At TechCabal‘s premier event, Moonshot 2025, investors engaged in extensive discussions that revolved around three pivotal topics: first, the necessity for startups to adopt stringent financial management before scaling; second, strategies for orchestrating planned exits; and third, the increasing trend of African venture capitalists seeking funding from Asian markets as many prepare for fundraising rounds in early 2026.
Olu Oyinsan, managing partner at Oui Capital, emphasized that crafting successful exits involves supporting companies with a transparent route to profitability. He advocates for startups to embrace a “fixed cost recovery mindset,” ensuring that over time, their revenue consistently surpasses operational fixed expenses.
Several investors highlighted the ecosystem’s maturation, noting that founders now commonly include a “path to profitability” section in their pitch decks. This shift reflects a more hands-on approach by funds in instilling operational rigor. “The game has changed; it’s all about precise calculations, strategic planning, and maintaining a clean capitalization table,” remarked a fund manager who preferred anonymity.
Samuel Frank, an associate at Ghana’s Sahara Impact Ventures, a climate-focused fund, echoed this sentiment by pointing out the reduced emphasis on rapid cash burn and increased attention to validating sustainable business models before pursuing aggressive growth.
With limited partner interest waning in traditional hubs like Europe and the US, African VC firms are increasingly turning to Asia for capital sources that align better with patient, long-term investment philosophies, according to conversations at Moonshot. For instance, in August, Japan’s development finance agency, JICA, became a limited partner in Novastar Ventures’ $200 million fund. Additionally, Uncovered Fund, a Japanese early-stage investor, teamed up with Tokyo’s Monex Group to launch a $20 million fund targeting startups across Africa and the Middle East.
This pivot in LP focus could influence the profile of startups receiving backing and the evaluation timelines they face. If these partnerships successfully close funds, early-stage ventures-particularly pre-seed and seed rounds-may experience increased funding opportunities, albeit with more modest check sizes.
Freda Isingoma, senior fund manager at Octopus Investments, stressed the importance of expanding local capital availability, especially for Series B and C rounds, to unlock more exit possibilities for African startups. She pointed to the UK’s Alternative Investment Market (AIM) as an instructive example: a secondary stock exchange designed to help smaller, high-growth companies access public capital with fewer regulatory hurdles.
While listing on the London Stock Exchange (LSE) remains challenging for many African startups-despite the LSE hosting over 110 African firms with a combined market cap exceeding $110 billion-AIM offers a more accessible route. Isingoma proposed that African startups explore dual strategies, such as listing equity on international exchanges to attract institutional investors and liquidity, while maintaining their core operations and growth focus within their home markets.