Shola Akinlade

UNPACKING AFRICA'S STARTUP FUNDING LANDSCAPE As we edge into the weekend, this week on Market Pulse, I dived into the latest African startup funding trends, and the numbers are telling. Watch as I break down the $138M raised in September 2024, with fintechs leading the charge. Some key takeaways: Nigerian startups are struggling to secure big deals, with only a few notable exceptions Kenya and Egypt are giving Nigeria a run for its money as the leading destination for startup funding Exits and acquisitions are on the rise, with @Syft's $70M acquisition by Xero being a standout deal But here's the question: What's driving this shift in Africa's startup funding landscape? Is it a sign of maturity, with investors seeking more refined and scalable businesses? Or is it a reflection of broader economic trends, with Nigeria's funding drought being a canary in the coal mine? Join the conversation! Share your insights and let's unpack the future of African startup funding together. Featured companies: FlapKap Paymob Fido Syft Risevestors Mutual funds HISA INGENIERIE Moove Partners: Newscentral_Africa Newscentral_Africa Nairametrics #AfricanStartups #StartupFunding #Fintech #MarketPulse #NewsCentralTV #Nairametrics #BusinessMedia #IndustryInsights"

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I recently read an article published by TechCrunch on the 1st of September that touched on a significant issue on the minds of many tech investors interested in Africa: why are exits so few on the continent? I found a few points quite thought-provoking. While the space has recorded some big wins, such as BioNTech's $680 million acquisition, SendWave's $500 million acquisition by WorldRemit (now Zepz Group), DPO's acquisition by Network International for $291 million, and Paystack's acquisition by Stripe for $200 million, these numbers, though impressive, raise the question of whether they are good enough. This is especially true considering that about $20 billion has been attracted into the space. Comparing the exit values to the total funding raised, there seems to be a significant gap. For a moment, I pondered this, and I believe that breaking down the data might provide context that could enrich our understanding and pave the way for deeper conversations. The truth is that looking at the data this way might not be an apples-to-apples comparison for some reasons. Firstly, while 2014 may be considered the golden age of venture capital in Africa, more than half of the $20 billion was raised in just two years—2021 ($6 billion) and 2022 ($6.5 billion)—due to the abundance of capital during that period, driven by favorable macroeconomic circumstances beyond anyone's control. If we also look at exits, we see that the majority of large exits were influenced by these same macroeconomic factors, which made exits easier than they would be in tougher economic situations. Great companies were able to leverage these opportunities. Out of the eight exits mentioned, three occurred between 2020 and 2021, a period when exits performed exceptionally well globally. Extending the timeline further, seven out of the eight exits happened between 2020 and 2024. None of these companies were formed in 2021 or 2022, which led to the funding boom; the average age from founding to exit is approximately 10 years, with Paystack being the youngest, founded in 2015. Following this trend, we see that investments made in 2020–2022, during the period of the most significant funding growth, will still take time to materialize. These investments will benefit if global macroeconomic conditions become favorable, making exits easier. We may need to shift from a short-term, year-on-year perspective to a longer-term horizon to appreciate the future potential if we focus on building great companies now. The jury is still out on African tech exits, but I think there is hope. https://lnkd.in/dwPCCeXq

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Great to speak on the UKTN podcast speaking on our work at Openseed VC backing experienced operators, and talking about the incredible potential of European and African ecosystem. There is a growing pipeline of experienced operators starting their technology companies across both regions -- this is the focus for Openseed VC On the podcast, we talk about AI, emerging technology trends, the importance of talent, liquidity, impact of policy on the entrepreneurship ecosystem and many more! I also speak about the incredible growth opportunity that is the #African continent - tough macro climate yes -- but we believe difficulty is the flip side of opportunity to create value. There will be an incredible crop of experienced operators who choose to solve difficult, impactful and commercially viable problems. At Openseed VC we want to be your launch partner if this sounds like you! Got questions, we've got answers on www.openseed.vc/faq A huge thanks to the UKTN team for having me! #OpenseedVC #UKTN #Europe #Africa https://lnkd.in/eAH9ZbNM

