* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Monday, August 25, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    ‘When Calls the Heart’ Fans All Want the Same Thing After Seeing the Show’s Latest Update – yahoo.com

    When Calls the Heart’ Fans Rally Together in Excitement Over Exciting New Update!

    Quotes of the Week: Peacemaker, Project Runway, Countdown and More – yahoo.com

    This Week’s Most Memorable Quotes from Peacemaker, Project Runway, Countdown, and More!

    Drake Appears in Teaser for Bobbi Althoff’s New Podcast ‘Not This Again’ – yahoo.com

    Drake Drops a Surprise Cameo in Bobbi Althoff’s Thrilling New Podcast Teaser ‘Not This Again

    From polka to Poison, Corn Palace adjusts entertainment offerings with the times – Mitchell Republic

    From polka to Poison, Corn Palace adjusts entertainment offerings with the times – Mitchell Republic

    How to watch ‘F1: The Movie’ on Prime Video – About Amazon

    Experience the Thrill: How to Stream ‘F1: The Movie’ on Prime Video

    FOX One is now available on Prime Video: Here’s everything to know – About Amazon

    FOX One is now available on Prime Video: Here’s everything to know – About Amazon

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Figure Technology Solutions, Inc. Files Registration Statement for Proposed Initial Public Offering – Business Wire

    Figure Technology Solutions, Inc. Unveils Exciting Plans for Its Upcoming Initial Public Offering

    UNLV Responds to Workforce Need with Microcredential in Nuclear Technology – University of Nevada, Las Vegas | UNLV

    UNLV Unveils Cutting-Edge Microcredential Program to Fuel Growth in Nuclear Technology

    Why Technology Will Never Take Over Completely – Patheos

    Why Technology Will Never Completely Control Our Lives

    Alcorn State awarded grant to boost STEM with VR technology – WJTV

    Alcorn State Secures Grant to Transform STEM Education Through Cutting-Edge VR Technology

    Hyundai: The Only Way To Beat China Is To Embrace Technology – InsideEVs

    Hyundai’s Bold Strategy to Outpace China with Cutting-Edge Technology

    Teaching older adults how to use technology – WWNY

    Empowering Older Adults to Master Technology with Confidence

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    ‘When Calls the Heart’ Fans All Want the Same Thing After Seeing the Show’s Latest Update – yahoo.com

    When Calls the Heart’ Fans Rally Together in Excitement Over Exciting New Update!

    Quotes of the Week: Peacemaker, Project Runway, Countdown and More – yahoo.com

    This Week’s Most Memorable Quotes from Peacemaker, Project Runway, Countdown, and More!

    Drake Appears in Teaser for Bobbi Althoff’s New Podcast ‘Not This Again’ – yahoo.com

    Drake Drops a Surprise Cameo in Bobbi Althoff’s Thrilling New Podcast Teaser ‘Not This Again

    From polka to Poison, Corn Palace adjusts entertainment offerings with the times – Mitchell Republic

    From polka to Poison, Corn Palace adjusts entertainment offerings with the times – Mitchell Republic

    How to watch ‘F1: The Movie’ on Prime Video – About Amazon

    Experience the Thrill: How to Stream ‘F1: The Movie’ on Prime Video

    FOX One is now available on Prime Video: Here’s everything to know – About Amazon

    FOX One is now available on Prime Video: Here’s everything to know – About Amazon

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Figure Technology Solutions, Inc. Files Registration Statement for Proposed Initial Public Offering – Business Wire

    Figure Technology Solutions, Inc. Unveils Exciting Plans for Its Upcoming Initial Public Offering

    UNLV Responds to Workforce Need with Microcredential in Nuclear Technology – University of Nevada, Las Vegas | UNLV

    UNLV Unveils Cutting-Edge Microcredential Program to Fuel Growth in Nuclear Technology

    Why Technology Will Never Take Over Completely – Patheos

    Why Technology Will Never Completely Control Our Lives

    Alcorn State awarded grant to boost STEM with VR technology – WJTV

    Alcorn State Secures Grant to Transform STEM Education Through Cutting-Edge VR Technology

    Hyundai: The Only Way To Beat China Is To Embrace Technology – InsideEVs

    Hyundai’s Bold Strategy to Outpace China with Cutting-Edge Technology

    Teaching older adults how to use technology – WWNY

    Empowering Older Adults to Master Technology with Confidence

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Technology

Next Wave: Venture capital is undergoing a reset but no one is changing

November 27, 2023
in Technology
Next Wave: Venture capital is undergoing a reset but no one is changing
Share on FacebookShare on Twitter

First published 26 November 2023

I’m wondering what is changing about how VCs, founders and startup stakeholders (employees and consultants alike) think about how to operate in Africa. No plaititudes. No cached sentences.

Most of the money that goes into venture capital investments in African startups comes from sources outside Africa. If anything is happening to those investors, it affects the capital African companies get. Especially as the continent’s local pool of private and public capital remains severely stunted. Thus, if there is a reset in the practices of firms that channel money into African startups either as venture capitalists (VCs) or as limited partners (LPs), the effect will trickle down to the continent. It’s a no-brainer.

And things are happening. “Fifty-six percent of European VCs haven’t returned capital to their LPs in the last 12 months,” Amy Lewin of Sifted reported almost two weeks ago. In the United States, the story is similar: “Pressure from LPs is poised to intensify while funding for VC firms remains in the pits,” The Information’s Kate Clark wrote recently.

The meaning of this is simple. Investors of all stripes evaluate macro-risk (the overall state of the economy) when they choose to make investments. Africa’s overall economic landscape is challenging enough as it is. However, the deteriorating state of major and mid-size economies outside of Africa is an additional but second-hand macro-risk which investors have to pre-consider before even allocating capital to opportunities in Africa.

By the way, this is not only affecting venture capital or tech. Take China for example. The Asian giant and second-largest economy in the world has seen a steep crash in the amount of foreign investment that it receives. The real estate sector is under immense pressure and local banks are vulnerable—a consequence of years of poor risk management and assumptions. On the other side of the coin, official loans from the Chinese government to African countries have dropped by more than 87% from their peak in 2016. Globally, China’s Belt and Road Initiative is losing steam. And this is despite an expansion in the BRICS+ group of countries.

Source: Reuters

This is just one oversimplified example of how the macro-risk Africa faces is not only African. Today, the macro-risk calculus is first a discount of the tradeoffs between American, European and Asian risk, even before African risk is modelled.

Africa’s n-body problem

In classical physics, the n-body problem is the problem of predicting the effect the gravitation fields of individual celestial objects like moons, stars and planets have on each other as they move in orbit. Understanding the n-body problem helps astronomers understand how the earth-sun-moon system works. In general, it’s a useful mental model to think about how complex bodies affect each other.

One important characteristic of this physics phenomenon is that it is a problem that cannot be solved by analysis because it is constantly changing. The world of business is the same. The factors, especially in this day and age, are constantly in motion.

Africa’s n-body problem is something that investors have dealt with for a long time without recognising it as such. It is the complex interplay between a low-depth private and public capital market, capital from foreign partners or development agencies with missions that are not always aligned, and a base of startups or deal-flow that are often created to follow trending narratives rather than create outlier value.

All the above sit on precarious economic situationships that are themselves another type of an n-body problem. The first part of this essay discusses how the economics of Africa are further complicated by dependence on global economics. But in late 2020, and up to the first few months of the third quarter of 2022, Africa’s investors seemed to have found stability in the quick pace of markups and flowing cash. That stability is long gone today, but I see little sense of urgency to get ahead of the curve. I am yet to find attempts to define and find another centre of gravity. Everyone seems to hope that with the turn of New Year’s Eve, things will begin to get better, i.e. return to 2021. But that is a mistake.

Article continues after this ad

Ad for Bluechip

Join us at the #BluechipDataandAISummit: Building an Effective Data and AI Solution. Shape the future of your business and industry with data-driven intelligence, innovative solutions and sustainable growth.

Secure your seat today

“It is not necessary to change. [Only because] survival is not mandatory”

If seed-stage investors and founders created wealth and returned capital because big funds from the US and Europe bought a stake in their companies, how would they create wealth or return capital today when the big money is in retreat? If LPs are punishing VCs who mindlessly played the pass-the-burnt-potatoes game in 2021, what lessons are the investors learning? If we played the power law to its breaking point, where do we start to pick up the pieces? And lastly, as Dan Gray of Equidam asks, “If there’s an impending cull of early-stage VCs, which group will survive? The actual performers, or the best networked?”

Last week, I wrote: “If the venture capital story is not working then maybe investors in Africa need to create something new. If however the philosophies that underpin venture capital are intrinsically undamaged, then we ought to look elsewhere to find the mismatch in expectations.”

“Things change and evolve,” Morgan Housel, founder of Collab Fund, wrote last week, “so the phrase ‘this is how we’ve always done it’ should be replaced with ‘what do we need right now?’ A full reset, unburdened by the past.” (Emphasis mine). In other words, the environment has changed too much to pursue previous assumptions as infallible.

