Startups on the continent have raised over $1 billion in 2024 so far. Despite these amazing figures, the total is down which shows that there is a need for a spotlight on our tech startups. The man leading the charge for tech startups in Africa is entrepreneur Matthew Marsden, founder of Startup Club ZA (SCZA).
In this week’s episode of SME Founder Focus, we put a spotlight on the man building the biggest investment network of tech startups in South Africa.
Matthew began Startup Club ZA as part of his own entrepreneurship journey. The company began as The Joburg Startup Club and rebranded just last year. This was in an effort to broaden their reach to other startups around South Africa.
“We are incredibly passionate about entrepreneurship. And most importantly we are focused on solving problems using tech and then attaching commercial opportunities. We are also quite explicit about what a start-up is, that is our focus,” says Marsden.
Startups Keep Rising
The startup industry in South Africa is growing quite rapidly. Many of the tech companies and startups are based in Cape Town which has been dubbed South Africa’s Silicon Valley. The development of our startup industry showcases great amounts of innovation within South Africa.
Matthew emphasises that the startup space is quite unique. He explains that startup founders are hyper-innovative and are being taught things such as how to build their companies, the different ways to raise capital, how they get sold, how to build their products and how to take their offerings to the market.
“It’s so often that the big companies are ‘the next big thing’ but that’s also possible in startups and that’s the unique space we choose to serve. We love that space and are really excited to see where it’s going,” explains Marsden.
Matthew explains that Startup Club ZA has a range of services and solutions for its startup network. The company runs their own events to provide exposure for their startups to potential investors. In addition to events, the organisation also hosts master classes and pitching hubs. He also explains that these are done because of the strong network of venture capital partners that Startup Club ZA has.
“We are here to help our startups grow within the tech ecosystem. We want our founders to have an opportunity to show the world their unbelievable and homegrown innovations that they are building,” he says.
Speaking about startups in South Africa, Marsden says the commercial opportunity is very significant. He explains that the startups in South Africa represent everything that is proudly South African. The startups that the company has on its network are mostly from Johannesburg and Cape Town. However, Marsden explains that there are also tech startups from Gqeberha and North West showcasing that anything can be built and developed locally.
“You would expect that some of these companies would come out of silicon valley or London or Singapore but no they are local. This has allowed us to better connect with the founders and to understand their needs. From those needs we can build services and products that serve them better” says the founder.
A Different Kind of Investment
Marsden says the goal of Startup Club ZA was always to become a leading investment vehicle for startups and help them gain exposure for their innovations. The company prioritises the use of tech to help startups elevate their ideas.
Additionally, he mentions that the lack of funding plays a huge role in startups not succeeding. He emphasises that his investment vehicle is there to understand the demands, lack of exposure and funding needs of startups. In addition to that, he points out that a lack of proper skills and talent plays a huge role in the development of startups.
To further help South Africa’s startup industry, Startup Club ZA has developed and launched its own products. The first is the Startup Club ZA Ecosystem platform. Through this platform, founders receive public feedback on their developments.
In addition to that, the company has developed a hiring tool designed to help startups find and identify the right talent for their businesses.
Marsden says, “This is the way we will continue our move in the South African market. We can have the platform and do the things we do but at a bigger scale.”
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