Yoeal Haile

There's been a clear shift in African VC post-ZIRP. We've seen what can only be described as a conviction dead zone - unprecedented local dry capital combined with a lack of activity. We think it's time to get back to first-principles around the tech opportunity on the continent. It's simply unlike other geographies. Here's my two-parter that covers our thoughts. We'll follow-up with a more pragmatic piece on investment strategy. But first, we think it's time to state our convictions about the market and the shape of the opportunity. https://lnkd.in/eUHrwyiS

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Tanzanian fintech startup NALA has raised $40 million in a Series A funding round led by San Francisco-based Acrew Capital, with contributions from DST Global, Norrsken22, and notable angel investors Ryan King and Vlad Tenev. This oversubscribed round reflects strong investor confidence in Nala’s vision and potential. Nala, which initially focused on affordable money transfers in Tanzania, has expanded its footprint in the fintech space, particularly in remittance services. The company’s consumer app allows users to send money across 249 banks and 26 mobile money services in 11 African markets. A notable integration with Kenya's M-Pesa enables remitters to pay local bills directly into mobile wallets, leveraging existing mobile money infrastructure. In March 2024, Nala ventured into the B2B payments sector by launching Rafiki, a platform that integrates directly with banks and mobile money providers to address common issues in remittances. According to Nala, Rafiki not only enhances their service reliability but also empowers global businesses to trade more effectively with Africa by facilitating seamless cross-border payments. Learn more: https://lnkd.in/dZPvpc-9 #Fintech #Africa #Tech #Payments

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Here's a trend I am fascinated by. Spending a significant amount of my time for the past 2-3 years looking at new models within climate adaptation and climate tech overall, especially in Africa, I am amazed to see an increasing number of sectors where startups are actually leveraging tech and innovation to go back in time and improve/revisit very ancient models. Let me give you some examples: 🚗 Mobility: in cities especially, transitioning from cars back to... bicycles 🚲 [examples of startups: Upway, EMotorad, etc.] 🚢 Shipping: transitioning from engine ships back to... sailing ships ⛵ [examples of startups: AYRO, Norsepower, etc.] 🌾 Agriculture: transitioning from monoculture back to... agroforestry 🌳 [examples of startups: Sand to Green, Propagate, etc.] 🏗 Construction: transitioning from cement back to... bamboo 🌴 [examples of startups: African Bamboo, SEAD Bamboo, etc.] What other sectors have you seen similar trends in? 🤨 ...and if you know some early stage startups in Africa doing something along this trend, please refer them to us at Catalyst Fund or share a pitch deck directly with me: [email protected] cc Maelis Carraro Karen Serem Waithaka Massimiliano Hasan Malika Anand Benjamin Rombaut 🌳

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The collapse of Mara, a crypto startup backed by Coinbase highlights several critical issues that have far-reaching implications for entrepreneurs and venture capital (VC) investments in Africa. + Mismanagement of Funds Mara’s downfall was primarily due to the mismanagement of funds, as evidenced by the substantial salaries of the C-suite executives, ranging from $170,000 to $600,000 annually. In the context of an emerging market like Africa, where startups often operate on lean budgets, such high salaries for executives are unsustainable and suggest a misalignment of priorities. Startups, especially those in their early stages, need to allocate funds judiciously, focusing on growth, product development, and market expansion rather than excessively compensating their executives. + Leadership Instability The leadership team's disintegration further exacerbated Mara’s challenges. Effective leadership is crucial for the success of any startup, particularly in the volatile and rapidly evolving crypto sector. + Impact on Entrepreneurs For African entrepreneurs, Mara’s failure serves as a cautionary tale. It underscores the importance of prudent financial management, transparent governance, and responsible leadership. Entrepreneurs must recognize that building a sustainable business requires more than just securing funding; it necessitates a clear vision, disciplined execution, and ethical management practices. Mara's downfall may lead to increased scrutiny from investors, making it more challenging for new startups to secure funding. Entrepreneurs will need to demonstrate not only innovative ideas but also robust business plans and sound financial practices to gain investor trust. + Effect on VC Investments From the perspective of venture capitalists, Mara’s collapse could lead to more cautious investment strategies in Africa. VCs may become more stringent in their due diligence processes, focusing on the financial management capabilities and governance structures of potential investments. This increased scrutiny could slow down the pace of investments but ultimately lead to a more robust and resilient startup ecosystem. There is a potential silver lining here. Mara's failure might prompt VCs to provide more than just financial support; they could offer strategic guidance, mentorship, and governance oversight to ensure their portfolio companies are on a path to sustainable growth. This could foster a more supportive and collaborative investment environment, benefiting the broader African startup ecosystem. + Rebranding to Jara The decision to rebrand to Jara is an attempt to distance itself from its troubled past and start afresh. While rebranding can be a good strategy to signify a new direction, it must be accompanied by substantive changes in management practices, corporate governance, and financial oversight. https://lnkd.in/e9DJ6BqP