If you are a founder, investor or even tech employee, what infallible assumptions are you ditching? What part of the n-body problem are you leaning on to find stability? I have seen a lot of schadenfreude from the few investors who may have escaped being burnt badly. But even they make the mistake of assuming things will return to the way they were before. Spoiler alert. They won’t.

Next Wave ad

Why will you not be at Art of Technology Lagos?

This year’s edition og AOT Lagos, is a platform to light up the tech scene, make history, and anticipate another creative revolution as they gear up to forge connections with thought leaders and seek collaborative partnerships with investors

Register to attend – for free

Abraham Augustine,

Senior Reporter, TechCabal.

Feel free to email abraham[at]bigcabal.com, with your thoughts about this edition of NextWave. Or just click reply to share your thoughts and feedback.

We’d love to hear from you

Psst! Down here!

Thanks for reading today’s Next Wave. Please share. Or subscribe if someone shared it to you here for free to get fresh perspectives on the progress of digital innovation in Africa every Sunday.

As always feel free to email a reply or response to this essay. I enjoy reading those emails a lot.

TC Daily newsletter is out daily (Mon – Fri) brief of all the technology and business stories you need to know. Get it in your inbox each weekday at 7 AM (WAT).

Follow TechCabal on Twitter, Instagram, Facebook, and LinkedIn to stay engaged in our real-time conversations on tech and innovation in Africa.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : TechCabal – https://techcabal.com/2023/11/27/vc-reset-without-changing/

Tags: Capitaltechnologyventure
Previous Post

Champions League permutations: Man Utd and Newcastle on brink of early exits?

Next Post

USSD codes for GTB, FCMB, UBA, and Fidelity Bank

Dengue – World Health Organization (WHO)

Dengue – World Health Organization (WHO)

August 25, 2025
5 Years On, China’s Property Crisis Has No End in Sight – The New York Times

Five Years Later, China’s Property Crisis Shows No Signs of Easing

August 25, 2025
‘When Calls the Heart’ Fans All Want the Same Thing After Seeing the Show’s Latest Update – yahoo.com

When Calls the Heart’ Fans Rally Together in Excitement Over Exciting New Update!

August 25, 2025
State regulators approve sharp health insurance rate increases – Insurance Business America

State Regulators Greenlight Steep Health Insurance Rate Hikes

August 25, 2025
Pols & Politics: Audit finds Mass. government fraudulent spending nearly doubled in Q4 – Boston Herald

Pols & Politics: Audit finds Mass. government fraudulent spending nearly doubled in Q4 – Boston Herald

August 25, 2025
Eightmile Dam rebuild & restoration – Washington State Department of Ecology (.gov)

Breathing New Life into Eightmile Dam: An Ambitious Rebuild and Restoration Effort

August 24, 2025
Scientists Sequenced the DNA of the ‘Last Neanderthal’—and It Alters Human History – yahoo.com

Scientists Unlock the DNA of the ‘Last Neanderthal,’ Revolutionizing Our View of Human History

August 24, 2025
RIKEN, Japan’s Leading Science Institute, Taps Fujitsu and NVIDIA for Next Flagship Supercomputer – NVIDIA Blog

Japan’s Leading Science Institute Teams Up with Fujitsu and NVIDIA to Create Next-Generation Supercomputer

August 24, 2025
Is a relief rally coming for Equity LifeStyle Properties Inc. holders – July 2025 Retail & Weekly High Return Opportunities – Newser

Is a relief rally coming for Equity LifeStyle Properties Inc. holders – July 2025 Retail & Weekly High Return Opportunities – Newser

August 24, 2025
Figure Technology Solutions, Inc. Files Registration Statement for Proposed Initial Public Offering – Business Wire

Figure Technology Solutions, Inc. Unveils Exciting Plans for Its Upcoming Initial Public Offering

August 24, 2025

Categories

Archives

August 2025
MTWTFSS
 123
45678910
11121314151617
18192021222324
25262728293031
« Jul    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (788)
  • Economy (809)
  • Entertainment (21,688)
  • General (16,657)
  • Health (9,849)
  • Lifestyle (821)
  • News (22,149)
  • People (810)
  • Politics (818)
  • Science (16,020)
  • Sports (21,307)
  • Technology (15,789)
  • World (790)

Recent News

Dengue – World Health Organization (WHO)

Dengue – World Health Organization (WHO)

August 25, 2025
5 Years On, China’s Property Crisis Has No End in Sight – The New York Times

Five Years Later, China’s Property Crisis Shows No Signs of Easing

August 25, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version