of disclosed funding rounds in 2025 at pre-Series A or earlier stages. This suggests that while the market is recovering, it is not equally accessible to all types of startups.
Fintech dominates the funding landscape, accounting for $125 million, while energy funding amounts to $94.6 million. Investors are still interested in well-established businesses with clear paths to growth, but finding capital for early-stage startups with less concrete evidence can be challenging. The recovery is real, but critical funding gaps persist, particularly for businesses that require physical infrastructure or longer growth cycles, such as Zimi Charge, which is focused on electric vehicle charging infrastructure for commercial fleets.
Zimi Charge required different types of capital at various stages of its development, highlighting the importance of tailored funding solutions for businesses with unique capital requirements.
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