👨🏿‍🚀TechCabal Daily – Starlink ignores South Africa
Lire en français Read this email in French. 24 APRIL, 2023 IN PARTNERSHIP WITH Good morning A new WhatsApp feature that will roll out soon will allow receivers to stop disappearing messages from disappearing. Basically, if you receive a message set to automatically delete, WhatsApp will allow you to press a button to ask the sender to allow you to keep the message forever. Sounds unnecessary and complicated? Don’t blame Meta, they’ve probably fired all the employees in charge of UX and product. ‍ In today’s edition Starlink is not coming to South Africa Twitter is reinventing verification Altech group raises $18 million TC Insights: The Ecosystem Scandals of 2022 The World Wide Web3 Event: Code Cash Crop Ag-Hackathon Opportunities STARLINK IS NOT COMING TO SOUTH AFRICA It’s been months since Starboy Elon Musk’s internet service launched in Africa. In January, Nigeria became the first African country to receive the service. A month later the service launched in Rwanda, with blessings from the country’s ministry of ICT and innovation. According to Starlink’s availability map, the service is set to launch in 19 more African countries in 2023, with Zambia, Angola and Kenya scheduled for a Q2 2023 launch. Sixteen countries—Uganda, Tunisia, Ghana and Egypt inclusive—are scheduled for a 2024 release, while 18 more countries have unconfirmed launch windows. South Africa, Africa’s largest internet-consuming nation, is however missing from Starlink’s chart. Things are going South: Earlier this month, the Democratic Alliance claimed that the South African government was blocking Starlink’s entry into the country with its harsh telecommunications guidelines. For Starlink to launch in South Africa, it needs the IECS and IECNS licences. The Independent Communications Authority of South Africa (ICASA) requires all companies that apply for these licences to have 30% of their equity held by “historically-disadvantaged groups”. That means South Africa wants Musk to give up a large stake in his profitable venture, so he can offer services in the country. Zoom out: ICASA, last week, mentioned that it had met with Starlink twice but was yet to receive an official licence application, an event everyone knows might never happen. ‍ . Kenya had a similar rule but President William Ruto recently reversed the law which required foreign businesses to have 30% Kenyan ownership to operate in the country. WORK WITH MONIEPOINT At Moniepoint, we’re creating the best workplace for global talent using the 4M framework- Meaning, Membership, Mastery and Money. This isn’t an ad designed to convince you to join us, but it has all the reasons why you should. Watch it here. This is partner content. TWITTER REINVENTS VERIFICATION On behalf of TechCabal, I’d like to wish all previously-verified readers a warm welcome back into the fray. How does it feel to fall from grace? Last Friday, true to his promise, Chief Twit Elon Musk and his Twitteroos effected the new legacy verified wipeout. All Twitter users—over 407,000 of them—who were previously verified under the old administration lost their blue ticks, and only Twitter Blue subscribers now have the verified marks. Friends in high places: If you still want the blue beetle tick without paying the $8 entry fee, there’s still hope—all you have to do is have millions of followers and join Musk’s posse. After the wipeout, celebrities took to Twitter to announce the loss of their social status, but some like horror writer Stephen King and family man LeBron James were still verified even without subscribing to Twitter Blue. Both had tweeted weeks ago that they would not pay for the service. Musk, moments after King’s tweet, charitably revealed that he was personally paying the Twitter Blue fees for a few persons. Fight the blues: Now, many more celebrities including pop star Lil NasX, Patton Oswalt, and Nigerian activist Aisha Yesufu who have been verified by force are looking for ways to rid themselves of the blue mark. Critics believe that Musk’s action is misleading and misrepresents the celebrities, many of whom have active followers who could be influenced into paying for the struggling Twitter Blue. So far, Twitter Blue reportedly has just about 385,000 subscribers, but it’s presently unclear how many of these people are actually willing paying subscribers. It’s still a long way off from the 50 million Twitter Blue subscriptions it needs to stay afloat. Come on, Elon, you can do it. Pave the way, put your back into it. ALTECH GROUP RAISES $18 MILLION The Democratic Republic of Congo (DRC) is bringing the energy for funding news. Last week, DRC-based cleantech company Altech Group announced an $18 million raise in debt financing. The company, which has over 4,500 employees covering 22 provinces in the DRC, wants to use the money to provide more Congolese households with access to solar energy. Who funded the raise? Altech’s raise was led by the Energy Entrepreneurs Growth Fund (EEGF) Triple Jump and Rabobank. It also received support from Social Investment Managers and Advisors (SIMA Funds), SIDI (Solidarité Internationale pour le Développement et l’Investissement), Kiva, Whole Planet Foundation, and EquityBCDC. The grants were provided by Creating Hope in Conflict: a Humanitarian Grand Challenge and ANSER RDC. What’s next? Altech has reportedly sold over 350,000 solar products, affecting the lives of 1.7 million Congolese. Now, co-founder Washikala Malango says that it will use the funds to target households in rural, peri-urban and urban areas. So far, per Crunchbase, Altech Group has raised $27.1 million since its founding in 2013 with its last funding round being a $180,000 debt financing round in March 2022. EXPLORE FINTECH WITH TEMPLARS Join African law firm TEMPLARS and international law firm Clifford Chance for their tech roundtable Perspectives on Fintech in Ghana. Explore the latest fintech trends with global investors, policymakers, and leaders. Register now for insightful discussions and networking. This is partner content. TC INSIGHTS: WHAT THE TECH ECOSYSTEM SCANDALS OF 2022 HAD IN COMMON In addition to layoffs and the economic downturn in 2022, the African tech ecosystem was hit by a wave of scandals that shook the sector
Read MoreWhere does YC’s scaleback leave the African tech ecosystem?
