The end of easy money: Inside African tech’s brutal reckoning
- The peak funding for African tech was $3.21 billion in 2022, which has now dropped to $797 million.
- Investors are now more risk-averse and expect significant returns on investments.
- Founders are cautioned against high valuations that come with toxic terms and dilution of ownership.
The drastic decline in funding for African tech startups signals a critical need for founders to reassess their financial strategies and understand the implications of their funding agreements. As the landscape evolves, embracing alternative financing methods may be crucial for survival and growth.
