The May edition of the monthly online business series hosted by Techeconomy on May 27 brought together leading voices in business, innovation, and technology to discuss the future of startup funding in Africa under the theme: “Financing the Future: How Local Capital and venture Debt Can Power Africa’s Next Wave of Innovation.”
Panelists at the event included Damilare Davola, a seasoned investment banker and business analyst; Ebunoluwa Ashley-Dejo; and Success Ajilore.
Over the years, the Techeconomy Business Series has evolved into a respected platform for thought leaders, industry experts, and policy influencers to engage in critical conversations shaping the future of technology and business across Nigeria and the African continent.
Speaking during the session, Davola addressed growing concerns surrounding the slowdown currently being experienced within Africa’s startup ecosystem, particularly in Nigeria’s technology sector.
According to him, the continent’s most successful tech disruptions in recent years have largely emerged from West and East Africa, with companies such as Flutterwave and Moniepoint attaining unicorn status and attracting global investor attention.
However, he noted that rather than inspiring broader innovation across diverse sectors, the success of fintech companies has led many startups into repetitive business models.
“Almost every emerging startup now wants to provide fintech solutions,” Davola observed. “Many are attempting to replicate already existing models, particularly around banking the unbanked population by leveraging Africa’s growing tele-density.”
Damilare Davola argued that Africa’s technology ecosystem must evolve beyond what he described as a “cash-out mentality” if it hopes to regain strong investor confidence.
“Until African startups begin to look beyond short-term financial gains and start building innovative solutions capable of addressing critical challenges across Africa and the wider world, major investors may remain cautious,” he said.
Other panelists echoed similar concerns, describing the prevailing trend within the startup ecosystem as a “bandwagon effect.”
Ashley-Dejo stressed the importance of aligning African startups with global operational standards, particularly in areas such as data management, governance, and business structuring.
She explained that investors and venture capital firms increasingly rely on measurable performance indicators and structured data when evaluating the viability and scalability of businesses.
Ajilore also reinforced the need for professionalism in business development and fundraising processes, emphasizing that African innovators must adopt sound business analysis frameworks when engaging potential investors and partners.
Despite the current challenges facing the sector, Damilare Davola expressed optimism about Africa’s long-term innovation potential.
He urged entrepreneurs to focus on developing solutions around pressing societal challenges such as electricity, insecurity, healthcare, and infrastructure.
“If someone develops a practical solution capable of addressing the current security challenges in Nigeria and gains public attention around it, such innovation will naturally attract support because it addresses a national concern,” he stated.
In his closing remarks, Davola called on African investors and venture capitalists to play a more active role in financing homegrown innovations rather than depending heavily on foreign investment firms.
“Africans must invest in Africa,” he declared, urging indigenous investors to occupy the strategic funding space currently dominated by investors from developed economies.
Watch the #TBS May Edition on YouTube:
