Trends Watch: VC Investing in Tech Startups in Africa

EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.  

This week, Elana talks with Francesco Cracolici, Partner, Kili Ventures. 

What is your outlook for VC investing in tech startups in Africa?

I’m highly optimistic. The continent is experiencing a surge in innovation and entrepreneurship, driven by a young, tech-savvy population and increasing internet penetration. There is a growing ecosystem of accelerators, incubators, and supportive policies that make Africa an attractive destination for venture capital.

Where do you see the greatest opportunities and why?

The greatest opportunities lie in sectors such as fintech, health tech, and agritech. Fintech is particularly promising due to the large unbanked population and increasing demand for digital financial services. Health tech and agritech offer solutions to pressing challenges in health care delivery and agricultural productivity, which are critical for the continent's development.

What are the greatest challenges you face and why?

The greatest challenges include navigating regulatory environments, accessing reliable data, and dealing with infrastructure constraints. Regulatory uncertainties can pose significant risks, while the lack of comprehensive data makes it difficult to make informed investment decisions. Additionally, inadequate infrastructure can hinder the scalability of tech solutions.

What keeps you up at night?

Ensuring that we are identifying and supporting startups with the potential for long-term impact and sustainability. The rapidly changing market dynamics and the need to stay ahead of emerging trends require constant vigilance and adaptability.

The views and opinions expressed above are of the interviewee only, and do not/are not intended to reflect the views of EisnerAmper.