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TechCabal
Why raising $50,000 may be harder than $10 million
In a recent discussion on TechCabal's podcast, investment expert Francis Nasionba pointed out the paradox in African fundraising: raising $50,000 is often more challenging than obtaining $10 million. This situation stems from a funding gap where smaller businesses find it hard to attract investors while larger opportunities receive significant attention. Despite plenty of capital directed at venture-scale projects, many businesses remain unsupported as they seek modest amounts to grow. Nasionba emphasizes a mismatch in expectations and readiness among entrepreneurs, urging a shift in focus from just securing capital to building sustainable business models that can operate independently of their founders.
MonitorConfidence: HighMid term horizon
Published 14 Jul 2026, 08:30 UTC5 min read
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Summary
TL;DR
- Raising smaller amounts is increasingly difficult for African startups.
- Capital allocation in Africa often neglects small to medium enterprises.
- Investment firms typically prioritize larger deals.
- Many entrepreneurs struggle with establishing viable business models.
- Expectations of venture-backed success hinder sustainable growth.
Interesting facts
- The term 'missing middle' describes the gap between small businesses and large enterprises in funding.
- Nasionba's firm declines 90% of potential clients, citing lack of business readiness.
- Africa has only produced about 10 unicorns, mostly in fintech.