“I really hope that one day, YC will recognise the value of what I’m building and back my startup. That will be the game changer.” This is Ayo*, a Lagos-based founder, sharing his hopes of being selected into one of Y Combinator’s cohorts last year. Like many founders, Ayo associates YC’s acceptance with startup success. “The money, the network, the opportunities—nothing beats it,’ he added emphatically. Ayo’s startup did not make it to YC’s list in the end, but that has done nothing to his faith in the accelerator. He will continue to try until he gets in, he says—a possibility that is now much slimmer, given YC’s recent scale-back from Africa. Y Combinator (YC), one of the world’s leading startup accelerators, has been a major player in shaping Africa’s tech ecosystem since the middle of the past decade, when tech-powered upstarts began to spring across the continent. The accelerator has backed over a hundred startups, including some of the continent’s success stories such as Flutterwave, Wave, and the Stripe-acquired Paystack. A  report from last year, by research firm Briter Bridges, described YC’s portfolio companies as having the propensity to scale, evidenced by the over $1.3 billion follow-on funding raised by YC-backed companies. In a 2022 report by TechPoint, Michael Seibel, managing director and group partner at Y Combinator, spoke to the accelerator’s presence in Africa: “We continue to be impressed with the talent and ingenuity of African founders. We believe that African startup founders will be a massive part of the continued development of the continent.” But a sharp trend observed in YC’s latest cohorts suggests that the global accelerator may now be looking less at African (and other non-US) startups. About 50% of the startups YC funded in its 2021 summer batch were based outside the US—a move which, at the time, highlighted the accelerator’s increasing global presence. The W22 batch that followed recorded 24 startups from Africa, marking about 6% of startups in the cohort. After this cohort, the tide noticeably changed, and fewer African startups were accepted into the global accelerator. YC’s S22 batch had just eight African startups, a 63% decline from the previous cohort. Now, the latest W23 cohort welcomed only three startups from Africa, the lowest in recent years. Reports from industry watchers say the trend is traceable to YC’s refocus on US-focused startups, which comprised over 90% of the latest cohort. Indian startups, which historically trailed US startups in the number of accepted entries, recorded lesser acceptance in this cohort, with only 11 of them representing the region, compared to 33 in the winter batch last year. The trend is replicated across other regions, including Latin America, suggesting that Africa is not alone as it watches YC moonwalk from its heavy lifting across the world. But unlike India and some of these other economies, Africa’s technology ecosystem is just beginning to fledge, and YC’s presence directs much-needed attention to the continent, enabling more funding and growth opportunities. Implications for the African tech ecosystem Given YC’s outsized role in the African tech funding market, it’s easy to imagine a gloomy picture for the continent should the global accelerator decide to shelve its pan-African ambitions. Many African startups—such as Healthlane—credit the turning point in their businesses to the accelerator. Healthlane had failed to secure institutional investment after trying for two years, then they got into YC, and a $2.4 million funding followed. So, if YC gets blurry in the African tech picture, what happens to our nascent ecosystem? Joshua Marima, head of engagement and investor relations at research firm Briter, believes that YC’s scaledown might impact the ability of founders to raise capital, but not in any way absolute as other accelerators and funding instruments are now operational on the continent. “Founders will feel the pinch of YC’s $500k being less available, but there are now several other sources of funding. We are also seeing several other international accelerators stepping up, such as the Techstars brand which recently announced an all-Africa cohort. Local accelerators are also being more deliberate,” he said in a chat with TechCabal. Marima’s opinions are echoed by a reality in African tech: numerous founders are raising significant capital—$1 million and more—without going through Y Combinator. Local funds worth over $10 million, such as Microtraction Community Limited and LoftyInc Afropreneur Fund 3 are on the table for Africans. This was not the case when YC first began to invest in African startups. The ecosystem is maturing fast on the back of the “Africa rising” narrative, which continues to position the continent as a choice destination for local and global investors. “There was an obvious funding gap when YC made its first strides on the continent. Nobody was writing big cheques for founders back then. I think YC contributed hugely to closing that gap as the case it today. Of course, we still need YC in the African tech picture, but no founder should ride with the idea that they cannot scale without YC’s ticket,” Osita Nwoye, TechCircle’s founder and longtime Africa tech pundit, said on a call with TechCabal. This gap Nwoye speaks about is recognised by global accelerator Techstars, whose CEO, Maelle Gavet, predicts that Africa will leapfrog Western Europe this year by producing more tech-powered startups. Bridging this funding gap is a priority for Techstars, demonstrated by their decision to set up shop in Lagos, Nigeria. The ARM Labs Lagos Techstars Accelerator’s head, Oyin Solebo, spoke to TechCabal for this piece. “I can’t comment on YC, but what I can tell you is that we [Techstars] continue to believe in the strength and potential of African entrepreneurs. This belief is supported by the result of our recent State of Innovation Research report, which demonstrates an increasing belief in innovation coming from Africa…and the importance of accelerators for the African ecosystem,” she said. The way forward There are arguments that it is probably too early to confirm YC’s scaledown in Africa—especially as their reduced footprint is at a
Read MoreWhere does YC’s scaleback leave the African tech ecosystem?
“I really hope that one day, YC will recognise the value of what I’m building and back my startup. That will be the game changer.” This is Ayo*, a Lagos-based founder, sharing his hopes of being selected into one of Y Combinator’s cohorts last year. Like many founders, Ayo associates YC’s acceptance with startup success. “The money, the network, the opportunities—nothing beats it,’ he added emphatically. Ayo’s startup did not make it to YC’s list in the end, but that has done nothing to his faith in the accelerator. He will continue to try until he gets in, he says—a possibility that is now much slimmer, given YC’s recent scale-back from Africa. Y Combinator (YC), one of the world’s leading startup accelerators, has been a major player in shaping Africa’s tech ecosystem since the middle of the past decade, when tech-powered upstarts began to spring across the continent. The accelerator has backed over a hundred startups, including some of the continent’s success stories such as Flutterwave, Wave, and the Stripe-acquired Paystack. A  report from last year, by research firm Briter Bridges, described YC’s portfolio companies as having the propensity to scale, evidenced by the over $1.3 billion follow-on funding raised by YC-backed companies. In a 2022 report by TechPoint, Michael Seibel, managing director and group partner at Y Combinator, spoke to the accelerator’s presence in Africa: “We continue to be impressed with the talent and ingenuity of African founders. We believe that African startup founders will be a massive part of the continued development of the continent.” But a sharp trend observed in YC’s latest cohorts suggests that the global accelerator may now be looking less at African (and other non-US) startups. About 50% of the startups YC funded in its 2021 summer batch were based outside the US—a move which, at the time, highlighted the accelerator’s increasing global presence. The W22 batch that followed recorded 24 startups from Africa, marking about 6% of startups in the cohort. After this cohort, the tide noticeably changed, and fewer African startups were accepted into the global accelerator. YC’s S22 batch had just eight African startups, a 63% decline from the previous cohort. Now, the latest W23 cohort welcomed only three startups from Africa, the lowest in recent years. Reports from industry watchers say the trend is traceable to YC’s refocus on US-focused startups, which comprised over 90% of the latest cohort. Indian startups, which historically trailed US startups in the number of accepted entries, recorded lesser acceptance in this cohort, with only 11 of them representing the region, compared to 33 in the winter batch last year. The trend is replicated across other regions, including Latin America, suggesting that Africa is not alone as it watches YC moonwalk from its heavy lifting across the world. But unlike India and some of these other economies, Africa’s technology ecosystem is just beginning to fledge, and YC’s presence directs much-needed attention to the continent, enabling more funding and growth opportunities. Implications for the African tech ecosystem Given YC’s outsized