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Today, we released findings from the first-ever large-scale survey on founder wellbeing in Africa, capturing insights from nearly 200 founders across 13 countries. The results are clear: founders endure immense pressures—macroeconomic uncertainty, long hours, and personal sacrifices—yet 81% say they love what they do. However, 86% report significant impacts on their mental wellbeing, with 78% describing the journey as lonely. We began this research nearly a year ago with curiosity and an open mind. There is still so much to improve upon. I’m excited to continue the conversation, learn from peers, and make progress. To the founders who shared their their journeys: Thank you. Your stories inspire us to create a healthier, more resilient ecosystem. Read the full report here: https://lnkd.in/g8cYjam4

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Lets start the conversation

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🌍 African Venture Capital: A Path to Recovery? 🔎 In the past two years, African VC has experienced a sharp decline, with funding dropping from $6.5 billion in 2022 to $4.5 billion in 2023, and just $780 million raised in the first half of 2024. The retreat of international investors, especially from North America, coupled with rising global interest rates, has led to a significant funding crunch -particularly at growth stages. However, this market recalibration presents an opportunity. African startups must now focus on profitability and sustainable growth, rather than simply scaling. At the same time, building local capital markets and expanding the investor base will be critical for the ecosystem’s long-term resilience. Emerging sectors like climate tech are showing promise, but a strong regulatory and infrastructural foundation is key. As inflation cools and potential interest rate cuts loom, will we see renewed foreign interest? More importantly, can the African venture ecosystem adapt to ensure sustainable, long-term success? If you want to dive deeper into this topic, read the full article : 👉🏾 https://rb.gy/eht33d #Investissement #PreSeed #Entrepreneuriat #LevéeDeFonds #Webinaire #Finance #Angelinvesting #Africanentrepreneur #Businessangel #Africaninvestor #Afropreneur #Venturecapital #Seedfunding #Africanstartup #Startup #Africanstartup

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🌍 New Research Release 🌍 Today, we’re thrilled to share the findings from the first large-scale survey on Founder Wellbeing in Africa. As a funding partner, we see a critical, often unspoken link between founder wellbeing and business success. To better understand this connection, we partnered with Endeavor, Launch Africa Ventures & Madica to bring forward voices from over 160 founders across 13 African countries. ☀ Working on this report throughout the past year has been a rewarding experience for me personally, as it underscored the need for holistic support for founders. This journey has deepened my understanding of what it truly means to build resilient, impactful businesses in Africa. 🚀 Why this Matters: Founders on the continent are tackling unique, high-stakes challenges, juggling everything from macroeconomic pressures to the intense personal demands of scaling a business. This research brings their experiences to light, and the results are both inspiring and eye-opening: ⚫ Passionate, but Pressured: 81% of founders report that they love what they do, yet 86% feel an impact on their mental and physical wellbeing, citing challenges like stress, burnout, and even depression. ⚫ Coping in Isolation: Many founders rely on exercise, personal relationships, and even a few hours of quality sleep to keep going. But 78% say that being a founder is lonely, and only 14% feel they can truly open up about their challenges. ⚫ Funders as Partners: Perhaps surprisingly, only 17% of founders feel completely comfortable being open with investors. Our mission at Flourish is to amplify the incredible resilience of these founders. We’re excited to start this dialogue with our community and believe that, by prioritizing founder wellbeing, we can contribute to a stronger and more innovative African startup landscape. 💡 Read the full report: https://lnkd.in/dqYFU_aQ #FounderWellbeing #Africa #Entrepreneurship #VentureCapital #StartupEcosystem #FlourishVentures

