Investors and industry leaders at the African Business Angel Network (ABAN) Congress emphasised that African startups need more than just funding to succeed, with speakers calling for comprehensive support systems that address operational and regulatory challenges.
The two-day congress, held at the J. Randle Centre in Lagos, brought together over 6,000 investors from 37 countries to discuss strategies for increasing local capital participation in Africa’s innovation economy.
Omotayo Ojutalayo, general manager of Enterprise Business Development at MTN Nigeria, highlighted a critical challenge facing the continent’s startup ecosystem during a panel on co-investment strategies.
“I think when one of the speakers was presenting the lifecycle of the startups, we see that a number of them just drop off, and we don’t know what’s happening to them,” she said. “So it’s important that those soft skills are also invested into them.”
Ojutalayo explained that MTN’s recently launched Cloud Accelerator Program selected 20 startups from over 8,000 applicants for a 12-week program connecting them with experts in financial management, human resources, risk and compliance, and regulatory affairs.
“So it’s not just about putting in the capital, which everybody just thinks about, but it’s about the other softer skills that startups need to have,” she added.
Ms. Akintomide warned entrepreneurs about the complexity of scaling across African markets, despite technological advances.
“Technology has dissolved borders,” she noted, but cautioned that “some of the best business ideas have been sacrificed on the altar of regulation.” Her advice to startups was direct: “Don’t go in blindly, and don’t go in alone,” emphasising the importance of partnering with local players who understand market dynamics and regulatory landscapes.
Ojutalayo echoed concerns about startups limiting their ambition to single markets, stating:
“You need to think across borders. There’s a market for it, so there’s a lot of market research and insights you need to get, so that we don’t become a local champion.”
The panel also explored collaborative investment models, with Mr. Oti Ileta-Mehi, CPA Investment Principal at Aletia, describing co-investment as a key de-risking strategy when entering unfamiliar markets. Speaking to Oti’s conversation Ojutalayo stressed the need for clear roles in investor partnerships: “When investors are coming together, you need to understand who has the expertise in these areas, and then we can collaborate together.”
With Africa’s venture funding reaching $4.5 billion in 2024 but only a small fraction originating from local investors, ABAN’s 10th anniversary congress underscored the urgent need for greater domestic capital participation and more strategic support systems for the continent’s growing startup ecosystem.
