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Navigating Fundraising in Today’s Market
Raising capital in South Africa’s current environment is not for the faint-hearted. Founders are contending with higher interest rates, cautious investors, and global uncertainty that trickles down into our local market. Yet, as challenging as it is, this moment presents opportunities for those who can refine their approach.
At Grindstone Ventures, we see the founders who succeed in this climate doing two things exceptionally well: tightening their value proposition and demonstrating resilience. Investors are no longer swayed by “potential alone.” They want proof: a clear revenue path, strong unit economics, and evidence of agility when markets shift.
Welo Health, one of our portfolio companies, has done just that. Their healthtech platform began by servicing individuals, but they quickly saw demand among corporates looking for accessible healthcare solutions for their teams. By adapting their service model and diversifying their channels, Welo positioned themselves for growth at a time when many healthtech players were struggling.
Advice from our CEO, Thandiwe Maqetuka, is that fundraising is not a transaction; it’s a relationship. Investors want to see consistency, transparency, and a founder who understands that capital is only one part of the growth journey. The companies that will emerge stronger from this cycle will be those that embrace discipline, manage costs, build trusting relationships and treat fundraising as a long-term partnership rather than a short-term goal.
