Although investment in African startups has surged recently, actual financial payoffs remain limited. This pressing issue was the centerpiece of the Pan-African Tech Returns and Exits panel at Moonshot by TechCabal 2025. Industry experts including Bankole Cardoso, Managing Director of Delta40 venture studio, Sadaharu Saiki, founder of Sunny Side Ventures, and Esohe Igbinoba, Venture Partner at Vencapital, openly discussed the structural obstacles that limit liquidity within Africa’s technology sector.
The conversation underscored a significant challenge: while many startups across Africa are scaling rapidly, only a handful manage to achieve liquidity events such as IPOs, acquisitions, or secondary market sales. These milestones are crucial for recycling capital back into the ecosystem and delivering financial returns to both entrepreneurs and investors.
Saiki highlighted the indispensable nature of exit opportunities in sustaining a vibrant financial ecosystem. “Exits form the backbone of the capital cycle because it’s not only startups that need to raise funds; venture capitalists also depend on successful fundraising to keep Africa appealing to investors,” he remarked.
Using comparative figures, Saiki pointed out that in 2023, Africa saw just 30 exits across its 54 nations. This number pales in comparison to 83 exits in Southeast Asia and 178 in Japan during the same timeframe. He linked this gap to the existence of mature public markets and well-established IPO mechanisms in countries like Japan and India, which enable investors to regularly liquidate holdings and access liquidity.
Cardoso stressed that founders who want to prepare their startups for strategic exits must focus on foundational practices often overlooked: robust governance and disciplined financial management. Instituting a formal or advisory board early on helps instill organizational structure and trustworthiness. Moreover, keeping detailed financial records and management accounts from the beginning promotes transparency and reassures potential investors. “Strong governance and financial oversight are essential for truly understanding your business and attracting buyers or investors,” he emphasized.
The panel also examined shifting funding approaches. Despite a slowdown in global venture capital inflows, debt financing is quietly emerging as a valuable complement for African startups. Increasingly, founders are combining equity with debt to accelerate growth while waiting for more favorable exit environments, demonstrating a pragmatic response to liquidity challenges on the continent.
“Going forward, a hybrid model blending debt and equity will likely become the norm, as certain financing stages are better suited to debt instruments,” Saiki predicted.
In conclusion, the panel agreed that Africa’s exit difficulties largely stem from a lack of deliberate planning. Exit strategies need to be embedded from the outset within business models, governance structures, and capital deployment plans. Only by integrating these elements strategically can founders and investors unlock the capital circulation essential for long-term, sustainable expansion.