Hi! I’m so glad you’re here. |
I’m Jemimah Orevaoghene, an early-stage investor in the venture arm of one of Wall Street’s top investment banks. I started angel investing in African startups as a Yale sophomore, working a $17/hr job and saving $1,000 each semester to invest. During holiday breaks back home in Accra and Lagos, I hustled to find more founders for my next investments —no nepo baby funds, no old money or new money support system, just grit, hard work, networking, and Grace. My mission is to equip you weekly with all the information and tools I needed when I started my journey many moons ago. I’m very active on socials, so feel free to connect there and lets grow this community. Hope you like it here! |
We all love a good rags-to-riches story—a silver bullet that turns a scrappy startup into a unicorn overnight. But here’s the truth: that’s rarely how African startups succeed.
Take Moniepoint, for example. Today, it’s a unicorn but what’s less talked about is how it took them 15 years to get there. Their secret wasn’t magic, rather it was mastering distribution and staying resilient when others folded.
Over the past two years, African VC has been buzzing with headlines of big raises, bold ideas, and unfortunately, big failures. Today’s newsletter isn’t to kill optimism but rather to sharpen our investor instincts and spot patterns before history repeats itself.
Let’s break down three cautionary tales:
Startup Spotlights: Lessons Learned
54Gene
Founded: 2019 (Nigeria)
Mission: Unlock the potential of African genomic data to improve global health outcomes
Raised: Over $45 million in funding from investors like Adjuvant Capital, Cathay AfricInvest Innovation Fund, and Y Combinator
What went wrong:
Initially hailed as a pioneer in African biotech, 54Gene faced operational and financial challenges starting in 2022.
Leadership turmoil: Multiple executive departures, including the CEO, amid allegations of mismanagement.
Revenue struggles: Despite strong early traction, monetizing genomic data proved harder than anticipated.
Lesson:
Deep-tech startups require long-term capital and clear commercialization pathways.
Overpromising on timelines for scientific breakthroughs can erode investor confidence.
Dash
Founded: 2019 (Ghana)
Mission: Connect mobile wallets and bank accounts across Africa
Raised: $86.1M from top investors like Insight Partners
The twist: Dash flaunted explosive growth such as a 5x user base in 5 months. However, audits revealed inflated numbers and a $25M shortfall. The CEO reportedly diverted $8M while earning $50K/month.
Lesson: Multi-country expansion without strong controls can lead to costly overhead.
Lipa Later
Founded: 2018 (East Africa)
Mission: “Buy Now, Pay Later” services
Raised: $15M+ (including $12M equity in 2022)
The downfall: Acquired Sky Garden for $1.9M in 2023 which strained its finances further. By March 2025, Lipa Later was under administration due to unsustainable debt and failed fundraising attempts.
The Bigger Problem
Somewhere along the way, raising capital became the ultimate badge of honor and the best social media approved dopamine hit. Scroll LinkedIn and you’ll see:
“Congrats on raising $2M!”
“Thrilled to announce our Series A!”
What we don't celebrate are the milestones that are real proof points that a business is improving efficiency and scaling in a sustainable manner. Such proof pints include things like:
Positive cash flow
Breakeven with healthy margins
Lower customer acquisition costs
Low marketing cost paired with high user adoption
These are the real proof points of a sustainable business.
Raising capital is not the end goal, it never was; delivering value to communities, employees and shareholders through impactful business is. Whilst capital can be a powerful catalyst for scale and reach, some are starting to ask if it's making African founders more vulnerable, not less easy money can make founders less disciplined, chasing investor narratives instead of customer realities.
Bootstrapped founders don’t have that luxury. They live and die by unit economics. They stay lean. They stay close to customers. That’s the mindset we need more of—even in VC-backed ventures.
✅ Key Takeaway: Raising money ≠ success. Building a resilient, customer-focused business does.
Investor Tips: How to Spot Sustainable Growth
Look Beyond Fundraising Announcements
Big raises make headlines, but they don’t guarantee success. Focus on operational metrics like cash flow, breakeven, and customer acquisition cost.Watch for Overexpansion
Multi-country operations sound exciting, but they often lead to high overhead and weak controls. Ask: Is the company scaling responsibly?Check Founder Discipline
Founders who prioritize investor narratives over customer realities are a red flag. Look for teams that stay close to their users and unit economics.Pattern Recognition is Key
Study past failures and successes. Similar business models often face similar challenges—don’t ignore history.
💡 What do you think? Have you seen these patterns in your own investing journey?
👉 Share your thoughts, forward this to a fellow investor, and subscribe for more insights!
Startups in the News