role in the African tech funding market, it’s easy to imagine a gloomy picture for the continent should the global accelerator decide to shelve its pan-African ambitions. Many African startups—such as Healthlane—credit the turning point in their businesses to the accelerator. Healthlane had failed to secure institutional investment after trying for two years, then they got into YC, and a $2.4 million funding followed. So, if YC gets blurry in the African tech picture, what happens to our nascent ecosystem? Joshua Marima, head of engagement and investor relations at research firm Briter, believes that YC’s scaledown might impact the ability of founders to raise capital, but not in any way absolute as other accelerators and funding instruments are now operational on the continent. “Founders will feel the pinch of YC’s $500k being less available, but there are now several other sources of funding. We are also seeing several other international accelerators stepping up, such as the Techstars brand which recently announced an all-Africa cohort. Local accelerators are also being more deliberate,” he said in a chat with TechCabal. Marima’s opinions are echoed by a reality in African tech: numerous founders are raising significant capital—$1 million and more—without going through Y Combinator. Local funds worth over $10 million, such as Microtraction Community Limited and LoftyInc Afropreneur Fund 3 are on the table for Africans. This was not the case when YC first began to invest in African startups. The ecosystem is maturing fast on the back of the “Africa rising” narrative, which continues to position the continent as a choice destination for local and global investors. “There was an obvious funding gap when YC made its first strides on the continent. Nobody was writing big cheques for founders back then. I think YC contributed hugely to closing that gap as the case it today. Of course, we still need YC in the African tech picture, but no founder should ride with the idea that they cannot scale without YC’s ticket,” Osita Nwoye, TechCircle’s founder and longtime Africa tech pundit, said on a call with TechCabal. This gap Nwoye speaks about is recognised by global accelerator Techstars, whose CEO, Maelle Gavet, predicts that Africa will leapfrog Western Europe this year by producing more tech-powered startups. Bridging this funding gap is a priority for Techstars, demonstrated by their decision to set up shop in Lagos, Nigeria. The ARM Labs Lagos Techstars Accelerator’s head, Oyin Solebo, spoke to TechCabal for this piece. “I can’t comment on YC, but what I can tell you is that we [Techstars] continue to believe in the strength and potential of African entrepreneurs. This belief is supported by the result of our recent State of Innovation Research report, which demonstrates an increasing belief in innovation coming from Africa…and the importance of accelerators for the African ecosystem,” she said. The way forward There are arguments that it is probably too early to confirm YC’s scaledown in Africa—especially as their reduced footprint is at a
Read MoreWhere does YC’s scaleback leave the African tech ecosystem?
“I really hope that one day, YC will recognise the value of what I’m building and back my startup. That will be the game changer.” This is Ayo*, a Lagos-based founder, sharing his hopes of being selected into one of Y Combinator’s cohorts last year. Like many founders, Ayo associates YC’s acceptance with startup success. “The money, the network, the opportunities—nothing beats it,’ he added emphatically. Ayo’s startup did not make it to YC’s list in the end, but that has done nothing to his faith in the accelerator. He will continue to try until he gets in, he says—a possibility that is now much slimmer, given YC’s recent scale-back from Africa. Y Combinator (YC), one of the world’s leading startup accelerators, has been a major player in shaping Africa’s tech ecosystem since the middle of the past decade, when tech-powered upstarts began to spring across the continent. The accelerator has backed over a hundred startups, including some of the continent’s success stories such as Flutterwave, Wave, and the Stripe-acquired Paystack. A  report from last year, by research firm Briter Bridges, described YC’s portfolio companies as having the propensity to scale, evidenced by the over $1.3 billion follow-on funding raised by YC-backed companies. In a 2022 report by TechPoint, Michael Seibel, managing director and group partner at Y Combinator, spoke to the accelerator’s presence in Africa: “We continue to be impressed with the talent and ingenuity of African founders. We believe that African startup founders will be a massive part of the continued development of the continent.” But a sharp trend observed in YC’s latest cohorts suggests that the global accelerator may now be looking less at African (and other non-US) startups. About 50% of the startups YC funded in its 2021 summer batch were based outside the US—a move which, at the time, highlighted the accelerator’s increasing global presence. The W22 batch that followed recorded 24 startups from Africa, marking about 6% of startups in the cohort. After this cohort, the tide noticeably changed, and fewer African startups were accepted into the global accelerator. YC’s S22 batch had just eight African startups, a 63% decline from the previous cohort. Now, the latest W23 cohort welcomed only three startups from Africa, the lowest in recent years. Reports from industry watchers say the trend is traceable to YC’s refocus on US-focused startups, which comprised over 90% of the latest cohort. Indian startups, which historically trailed US startups in the number of accepted entries, recorded lesser acceptance in this cohort, with only 11 of them representing the region, compared to 33 in the winter batch last year. The trend is replicated across other regions, including Latin America, suggesting that Africa is not alone as it watches YC moonwalk from its heavy lifting across the world. But unlike India and some of these other economies, Africa’s technology ecosystem is just beginning to fledge, and YC’s presence directs much-needed attention to the continent, enabling more funding and growth opportunities. Implications for the African tech ecosystem Given YC’s outsized role in the African tech funding market, it’s easy to imagine a gloomy picture for the continent should the global accelerator decide to shelve its pan-African ambitions. Many African startups—such as Healthlane—credit the turning point in their businesses to the accelerator. Healthlane had failed to secure institutional investment after trying for two years, then they got into YC, and a $2.4 million funding followed. So, if YC gets blurry in the African tech picture, what happens to our nascent ecosystem? Joshua Marima, head of engagement and investor relations at research firm Briter, believes that YC’s scaledown might impact the ability of founders to raise capital, but not in any way absolute as other accelerators and funding instruments are now operational on the continent. “Founders will feel the pinch of YC’s $500k being less available, but there are now several other sources of funding. We are also seeing several other international accelerators stepping up, such as the Techstars brand which recently announced an all-Africa cohort. Local accelerators are also being more deliberate,” he said in a chat with TechCabal. Marima’s opinions are echoed by a reality in African tech: numerous founders are raising significant capital—$1 million and more—without going through Y Combinator. Local funds worth over $10 million, such as Microtraction Community Limited and LoftyInc Afropreneur Fund 3 are on the table for Africans. This was not the case when YC first began to invest in African startups. The ecosystem is maturing fast on the back of the “Africa rising” narrative, which continues to position the continent as a choice destination for local and global investors. “There was an obvious funding gap when YC made its first strides on the continent. Nobody was writing big cheques for founders back then. I think YC contributed hugely to closing that gap as the case it today. Of course, we still need YC in the African tech picture, but no founder should ride with the idea that they cannot scale without YC’s ticket,” Osita Nwoye, TechCircle’s founder and longtime Africa tech pundit, said on a call with TechCabal. This gap Nwoye speaks about is recognised by global accelerator Techstars, whose CEO, Maelle Gavet, predicts that Africa will leapfrog Western Europe this year by producing more tech-powered startups. Bridging this funding gap is a priority for Techstars, demonstrated by their decision to set up shop in Lagos, Nigeria. The ARM Labs Lagos Techstars Accelerator’s head, Oyin Solebo, spoke to TechCabal for this piece. “I can’t comment on YC, but what I can tell you is that we [Techstars] continue to believe in the strength and potential of African entrepreneurs. This belief is supported by the result of our recent State of Innovation Research report, which demonstrates an increasing belief in innovation coming from Africa…and the importance of accelerators for the African ecosystem,” she said. The way forward There are arguments that it is probably too early to confirm YC’s scaledown in Africa—especially as their reduced footprint is at a
Read MoreWhere does YC’s scaleback leave the African tech ecosystem?
