Software Company, Snapt has announced the shutting down business services to its users after appearing to run out of funds. The startup is a South African tech company that provides software-based load balancers and application delivery controllers (ADCs).
In a statement, the company informed customers that it would be shutting down its shops and offered support to help customers transition away from its services.
The statement says, “Over the past 12 months, Snapt has been in a growth phase of its business, driven by increased demand for our products at large enterprise customers,”
“Given recent unforeseen events, outside of our control, Snapt has been left with no option but to cease operations immediately, as we believe this is in the best interests of our staff and clients. We are extremely saddened by this, especially given the recent growth of the business, and grateful for all the amazing interactions we’ve had with our clients over the years.”
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This implies that Snapt will no longer be selling its existing software licenses Nova, NovaSense, and Aria; this takes place with immediate effect.
At the end of this month, it will shut down the Nova platform, and all Nova systems will cease to operate. Support services for Aria will also be stopped.
Highlights On Snapt
Being the third well-known company to shut down after tech companies Kune, WeFarm, and Sky.Garden, Snapt Inc. was founded in 2012 in South Africa and had an office and headquarters in Cape Town, South Africa.
The company product range helps optimize and offload content through load balancing, web acceleration, web application firewalling and global server load balancing. It spreads requests between various servers to ensure that websites, applications, and services load as quickly as possible.
The company achieved year-on-year growth of 400% in both 2014 and 2015.
In 2016, Snapt Inc’s load balancing and web acceleration offering had been used by over 10,000 clients in 50 countries, including Intel, Target, Cisco Systems and MTV. In mid-2016, the company raised $1 million in investment funding from private equity and venture capital firm Convergence Partners.
In mid-2018, the company raised a further $3 million in series A funding from private equity and venture capital firm Convergence Partners, Nedbank and other investors. However, the company has taken on no funding since and now seems to have run out of runway.
In 2022, Snapt lost investor funding and closed its doors, releasing all employees.
Africa Tech Ecosystem
A report from researchers says that recently, Africa well known tech companies have been shutting down businesses due to the economic crisis that has been rising. To address these challenges, African governments need to quickly create and implement a digital economic policy that will open and connect economies and create jobs for the continent’s growing number of young people.
Africa can be a tech superpower if it creates a good business environment, enough money, and strong connections. The future of tech in Africa is exciting, and leaders can take steps to build thriving, competitive ecosystems for tech start-ups that lead to innovations that change the world.
The continent’s tech start-up ecosystem is growing quickly, but it still lags behind the rest of the world. Africa has already been at the forefront of using technology, enabling it to bypass traditional ways of development.
A relatable example is that the continent skipped landlines and went straight to mobile phones, and it started using mobile money and e-banking when traditional bank accounts for individuals were still low. African tech creators are already creating some exciting innovations in the world.
This is because Africa has the world’s largest free-trade area and the highest rate of entrepreneurship. There is a lot of tech potential on the continent, and now is the time to act.
According to researchers, by 2030, tech financing will hit US$90 billion, but there is a lot that African governments have to do to reduce the risk of investing in tech start-ups. Governments and donors will have to work with the private sector to create new investment tools.
In addition, governments have to make things better for businesses. Currently, tech start-ups have to pay a lot to comply with regulations that are sometimes not clear. These regulations differ in the 54 African countries, making it a lot of work for investors to scale faster across the continent.
