Cape Town could very be losing its beloved crown as the tech capital of the country, with Ventureburn’s latest data revealing that the number of Gauteng-based tech startups is rapidly climbing.

The impressive growth in black entrepreneurs has predominantly been driven by a sharp rise in the number of black-owned startups based in Gauteng, which grew from 26% in 2015 to 50% this year.

While more black people are becoming entrepreneurs, the survey highlights their struggle to survive, with just 4% of black-owned tech startups turning a profit, compared with 16% of their white counterparts.

“Most worrying is that 61% of black startups have yet to generate an income because they are still working on their concept or are still in the seed stage, compared to 30% of white startups,” the report states.

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Even more devastating is the fact that three-quarters of black startups generate an income less than R100 000, while just 9% of black-owned startups and 4% of black African startups generate a revenue of above R1 million.

White startups continue to receive the lion share of angel funding, with 59% of white startups having tapped into angel funding and a further 24% of them managing to raise over R1 million in financing.

Black entrepreneurs fared dismally in comparison, with just 8% of black startups, of which 2,3% are black African, having had access to angel funding.

“It suggests better resourced white startup founders, who often have access to more capital, skills and experience and better networks, are able to out-perform black startups,” the report says.

The survey also reveals that black entrepreneurs tend to be younger than their white counterparts, with just under 75% of black founders aged younger than 35, compared with 62% of white founders.

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“This raises various questions as to what is driving more middle-aged white founders to start up their own businesses and whether employment equity is behind this,” the report states.

“In addition, it might also explain why so few black startups are making a profit compared to white startups. Older founders are usually more experienced, better networked and have more capital than younger entrepreneurs.”

When it comes to the battle of the sexes, male-run startups tend to be more profitable than woman-run startups, with 27% of startups run by men said to be operating successfully (defined as those companies making a profit and growing), compared to just 18% of woman-run startups.