African investors push for more frequent updates, but startup founders fear confidentiality risks
- Investors want more frequent reporting from portfolio startups.
- Only 70.8% of investors received regular updates in 2023, increasing to 89% in 2024.
- 71% of investors are unlikely to consider follow-on investing without regular updates.
The growing demand for frequent updates from investors reflects a changing landscape in startup funding, particularly in Africa. While transparency is crucial for building trust and securing follow-on investments, startups must balance this with concerns over data confidentiality. Establishing standardized reporting frameworks could bridge the gap between investor expectations and founder capabilities, ultimately benefiting both parties.
