Our tech ecosystem is buzzing with a critical conversation sparked by Techpoint Africa’s recent analysis: are African venture capitalists truly backing the most promising startups, or are they employing a different investment logic? Published today, January 21, 2026, the article delves into perceptions that some VCs may lack the conviction to fully support ventures through challenging periods, potentially hindering long-term growth on our continent. This debate is vital as we strive to build globally competitive companies from within Africa.

The Question of Conviction in Early-Stage Funding

Techpoint Africa’s report questions whether African VCs are consistently demonstrating the same level of commitment seen in more mature markets. The piece suggests a tendency towards quicker exits and a reluctance to provide substantial follow-on funding, even for startups showing initial traction. This contrasts with the “patient capital” approach often cited as crucial for building sustainable businesses, particularly in sectors requiring significant capital expenditure and long development cycles.

Comparing African VC Strategies to Global Models

The article implicitly draws a comparison to investment strategies prevalent in Silicon Valley and other established tech hubs. While the specifics aren’t detailed, the implication is that a more cautious approach may be limiting the potential of African startups. We’ve seen examples like Flutterwave, which required significant investment to scale across multiple African markets, and M-Pesa, which took years to achieve profitability. These successes demonstrate the need for VCs willing to weather early storms.

The Role of Limited Partners and Fund Structures

According to the report, the structure of many African VC funds, and the expectations of their Limited Partners (LPs), may contribute to this dynamic. Pressure to demonstrate returns within specific timeframes could incentivize quicker exits rather than long-term value creation. This is a systemic issue that requires open discussion between VCs, LPs, and the entrepreneurs they fund. Investors like TLcom, Partech, and Norrsken will be key players in shaping this conversation.

Building a More Supportive Ecosystem for African Founders

Despite the challenges, the future for African tech remains incredibly bright. We are witnessing a surge in innovative solutions tailored to our unique needs, from fintech addressing financial inclusion gaps to agritech boosting food security. The conversation around VC conviction is not about blame, but about fostering a more supportive ecosystem where founders have the resources and runway to build truly transformative companies. This includes exploring alternative funding models and strengthening local angel investor networks.