African startups and investors need better communication to stop funding drought
- African startups and investors are misaligned on communication of startup progress.
- 88% of investors rely on information from investor reports for future investment decisions.
- Over two-thirds of investors intensified focus on portfolio startups’ reporting in the last 18 months.
The findings of the Wimbart report highlight a critical gap in communication between startups and investors that needs to be addressed for the growth of Africa's startup ecosystem. Establishing standardized reporting metrics could enhance transparency and trust, but it is essential to consider the unique market dynamics across different regions. A collaborative approach among investors to create a flexible reporting framework may be the key to bridging this gap.
