South Africa needs to build tech companies big enough to create their own exits

South Africa needs to build tech companies big enough to create their own exits

South Africa tech scale-ups face a structural challenge: moving from early-stage venture funding to the governance, predictable unit economics and audit-ready financial structures required to attract institutional capital and scale. It has no shortage of technology companies solving real problems.

The core challenge is the structural commercialisation gap between early-stage venture capital funding and institutional governance readiness. While seed capital can prove product-market fit, local tech SMEs frequently stall when transitioning to scalable corporate governance, predictable unit economics, and audit-ready financial structures required by growth-stage investors. 

That makes the partnership between the Johannesburg Stock Exchange (JSE), Africa’s largest stock exchange, and the Technology Innovation Agency (TIA), a government agency that supports technology commercialisation, more significant than a 16-week programme for 10 small and medium-sized enterprises (SMEs).

The pilot targets one of the weakest points in South Africa’s innovation pipeline: the gap between building something that works and building a company that can attract serious capital, enter new markets and scale.

Originally published by TechCabal.

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