SAVCA 2015 VENTURE CAPITAL SURVEY
FROM POWERFUL PARTNERSHIPS COME POWERFUL SOLUTIONS
MERGERS & ACQUISITIONS Our extensive know-how and innovative approach to transactions are what makes us the preferred legal partner. And being the preferred legal partner has culminated in Cliffe Dekker Hofmeyr being recognised as the #1 South African M&A law firm by Mergermarket and DealMakers.* * In 2015 Mergermarket ranked us as the #1 South African law firm for M&A in Africa and the Middle East by the number and value of transactions that we advised on and DealMakers ranked us as the #1 law firm for M&A in South Africa by the number and value of transactions that we advised on.
Cliffe Dekker Hofmeyr. The legal partner for your business.
Table of contents
1 About the survey
1.1 Objectives and methodology
1.3 Survey scope and attributes
1.4 Information excluded from survey data
2 The state of venture capital in South Africa
2.1 VC transactions: Comparison with previous years
2.2 Number of transactions concluded
2.3 Contribution by stage of the deal
2.4 Sector allocation
2.5 Location of transactions
3 Who invests into South African venture capital? 3.1 Value of transactions by type of fund
3.2 Deal flow reported
3.3 Equity preferences
3.4 Exit history and exit mechanisms used
3.5 Fund manager attributes
3.6 Undrawn commitments and new fund management activities
4 State of the South African VC industry: A comparison with previous SAVCA VC surveys
6 About Venture Solutions/SAVCA
SAVCA and Venture Solutions would like to thank the survey participants, many of whom wish to remain anonymous.
RISING ACTIVITY LEVELS
• Number of VC fund managers up 41% • More VC professionals • More deal ﬂow
South African VC in 2 015
R 1 . 87 b n
d across more tha n 18 Investe 7
STRONG EXIT PERFORMANCE More than half of fund managers have done at least one exit
CONFIDENCE IN THE SECTOR
AVERAGE DEAL SIZE DOWN 22% 2009-2012 R9.3m
Two thirds expect proﬁtable exit in next year Returns expectations vary from 2 to 5 times money back
The most common reason for deal failure is poor due diligence.
Bridge the information gap between entrepreneurs and investors.
SELL-SIDE MERGERS & ACQUISITIONS ADVISORY IN SUB-SAHARAN AFRICA 2014 Zephyr/Bureau Van Dijk A member of the
group of companies
For more information contact us: Cape Town: Tel: +27 21 202 2400 | Johannesburg: Tel: +27 11 615 0602 (International) | Tel: 086 111 5456 (Local) [email protected]
Foreword SAVCA is pleased to present the SAVCA 2015 Venture Capital Industry Survey. This survey follows similar studies conducted by SAVCA in 2010 and 2012, and is designed to create a more comprehensive understanding of the venture capital (VC) sub-set of the private equity industry in South Africa, covering VC-type deals made by private fund managers as well