Photo Credit: Envato Elements
A fintech founder once walked into a pitch meeting armed with charts, downloads, and dazzling user numbers. It was 2021—and that was enough.
Fast forward to 2025; the script has flipped. “Talk me through your unit economics,” an investor asks now as the baseline question. Growth alone no longer seals the deal. In Kenya, Nigeria, South Africa, and beyond, startups are learning that sustainability is the new flex.
According to Briter Bridges’ 2024 African Startups Insight Report, over 55% of startups that raised early-stage funding between 2018 and 2021 struggled to secure follow-on investment due to unsustainable business models, poor market readiness, or lack of investor-aligned growth plans. The takeaway is clear: rapid expansion, flashy metrics, and market buzz are no longer enough. Investors are backing startups with strong fundamentals, not just impressive pitch decks.
The question now is: how can African startups adapt and secure funding in this new reality?
Photo Credit: MCF Edtech Fellowship Demo Day at iHUB Kenya–a CcHUB Africa Company
Scaling Smart: Actionable Tips for Startups in Africa’s Competitive Landscape
We’ve seen it before—a promising healthtech startup raises millions, scales aggressively, and expands too fast. However, after a few years, the company starts to face challenges. Operational costs skyrocket, customer acquisition becomes unsustainable, and revenue struggles to keep up. As investor confidence dwindles, the company fails to secure follow-on funding and eventually collapses.
As a startup founder, you certainly don’t want this to be your story. Here are five key strategies startup founders can use to stay ahead and sustain funding for their startup:
- Prioritize Profitability Early: Investors are shifting focus from growth-at-all-costs to sustainable, revenue-driven models. Nigerian fintechs like Moniepoint and Kenyan healthtechs like Ilara Health are thriving by optimising costs while expanding.
- Leverage Local & Global Capital: African startups are diversifying funding sources, combining local angel networks, VC syndicates, and international capital. Platforms like NaiBAN and ViBAN (Kenya), LoftyInc Capital and CcHUB Syndicate (Nigeria) are backing high-potential ventures with a strong path to profitability.
- Strengthen Investor Readiness: In 2024, over 60% of rejected African startup pitches lacked robust financial projections or clear go-to-market strategies. Ensure your data room is investor-ready, with traction metrics, regulatory compliance, and growth forecasts well-documented.
- Build strategic partnerships: Startups collaborating with corporations, other startups, and telcos have gained significant traction.
- Expand Smart, Not Fast: Instead of rushing into multiple markets, focus on deepening market penetration before scaling. Companies like Wasoko (B2B e-commerce) and Flutterwave (fintech) have succeeded by refining operations locally before expanding regionally.
- Fundraise strategically: Startups that are raising in the current environment should consider having investor conversations before they need the capital — assuming factor 1 is working well. Solve real problems, creating tangible value for target users. Have data-driven decision-making and communicate actively through their social media handles, such as LinkedIn, on what they are doing and the material milestones they are achieving
By adopting these strategies, African startups won’t just survive the funding winter—they’ll emerge stronger and secure investor confidence, attracting the right investors and building ventures that last. Do you run a startup in Africa? You are welcome to join the CcHUB Africa Community. Get the right network and resources you need to take your startup to the next level.
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Written by: CcHUB Africa Startup Support Team