We profile November’s EV fundraisers

From the newsletter

Raising money for startups is no joke; some months bring in substantial funding, while others yield minimal results. Last month presented a different scenario from October, which demonstrated greater diversity in founders' education and cultural backgrounds. Typically, founders originate from various regions, but in November, they came from only two.

• Six gentlemen were able to raise funds. However, five of them came from the same region. This contrasts with October’s analysis, where the founders came from different regions across Africa.

• Cultural clustering was also evident in their educational background since 83% of them studied in neighbouring universities.

More details

• Although the number of founders decreased by one last month, the remaining founders were all male. From our observation, this has been the trend for the last four months.

• The range of experience varies among the six founders, with one founder having more than 25 years of experience before launching his business venture. Tijan Watt, CEO of Solarbox, had prior experience working as the CEO of Oasis International S.A. (a logistics company) for 14 years before starting Wuri Ventures. The rest of the founders had an average of five years of experience in different fields before starting their startups.

• The founders also have distinct investing preferences and business models. Five of them have ventured into the e-mobility service space, while the other is focused on designing and manufacturing electric two- and three-wheelers.

• In November, founders in the service industry received the lion's share of funding compared to those in the manufacturing sector. This was not due to any preference but because of the scalability of their businesses. The difference in profit margins between the two sectors likely influences who receives more funding. Considering the number of employees with white-collar jobs, the service industry companies that received funding employ 99% of these individuals.

• Most of these founders studied at notable universities in Africa and the United States, including Harvard Business School, Howard University, the American University in Cairo, and the German University of Cairo. It is evident that the African universities the founders attended have affiliations with the United States and Europe. 

Our take

• Venture capitalists are keen not just on the business model but also on the experience of the company founders. The most successful entrepreneurs are seasoned professionals educated in highly ranked universities, and investors seem to trust experience.