The African Catalyst
Winter is coming?
Let's face it – the African venture capital scene saw some major ructions in 2023. The days of easy money and sky-high valuations are behind us which begs the question: will 2024 usher in a period of more cautious investment?
What’s already being called a ‘funding winter’ was largely driven by the global economic slowdown, rising interest rates, and ever-present geopolitical tensions. But the number of high-profile, VC-backed startup crashes in 2023 made for a uniquely African storm.
We’ll be chatting with Adelaide Muthang'i (Founders Factory Africa), Peter Wamburu (VestedWorld) and Lesego Tladinyane (Newtown Partners), among others, on this topic at our upcoming webinar on 29 November. More details on the event are below! We’re excited to have our incoming Fellows join the event and look forward to you connecting with them.
While the current climate does seem a bit chilly, let's not lose sight of the fact that Africa's funding ecosystem is still in its early stages. We believe our latest fellowships, which kicked off earlier this week, are creating the investors and operators who will help shape the future of startups and startup investing across our continent.
So, what's the silver lining in all this?
Well, for starters, investors are starting to take a more nuanced approach to Due Diligence. This approach is likely to weed out the less promising startups, leaving the field clear for those with sustainable business models and realistic growth targets to succeed. This should (hopefully) position the current cycle for improved outcomes, driving more capital towards the ecosystem.
Despite the challenges that lie ahead, I'm confident that Africa's funding ecosystem has what it takes to bounce back stronger. The continent's young and growing population, our abundant natural resources, and rapid adoption of technology all present significant opportunities for investors with the foresight to see beyond the current (global) storm.
Remember, it's not just about the funding – it's the innovation, the impact, and the potential that Africa's entrepreneurs bring to the global table. For Africa, and the rest of the world.
Every season must come to an end – and this is true for our current funding winter, too.
Until next time,
Head of Platform & Community
On 29 November at 18:00 SAST, we’re hosting our first CatalyzU webinar with speakers from Founders Factory Africa, Newtown Partners, TAOTIC, Salad, and VestedWorld. The topic is the State of Venture Capital in Africa: Navigating turbulent waters. We’re excited to reflect on a year of changes and look ahead with experts on both sides of the table and see what this means for 2024 and beyond. Founders looking to raise in the new year will find this one particularly interesting. Sign up here.
👉Internship for a VC Analyst position at Octerra Capital (100% on-site)
The analyst will work with an experienced analyst, participating in various deals, and providing support in portfolio management.
Key requirements: Foundational knowledge in finance and venture capital
Applicant must be Lagos-based, preferably female
👉Africa Investment Fellow at Beyond Capital Ventures
The fellow will be responsible for sourcing investment deals, maintaining a deal tracking system, managing deals through the investment process and co-leading diligence with experienced investment professionals.
Key requirements: 3 years experience at an investment banking or consulting firm, a minimum of 2 years of experience working in Sub-Saharan Africa
6-month full-time fellowship
👉Investment Analyst intern at Loftyinc Capital
The analyst will be involved in conducting market research, screening deals and collaborating with the investment team, founders, and other stakeholders to facilitate the investment process.
Key requirements: Strong interest in the African investment landscape. Previous experience in the financial sector and/or a PE/VC fund is a plus
Internship: 6-month duration
Are you interested in exploring these positions? Email our Ecosystem Associate Benjamin Udokwu.
Can you describe your current job?
I manage the AXA Innovation Exchange Program, an incubator program where we work with startups to co-create innovative solutions that we can leverage within AXA Nigeria.
One career highlight since completing the CatalyzU fellowship?
The fellowship helped me build quality relationships within the tech and innovation ecosystem.
A project/topic/company you're currently obsessed with?
My innovation program is one I am currently enjoying. It’s great working with innovators across different sectors and collaborating to solve challenges within the insurance value chain.
The type of person would you like to have coffee with next and why?
Would like to have coffee with a jovial and engaging person with vast experience managing innovation within corporations, specifically insurers. Why? Insurance is the same the world over so I want to learn a thing or two.
One piece of advice for incoming fellows
Make the best use of the relationships you will build. The knowledge you will get as well will propel you further than you can imagine.
🗞️ News from the Ecosystem
SA Insurtech startup, Pineapple, secures $22m Series B funding
Hope Ditlhakanyane, previous Head of Venture Sourcing at Founders Factory Africa, recently announced her promotion to the role of an Investment Principal
Nigerian online grocery store, Pricepally, raises $1.3m seed funding
Tech Safari will be hosting a Cape Town Mixer tonight. The event is for Tech Safari's community of founders, investors, tech workers, and engineers.
The 2023 CFA Institute Africa Investment Conference will be hosting Africa is Rising from 29 to 30 November.
LipaLater is hosting an Investment Roundtable on 30 November in Nairobi. Invitation is by application.
Join 600+ private capital leaders including 350+ GPs and 200+ LPs in Cape Town at Super Return Africa from 4 to 6 December.
Art of Technology Lagos 5.0 is here! This year’s theme is titled The Creative Economy and a Digital Lagos. The event takes place from 7 to 8 December
The 5th edition of the Anza Founders Night takes place on 8 December at Antler, ABC Place in Nairobi.
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