Where did the $100k cheques go? Inside the exit drought paralysing early-stage African tech
- The number of African startups raising between $100,000 and $1 million has fallen by almost half in the last six months.
- Investors are holding back due to insufficient exits that demonstrate the effectiveness of previous investments.
- Village Capital has invested approximately $1.3 million across seven companies through its $4 million Africa Ecosystem Catalysts Facility.
The decline in startup funding in Africa highlights the critical need for investors to reassess their strategies and focus on sustainable business models that provide real value. Village Capital's approach of leveraging local knowledge and adapting capital structures could serve as a model for future investments, especially in a region where traditional metrics may not apply. The emphasis on 'boring' businesses is a refreshing perspective that could lead to more stable growth in the African startup ecosystem.
