Early-stage venture capital in South Africa: Challenges and prospects
AbstractThe aim of this paper is to assess which factors impact the development of early-stage venture capital in South Africa. Factors identified for other markets and countries are explored and their relative importance in South Africa determined from the perspective of market participants. These include venture capital and private equity fund managers, government institutions, intermediaries and university research coordinators. The study used both an online survey, to capture a broad representation of opinion, and interviews, for in-depth responses. There was broad consensus among respondents with regards to the key factors requiring attention, which include the lack of funds targeted at early-stage investments, the lack of specialised fund managers, and the low entrepreneurial skillsets in the country. Through a detailed analysis of the responses, certain measures are proposed that can enhance the development of early-stage venture capital in South Africa such as engaging more with angel investors and improving the cooperation between the different market players in the sector.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42890.
Date of creation: 07 Dec 2009
Date of revision: 21 Nov 2012
early-stage; venture capital; entrepreneurship; investment; South Africa;
Find related papers by JEL classification:
- N27 - Economic History - - Financial Markets and Institutions - - - Africa; Oceania
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
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