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𝐓𝐡𝐞 𝐓𝐢𝐜𝐤𝐞𝐭 𝐒𝐢𝐳𝐞 𝐓𝐫𝐚𝐩 Funding in the #African startup ecosystem often feels like trying to fit a square peg in a round hole. 🔹 𝐁𝐢𝐠 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 want #SiliconValley-style opportunities with massive ticket sizes. 🔹 𝐋𝐨𝐜𝐚𝐥 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 play it safe, offering minimal support for meaningful early-stage growth. 🔹 And in between? The “𝐦𝐢𝐬𝐬𝐢𝐧𝐠 𝐦𝐢𝐝𝐝𝐥𝐞” funding range—a critical gap where most African startups struggle to survive. Let’s break it down: 💡 #Seed funding usually ranges from $10,000 𝐭𝐨 $100,000. 💡 #SeriesA funding often demands startups to raise $1 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐨𝐫 𝐦𝐨𝐫𝐞. 💡 The 𝐠𝐚𝐩 𝐢𝐧 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 is where ideas stall, operations falter, and promising startups die. This isn’t just a funding issue—it’s a growth trap. Without access to tailored investments in that middle stage, startups are forced to: 🚫 Over-stretch their seed funds to cover scaling. 🚫 Miss out on Series A because they’re not “big enough” yet. 🚫 Pivot into oblivion to survive. 📌 Here’s the challenge: We don’t just need 𝘮𝘰𝘳𝘦 money in the ecosystem—we need 𝐬𝐦𝐚𝐫𝐭𝐞𝐫 𝐜𝐚𝐩𝐢𝐭𝐚𝐥. #Investors who understand the nuances of the #African market, value smaller wins and are willing to take calibrated risks on #startups still finding their footing. More insights and solutions are coming in my upcoming article: "𝐓𝐡𝐞 𝐅𝐮𝐧𝐝𝐢𝐧𝐠 𝐌𝐚𝐳𝐞: 𝐖𝐡𝐲 𝐀𝐟𝐫𝐢𝐜𝐚𝐧 𝐒𝐭𝐚𝐫𝐭𝐮𝐩𝐬 𝐚𝐫𝐞 𝐅𝐢𝐠𝐡𝐭𝐢𝐧𝐠 𝐚𝐧 𝐔𝐩𝐡𝐢𝐥𝐥 𝐁𝐚𝐭𝐭𝐥𝐞." Stay tuned! What’s your take? How do we solve the missing middle? #AfricanStartups #FundingGap #VentureCapital #GrowthStage #ImpactInvesting #Startups #SeedFunding #SeriesA #ScalingStartups #TechInAfrica #InclusiveGrowth #StartupFunding

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In this week's #AliTalksTech Weekly Roundup we dive deep into the world of digital payments, cryptocurrency, and cybersecurity across Africa and beyond: 💡 NCBA Group's Loop App Revamp: After last year's launch issues, the Loop app has made key improvements! Missed our last breakdown? Check out the #ATT episode on what went wrong and how they’ve bounced back. What’s your take on the new updates? 💸 Paymob's $72M Series B Funding: Egypt's fintech powerhouse secures funding for MENA expansion, pushing financial inclusion in emerging markets. 🌐 Cryptocurrency Adoption Leaders: From India to Nigeria, the 2024 Chainalysis Global Adoption Index reveals the countries leading the charge in crypto. 🇮🇳🇳🇬🇺🇸 🎯 TDMarkets Crypto License Win: South Africa takes another step toward regulated cryptocurrency services, bringing more legitimacy to the space. 🛡️ Mastercard’s Cybersecurity Move: Mastercard's $2.65B acquisition of Recorded Future signals a bold investment in securing the future of global payments. Subscribe to our YouTube Channel and don’t miss this insightful roundup of the biggest fintech moves! 💻📲 #Fintech #Cryptocurrency #Cybersecurity #Podcast #DigitalBanking #Alitalkstech

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I’ve been trying to write a bit more and my latest article is about my feelings about where the African tech ecosystem currently is. I’ve titled it - Africa tech, à la charnière. Link in the comments

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Access the #Africa-Funded Startups List. Check out the list of startups that have secured funding in #Africa anytime you wish. Link to the list https://lnkd.in/dGQGMzgB #startup #startups #vc #venturecapital #investmentbanking #privateequity #managementconsulting #b2b #founders #entrepreneurs

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As an early stage CEO, monthly updates are a distraction 💯 and create an unhealthy amount of pressure. Instead, you should be building in public and tweeting daily updates on your business. I tried to implement this at Kacha Labs, plus I was texting almost every investor daily. #vc #africa #tech #smes #startup #web3 #crypto #bullrun #solana #business

