During a 2024 conversation with Benoit Delestre, Co-founder of Saviu Ventures, a compelling alternative to traditional venture capital thinking was presented.
Delestre emphasized, “My main objective is to ensure capital preservation for our investors. Pursuing a unicorn within the next ten years does not necessarily translate into substantial returns.”
This stance contrasts sharply with the common VC pursuit of billion-dollar valuations. Instead, Saviu Ventures-founded in 2018 with a dedicated focus on Francophone Africa-prioritizes cultivating enterprises that can deliver dependable profits through well-timed, strategic exits rather than chasing the elusive unicorn dream.
A Realistic Approach to Venture Capital
Managing a $40 million fund, Saviu Ventures has backed 21 startups, with three-quarters operating within Francophone Africa. Their investments span various sectors, including the eyewear company Lapaire, the logistics service Kamtar, and Julaya, a B2B digital banking platform. What sets Saviu apart is its cautious and methodical portfolio management style.
While many venture capitalists brace for a failure rate as high as 70%, Saviu aims to keep this figure below 20%. This is accomplished through close partnerships with founders and a clearly defined exit plan established from the beginning, typically targeting liquidity events within three to five years after investment.
This pragmatic strategy is already yielding results. In the past two years, Saviu has completed four exits-a significant milestone in a market where such occurrences are rare. Highlights include a full exit from Lapaire, where Saviu owned 22%, and a partial exit from Kamtar following its acquisition by Logidoo.
Exit Strategies at the Core of Investment Decisions
Anyone acquainted with the African tech landscape knows that securing exits is a persistent challenge. While some blame inflated startup valuations, the issue is more complex.
Successful exits depend heavily on the availability of interested buyers, which remain scarce across the continent. Papa Mady Sidibé, Saviu’s Head of Portfolio Management, explains that many corporations lack a thorough understanding of startups, face minimal pressure to innovate, and often overlook the strategic advantages of acquisitions.
Even when acquisition interest arises, the inflated valuations driven by the funding surge between 2020 and 2022 complicate negotiations, making it difficult for investors and founders to settle on fair exit terms today.
Aware of these obstacles, Saviu maintains transparency from the outset. Sidibé states, “We communicate our investment philosophy clearly with founders. Although the buyer and timing are uncertain, the exit remains a central focus from day one.”
Connecting Startups with Corporate Buyers
This approach involves early identification of potential acquirers, building relationships with corporate entities, and coaching founders to develop businesses that appeal to buyers.
“It’s a rigorous process,” Sidibé admits, “but nurturing these corporate ties is vital and a key element of our hands-on support.”
To facilitate this, Saviu has established a dedicated portfolio support team based in Africa, assisting founders with recruitment, business growth, and strategic planning. Sidibé highlights that at least half of their efforts are devoted to preparing startups for exits-whether by identifying buyers or scaling companies to attract acquisition interest.
The merger between Kamtar and Logidoo illustrates this tactic. After investing in Kamtar in 2018, Saviu observed the company’s growth to over $17 million in annual revenue by 2024. Recognizing the complementary strengths of Kamtar’s last-mile delivery and Logidoo’s cross-border logistics, the merger created a more robust logistics platform. This enabled Saviu to partially exit while maintaining upside potential.
Valuation Discipline and Market Realities
Recent years have highlighted the necessity of disciplined investment practices. Saviu values startups at roughly ten times their annual revenue and seeks a minimum 5x return on investment. Early-stage deals often include negotiated discounts to offset valuation risks.
Both investors and founders have adopted a more realistic mindset, moving away from the inflated valuations that characterized the pandemic-era funding boom.
“The era of chasing sky-high valuations is coming to an end,” Sidibé notes. This more measured environment fosters better alignment among founders, investors, and potential acquirers.
Managing Exits Independently in a Nascent Ecosystem
Although co-investment is common in African venture capital, coordinated exit management among multiple investors remains rare.
“Exits are generally not a joint effort among investors,” Sidibé acknowledges. “While introductions may be shared, the culture of collaborative exit management is still developing.”
As a result, Saviu frequently leads exit initiatives-identifying opportunities, negotiating terms, and overseeing post-sale transitions. This intensive, locally informed approach requires patience but provides a competitive edge in Francophone Africa.
While Saviu’s strategy may not produce Africa’s next unicorn, it consistently delivers solid returns for investors, valuable opportunities for entrepreneurs, and a growing track record of successful exits in one of the continent’s most challenging markets.