By Olakunle Oke
Experts at the 10X Stage of the GITEX Tech Forum on Wednesday at the Landmark Event Centre in Lagos challenged African startups and fund managers to prioritise value creation, innovative fundraising approaches, and operator-led investment strategies to accelerate business growth across the continent.
The high-level panel brought together investors, fund managers, and ecosystem builders who examined Africa’s venture capital landscape in the context of a global funding slowdown. Speakers agreed that while quality companies and strong fund managers will always attract capital, genuine success depends on performance and active operational involvement.
Several panellists criticised investors who disengage from founders after providing initial funding, stressing that real value is driven by governance, mentorship, and strategic partnerships that help transform startups into sustainable enterprises. “Fund managers must go beyond spreadsheets,” one speaker asserted.
A standout example came from a pan-African fund that raised over $50 million from Japanese investors despite constrained capital markets in the United States and Europe. According to the panel, this demonstrates the need to seek out alternative funding hubs and consistently share Africa’s growth potential with global audiences.
Discussions also drew attention to the growing influence of operator-led funds, in which managers become deeply embedded in startups, bringing direct market knowledge and operational expertise. In climate-focused ventures, panellists observed, tools like carbon monetisation are already delivering early liquidity and drawing investor interest.
Although venture capital inflows into Africa have surpassed $2 billion this year, panellists warned of significant challenges, including inconsistent policies, high borrowing costs, and macroeconomic volatility. They advocated for innovative deal structures to mitigate these risks.
The panel underscored the value of syndicates and co-investments in spreading risk and easing capital pressures. While development finance institutions remain key players, experts insisted that Africa’s long-term growth depends on the active participation of local pension funds, banks, and private investors to create a diversified capital base.
Founders were encouraged to demonstrate resilience, honesty, and unwavering focus when scaling their ventures. Panellists cautioned against being swayed by flashy pitches or investor pressure, urging entrepreneurs to remain grounded in their core mission.
“Venture capital is not for everyone; it is for less than 1% of entrepreneurs,” said Brian. “If you can build a company in Africa, you are already among the best in the world. Nobody knows your market more than you.”
The session concluded with a unified message that Africa’s innovation ecosystem must deliver not only cutting-edge technology but also creative financing solutions, partnerships, and compelling narratives to thrive in a challenging global economy.
