1. Roadmap for the South African
Venture Capital Ecosystem

2. START‐UP VENTURE FINANCING LIFECYCLE
Concept Stage
develop idea, pre‐revenue
R0 ‐ 1MM valuation
Seed Stage
market validation, early revenue
R1MM – 10MM valuation
Series A
rapid growth, solid revenue
R10MM – 100MM
Series B, C
significant market
share, profitability
R100MM +
Investor Exit
Trade Sale
or
IPO

3. MATURE SELF‐SUSTAINING ECOSYSTEM
Exits are the primary means for
capital and entrepreneurs to re‐
enter the market
IPO
Trade Sales
Foreign Sales
Concept
Stage
Exit
Series B,
C, +
VC Funds (Late Stage)
Seed
Stage
Series A

4. CURRENT SOUTH AFRICAN ECOSYSTEM
The near complete lack of exits is strangling
the ecosystem. Entrepreneurs and capital are
locked up, and investors have no motivation to
put more capital into the market
Exchange Controls have
nearly eliminated foreign
acquisitions of SA tech
companies.
There is no IPO market.
AltX is not currently viable.
Concept
Stage
Seed
Stage
Exit
IPO
Trade Sales
(small handful of
transactions)
Foreign Sales
The 3‐4 VC funds with capital must be
extremely cautious as there are no later
stage investors for their portfolio. Trade sales
are rare and do not give significant returns.
Series B
Series A

5. ECOSYSTEM INVESTMENT APPROACH
• Increase International Sales & Investments
– Engage government to make regulatory changes to
reduce Exchange Controls, especially over IP
– Perform regular road shows to international investors
to sell the SA tech investment story
• Create IPO Option in Africa
– Refine AltX listing strategy with JSE and industry
partners to lower barriers and build momentum
– Develop ‘Africa Tech’ index and EFT with market
leaders to enable active trading of portfolio
companies that will otherwise be too small.

6. INVESTMENT TIMELINE TARGET

7. CONTACT DETAILS
Philip Kiracofe
Email: philip@horizenventures.com
Skype: pkiracofe
http://www. horizenventures.com