Investors test new paths to close Africa's startup funding gap

Startups and investors from East and West Africa meet during the Chui Ventures summit in Nairobi.

African startups continue to face scarce and uneven early-stage funding, with investors and founders turning to new ways to bridge the gap through inclusive investing and cross-continental collaboration.

African startups attracted less than 3 per cent of global venture capital last year, according to industry trackers, with women-led companies receiving an even smaller share.

Early-stage funding remains concentrated in a few markets, often favouring fintech and male-led ventures.

Pan-African funds like Chui Ventures are now positioning themselves as challengers to this pattern by backing diverse founders and promoting regional collaboration.

One effort took shape last week when Chui Ventures, a pan-African seed fund, held its annual summit in Nairobi. The two-day gathering drew founders from East and West Africa and investors who reviewed portfolio performance and discussed growth strategies.

Joyce Ann Wainaina, Managing Partner at Chui Ventures, explained that the format was meant to connect participants beyond formal sessions.

"The reason we began with sports was to enable our founders and investors to break some ice, get to know each other in a casual setting, which is always good," noted Wainaina.

Shop Zetu Chief Executive Officer Allan Matata speaks during the Chui Ventures investor summit in Nairobi.

The second day focused on strategy. Limited Partners spent two hours assessing company performance, while founders joined a workshop on growth and artificial intelligence led by Jacky Karay of Google and Ken Njoroge, founder of fintech company Cellulant.

Njoroge told the meeting that many founders struggle with fears and barriers to scaling.

"These challenges are not unique but can be addressed when investors and founders engage honestly and work together," observed Njoroge.

The summit ended with joint panels on fintech, artificial intelligence, and education technology. Founders present included Allan Matata of Kenyan fashion e-commerce platform Shop Zetu, Sneha Mehta of beauty-tech company Uncover, and Rukayat Bello of Nigerian fintech solution Regxta.

Wainaina remarked that uniting founders from across the continent supported the fund's aim of promoting inclusive investing.

"We want to show that supporting both male and female founders in different regions can create stronger companies and a more connected ecosystem," she explained.