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African Startup Founders: The Special Party Will Begin In Year 2025

African Startup Founders: The Special Party Will Begin In Year 2025

I have seen a pattern in most things in technology: it typically begins in the United States. Then, in 3-5 years, it diffuses into emerging markets at scale. Then, American firms begin consolidation. They always begin with India – and after 5-7 years, what they have done in India is replicated in Africa. That pattern has been followed on opening offices, design centers, labs, etc. In the last three years, I have seen a massive acceleration of US firms acquiring Indian companies.

YouTube just picked India’s SimSim this week, to boost YouTube ecommerce. With most US big tech largely barred from acquiring within the US (antitrust), outside America will see action. And you know what: I expect them to come to Africa by 2025!

YouTube said on Tuesday it has acquired social commerce startup Simsim. The Google-owned firm said the acquisition is to help viewers discover new products and find expert advice they trust.

The firms did not give details of the deal, but two people with knowledge of the matter told TechCrunch the Indian startup was valued at over $70 million.

Two-year-old Simsim had raised about $17 million prior to today’s announcement and was valued at $50.1 million in its 2020 Series B financing round.

People, from 2025, American dollars will come, shopping for startups in Africa to acquire at scale. My playbook is to prepare for that moment: mergers or acquisition would be HUGE. They want exposure to add more digits in Wall Street’s market caps, and they will buy themselves into the soul of Africa’s entrepreneurial capitalism.

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This is the age of application utility and Africa’s startup ecosystem will begin to experience exits at scale from 2025. Yes, what happened to Paystack would become very common. I am investing and building for that future. Not all will sell, but because of the buy-activity, those that stay the course will see massive value accumulation.

Be ready ,.. #build #innovate #move

LinkedIn Comment on Feed

My Comment: Are we now building for Americans to acquire? How is this different from the playbook of using permanent residency and scholarships to weaken Africa? We don’t seem to understand what these guys have done to us already, and we are still providing them ropes to hang us.

Why is everyone worried about China? Because it managed to upend the playbook the West has used to keep every other region on the ground, and China is now the bad guy…

How has selling natural resources to the West helped Africa rise? The people who make the purchase fix the price, they take the valuables and give you paper money, and we celebrate. Now we want to do same with our start-ups too? We will remain owned forever then.

I think western education the way it’s currently structured is weakening our people, we now give so much for so little, and we are even grateful to them.

For the sake motherland, our heritage and pride, the idea of wholesale of our innovations should be discouraged, the best we can do is to give them a small slice, they will need us more than we will need them.

So, for me, let that 2025 be when African start-ups will take their rightful position in global economic power play, I wasn’t brought in this world to be enslaved by any race.

My response: It is continuum as in mathematics – if you acquire them, they go and build new ones, and after 3 cycles, they attain equilibrium. China’s model is not applicable as using state capitalism, the government became a platform for exit. We need liquidity at the first cycle and after that maturity will come later. For building to host at all costs will emerge from 2032.

Comment: Ndubuisi, while we need money to attain equilibrium, we need to identify our precious jewels, the poster children, and keep them away from wholesome acquisition, because they will become symbols of our heritage; some things cannot be repeated once sold.

My response: The people funding African startups today are not mainly Africans – they will want quick exit. By after two cycles. Africans will have capacity to fund for long-term. By then, our people would have made money and can stay the course. Things take time.

My response: “by quick exit that means they are doing debt financing and not equity…..” . But I was referring to VCs who have been investing in African startups. Most are foreign funds or money. They are actually taking equity. But they will want to be out as quickly as possible. So, if the big tech comes they will dance. Today, those with money in Africa are not investing in tech at scale. The young people in tech will end up doing the investing but they have to exit and money made first!


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1 THOUGHT ON African Startup Founders: The Special Party Will Begin In Year 2025

  1. About taking time and selling to westerns; it is wisdom in display.

    it’s hard to fund a business that last long whilst you are a majority stake holder. This explains why in the end you open up so that many can invest. Forget the glamor when things go south, you need other funds. If you doubt ask the guys running Jumia, Car45 and co.

    That said, High priest you are very wise man. Today, I spent hours thinking of you and wondered why services?

    Then I realized something big.

    Yes, although industrialization is the mover of economic growth, services make them possible and it is not as capital intensive as the former.

    Further, I looked at all your portfolio, all of them are focused on the future.

    Digitization create the need for Cybersecurity( you have one), then this create the need for Insurance( I see one coming from your end, that is if you’ve not even done that already), you’ve payment layer Sproutpay.

    The world is shouting 5G, you have Beeptools which engineering stills marvels me, because it’s sending signal using Tv signals as carrier wave- that requires a crazy level of EM waves understanding. With the right policies it would be adopted rural. There is TAP, etc.

    My point is this, looking at all work here, there is so much to be optimistic about in this country, all that is need is insight which come by proper thinking.

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