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If you're building a fintech startup, you likely know of this investor, but just in case... This week's findfunding.vc spotlight is on Neil Kapur from TTV Capital. He: 🛫 Is based in SF & Atlanta 💲 Has spent time at Google in consumer-facing payments & at two fintech startups  🏔️ Loves alpine mountaineering and has climbed Kilimanjaro, Denali, Rainier, and more!! Amongst founders, Neil and the team at TTV Capital , including Gardiner Garrard, Mark Johnson, Sean Banks, Lizzie Guynn, and Laney Lewis are known for saying “lift, not lean.” They believe that their job as investors is not to create work for founders, but instead ask the right questions and help navigate to the best outcomes. Knowing Neil well personally, he's not only my go-to person for anything related to fintech but I can also highly recommend having him on your cap table - he's the kind of human you want to have in your corner during both good times and bad. Make sure to: ✉️ Pitch him at [email protected] ➡️ Follow TTV Capital on LinkedIn For more, check out our funder spotlight card below along with TTV Capital's profile on findfunding.vc (link in comments).

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Want a quick refresher on startups funding in Africa latest trends? Download Africa: The Big Deal deck prepared for you by the one and only Max Cuvellier Giacomelli 👇👇

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Entrepreneur lessons from a venture capitalist- what do we at conducive capital look for when investing in startups? I read this article, coupled with our experience, resonated with me and how we invest at conducive capital. We want to reduce the risk as much as possible. These risks include; Founder Risk: Evaluate team dynamics; consider adding or replacing founders if needed. We have a growing preference for companies with experienced founders that have built a company within the same or similar domain Market Risk: Validate the market practically; seek paying customers or credible prospects. We very rarely take market risk. Competition Risk: Ensure strong differentiation, a 10 X better product with a clear value prop; avoid claiming no competition Financing Risk: Rethink and reduce future funding needs; optimize your financial plan. Make sure your runway lasts approximately 12 to 18 months or longer Technology and Product Risks: Build and demonstrate your product; focus on progress. We rarely taking pre-product risk unless the team has prior operating experience. Hiring Risk: Add crucial positions to the founding team if concerns arise. Just like you peel an onion and remove each layer in turn, risk in a startup investment comes in layers that get peeled away—reduced—one by one. Your challenge as an entrepreneur trying to raise venture capital is to keep peeling layers of risk off of your particular onion until the VCs say “yes”—until the risk in your startup is reduced to the point where investing in your startup is not too risky. Remember, the key is to make progress, build products, and continuously peel away risks to optimize chances of securing funds. Adapt, refine, and repeat until you hear that coveted "yes"!

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We recently led a $9.5M seed round in Zeno, our very first energy transition company in Africa. Michael Spencer and the team are now officially out of stealth sprinting towards their first products - a swappable battery compatible with an electric motorbike of their own design. Their opening market is Kenya, where 3M+ boda boda taxi drivers are eager to find ways to shave costs down. With Zeno's battery subscription model, they'll make 50% in savings compared to owning a petrol counterpart! Going electric will soon become the obvious choice. Kenya is just the start. Over the next quarter century, Africa will be home to the largest share of young people in the world, and is set to double its population to 2.5 billion. Talk about a growth market. Zeno has a particularly special place in our hearts because Harsh Dubey, who hustled his way into Lowercarbon Capital right out of college and became an institution around here, built up so much conviction in this company that he's moved abroad to work on this rocketship full-time. That should tell you something. Congrats again to the team, read more here for the deep dive. #tech #climatetech #energy #mobility #battery #electric #africa #emergingmarkets

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💥 𝗡𝗶𝗴𝗲𝗿𝗶𝗮-𝗯𝗮𝘀𝗲𝗱 𝗳𝗶𝗻𝘁𝗲𝗰𝗵 𝗠𝗼𝗻𝗶𝗲𝗽𝗼𝗶𝗻𝘁 𝗴𝗮𝗶𝗻𝘀 ‘𝘂𝗻𝗶𝗰𝗼𝗿𝗻’ 𝘀𝘁𝗮𝘁𝘂𝘀 𝗮𝗳𝘁𝗲𝗿 𝗿𝗲𝗰𝗲𝗻𝘁 $𝟭𝟭𝟬𝗺 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗿𝗼𝘂𝗻𝗱 🦄 Nigerian 🇳🇬 startup Moniepoint Group just closed $110 million in new financing, and it has landed Google’s Africa Investment Fund as a new investor. The Series C round was led by Development Partners International (DPI)'s African Development Partners (ADP) III fund. Other investors, including African private equity firm Verod Capital and existing investor Lightrock also participated. Moniepoint, also backed by QED Investors, British International Investment (BII) and Endeavor Catalyst, has raised over $180 million since its launch in 2015. According to the Financial Times, the round makes Moniepoint a unicorn — a private company with a valuation of $1 billion or more. The African fintech was last valued at nearly $800 million in a QED-led round two years ago. Full release on TechCabal: https://lnkd.in/ejDTftc4 #Africa #Unicorn #Nigeria #Fintech #Payment #POS

