Africa’s expansion playbook in question as VCs signal caution at Raenest Exchange 2025
- Venture capitalists are cautioning against the 'grow-at-all-costs' expansion playbook for African startups.
- The collapse of Reliance Health's international expansion led to over 100 layoffs, serving as a cautionary tale.
- Investors are recalibrating expectations, focusing on single-country operations to mitigate risks.
The shift in investor sentiment reflects a necessary recalibration in the African startup ecosystem. While the allure of rapid expansion is tempting, the focus on sustainable growth and understanding market dynamics is crucial for long-term success. Founders must adapt to this new reality to avoid the pitfalls of overextending their resources.
