Startups in Africa raised US$1.4 billion in the first half of 2025, a sharp 78% rise compared to the same period last year, marking a tentative recovery from the funding downturn that has gripped the continent since late 2022. Behind this headline figures lies many stories of startups that don't survive, and ideas that never make it past the ideation stage.
In this interview with The Kenyan Wall Street, Kristin H. Wilson, the Managing Partner at Innovate Africa Fund and Bold Angel Network discusses why proximity to the challenge a startup is trying to resolve is critical, and why the best founders stay rooted in the problem, but flexible in their approach.
Africa’s startup scene is booming, especially in fintech, with more capital and unicorns than ever. But at ground level, the basics still feel broken: public systems are outdated, fraud is rampant. Has startup success become disconnected from the everyday problems people actually face?
In some ways, yes. There is growing tension between headline-grabbing successes and the lived realities on the ground. While fintech unicorns and funding rounds signal progress, the majority of Africans still navigate infrastructural gaps and systemic inefficiencies daily. This disconnect often stems from a pattern where founders chase global tech trends or investor appetites rather than deeply engaging with local contexts.
The real transformative potential lies in aligning innovation with foundational challenges such as public service delivery, identity systems, and trust frameworks, where sustainable value and meaningful impact converge. Without that grounding, growth risks being superficial or exclusionary. At Innovate Africa Fund, we believe that the real opportunity lies in connecting innovation to these systemic challenges. That’s where meaningful impact and sustainable value intersect.
A lot of startups seem to go for what’s fundable rather than what’s fundamental. Why do you think we’re still seeing few teams take on the harder and systemic challenges?
The startup ecosystem, by design and incentive, tends to reward rapid scaling and clear exit potential. Unfortunately, systemic problems don’t yield to quick fixes or simple product-market fits. Addressing them requires patience, deep contextual understanding, and often interdisciplinary approaches, which are difficult to package for traditional investors seeking short-term returns. Moreover, founders tackling these issues face complexity and risk that can deter support from many quarters.
Shifting this dynamic calls for patient capital and ecosystem structures that prioritize long-term problem ownership over immediate growth metrics. Tackling complex wicked problems in this market requires patient and informed capital. We try to fill that gap by backing courageous founders who are also deeply rooted in the problem space.
It’s not uncommon for founders to build from a distance, either physically from abroad or socially, without deep ties to the communities they're trying to serve. From your experience as a product thinker, how critical is it to be close to the problem you're trying to solve?
Proximity to the problem is immensely critical. You can’t build inclusive products without understanding the users’ lived experiences. That closeness to the problem space allows for better problem framing, faster feedback loops, and ultimately, more resilient solutions.
Without it, product development risks becoming theoretical and disconnected from the nuances of user behavior, cultural norms, and socio-economic realities. Deep empathy- borne of lived experience or continuous engagement, is essential for framing problems accurately and iterating solutions responsively. This closeness accelerates learning cycles and fosters resilience in design. In the end, building inclusive and impactful products demands more than data or assumptions; it requires genuine immersion in users’ worlds.
The early funding pipeline, angel to seed to VC, is often chaotic or even skipped entirely in African markets. What kind of impact does that have on startup survival and the kinds of ideas founders pursue?
Without a clear funding path, founders are forced to either bootstrap indefinitely or prematurely pivot towards solutions that please investors, but don’t address user needs. In the long term, this dynamic discourages experimentation and often leads to suboptimal product-market fits. Furthermore, without early-stage guidance and risk mitigation, many ventures fail to survive the critical validation phase, stunting the emergence of bold, systemic solutions.
Bridging this gap is crucial- not only through capital but by embedding support networks that help founders validate and refine ideas with discipline and confidence. One of our goals at Innovate Africa Fund is to bridge that early-stage funding gap, not just with money, but with support structures to de-risk those early bets.
With so much of the funding in African tech coming from outside the continent, how do we make sure that local problems, not just global investor preferences, are driving what gets built?
We need more local capital and local conviction. But we also need to help global capital understand local nuances better. One way to do that is by creating stronger narratives about what success looks like on the continent. We already have models such as Paystack, Flutterwave and the like. Our job is to help global investors see that value and help founders defend it. It's equally important to foster deeper cross-cultural understanding among global investors- helping them appreciate what ‘success’ looks like in African markets beyond typical Western benchmarks.
Storytelling and evidence-based narratives that highlight indigenous innovation models and measurable impact can shift perceptions and influence where capital flows.
Innovate Africa hosted the Lagos edition of World Product Day in May. We’ve often seen hackathons and innovation challenges produce exciting ideas, but too often, they fade after the weekend ends. What needs to change to help good ideas grow into real, impactful ventures?
The key issue is continuity beyond ideation. Too often the energy ends on the pitching stage. We need more structured post-hackathon support and founders with follow through. To convert ideas into viable ventures requires ongoing mentorship, structured coaching, and access to iterative user testing environments. Equally important is founder perseverance- the discipline to remain problem-obsessed through setbacks.
Building ecosystems that foster this extended journey, rather than just episodic bursts of creativity, is fundamental to nurturing enduring innovation. At Innovate Africa Fund, we’re working with the finalists teams to provide product coaching and push for better validation. But this means nothing if the founders don’t stay obsessed with the problem.
A lot of young founders feel stuck between building what they believe in and building what investors want. What would you say to someone trying to hold onto their purpose without getting left behind?
Don’t trade conviction for capital. The best founders stay rooted in the problem, but flexible in their approach. If you’re solving a real problem, the right investors will come. Build with integrity, but don’t forget to demonstrate the commercial viability of your solution.
Maintaining conviction while adapting to market realities is one of the most delicate balances for founders. It’s vital not to sacrifice the core problem or mission for short-term funding wins. That said, flexibility in your approach- how you position your solution, demonstrate commercial viability, and communicate impact- is essential. Investors are attracted to founders who understand the problem deeply and can articulate a credible path to scale. Purpose and pragmatism are not mutually exclusive; the strongest ventures harmonise both.
If you could flip one switch overnight, something about how startups are built or funded in Africa, what single change do you think would unlock the most long-term impact?
If I could flip one switch overnight, I’d ensure that every startup on the continent had the capacity and discipline for excellent product execution. The ecosystem, too often, celebrates the pitch, the prototype, the pilot; but when it comes to building real, scalable solutions that actually solve user problems, things start to fall apart.
Teams either move too quickly without understanding the user or move too slowly because they’re not structured for iterative delivery. Great ideas don’t die from a lack of vision; they die in the execution gap. If we fixed that, we’d see more ventures endure to deliver real impact.
Closing this gap means embedding strong product management practices, user-centered design thinking, and agile methodologies as foundational pillars. Doing so would dramatically increase the longevity and real-world impact of ventures across the continent.