Navigating a Funding Winter: Insights from a Watershed Report on Unlocking Value

Navigating a Funding Winter: Insights from the 2023 Watershed Report

As we reflect on 2023, it emerges as a pivotal year for stakeholders within the African tech ecosystem. Amidst a global economic climate that posed challenges, the year presented formidable obstacles for fundraising, particularly evident in African startups experiencing an unprecedented 36% decline in funding compared to the previous year—an issue extensively documented.

However, adversity has sparked a profound shift in investor perspectives, fostering innovative strategies to navigate and fortify resilience in 2024. The anticipated surge in mergers and acquisitions stands out as one adaptation, alongside a renewed emphasis on secondary markets for essential liquidity. The recently unveiled 2023 Watershed Report encapsulates these insights, offering startups a platform to address significant challenges through inventive solutions.

Key highlights from the report include:

1. A decade marked by startups raising nearly $20 billion in funding.
2. Prospects of a burgeoning local venture capital market.
3. Navigating economic headwinds in light of evolving regulatory directions.
4. Exploring new avenues to unlock value.
5. Harnessing the power of data and an informal approach supported by empirical evidence.