South Africa featured in Global Startup Ecosystem Report

Startup Genome has published the 2021 Global Startup Ecosystem Report (GSER) which highlights South Africa’s regional startup ecosystems.

The report offers insight into startups globally and the ecosystems they reside in.

“Entrepreneurs, policymakers, and community leaders are working hard all over the world to build productive and inclusive technology ecosystems that are engines of economic growth and job creation for all,” Startup Genome Founder and CEO, JF Gauthier, said in a statement.

The report includes a ranking of the leading 140 startup ecosystems broken down by continent.

“A report like this is confirmation that Cape Town, and by extension South Africa, is Africa’s Tech Capital.”

Insights include the value of these ecosystems, rankings in terms of performance and talent, and sub-sector strengths.

South Africa in the 2021 Global Startup Ecosystem Report

According to the report, African startup ecosystems are collectively worth $6.6 billion. Of that, $6 billion is concentrated in Cape Town, Johannesburg, Lagos, Nairobi, and Accra.

Three South African cities; Cape Town, Johannesburg and Durban; contributed the most to exit value in Africa. The value totalled over $1.1 billion.

Cape Town ranked first in both Regional Ecosystem Knowledge and Regional Ecosystem Talent and Experience. It also ranked third in Regional Ecosystem Performance.

Startup early-stage funding in the city totalled $105 million. The report valued the regional ecosystem at $1.2 billion.

The City of Cape Town, WESGRO, and non-profit Silicone Cape are part of the Startup Genome Global Member Network and worked to highlight the ecosystem.

“A report like this is confirmation that Cape Town, and by extension South Africa, is Africa’s Tech Capital,” Silicon Cape Co-Chairperson, Vusi Thembekwayo said.

“It also highlights the enormous opportunity that the city and country present for foreign investors.”

The report identified fintech and edtechs as the city’s sub-sector strengths.

Meanwhile, Johannesburg ranked third in Regional Ecosystem Knowledge, second in Regional Ecosystem Talent and Experience, and fourth in Regional Ecosystem Funding.

Startup early-stage funding in the city totalled $55 million in the city. The report valued the ecosystem at $572 million with sub-sector strengths including fintechs.

You can check out the full GSER 2021 report on the Startup Genome website.

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Featured image: Pieter van Noorden via Unsplash