A South African startup can have customers, revenue and a product people are willing to pay for, and still struggle to find the money it needs to grow.
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.
The numbers point to a market where confidence is returning, but unevenly.
Only 63.2% of disclosed South African funding rounds in 2025 were at pre-Series A or earlier stages, a lower proportion than in several other major African markets. Only three of the 42 rounds had a debt component.
Originally published by TechCabal.