“I really hope that one day, YC will recognise the value of what I’m building and back my startup. That will be the game changer.” This is Ayo*, a Lagos-based founder, sharing his hopes of being selected into one of Y Combinator’s cohorts last year. Like many founders, Ayo associates YC’s acceptance with startup success. “The money, the network, the opportunities—nothing beats it,’ he added emphatically. Ayo’s startup did not make it to YC’s list in the end, but that has done nothing to his faith in the accelerator. He will continue to try until he gets in, he says—a possibility that is now much slimmer, given YC’s recent scale-back from Africa. Y Combinator (YC), one of the world’s leading startup accelerators, has been a major player in shaping Africa’s tech ecosystem since the middle of the past decade, when tech-powered upstarts began to spring across the continent. The accelerator has backed over a hundred startups, including some of the continent’s success stories such as Flutterwave, Wave, and the Stripe-acquired Paystack. A  report from last year, by research firm Briter Bridges, described YC’s portfolio companies as having the propensity to scale, evidenced by the over $1.3 billion follow-on funding raised by YC-backed companies. In a 2022 report by TechPoint, Michael Seibel, managing director and group partner at Y Combinator, spoke to the accelerator’s presence in Africa: “We continue to be impressed with the talent and ingenuity of African founders. We believe that African startup founders will be a massive part of the continued development of the continent.” But a sharp trend observed in YC’s latest cohorts suggests that the global accelerator may now be looking less at African (and other non-US) startups. About 50% of the startups YC funded in its 2021 summer batch were based outside the US—a move which, at the time, highlighted the accelerator’s increasing global presence. The W22 batch that followed recorded 24 startups from Africa, marking about 6% of startups in the cohort. After this cohort, the tide noticeably changed, and fewer African startups were accepted into the global accelerator. YC’s S22 batch had just eight African startups, a 63% decline from the previous cohort. Now, the latest W23 cohort welcomed only three startups from Africa, the lowest in recent years. Reports from industry watchers say the trend is traceable to YC’s refocus on US-focused startups, which comprised over 90% of the latest cohort. Indian startups, which historically trailed US startups in the number of accepted entries, recorded lesser acceptance in this cohort, with only 11 of them representing the region, compared to 33 in the winter batch last year. The trend is replicated across other regions, including Latin America, suggesting that Africa is not alone as it watches YC moonwalk from its heavy lifting across the world. But unlike India and some of these other economies, Africa’s technology ecosystem is just beginning to fledge, and YC’s presence directs much-needed attention to the continent, enabling more funding and growth opportunities. Implications for the African tech ecosystem Given YC’s outsized role in the African tech funding market, it’s easy to imagine a gloomy picture for the continent should the global accelerator decide to shelve its pan-African ambitions. Many African startups—such as Healthlane—credit the turning point in their businesses to the accelerator. Healthlane had failed to secure institutional investment after trying for two years, then they got into YC, and a $2.4 million funding followed. So, if YC gets blurry in the African tech picture, what happens to our nascent ecosystem? Joshua Marima, head of engagement and investor relations at research firm Briter, believes that YC’s scaledown might impact the ability of founders to raise capital, but not in any way absolute as other accelerators and funding instruments are now operational on the continent. “Founders will feel the pinch of YC’s $500k being less available, but there are now several other sources of funding. We are also seeing several other international accelerators stepping up, such as the Techstars brand which recently announced an all-Africa cohort. Local accelerators are also being more deliberate,” he said in a chat with TechCabal. Marima’s opinions are echoed by a reality in African tech: numerous founders are raising significant capital—$1 million and more—without going through Y Combinator. Local funds worth over $10 million, such as Microtraction Community Limited and LoftyInc Afropreneur Fund 3 are on the table for Africans. This was not the case when YC first began to invest in African startups. The ecosystem is maturing fast on the back of the “Africa rising” narrative, which continues to position the continent as a choice destination for local and global investors. “There was an obvious funding gap when YC made its first strides on the continent. Nobody was writing big cheques for founders back then. I think YC contributed hugely to closing that gap as the case it today. Of course, we still need YC in the African tech picture, but no founder should ride with the idea that they cannot scale without YC’s ticket,” Osita Nwoye, TechCircle’s founder and longtime Africa tech pundit, said on a call with TechCabal. This gap Nwoye speaks about is recognised by global accelerator Techstars, whose CEO, Maelle Gavet, predicts that Africa will leapfrog Western Europe this year by producing more tech-powered startups. Bridging this funding gap is a priority for Techstars, demonstrated by their decision to set up shop in Lagos, Nigeria. The ARM Labs Lagos Techstars Accelerator’s head, Oyin Solebo, spoke to TechCabal for this piece. “I can’t comment on YC, but what I can tell you is that we [Techstars] continue to believe in the strength and potential of African entrepreneurs. This belief is supported by the result of our recent State of Innovation Research report, which demonstrates an increasing belief in innovation coming from Africa…and the importance of accelerators for the African ecosystem,” she said. The way forward There are arguments that it is probably too early to confirm YC’s scaledown in Africa—especially as their reduced footprint is at a
Read MoreWhere does YC’s scaleback leave the African tech ecosystem?
