Black-Owned and Women-Led Businesses

Assessing the VC landscape in 2025
The African Development Bank (ADB) projects that Africa's real GDP growth will average between 3.8% and 4.2% in 2024 and 2025, respectively, which is favourable compared to global averages. This economic growth may improve investor confidence and stimulate VC activity.

In South Africa, the VC market is gaining momentum, attracting diverse investors seeking opportunities in innovative tech startups. The total capital raised in the venture capital market in South Africa is projected to reach US$463.40 million in 2025, with the later stage dominating the market at US$455.60 million.

Challenges facing women entrepreneurs
Despite the positive outlook, women entrepreneurs continue to face significant hurdles in securing venture capital. Cultural norms and systemic biases often result in a lack of confidence and assertiveness among women when pursuing financing options.

The limited access to networks and mentorship further exacerbates these challenges.

Strategies for securing venture capital
To navigate the complex VC landscape, women entrepreneurs can adopt the following strategies:

1. Building strong networks and seeking mentorship
Establishing solid business networks and seeking guidance from mentors are essential steps. Engaging with industry peers and advisors can provide valuable insights and open doors to potential investors.

Intentional networking helps in building relationships that are essential for business growth and accessing capital.

2. Leveraging training and education opportunities
Participating in training programs focused on investment readiness and business skills can boost entrepreneurs' confidence and competence.

Initiatives like the Visa She’s Next program in South Africa offer development opportunities, mentorship, and financial support tailored for women entrepreneurs.

3. Exploring women-specific funding options
Several funding avenues are designed to support women-owned businesses in South Africa:

• Isivande Women's Fund (IWF): Provides responsive finance solutions ranging from R30,000 to R2 million for startups and SMEs looking to expand or franchise.
• Women Empowerment Fund (WEF): Offers between R250,000 and R75 million to female business owners across various industries, focusing on black women's empowerment.
• AWIEF Growth Accelerator: Delivers growth strategy training, mentorship, and access to finance for women entrepreneurs, aiming to scale their businesses.

4. Aligning with high-growth sectors
Investors are particularly interested in sectors demonstrating reliable growth. Women entrepreneurs should consider aligning their ventures with industries such as:

• Technology and Fintech: The rapid expansion of AI, blockchain, and digital banking in South Africa offers fertile ground for innovation.
• Renewable Energy: With a global shift towards sustainable solutions, renewable energy projects are attracting major investments.
• Healthcare and Agritech: These sectors address essential needs and present opportunities for impactful ventures.

5. Preparing a compelling pitch
Crafting a persuasive pitch is vital. Entrepreneurs should:

• Showcase in-depth knowledge of the target market and industry trends.
• Clearly articulate what sets the business apart from competitors.
• Provide evidence of growth, customer acquisition, and scalability.
• Present realistic financial projections and a clear plan for the use of funds.

6. Engaging with investor networks and platforms
Using platforms and networks that connect entrepreneurs with investors can boost visibility. Participating in pitching events and accelerator programs can lead to valuable connections and potential funding opportunities.

Final thoughts
While challenges persist, the evolving venture capital environment in South Africa offers promising opportunities for women entrepreneurs.

By building strong networks to align with growth sectors, and presenting compelling business cases, female-led businesses can improve their prospects of securing venture capital in 2025.