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Learning To Navigate Unfamiliar Waters; A Female Founder Running A Tech Initiative For Boys. As a woman navigating the tech industry, I'm no stranger to unfamiliar waters. But leading the team At the Stellar Academy (Boycode Bootcamp), a tech initiative focused on empowering boys in underserved communities across Africa, has taken that unfamiliarity to a whole new level. Grew up as the first of four girls without a brother so leading a program focused on a demographic I hadn't personally experienced could have been daunting. Instead, it became a thrilling adventure in empathy, learning, and the sheer joy of seeing potential ignite. This journey hasn't been without its challenges. There were moments when I felt like giving up and just abandoning the initiative . Because truth be told , I had a perfect excuse to do that . But here's what I discovered in those unfamiliar waters: * The power of vulnerability: Initially, I felt pressure to be the all-knowing tech guru and founder . But opening up about my own learning journey fostered a deeper connection with the students and my team. They saw their own struggles mirrored in mine,and it empowered them to embrace the challenges of learning. * Building a village of support: You don't have to be the expert in everything. Surrounding myself with a diverse team of mentors – male and female tech professionals from the communities we serve – provided invaluable insights and guidance. * The ripple effect of success: Witnessing the transformation of our students is the ultimate reward. Seeing their eyes light up as they grasp a new concept, their confidence soar as they complete a project – that's what makes every unfamiliar territory worth exploring. More importantly, their success stories inspire others, creating a ripple effect that goes beyond the classroom walls. * Embrace the unexpected: Unfamiliar waters often hold unforeseen treasures. Be open to the unexpected opportunities that can arise when you venture outside your comfort zone. * Celebrate the journey, not just the destination: Leading The Stellar Initiative has been a continuous learning process. There's always something new to discover, a new challenge to overcome. The key is to celebrate the journey itself, the small victories and the lessons learned along the way. These experiences shape not only the program but also our ability to guide future generations. What are your experiences navigating unfamiliar territory? Share your stories in the comments! #femalefounder #teched #STEMeducation #empoweringboys #TheStellarInitiative #preciouseniayekan #boycodebootcamp P.S. If you're passionate about tech education and giving back, connect with me! I'd love to hear from you.

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"For many business owners," Ted Oladele, Mira CEO and ex-Flutterwave design VP explains over a call, "software takes a backseat when considering a point-of-sale system. They prioritise acquiring the hardware itself, then scramble to find compatible software and essential accessories like barcode scanners or printers." The launch of the Mira Register marks a strategic evolution for the startup which began by offering free restaurant software, generating revenue through transaction commissions. Now, the Mira Register signifies their expansion into hardware solutions, offering a more comprehensive service and a new revenue stream. https://lnkd.in/eBpUr6ZM

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The dominant rhetoric in the market is “more is better” when it comes to payments. While this may have initially been true, we have reached a point of diminishing marginal returns, where adding payment methods has a declining — if not negative — ROI. While we know this intuitively, there is often a disconnect between merchants’ internal teams, leading to an inefficient allocation of resources, scaling technical and reconciliation complexity, and declining conversion due to the paradox of choice. Looking forward, we expect merchants to become increasingly strategic and discerning about the payment options they expose to customers, to deliver better conversion, personalisation, and internal ROI. Read more in our latest blog.

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It's truly exciting to see how the innovation ecosystem is growing in #Tanzania and #Africa as a whole and how everyone is fully dedicated to closing missing gaps and promoting continuous learning. Seeing #founders come together to empower the next generation of founders is truly exciting. These opportunities, skills gaps, and mentorships are what we were looking for, which we couldn't access before. Sometimes we even had to go outside of the country to learn how #SiliconValley operates or attend expensive schools and programs at Harvard Business School, which had limited access and sometimes didn't have practical stories relevant to our local challenges. This is why Smart Lab saw the importance of closing the skills and talent gap by bringing together successful #startups to mentor others and improve our product market fits, skills, and investment opportunities. This will enable us to help our communities challenges and deliver solutions with profitable business models, creating new jobs for the next generations. It's truly an exciting time, and I'd like to take this opportunity to invite all aspiring entrepreneurs to join these classes to accelerate their next ventures. Join here: https://lnkd.in/dRA_Q9me Please share this with those in need. #UNTILITSDONE

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Djamo is an African neobank, set on disrupting the status quo. It still partnered with a "normal" bank. Why? Here's how Hassan Bourgi, one of Djamo's co-founders, puts it: " For two reasons. First, partnering with banks allows us to launch into new markets much faster. In our region, only financial institutions can carry out cross-border transactions. If we wanted to offer that functionality, which we did, we needed partners with the right licenses. Today, we have two partner banks in Côte d’Ivoire and one in Senegal. Second, we needed to issue “local” cards (ones connected to a local banking institution) because most merchants have fraud algorithms. These algorithms are way more inclined to accept local cards than foreign ones. By partnering with no bank or a foreign bank, you negatively impact your cards’ success rates. That’s terrible for customer experience, particularly if the card is your star product. That being said, we are becoming more independent. We’ve applied for our own licenses. We’ve just gotten a brokerage license for the WAEMU region, enabling us to offer investment products. We also have a microfinance bank license application underway.  " Read Hassan's full Realistic Optimist interview here: https://lnkd.in/gpxDCuR8

