Class of 2016: What surviving a decade actually requires
If the past decade has taught us anything, it is that Africa's tech ecosystem's most important asset is accumulated experience.
In 2016, the African startup scene saw a significant increase in venture capital funding, with 77 startups raising $367 million, according to Partech. Nigeria, South Africa, and Kenya accounted for 79.4% of that funding, with financial inclusion being the largest share at $206.3 million, or 56.2% of total funding. FinTech emerged as the leading sector in African technology, particularly in Nigeria, where 40.1 million adults were financially excluded, and only 36.9 million had bank accounts.
Initially, the ecosystem was capable of producing momentum, with founders needing to secure customers, infrastructure, talent, capital, and investors. However, the ecosystem later became adept at building financial businesses, less adept at building companies in slower-growing industries, and more focused on capital-efficient expansion.
As funding slowed, startups faced questions about customer acquisition cost, profitability, and sustainability. The decade's most crucial test for the Class of 2016 was surviving a balance between speed and endurance in a rapidly evolving regulatory landscape.
Written by urgent.news from TechCabal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
