Three factors stand out in what’s making African startups successful, according to just-released annual research results from Venture Capital for Africa (VC4A). And those factors are team, team – and team.
“Although many factors go into building a company, analysis of the data makes clear that a strong team of founders is the key driver of venture success in Africa,” the researchers concluded. That’s after reviewing more than 1,800 businesses in 41 African countries, along with the responses of 111 investors from 39 countries, all focused on African ventures.
The 2017 Venture Finance in Africa Research report found that 68 percent of the startups in the study had more than one founder. What really got their attention was that nearly half of the ventures, at 46 percent, have at least one woman on their founding team. Nine percent of the teams were entirely female.
“Among the countries with 20 or more ventures participating in the survey, Uganda and Kenya have the highest female participation,” the report said. In Uganda, 57 percent of the ventures included a woman on the founding team, while the number was 55 percent in Kenya. South Africa, at 33 percent, had the lowest participation rate for women.
Overall, more than half of the startups in the VC4A report are hosted in just 10 cities, including Hargeisa in Somalia, the Zambian capital of Lusaka, and Uyo in Nigeria alongside the more usual suspects. Slightly more than 70 percent of Africa’s startups are earning revenue, and 17 percent of them have been able to grow their businesses to expand across borders and establish a presence in more than one nation.
To see more from the VC4A report, check this link.