“I really hope that one day, YC will recognise the value of what I’m building and back my startup. That will be the game changer.” This is Ayo*, a Lagos-based founder, sharing his hopes of being selected into one of Y Combinator’s cohorts last year. Like many founders, Ayo associates YC’s acceptance with startup success. “The money, the network, the opportunities—nothing beats it,’ he added emphatically. Ayo’s startup did not make it to YC’s list in the end, but that has done nothing to his faith in the accelerator. He will continue to try until he gets in, he says—a possibility that is now much slimmer, given YC’s recent scale-back from Africa. Y Combinator (YC), one of the world’s leading startup accelerators, has been a major player in shaping Africa’s tech ecosystem since the middle of the past decade, when tech-powered upstarts began to spring across the continent. The accelerator has backed over a hundred startups, including some of the continent’s success stories such as Flutterwave, Wave, and the Stripe-acquired Paystack. A  report from last year, by research firm Briter Bridges, described YC’s portfolio companies as having the propensity to scale, evidenced by the over $1.3 billion follow-on funding raised by YC-backed companies. In a 2022 report by TechPoint, Michael Seibel, managing director and group partner at Y Combinator, spoke to the accelerator’s presence in Africa: “We continue to be impressed with the talent and ingenuity of African founders. We believe that African startup founders will be a massive part of the continued development of the continent.” But a sharp trend observed in YC’s latest cohorts suggests that the global accelerator may now be looking less at African (and other non-US) startups. About 50% of the startups YC funded in its 2021 summer batch were based outside the US—a move which, at the time, highlighted the accelerator’s increasing global presence. The W22 batch that followed recorded 24 startups from Africa, marking about 6% of startups in the cohort. After this cohort, the tide noticeably changed, and fewer African startups were accepted into the global accelerator. YC’s S22 batch had just eight African startups, a 63% decline from the previous cohort. Now, the latest W23 cohort welcomed only three startups from Africa, the lowest in recent years. Reports from industry watchers say the trend is traceable to YC’s refocus on US-focused startups, which comprised over 90% of the latest cohort. Indian startups, which historically trailed US startups in the number of accepted entries, recorded lesser acceptance in this cohort, with only 11 of them representing the region, compared to 33 in the winter batch last year. The trend is replicated across other regions, including Latin America, suggesting that Africa is not alone as it watches YC moonwalk from its heavy lifting across the world. But unlike India and some of these other economies, Africa’s technology ecosystem is just beginning to fledge, and YC’s presence directs much-needed attention to the continent, enabling more funding and growth opportunities. Implications for the African tech ecosystem Given YC’s outsized role in the African tech funding market, it’s easy to imagine a gloomy picture for the continent should the global accelerator decide to shelve its pan-African ambitions. Many African startups—such as Healthlane—credit the turning point in their businesses to the accelerator. Healthlane had failed to secure institutional investment after trying for two years, then they got into YC, and a $2.4 million funding followed. So, if YC gets blurry in the African tech picture, what happens to our nascent ecosystem? Joshua Marima, head of engagement and investor relations at research firm Briter, believes that YC’s scaledown might impact the ability of founders to raise capital, but not in any way absolute as other accelerators and funding instruments are now operational on the continent. “Founders will feel the pinch of YC’s $500k being less available, but there are now several other sources of funding. We are also seeing several other international accelerators stepping up, such as the Techstars brand which recently announced an all-Africa cohort. Local accelerators are also being more deliberate,” he said in a chat with TechCabal. Marima’s opinions are echoed by a reality in African tech: numerous founders are raising significant capital—$1 million and more—without going through Y Combinator. Local funds worth over $10 million, such as Microtraction Community Limited and LoftyInc Afropreneur Fund 3 are on the table for Africans. This was not the case when YC first began to invest in African startups. The ecosystem is maturing fast on the back of the “Africa rising” narrative, which continues to position the continent as a choice destination for local and global investors. “There was an obvious funding gap when YC made its first strides on the continent. Nobody was writing big cheques for founders back then. I think YC contributed hugely to closing that gap as the case it today. Of course, we still need YC in the African tech picture, but no founder should ride with the idea that they cannot scale without YC’s ticket,” Osita Nwoye, TechCircle’s founder and longtime Africa tech pundit, said on a call with TechCabal. This gap Nwoye speaks about is recognised by global accelerator Techstars, whose CEO, Maelle Gavet, predicts that Africa will leapfrog Western Europe this year by producing more tech-powered startups. Bridging this funding gap is a priority for Techstars, demonstrated by their decision to set up shop in Lagos, Nigeria. The ARM Labs Lagos Techstars Accelerator’s head, Oyin Solebo, spoke to TechCabal for this piece. “I can’t comment on YC, but what I can tell you is that we [Techstars] continue to believe in the strength and potential of African entrepreneurs. This belief is supported by the result of our recent State of Innovation Research report, which demonstrates an increasing belief in innovation coming from Africa…and the importance of accelerators for the African ecosystem,” she said. The way forward There are arguments that it is probably too early to confirm YC’s scaledown in Africa—especially as their reduced footprint is at a
Read MoreWhere does YC’s scaleback leave the African tech ecosystem?
