Rethinking Exits in African Tech

Should we be aiming for IPOs in Africa? Or is it time to rethink what meaningful startup success really looks like on the continent?

We need to ask this, seriously. Because while IPOs dominate the narrative, most African startups will never go public. The real question is: should that even be the goal for most?

Yes, we should dream big. But we also need to operate in reality.

What is happening more often (and quietly) are strategic acquisitions: acquiring to scale infrastructure, acquiring to expand product stack, acquiring to boost product development, acquiring to enter new markets.

These are smart, timely plays but they’re not the norm yet. So why aren’t we seeing more of them?

We’re still defaulting to the VC playbook: raise big, grow fast, and aim for unicorn status. But is that always aligned with local markets?

Burn rates rise, cap tables bloat, and suddenly, you’re too expensive to acquire but too early to IPO. And most founders aren’t building with clear acquisition narratives. When asked “Who might acquire you, and why?”, too often the answer is unclear.

So maybe the real question is: What does success actually look like in our ecosystem?

Is a $20M strategic exit a win? Yes. Is building for acquisition less noble than IPO? No.

Are we designing our companies with optionality? Usually not.

We need to play smarter.

Curious to hear from founders, investors, and operators. What kind of exits should we be designing for in African markets? → https://www.linkedin.com/in/marvincoleby/