In a recent survey conducted by Flourish, an early-stage global fintech venture capital firm, it revealed that many startup founders in Africa see their investors as a source of stress rather than support, despite the crucial financial resources and strategic insights they provide.
The survey titled “Passion and Perseverance; Voices From The African Founder Journey”, received responses from more than 160 startup founders across 13 African countries and more than a dozen interviews, to deliver the first-ever, wide-scale research on the founder’s well-being journey in Africa.
The survey spotlighted founder voices, shining light on the experiences of early-stage entrepreneurs across the continent. While investors provide important financial resources and strategic insight, founders struggle to manage investor expectations and pressures. The challenges of managing investor expectations and pressures often create barriers to open communication. Shockingly, fewer than 2 in 10 founders feel completely comfortable having honest conversations with their investors.
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“When choosing investors, make sure to ask: Will they put the founder or the business first? The right answer is always the founder because a dedicated founder prioritizes the business above all. Great investors believe in the person behind the business model, not just the model itself”. Rose Goslinga, Co-founder & President of Pula.
Shockingly, only 1 in 10 believe their investors genuinely care about their wellbeing. Only 11% are sure their investors care, 48% believe investors somewhat care while 41% feel investors either don’t care at all or only show concern when financial returns are at stake.
Founders are advocating for a more supportive and constructive approach from investors. They want investors to:
- Build authentic relationships by getting to know them as individuals.
- Avoid imposing unrealistic demands.
- Maintain transparency in funding decisions and timelines.
Furthermore, founders need more than just financial backing from their investors. They are seeking a comprehensive support system, including co-founder coaching, wellbeing resources, and leadership training. These tools are key to building resilience, fostering learning, and strengthening community connections for entrepreneurs to thrive on their startup journeys.
“The question is, what role should investors play in helping founders build resilience? Access to tools like coaching and training can significantly enhance founders’ ability to navigate startup challenges”, Emmanuel Adegboye Head Investor, Madica. This approach is especially crucial in Africa, where startups often serve as engines of innovation and economic growth.
Startups in Africa are not just businesses, they are catalysts for innovation, job creation, and economic transformation. By fostering a supportive and collaborative relationship, investors can empower African founders to build sustainable businesses that drive transformative change across the continent. Notably, a more supportive investor-founder relationship benefits not just the startups but the broader African economy.
