Business & Finance
Thu, February 13, 2025
[ Thu, Feb 13th
] - citizen
Why are African start-up exits scarce and how can founders better prepare?
- While large capital has been invested in start-ups in Africa over the past decade or so, it still does not translate into moves by owners and investors to sell their ownership or stock in these companies after they've matured,
The article from Citizen Digital discusses the scarcity of startup exits in Africa and explores the reasons behind this trend as well as strategies for founders to better prepare for successful exits. It highlights that despite a growing number of startups, exits through acquisitions or IPOs remain rare due to several factors including limited market maturity, regulatory challenges, and a lack of exit infrastructure. The piece points out that many African startups struggle with scaling, which is crucial for attracting acquisition interest or going public. To improve their chances, founders are advised to focus on building sustainable business models, understanding the exit landscape, engaging with potential acquirers early, and ensuring they have robust financials and governance structures. Additionally, the article suggests that fostering a more developed ecosystem with better access to capital, mentorship, and networks could significantly enhance the exit environment for African startups.
Read the Full citizen Article at:
[ https://citizen.digital/tech/why-are-african-start-up-exits-scarce-and-how-can-founders-better-prepare-n357540 ]
Read the Full citizen Article at:
[ https://citizen.digital/tech/why-are-african-start-up-exits-scarce-and-how-can-founders-better-prepare-n357540 ]
