Next Wave: Venture debt’s role in Africa’s startup ecosystem
Decline in VC deals and a tough macroeconomic environment have posed challenges for the African startup ecosystem. Venture debt is gaining traction as it provides working capital without diluting ownership.
Next Wave: Unfortunately, startups that go into administration are basically dead
The administration of a startup often leads to the closure of the business due to financial obligations and the inability to repay creditors. Funding and market fit are identified as two major hurdles for startups, with a lack of financing and failure to conduct market research being common reasons
2024: A Year of Uncertainty and Diverse Prospects for African Startups After a Challenging Previous Year
African tech startups faced challenges in securing venture capital, leading to bridge rounds, fire sales, layoffs, and closures. The decline in VC funding has particularly affected growth-stage companies.
Last year was a tough period for African growth-stage startups and 2024 presents a mixed bag
South Africa's WhereIsMyTransport and Kenyan logistics company Sendy shut down after failing to raise fresh funding. Chipper Cash and Cellulant conducted layoffs due to the cash crunch.
10 African startups that have closed during the “funding winter”, and some that are battling on
Venture capital funding globally almost halved in the first six months of 2023. African tech startups raised just shy of US$500 million in Q3, down 48% compared to the previous year.
