US vs. African Startup Ecosystems: Funding, Growth, and Capital Access

One thing we've learned in this market is that fundraising here is very different from what many experience in the US. The familiar 18-24 month fundraising cycle applies everywhere but in Africa, things move at a different pace.

Here, it typically takes 2.5 to 3 years to secure a Series A after the seed round.

This extended timeline reflects deeper market realities.

Scarcer local venture capital and longer due diligence processes have forced us to adopt a more patient and strategic approach.

While US seed rounds often average around $3.5M, in Africa they usually fall between $1 and $1.5M. Every dollar counts here, and we have to be exceptionally disciplined with resource allocation.

Bridge capital can provide an essential cash flow but it usually comes at a higher cost. We need to stop these expensive stop-gap measures and focus on a sustainable, self-reliant operation.

Even in thriving sectors like fintech, the fundraising pace in Africa remains measured compared to the rapid-fire rounds in the US.

The signal here is to plan for a longer runway and prioritize long-term vision over quick fixes.

Operational efficiency is the key here to rethink fundraising strategies. Resilient business that stands the test of time rather than chasing rapid rounds of capital.