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Flutterwave has made a flurry of moves lately, including hiring executives in finance, risk, legal, and compliance, expanding its reach across Africa and beyond with new licenses, and shutting down Barter, its consumer finance app, while intensifying its focus on its enterprise product and remittance solution. CEO Olugbenga Agboola spoke to TechCrunch about how these changes and more fit into the company’s plans. “We’re arguably the biggest African fintech right now by any metric, and we want to cement that. Every company will look for ways to get more capital as required through private or public capital, but that’s not our current priority. The company wants to invest in continuous market penetration. We want to go deeper than wider as we double down on our key business segments of enterprise payments and remittances,” Agboola noted. Via TechCrunch. https://lnkd.in/dFQyZpBw 

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Day 4 of 30 PM Women's Hub Talk about a fintech and what makes them successful ➡️ Focus on financial inclusion and accessibility:  PalmPay has focused on providing financial services to millions of Nigerians who are unbanked or underbanked. By offering a digital wallet that doesn’t require a traditional bank account with convenient payment solutions. ➡️ User-Friendly Mobile Interface: The PalmPay app is designed with intuitive and easy to use, even for first-time smartphone users. Because of the ease, it helps drive adoption across all demographics. ➡️ Incentives and Cashbacks: PalmPay offers rewards and cashback incentives to users. By rewarding customers for transactions like airtime purchases, bill payments, and money transfers, PalmPay has encouraged repeat usage and helped build brand loyalty ➡️ Strategic partnership by Transsion Holdings: PalmPay is backed by Transsion Holdings, the parent company of TECNO, Infinix, and Itel, which are some of the most popular smartphone brands in Africa. This strategic partnership has given PalmPay access to millions of potential users and allowed for pre-installed apps on Transsion devices, increasing reach and adoption. ➡️ Agent Network:  PalmPay has established a network of agents across Nigeria who help facilitate transactions in areas where digital adoption may be low such as rural or semi urban areas. It has also been a means of providing more jobs to Nigeria youths. ➡️ Affordable Transaction Fees:  PalmPay’s competitive transaction fees for money transfers and payments make it an attractive alternative to traditional banking. ➡️ All-in-One Financial Platform:  PalmPay allows users to make bill payments, purchase airtime, transfer money, and even access credit services, making it a one-stop shop for financial needs. ➡️ Responsive Customer Service:  PalmPay has invested in customer service to provide prompt responses to issues, it offers responsive customer support. which has contributed to positive user experiences and high retention rates. In Summary  Palmpay's success in Nigeria can be attributed to a combination of these factors, which have helped the platform build a strong presence and user base in the country. #pmwomenhub #pmwomenchallenge #productmanagementchallenge #1yearanniversary #pmwomenhubanniversary

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🌍 Unlocking Africa's Tech Potential: An Unprecedented Opportunity for Venture Capital 🚀   Africa’s tech ecosystem shows encouraging resilience, with startups raising over $600 million in Q3 2024, making it the strongest quarter this year. This growth highlights the sector's gradual recovery and ongoing investor confidence. From Fintech and HealthTech to AgriTech and Edtech, innovative solutions are emerging, driven by the unique challenges and vast opportunities across Africa.   In many ways, investing in African tech isn’t only about financial returns—it’s about enabling impact at scale. Each dollar fuels solutions in financial inclusion, healthcare access, and sustainable agriculture, among others. It’s exciting to see this momentum and to play a part in this transformative journey through Jambaar Capital.   The venture capital winter may have cooled things down globally, but Africa’s tech landscape continues to demonstrate resilience and growth. For those passionate about tech innovation and social impact, Africa offers both—and the journey is just beginning. 🌱   #VentureCapital #AfricaTech #Innovation #ImpactInvesting #JambaarCapital #FutureOfAfrica

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The news of Copia shutting down after raising over $100M in VC funds has sent shockwaves through the African tech community. Despite this, I haven't given up on the Copia model, particularly the rural B2C last-mile retail logistics. Here’s why I believe Copia failed: 1. Slow Rural Economic Growth and Low Household Expenditure : The rural economy grows slowly, and average household expenditure is low, leading to thin margins and poor unit economics. 2. Poor Road Networks : Deliveries are slower and fleet maintenance costs are high due to poor road conditions, resulting in heavy logistics expenses. 3. Wide Drop-off Zones: Rural homes are spread out, with an average gap of up to 2 km in Kenya, as compared to urban areas. This increases the cost per drop-off. 4. Low Internet Penetration and Literacy Rates: This necessitates hiring sales agents to place orders on behalf of last-mile customers, adding another cost layer and complicating customer onboarding and retention. 5. Credit Dependency: Rural customers heavily rely on credit, as they are often employed in farms or run small businesses with low cash flow. Offering credit to a large customer base increases the risk of defaults, making the business model even more challenging. Overall, I believe there is a significant opportunity in rural retail and last-mile deliveries. However, for the model to work and be sustainable, all these factors must come together effectively. Thoughts? #Africa #Tech #Logistics

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