Why venture capital can’t be the only way to fund African startups

Quite too often, the explanation for African startups shutting down is a standard, “We failed to raise additional funding.”

Now, whether this is a convenient cop-out or the reality is a different question, but the fact that too many startups cite this reason for their failure should warrant some consideration. 

Venture capital is the default funding option for a lot of African tech businesses. That includes those that are truly venture-scale and businesses that, at best, are tech-enabled SMEs. That outcome is largely down to the limited funding options available to early-stage businesses on the continent. 

Last updated: August 2, 2026