African Startups: A Decade of Funding Without Liquidity

Since 2016, African startups have attracted massive investments, but the conversion of these funds into financial returns remains limited. According to TechCabal, the cohort of companies created in 2016 raised approximately $1.89 billion over ten years. This amount represents 8.6% of the $22 billion injected into the African ecosystem over the same period. However, this concentration of capital benefits a minority: 34 companies captured 89% of these funds, while more than 20 others raised nothing at all.

The disparity within this generation is striking. Fintech giant Flutterwave alone raised $475 million, which is more than the combined total of the 166 smallest companies in the cohort. For the latter, an average funding of $1.25 million over a decade has often limited their ability to scale. In this context, survival has become the daily objective, far from the rapid growth ambitions expected by venture capital.

Regarding exits, the results are mixed. Between 2019 and October 2026, only 27 companies were subject to acquisitions or mergers, including 21 transactions with undisclosed amounts. The most notable successes, such as DocFox or Syft Analytics, come from South African companies that targeted global markets with B2B software solutions, rather than local fintech platforms. These exits illustrate a strategy where selling to foreign players allows for the generation of concrete returns.

Conversely, several significant failures illustrate the risks of the sector. Companies like WhereIsMyTransport, Zumi, or Medsaf have ceased operations for various reasons, ranging from the depletion of funds to internal management issues. The case of Kobo360, which raised more than $79 million before facing significant bank debts and inactivity in 2026, highlights the difficulty of maintaining capital-intensive business models in environments where payment terms from large companies are long.

Our perspective

The maturity of an entrepreneurial ecosystem is not measured solely by the volume of fundraising, but by its ability to create sustainable and circulating value. For Africa, the challenge is to transform these investments into levers of economic sovereignty. Dependence on foreign capital and exits to external markets raise questions about the sustainability of local innovation. It is crucial that the ecosystem fosters the emergence of companies capable of serving the continent's needs while ensuring profitability that reinvests in the African soil.