by two authors
Recently, a financial milestone was achieved by Tyme Bank with a significant Series D funding round of $250 million, elevating its valuation to $1.5 billion. This accomplishment followed Moniepoint’s Series C round, propelling the company to unicorn status within a similar timeframe.
The narrative of African startups hitting billion-dollar valuations has been gaining momentum since Interswitch became the first unicorn on the continent back in November 2019. This trend continued with several other startups reaching unicorn status and some successful exits, including acquisitions of companies like Paystack, Sendwave, DPO, and Instadeep.
Despite the positive trajectory of billion-dollar valuations and exits in the African startup ecosystem, a notable gap remains. While African unicorns collectively hold a valuation of $14.7 billion, major exits exceeding $100 million only total $4 billion since 2010.
In a previous essay titled “The Chicken or The Exit?” published in 2021, the discussion around African exits began. Over the past decade, the ecosystem has witnessed a significant inflow of venture capital, particularly in recent years, indicating a maturing landscape.
With a surge in capital influx and the emergence of numerous growth-stage companies, the ecosystem is now ripe for addressing the imminent need for substantial exits. A new essay titled “When Will The Exits Cross The Road?” delves into the evolution of the African startup landscape, contextualizing it within global emerging markets and highlighting the challenges and opportunities ahead.
For more insights, the essay can be accessed on the respective platforms mentioned.
One author is the founder of an Africa-focused tech analysis firm. With a background in various tech-focused roles, he has contributed significantly to the ecosystem’s growth.
Another author is actively involved in exploring technology diffusion, entrepreneurship, and venture capital in emerging markets through his work at Endeavor.