Focus on cash management in 2025, VC firms tell early-stage portfolio startups
- Only 345 early-stage startups raised between $100,000 and $1 million in 2024, a 31.5% drop from 2023.
- Growth-stage startups saw a milder impact, with a 10% drop in those raising over $1 million.
- International investors may seek high-growth investment classes due to expected US Fed interest rate cuts in 2025.
The current funding challenges faced by early-stage African startups highlight the need for a strategic pivot towards sustainable business practices. While the anticipated increase in funding in 2025 is promising, it is crucial for startups to adapt their business models to attract investment and ensure long-term viability. The focus on blended capital suggests a shift in how startups will approach funding, which could lead to innovative financing solutions.