“I really hope that one day, YC will recognise the value of what I’m building and back my startup. That will be the game changer.” This is Ayo*, a Lagos-based founder, sharing his hopes of being selected into one of Y Combinator’s cohorts last year. Like many founders, Ayo associates YC’s acceptance with startup success. “The money, the network, the opportunities—nothing beats it,’ he added emphatically. Ayo’s startup did not make it to YC’s list in the end, but that has done nothing to his faith in the accelerator. He will continue to try until he gets in, he says—a possibility that is now much slimmer, given YC’s recent scale-back from Africa. Y Combinator (YC), one of the world’s leading startup accelerators, has been a major player in shaping Africa’s tech ecosystem since the middle of the past decade, when tech-powered upstarts began to spring across the continent. The accelerator has backed over a hundred startups, including some of the continent’s success stories such as Flutterwave, Wave, and the Stripe-acquired Paystack. A  report from last year, by research firm Briter Bridges, described YC’s portfolio companies as having the propensity to scale, evidenced by the over $1.3 billion follow-on funding raised by YC-backed companies. In a 2022 report by TechPoint, Michael Seibel, managing director and group partner at Y Combinator, spoke to the accelerator’s presence in Africa: “We continue to be impressed with the talent and ingenuity of African founders. We believe that African startup founders will be a massive part of the continued development of the continent.” But a sharp trend observed in YC’s latest cohorts suggests that the global accelerator may now be looking less at African (and other non-US) startups. About 50% of the startups YC funded in its 2021 summer batch were based outside the US—a move which, at the time, highlighted the accelerator’s increasing global presence. The W22 batch that followed recorded 24 startups from Africa, marking about 6% of startups in the cohort. After this cohort, the tide noticeably changed, and fewer African startups were accepted into the global accelerator. YC’s S22 batch had just eight African startups, a 63% decline from the previous cohort. Now, the latest W23 cohort welcomed only three startups from Africa, the lowest in recent years. Reports from industry watchers say the trend is traceable to YC’s refocus on US-focused startups, which comprised over 90% of the latest cohort. Indian startups, which historically trailed US startups in the number of accepted entries, recorded lesser acceptance in this cohort, with only 11 of them representing the region, compared to 33 in the winter batch last year. The trend is replicated across other regions, including Latin America, suggesting that Africa is not alone as it watches YC moonwalk from its heavy lifting across the world. But unlike India and some of these other economies, Africa’s technology ecosystem is just beginning to fledge, and YC’s presence directs much-needed attention to the continent, enabling more funding and growth opportunities. Implications for the African tech ecosystem Given YC’s outsized role in the African tech funding market, it’s easy to imagine a gloomy picture for the continent should the global accelerator decide to shelve its pan-African ambitions. Many African startups—such as Healthlane—credit the turning point in their businesses to the accelerator. Healthlane had failed to secure institutional investment after trying for two years, then they got into YC, and a $2.4 million funding followed. So, if YC gets blurry in the African tech picture, what happens to our nascent ecosystem? Joshua Marima, head of engagement and investor relations at research firm Briter, believes that YC’s scaledown might impact the ability of founders to raise capital, but not in any way absolute as other accelerators and funding instruments are now operational on the continent. “Founders will feel the pinch of YC’s $500k being less available, but there are now several other sources of funding. We are also seeing several other international accelerators stepping up, such as the Techstars brand which recently announced an all-Africa cohort. Local accelerators are also being more deliberate,” he said in a chat with TechCabal. Marima’s opinions are echoed by a reality in African tech: numerous founders are raising significant capital—$1 million and more—without going through Y Combinator. Local funds worth over $10 million, such as Microtraction Community Limited and LoftyInc Afropreneur Fund 3 are on the table for Africans. This was not the case when YC first began to invest in African startups. The ecosystem is maturing fast on the back of the “Africa rising” narrative, which continues to position the continent as a choice destination for local and global investors. “There was an obvious funding gap when YC made its first strides on the continent. Nobody was writing big cheques for founders back then. I think YC contributed hugely to closing that gap as the case it today. Of course, we still need YC in the African tech picture, but no founder should ride with the idea that they cannot scale without YC’s ticket,” Osita Nwoye, TechCircle’s founder and longtime Africa tech pundit, said on a call with TechCabal. This gap Nwoye speaks about is recognised by global accelerator Techstars, whose CEO, Maelle Gavet, predicts that Africa will leapfrog Western Europe this year by producing more tech-powered startups. Bridging this funding gap is a priority for Techstars, demonstrated by their decision to set up shop in Lagos, Nigeria. The ARM Labs Lagos Techstars Accelerator’s head, Oyin Solebo, spoke to TechCabal for this piece. “I can’t comment on YC, but what I can tell you is that we [Techstars] continue to believe in the strength and potential of African entrepreneurs. This belief is supported by the result of our recent State of Innovation Research report, which demonstrates an increasing belief in innovation coming from Africa…and the importance of accelerators for the African ecosystem,” she said. The way forward There are arguments that it is probably too early to confirm YC’s scaledown in Africa—especially as their reduced footprint is at a
Read MoreWhere does YC’s scaleback leave the African tech ecosystem?
“I really hope that one day, YC will recognise the value of what I’m building and back my startup. That will be the game changer.” This is Ayo*, a Lagos-based founder, sharing his hopes of being selected into one of Y Combinator’s cohorts last year. Like many founders, Ayo associates YC’s acceptance with startup success. “The money, the network, the opportunities—nothing beats it,’ he added emphatically. Ayo’s startup did not make it to YC’s list in the end, but that has done nothing to his faith in the accelerator. He will continue to try until he gets in, he says—a possibility that is now much slimmer, given YC’s recent scale-back from Africa. Y Combinator (YC), one of the world’s leading startup accelerators, has been a major player in shaping Africa’s tech ecosystem since the middle of the past decade, when tech-powered upstarts began to spring across the continent. The accelerator has backed over a hundred startups, including some of the continent’s success stories such as Flutterwave, Wave, and the Stripe-acquired Paystack. A  report from last year, by research firm Briter Bridges, described YC’s portfolio companies as having the propensity to scale, evidenced by the over $1.3 billion follow-on funding raised by YC-backed companies. In a 2022 report by TechPoint, Michael Seibel, managing director and group partner at Y Combinator, spoke to the accelerator’s presence in Africa: “We continue to be impressed with the talent and ingenuity of African founders. We believe that African startup founders will be a massive part of the continued development of the continent.” But a sharp trend observed in YC’s latest cohorts suggests that the global accelerator may now be looking less at African (and other non-US) startups. About 50% of the startups YC funded in its 2021 summer batch were based outside the US—a move which, at the time, highlighted the accelerator’s increasing global presence. The W22 batch that followed recorded 24 startups from Africa, marking about 6% of startups in the cohort. After this cohort, the tide noticeably changed, and fewer African startups were accepted into the global accelerator. YC’s S22 batch had just eight African startups, a 63% decline from the previous cohort. Now, the latest W23 cohort welcomed only three startups from Africa, the lowest in recent years. Reports from industry watchers say the trend is traceable to YC’s refocus on US-focused startups, which comprised over 90% of the latest cohort. Indian startups, which historically trailed US startups in the number of accepted entries, recorded lesser acceptance in this cohort, with only 11 of them representing the region, compared to 33 in the winter batch last year. The trend is replicated across other regions, including Latin America, suggesting that Africa is not alone as it watches YC moonwalk from its heavy lifting across the world. But unlike India and some of these other economies, Africa’s technology ecosystem is just beginning to fledge, and YC’s presence directs much-needed attention to the continent, enabling more funding and growth opportunities. Implications for the African tech ecosystem Given YC’s outsized