For years, founders across the continent have quietly asked the same question: do African venture capitalists lack conviction, or are they simply playing a different game from their counterparts in Silicon Valley? The answer, as with most things in Africa’s startup ecosystem, is more nuanced than the criticism suggests.
On the surface, the complaint seems valid. African VCs are often perceived as cautious, slow to deploy capital, and reluctant to lead large rounds. Many prefer smaller checks, co-investments, or follow-on participation rather than bold, first-mover bets. Compared to US or European investors who sometimes back ideas pre-revenue—or even pre-product—African VCs can appear overly conservative.
But this apparent lack of conviction is shaped by structural realities. African funds are typically much smaller than global venture funds. While a US VC may manage billions of dollars, many African VCs operate funds in the $10 million to $100 million range. With smaller funds, every investment carries higher relative risk. A single failed deal can significantly impact returns, forcing fund managers to be more selective and capital-efficient.
There is also the issue of capital sources. Many African VC funds rely on development finance institutions (DFIs), family offices, and institutional investors with stricter mandates. These limited partners often prioritize capital preservation, governance, and measurable impact alongside returns. As a result, African VCs must balance venture-style risk with institutional caution, limiting their ability to make aggressive, high-risk bets.
Market dynamics further complicate the picture. African startups operate in fragmented markets with regulatory uncertainty, currency volatility, and infrastructure gaps. Scaling is rarely straightforward, and exits are still limited. Without a deep IPO market or frequent large acquisitions, African VCs must think carefully about how and when returns will materialize. What may look like hesitation is often a rational response to uncertain exit pathways.
That said, founders’ frustrations are not unfounded. In some cases, caution does slide into risk aversion. Delayed decisions, unclear feedback, and reluctance to lead rounds can slow startup momentum and push founders to seek capital abroad. This can create a perception gap, where local VCs are seen as unsupportive while foreign investors are viewed as more ambitious.
Ultimately, African VCs are not lacking conviction—they are optimizing for survival in a young and complex ecosystem. They play a longer game, prioritizing resilience, governance, and sustainable growth over explosive but fragile scaling. As exit opportunities expand and more capital flows into the ecosystem, risk appetite is likely to increase.
For now, the challenge is alignment. Founders and investors must better understand each other’s constraints and incentives. Conviction in Africa may look different—but it is no less real.
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