Signals by Raise: Cutting through the noise in African VC

Hi there,

We’ve hit a turning point in African venture capital, and it’s time to confront a difficult truth: we’re drowning in data, but we’re starving for clarity.

After the high of $4 billion in funding in 2021, the market is now trending downwards, towards $1 billion or less annually. And it’s not just about the drop in numbers; it’s what those numbers are masking.

I’ve spoken to hundreds of founders, investors, and policymakers, and one thing keeps coming up: despite all the headlines and funding announcements, we don’t really know where we stand.

Here’s the reality, those funding announcements, unicorn valuations, and flashy acquisitions? They’re just noise.

They don’t show us the real health of the ecosystem, or why high-profile failures keep happening.

They don’t explain why, despite over $6 billion flowing into African tech over the past five years, we still haven’t figured out how to create lasting liquidity.

This leaves founders struggling to close rounds, investors unsure where to place their bets, and policymakers questioning how to intervene effectively. And that’s not a sustainable environment for anyone.

So, at Raise, we decided to do something different.

Introducing Signals!

It’s not just another report or news article. Signals is our effort to shift the focus from hype-driven stories to hard truths that matter. We’re digging deep into the real metrics that tell the story of African VC’s health:

What do revenue multiples really look like across different sectors?

How much ownership are founders actually giving up in each stage of funding?

Are ESOPs truly creating value for employees, or are they just another checkbox item?

Why is liquidity still such a challenge, and what can we do about it?

Because waiting for the next crisis isn’t an option. We can’t afford to keep guessing. The drop from $4 billion to $1 billion in funding shows that the market is shifting, and shifting fast. If we don’t get a handle on what’s really happening beneath the surface, we’re going to keep making the same mistakes over and over. Read more - https://raise.africa/blog/signals-by-raise-cutting-through-the-noise-in-african-vc

Who benefits? Everyone!

Founders, investors, and policymakers alike, need a clearer understanding of what’s at stake. We need to make decisions based on substance, not sentiment. And that’s what Signals is here to do: provide you with context, insight, and a way forward.

We’re not just telling you what’s happening; we’re showing you why it’s happening and what we can do about it.

This is more than a newsletter. It’s a call to refocus our attention and tackle the real challenges head-on. We’ll share the first edition of Signals soon. In the meantime, let’s start a conversation.

What’s the one question you wish you had more clarity on in the African VC space? I’d love to hear your thoughts.

Together, let’s cut through the noise and find the signals that truly matter.