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Creating an enabling environment (by governments) for venture capital can significantly tip the scales, leading to increased risk funding for entrepreneurs. This, in turn, will generate more job opportunities for graduates. #transvaalvc Transvaal VC

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Recently wrapped up an interesting conversation with David Saunders (Briter) and Paul Ian Masson CA(SA) (Float) at Africa Tech Festival about something we don't discuss enough: debt financing in African startups. Here's what struck me from our panel discussion: 🔹 Debt isn't just a backup plan anymore - it's becoming a strategic choice for scaling companies 🔹 Founders are getting savvier about mixing equity and debt to fuel growth 🔹 The African market is maturing, opening new doors for alternative funding I've captured our key insights and added my own thoughts in a new article that digs deeper into this shift. Whether you're a founder weighing your options or an investor exploring new opportunities, I think you'll find some valuable takeaways. Curious to hear your experiences - have you considered debt financing for your startup? What's holding you back, or what's working well? 📍 Read more here: https://lnkd.in/dx7AC64t #AfricaTechFestival #VentureCapital #StartupFunding #AfricaInnovation #DebtFinancing

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I first learned of TeamApt (now Moniepoint) through my brother, Olumide Soyombo In 2021, Verod engaged with Tosin Eniolorunda, he presented an ambitious vision that, candidly, seemed beyond typical PE growth trajectories. Fast forward to today: Moniepoint Group has processed over $182B in payments, demonstrating exceptional resilience through Nigeria's complex operating environment. What sets Moniepoint apart is their profound understanding of mass-market financial services, combining sophisticated technology with practical distribution networks. Their hybrid online-offline approach has proven crucial in a market where conventional digital-only channels fall short. Under Tosin Eniolorunda and Felix Ike's leadership, they've built an intricate network serving over 2 million merchants through 11,000 distribution associates. Congratulations to the Verod team Adewale Odusanya, CFA Dipo Okuribido, Gbenga Abogan, Oluebube Ezeoke, ACA, Gideon Adunola, for closing this transformative partnership. Welcome to the Verod ecosystem, Moniepoint Group. Here's to building Africa's financial future together. #FinTech #Impact #AfricanInnovation #PrivateEquity #Ecosystem #Verod

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The people you look up to can also sometimes feel out of place. Yes, I couldn’t grasp this either. But it was such an inspiring revelation. I recently watched Cherie Brooke’s podcast where she interviewed Roelof Botha, the Managing Partner at Sequoia Capital. It was refreshing to see someone so successful talk with such vulnerability about the issues and challenges he has faced. Here are things that stuck out to me: • 𝐘𝐨𝐮 𝐚𝐫𝐞 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐭𝐨 𝐟𝐚𝐢𝐥 𝐢𝐟 𝐲𝐨𝐮 𝐚𝐫𝐞 𝐭𝐫𝐲𝐢𝐧𝐠 𝐡𝐚𝐫𝐝 𝐭𝐡𝐢𝐧𝐠𝐬 - And it’s not a bad thing as long as you can harness that energy and learn from it. In fact, if you're not failing, you might be playing it too safe in your personal or professional life. Failure doesn’t feel good; it sucks. But the most important thing to do after failure is to learn from it. • 𝐄𝐦𝐨𝐭𝐢𝐨𝐧𝐬 𝐚𝐭 𝐰𝐨𝐫𝐤 - The importance of emotional intelligence and using it at work to manage difficult conversations. It really clicked when he talked about deciphering underlying emotions and seeing how they manifest differently in different people. • 𝐓𝐡𝐞 𝐟𝐞𝐚𝐫 𝐨𝐟 𝐥𝐨𝐨𝐤𝐢𝐧𝐠 𝐬𝐭𝐮𝐩𝐢𝐝 - He also dealt with imposter syndrome early in his career and felt some regrets when he didn’t voice his opinions. If someone like him has gone through these emotions and feelings and made it to the other side, there's hope for us yet to achieve all the things we want to achieve in our personal and professional lives as well. Here’s a link in case you want to check it out: https://lnkd.in/g5uk6ghY #failure #emotionsatwork #impostersyndrome

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