{"id":60205,"date":"2014-06-11T14:00:28","date_gmt":"2014-06-11T12:00:28","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=60205"},"modified":"2014-06-11T13:43:13","modified_gmt":"2014-06-11T11:43:13","slug":"how-much-it-costs-to-launch-a-start-up-in-sa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/internet\/60205\/how-much-it-costs-to-launch-a-start-up-in-sa\/","title":{"rendered":"How much it costs to launch a start-up in SA"},"content":{"rendered":"

New research has identified the initial cost associated with starting up a tech business in South Africa.<\/span><\/p>\n

According to early stage tech seed fund and accelerator, Savannah Fund, it costs in excess of $70,000 (R750,000) to launch a start-up in SA – the most expensive out of six African countries assessed.
\n<\/span><\/p>\n

Additional countries covered in the research included Uganda, Tanzania, Kenya, Ghana, and Nigeria.
\n<\/span><\/p>\n

“As a venture capital firm, Savannah Fund is interested in the differing variables that can affect entrepreneurs in the countries of start-ups we have or will invest in. One of the key metrics we want to understand more about is first year start-up costs,” Savannah Fund<\/span> said.<\/span><\/p>\n

The company noted that its sample size was relatively small, asking hubs and approximately three start-ups per country.<\/p>\n

The costs covered included: web hosting, internet, entry level engineer, engineer with 3-5 years of experience, shared apartment (for 3 people), workspace desk rental, legal costs, business permits, accounting, travel, and admin\/sales.<\/p>\n

Savannah Fund<\/span><\/span> found Ghana to be the second most costly country to launch a start-up, at just below $60,000 (R647,00), followed by Tanzania ($50,000), and Nigeria.<\/p>\n

\"First<\/a>

First year start-up costs<\/p><\/div>\n

Savannah<\/span><\/span> said it was interested in seeing\u00a0the differences between start-up costs with a sample from its investments or potential investments.<\/p>\n

It specializes in US$25,000-US$500,000 investments in early-stage high-growth
\ntechnology start-ups in sub-Saharan Africa, having most recently invested SA based start-ups BabyGroup, and Wyzetalk.<\/p>\n

Savannah<\/span><\/span> Fund noted that the cost of securing an engineer with between 3-5 years experience accounted for as much as $46,000 for the year in South Africa – well above that of someone with the same experience in Tanzania ($34,000), Ghana ($33,000), and Kenya ($20,000).<\/p>\n

The seed investor also pointed to infrastructure costs, where again, South Africa, followed by West African countries are most expensive.<\/p>\n

\"Infrastructure<\/a>

Infrastructure costs<\/p><\/div>\n

Savannah<\/span><\/span> Fund said there are a number of variables that could change these numbers, such as industry of start-up, personal preferences of start-ups (which could affect size of home and willingness to spend on personal costs), etc.<\/p>\n

\u00a0More on South Africa start-ups<\/h3>\n

New social lender hits South Africa<\/strong><\/a><\/p>\n

DA wants to fund start-ups in Gauteng<\/strong><\/a><\/p>\n

South African start-up jobs soar<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

New research has identified the initial cost associated with starting up a tech business in South Africa.<\/p>\n","protected":false},"author":10,"featured_media":58859,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9882],"tags":[8139,26,8137,8141],"class_list":["post-60205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-internet","tag-babygroup","tag-headline","tag-savannah-fund","tag-wyzetalk"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/60205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=60205"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/60205\/revisions"}],"predecessor-version":[{"id":60223,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/60205\/revisions\/60223"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/58859"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=60205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=60205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=60205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}