role in the African tech funding market, it’s easy to imagine a gloomy picture for the continent should the global accelerator decide to shelve its pan-African ambitions. Many African startups—such as Healthlane—credit the turning point in their businesses to the accelerator. Healthlane had failed to secure institutional investment after trying for two years, then they got into YC, and a $2.4 million funding followed. So, if YC gets blurry in the African tech picture, what happens to our nascent ecosystem? Joshua Marima, head of engagement and investor relations at research firm Briter, believes that YC’s scaledown might impact the ability of founders to raise capital, but not in any way absolute as other accelerators and funding instruments are now operational on the continent. “Founders will feel the pinch of YC’s $500k being less available, but there are now several other sources of funding. We are also seeing several other international accelerators stepping up, such as the Techstars brand which recently announced an all-Africa cohort. Local accelerators are also being more deliberate,” he said in a chat with TechCabal. Marima’s opinions are echoed by a reality in African tech: numerous founders are raising significant capital—$1 million and more—without going through Y Combinator. Local funds worth over $10 million, such as Microtraction Community Limited and LoftyInc Afropreneur Fund 3 are on the table for Africans. This was not the case when YC first began to invest in African startups. The ecosystem is maturing fast on the back of the “Africa rising” narrative, which continues to position the continent as a choice destination for local and global investors. “There was an obvious funding gap when YC made its first strides on the continent. Nobody was writing big cheques for founders back then. I think YC contributed hugely to closing that gap as the case it today. Of course, we still need YC in the African tech picture, but no founder should ride with the idea that they cannot scale without YC’s ticket,” Osita Nwoye, TechCircle’s founder and longtime Africa tech pundit, said on a call with TechCabal. This gap Nwoye speaks about is recognised by global accelerator Techstars, whose CEO, Maelle Gavet, predicts that Africa will leapfrog Western Europe this year by producing more tech-powered startups. Bridging this funding gap is a priority for Techstars, demonstrated by their decision to set up shop in Lagos, Nigeria. The ARM Labs Lagos Techstars Accelerator’s head, Oyin Solebo, spoke to TechCabal for this piece. “I can’t comment on YC, but what I can tell you is that we [Techstars] continue to believe in the strength and potential of African entrepreneurs. This belief is supported by the result of our recent State of Innovation Research report, which demonstrates an increasing belief in innovation coming from Africa…and the importance of accelerators for the African ecosystem,” she said. The way forward There are arguments that it is probably too early to confirm YC’s scaledown in Africa—especially as their reduced footprint is at a
Read MoreWhere does YC’s scaleback leave the African tech ecosystem?
“I really hope that one day, YC will recognise the value of what I’m building and back my startup. That will be the game changer.” This is Ayo*, a Lagos-based founder, sharing his hopes of being selected into one of Y Combinator’s cohorts last year. Like many founders, Ayo associates YC’s acceptance with startup success. “The money, the network, the opportunities—nothing beats it,’ he added emphatically. Ayo’s startup did not make it to YC’s list in the end, but that has done nothing to his faith in the accelerator. He will continue to try until he gets in, he says—a possibility that is now much slimmer, given YC’s recent scale-back from Africa. Y Combinator (YC), one of the world’s leading startup accelerators, has been a major player in shaping Africa’s tech ecosystem since the middle of the past decade, when tech-powered upstarts began to spring across the continent. The accelerator has backed over a hundred startups, including some of the continent’s success stories such as Flutterwave, Wave, and the Stripe-acquired Paystack. A  report from last year, by research firm Briter Bridges, described YC’s portfolio companies as having the propensity to scale, evidenced by the over $1.3 billion follow-on funding raised by YC-backed companies. In a 2022 report by TechPoint, Michael Seibel, managing director and group partner at Y Combinator, spoke to the accelerator’s presence in Africa: “We continue to be impressed with the talent and ingenuity of African founders. We believe that African startup founders will be a massive part of the continued development of the continent.” But a sharp trend observed in YC’s latest cohorts suggests that the global accelerator may now be looking less at African (and other non-US) startups. About 50% of the startups YC funded in its 2021 summer batch were based outside the US—a move which, at the time, highlighted the accelerator’s increasing global presence. The W22 batch that followed recorded 24 startups from Africa, marking about 6% of startups in the cohort. After this cohort, the tide noticeably changed, and fewer African startups were accepted into the global accelerator. YC’s S22 batch had just eight African startups, a 63% decline from the previous cohort. Now, the latest W23 cohort welcomed only three startups from Africa, the lowest in recent years. Reports from industry watchers say the trend is traceable to YC’s refocus on US-focused startups, which comprised over 90% of the latest cohort. Indian startups, which historically trailed US startups in the number of accepted entries, recorded lesser acceptance in this cohort, with only 11 of them representing the region, compared to 33 in the winter batch last year. The trend is replicated across other regions, including Latin America, suggesting that Africa is not alone as it watches YC moonwalk from its heavy lifting across the world. But unlike India and some of these other economies, Africa’s technology ecosystem is just beginning to fledge, and YC’s presence directs much-needed attention to the continent, enabling more funding and growth opportunities. Implications for the African tech ecosystem Given YC’s outsized role in the African tech funding market, it’s easy to imagine a gloomy picture for the continent should the global accelerator decide to shelve its pan-African ambitions. Many African startups—such as Healthlane—credit the turning point in their businesses to the accelerator. Healthlane had failed to secure institutional investment after trying for two years, then they got into YC, and a $2.4 million funding followed. So, if YC gets blurry in the African tech picture, what happens to our nascent ecosystem? Joshua Marima, head of engagement and investor relations at research firm Briter, believes that YC’s scaledown might impact the ability of founders to raise capital, but not in any way absolute as other accelerators and funding instruments are now operational on the continent. “Founders will feel the pinch of YC’s $500k being less available, but there are now several other sources of funding. We are also seeing several other international accelerators stepping up, such as the Techstars brand which recently announced an all-Africa cohort. Local accelerators are also being more deliberate,” he said in a chat with TechCabal. Marima’s opinions are echoed by a reality in African tech: numerous founders are raising significant capital—$1 million and more—without going through Y Combinator. Local funds worth over $10 million, such as Microtraction Community Limited and LoftyInc Afropreneur Fund 3 are on the table for Africans. This was not the case when YC first began to invest in African startups. The ecosystem is maturing fast on the back of the “Africa rising” narrative, which continues to position the continent as a choice destination for local and global investors. “There was an obvious funding gap when YC made its first strides on the continent. Nobody was writing big cheques for founders back then. I think YC contributed hugely to closing that gap as the case it today. Of course, we still need YC in the African tech picture, but no founder should ride with the idea that they cannot scale without YC’s ticket,” Osita Nwoye, TechCircle’s founder and longtime Africa tech pundit, said on a call with TechCabal. This gap Nwoye speaks about is recognised by global accelerator Techstars, whose CEO, Maelle Gavet, predicts that Africa will leapfrog Western Europe this year by producing more tech-powered startups. Bridging this funding gap is a priority for Techstars, demonstrated by their decision to set up shop in Lagos, Nigeria. The ARM Labs Lagos Techstars Accelerator’s head, Oyin Solebo, spoke to TechCabal for this piece. “I can’t comment on YC, but what I can tell you is that we [Techstars] continue to believe in the strength and potential of African entrepreneurs. This belief is supported by the result of our recent State of Innovation Research report, which demonstrates an increasing belief in innovation coming from Africa…and the importance of accelerators for the African ecosystem,” she said. The way forward There are arguments that it is probably too early to confirm YC’s scaledown in Africa—especially as their reduced footprint is at a
Read MoreWhere does YC’s scaleback leave the African tech ecosystem?
“I really hope that one day, YC will recognise the value of what I’m building and back my startup. That will be the game changer.” This is Ayo*, a Lagos-based founder, sharing his hopes of being selected into one of Y Combinator’s cohorts last year. Like many founders, Ayo associates YC’s acceptance with startup success. “The money, the network, the opportunities—nothing beats it,’ he added emphatically. Ayo’s startup did not make it to YC’s list in the end, but that has done nothing to his faith in the accelerator. He will continue to try until he gets in, he says—a possibility that is now much slimmer, given YC’s recent scale-back from Africa. Y Combinator (YC), one of the world’s leading startup accelerators, has been a major player in shaping Africa’s tech ecosystem since the middle of the past decade, when tech-powered upstarts began to spring across the continent. The accelerator has backed over a hundred startups, including some of the continent’s success stories such as Flutterwave, Wave, and the Stripe-acquired Paystack. A  report from last year, by research firm Briter Bridges, described YC’s portfolio companies as having the propensity to scale, evidenced by the over $1.3 billion follow-on funding raised by YC-backed companies. In a 2022 report by TechPoint, Michael Seibel, managing director and group partner at Y Combinator, spoke to the accelerator’s presence in Africa: “We continue to be impressed with the talent and ingenuity of African founders. We believe that African startup founders will be a massive part of the continued development of the continent.” But a sharp trend observed in YC’s latest cohorts suggests that the global accelerator may now be looking less at African (and other non-US) startups. About 50% of the startups YC funded in its 2021 summer batch were based outside the US—a move which, at the time, highlighted the accelerator’s increasing global presence. The W22 batch that followed recorded 24 startups from Africa, marking about 6% of startups in the cohort. After this cohort, the tide noticeably changed, and fewer African startups were accepted into the global accelerator. YC’s S22 batch had just eight African startups, a 63% decline from the previous cohort. Now, the latest W23 cohort welcomed only three startups from Africa, the lowest in recent years. Reports from industry watchers say the trend is traceable to YC’s refocus on US-focused startups, which comprised over 90% of the latest cohort. Indian startups, which historically trailed US startups in the number of accepted entries, recorded lesser acceptance in this cohort, with only 11 of them representing the region, compared to 33 in the winter batch last year. The trend is replicated across other regions, including Latin America, suggesting that Africa is not alone as it watches YC moonwalk from its heavy lifting across the world. But unlike India and some of these other economies, Africa’s technology ecosystem is just beginning to fledge, and YC’s presence directs much-needed attention to the continent, enabling more funding and growth opportunities. Implications for the African tech ecosystem Given YC’s outsized role in the African tech funding market, it’s easy to imagine a gloomy picture for the continent should the global accelerator decide to shelve its pan-African ambitions. Many African startups—such as Healthlane—credit the turning point in their businesses to the accelerator. Healthlane had failed to secure institutional investment after trying for two years, then they got into YC, and a $2.4 million funding followed. So, if YC gets blurry in the African tech picture, what happens to our nascent ecosystem? Joshua Marima, head of engagement and investor relations at research firm Briter, believes that YC’s scaledown might impact the ability of founders to raise capital, but not in any way absolute as other accelerators and funding instruments are now operational on the continent. “Founders will feel the pinch of YC’s $500k being less available, but there are now several other sources of funding. We are also seeing several other international accelerators stepping up, such as the Techstars brand which recently announced an all-Africa cohort. Local accelerators are also being more deliberate,” he said in a chat with TechCabal. Marima’s opinions are echoed by a reality in African tech: numerous founders are raising significant capital—$1 million and more—without going through Y Combinator. Local funds worth over $10 million, such as Microtraction Community Limited and LoftyInc Afropreneur Fund 3 are on the table for Africans. This was not the case when YC first began to invest in African startups. The ecosystem is maturing fast on the back of the “Africa rising” narrative, which continues to position the continent as a choice destination for local and global investors. “There was an obvious funding gap when YC made its first strides on the continent. Nobody was writing big cheques for founders back then. I think YC contributed hugely to closing that gap as the case it today. Of course, we still need YC in the African tech picture, but no founder should ride with the idea that they cannot scale without YC’s ticket,” Osita Nwoye, TechCircle’s founder and longtime Africa tech pundit, said on a call with TechCabal. This gap Nwoye speaks about is recognised by global accelerator Techstars, whose CEO, Maelle Gavet, predicts that Africa will leapfrog Western Europe this year by producing more tech-powered startups. Bridging this funding gap is a priority for Techstars, demonstrated by their decision to set up shop in Lagos, Nigeria. The ARM Labs Lagos Techstars Accelerator’s head, Oyin Solebo, spoke to TechCabal for this piece. “I can’t comment on YC, but what I can tell you is that we [Techstars] continue to believe in the strength and potential of African entrepreneurs. This belief is supported by the result of our recent State of Innovation Research report, which demonstrates an increasing belief in innovation coming from Africa…and the importance of accelerators for the African ecosystem,” she said. The way forward There are arguments that it is probably too early to confirm YC’s scaledown in Africa—especially as their reduced footprint is at a
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