Ajilore made the remarks during the May edition of the monthly business webinar hosted by Techeconomy, themed: “Financing the Future: How Local Capital and Venture Debt Can Power Africa’s Next Wave of Innovation.”

Other speakers at the event included Damilare Davola, investment banker and business analyst, and Ebunoluwa Ashley-Dejo, business analyst, researcher, and writer.

Speaking on the major financial management gaps affecting African startups, Ajilore argued that many founders still lack the structured financial systems necessary for sustainable growth and informed decision-making.

“From my experience as a Chartered Accountant and business analyst, the biggest financial management gap in African startups is the lack of structured financial systems that support decision-making, not just record-keeping,” she said.

According to Ajilore, many startups mistakenly equate revenue growth with overall business health while neglecting profitability drivers, cashflow forecasting, governance structures, and operational efficiency.

“Many founders confuse revenue growth with business health, operate without proper cash flow forecasting, and scale without understanding unit economics or profitability drivers,” she explained. “This leads to businesses that look successful externally but are financially fragile internally.”

Referencing the Nigerian biotechnology company 54gene, Ajilore noted that rapid expansion without strong financial controls can expose even highly funded startups to operational and restructuring challenges.

She further identified weak cashflow management, poor financial governance, inadequate risk management, and excessive dependence on investor funding as some of the major vulnerabilities facing African startups today.

Addressing the issue of investor confidence, Ajilore stressed that modern investors are increasingly focused on sustainability, transparency, and operational discipline rather than ideas alone.

“Investors do not only invest in ideas, they invest in businesses that can grow sustainably, generate returns, and survive challenges,” she stated.

According to her, startups seeking investment must demonstrate strong financial discipline through accurate bookkeeping, cashflow management, realistic projections, budgeting systems, and clear governance structures.

“Financial discipline and proper accounting structure are critical because investors and lenders invest in transparency and predictability, not assumptions,” she added.

Ajilore also spoke extensively about the growing relevance of venture debt and local capital in Africa’s innovation ecosystem. She advised entrepreneurs to approach debt financing strategically and responsibly.

“African entrepreneurs can responsibly leverage venture debt by using it for productive growth activities such as expansion, inventory, infrastructure, or working capital — not for excessive lifestyle spending or covering unstructured losses,” she warned.

She explained that businesses operating in volatile economies such as Nigeria must remain cautious about inflation, foreign exchange fluctuations, and rising interest rates, noting that overleveraging can cripple operations if not properly managed.

Looking ahead, Ajilore expressed optimism that local capital would play a transformational role in Africa’s entrepreneurial future by reducing dependence on foreign investors and supporting solutions tailored to African realities.

“Local capital has the potential to transform Africa’s entrepreneurial ecosystem by reducing overdependence on foreign investors and supporting businesses that understand local realities,” she said.

She cited Moniepoint as an example of a Nigerian success story benefiting from growing confidence in Africa’s digital financial ecosystem and increasing local participation in innovation funding.

Speaking on startup survival strategies in uncertain economies, Ajilore urged founders to prioritize resilience over aggressive expansion.

“In economies like Nigeria, resilience wins,” she said. “The startups that endure are usually operationally efficient, financially disciplined, and deeply connected to real market needs.”

She also encouraged startups to focus on solving essential everyday problems in sectors such as agriculture, healthcare, education, energy, logistics, and financial services while building recurring revenue models and localized supply chains.

Other speakers at the webinar reinforced similar concerns about the future of Africa’s startup ecosystem. Davola stressed the need for African investors to support indigenous innovation, stating that, “Africans must invest in Africa.”

Ashley-Dejo also emphasized the importance of operational visibility, noting that, “Founders who cannot clearly explain their business with data may struggle more to attract serious funding.”

The Techeconomy Webinar series continues to provide a platform for critical discussions around technology, innovation, entrepreneurship, and economic transformation across Africa.

Watch the TBS May edition on YouTube:

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: