A record number of African startups have failed this year. The tumultuous moment when a founder realizes they are tired can be unsettling. How have African startup founders handled this situation in the past, and what is the likelihood that they will follow similar paths as others? In this special report, we delve into the strategies adopted by African founders who have faced startup failure, as they navigate their new realities. Will they update their CVs, or confront the challenges of their new stations in life? Here’s what we found about African founders’ experiences with startup failure and their paths forward.
High transition to employment and high rate of corporate integration
A significant number of African founders (45.2%) transition to employment, indicating a preference for stability and security after the uncertainty of running a startup. Founders often find roles in relevant industries, leveraging the skills and experience gained from their startup ventures. This also suggests that many African founders possess valuable skills and experience that are highly sought after by larger corporations. Their entrepreneurial background makes them attractive candidates for leadership and innovation roles. In most cases, they head the innovation units of these bigger, established businesses.
Resilience and continued entrepreneurship
Nearly 33.9%of African founders immediately start new ventures when their startups fail, demonstrating resilience and a strong entrepreneurial drive. This pattern highlights a willingness to learn from past failures and continue pursuing innovative ideas. Again, many of the new ventures are closely related to the founders’ previous experiences, suggesting they apply lessons learned to new opportunities.
Significant preference for consulting
When an African startup fails, a notable percentage (6.5%) of founders immediately move into private consulting, indicating a desire to remain in control of their professional lives while sharing their expertise with other businesses. Consulting offers flexibility and independence, which might be appealing to founders who are used to the autonomy of running a startup.
Limited career breaks
Only a small fraction (4.8%) of African startup founders take career breaks, suggesting that most founders prefer to stay active in their professional lives even after a significant setback. The limited number of career breaks may also indicate mental resilience or a need to quickly regain financial stability. Career breaks could offer a period of rest and reflection after the intense experience of running a startup, or a opportunity to gain new skills and knowledge before re-entering the entrepreneurial or corporate world.
But only about 31.7% of African founders ever launch again after experiencing failure
The analysis also shows that once an African founder faces failure, a majority (68.3%) never return to pursue new ventures throughout their career history. Only a resilient 31.7% demonstrated an unwavering entrepreneurial spirit by founding new startups. This highlights a notable trend of perseverance within the African startup ecosystem, where a significant portion of founders leverage their learnings and experiences to navigate new entrepreneurial paths despite previous setbacks.
What specific factors influence African startup founders when making their transitions post-startup failure?
Industry Relevance: African founders often move to roles or start ventures within the same or related industries as their failed startups. This pattern shows a strategic use of their domain knowledge and networks.
High-Tech and Fintech Focus: Many new ventures and employment roles are in high-tech and fintech sectors, reflecting the founders’ inclination toward innovative and emerging industries.
Geographical Mobility: Some founders African founders move to roles or start ventures in different countries, indicating a willingness to relocate for better opportunities and the global nature of the startup ecosystem.
It is common to find African founders in leadership and advisory roles in major companies post-failure
- Leveraging Leadership Experience: Several founders take on leadership or advisory roles in new organizations, utilizing their entrepreneurial leadership experience to contribute to other businesses or startups.
- Mentorship and Influence: By joining advisory boards or becoming managing directors in accelerator programs, these founders continue to influence the startup ecosystem and mentor the next generation of entrepreneurs.
What This Could Mean for Stakeholders
- For Investors: Understanding these patterns can help investors identify resilient and experienced entrepreneurs who are likely to succeed in future ventures.
- For Policymakers: Insights into these patterns can guide the creation of supportive environments and programs that help founders transition smoothly post-failure.
- For Founders: Recognizing these patterns can provide reassurance and strategic guidance on possible next steps after a startup failure.
| S/N | Name of Startup | Primary Location | Founder’s Name | Nationality | Shutdown Year | Post-Liquidation Path | Ever Founded New Venture After Shutdown? (Name of New Startup) |
|---|---|---|---|---|---|---|---|
| 1 | Capiter | Egypt | i) Mahmoud Noah ii) Ahmed Nouh | Egypt | 2022 | i) Not Available ii) CEO, Ezz Steel Company, Egypt | i) Not Available ii) Not Available |
| 2 | Wala | South Africa | Tricia Martinez | USA | 2020 | Took up employment with the U.S. Department of Energy (DOE). Currently: MD, Techstars AI; After Serving two years as MD, Techstars Payments | i) Not Available |
| 3 | OyaPay | Nigeria | Abdulhamid Hassan | Nigeria | 2019 | Proceeded to Paystack as Product Manager. | Yes (Mono) |
| 4 | Kloud Commerce | Nigeria | Olumide ‘D.O’ Olusanya | Nigeria | 2022 | Returned to Cards Technology Limited, a company he founded in 2002. | Not Available |
| 5 | 54gene | Nigeria | i) Abasi Ene-Obong ii) Ogochukwu Francis Osifo | Nigeria | 2022 | i) Proceeded in 2023 to found Syndicate Bio, a biotech driving genomics and precision medicine initiatives. ii) Proceeded in 2022 to found Rayda,a startup providing businesses the infrastructure to acquire, manage, insure, track, and dispose of their fixed assets globally. | i) Yes (Syndicate Bio) ii) Yes (Rayda) |
| 6 | Kune Foods | Kenya | Robin Reecht | France | 2022 | Not Available | Not Available |
| 7 | WeFarm Shop | Kenya | i) Kenny Ewan ii) Claire Rhodes | i) Scotland ii) UK | 2022 | i) Proceeded in 2024 to start Nesta, a UK-based venture studio. ii) Was a Non Executive Director/Co-founder in WeFarm Shop. Has remained CEO at Producers Direct since 2009. | i) Yes (Venture Partner at UK-based VC firm, ZINC) ii) Yes, Producers Direct. |
| 8 | BRCK | Kenya | i) Erik Hersman ii) Jonathan Shuler iii) Philip Walton iv) Reg Orton | i) USA ii) USA iii) Not Available iv) Not Available | 2022 | i) Co-founded, in 2022, Gridless, a distributed, hydroelectric bitcoin mining infrastructure, before shutting down BRCK. Now runs Gridless alongside Philip Walton. ii) Left BRCK in 2014, 8 years before it shut down. iv) Reg Orton left BRCK to found Fresh Consulting, a Seattle-based product design and engineering consulting firm | i) Yes (Gridless) ii) Not available iii) Yes (Gridless) iv) Yes (Fresh Consulting) |
| 9 | Sky-Garden | Kenya | Martin Majlund | Denmark | 2022 | Took up employment as VP, Fleet & Roaming at Monta, a Copenhagen-based EV Charging Management Software management company. | Not available |
| 10 | Sendy | Kenya | i) Evanson Biwott ii) Don Okoth iii) Malaika Judd iv) Mesh Alloys | i) Kenya ii) Kenya iii) USA iv) Kenya | 2023 | i) Proceeded to co-found (alongside Don Okoth) RTM Africa, a software consulting firm, specialising in product development, product management, UX research and design. iii) Proceed, in 2024, to to become NDRC Accelerator – Managing Director at Dogpatch Labs. Dogpatch Labs is a startup and innovation hub located in Dublin, Ireland. iv) Took a 7 month career break, then proceeded to 2022 YC-backed Boya, a fintech company he founded in 2021. | i) Yes (RTM Africa) ii) Yes (RTM Africa) iii) Not available iv) Yes (Boya) |
| 11 | Snapt | South Africa | i) Dave Blakey ii) Douglas Cherry | South Africa | 2022 | i) Proceeded in 2022, to join Gauteng-based October Health as CTO. ii) Not Available (Additional Info: Former founding partner at 4Di Capital) | i) Not available ii) Not available |
| 12 | Pivo | Nigeria | i) Nkiru Amadi-Emina ii) Ijeoma Akwiwu | Nigeria | 2023 | i) Resumed private consulting services. ii) Proceeded to found UK-based AI startup (stealth mode) after | i) Not available ii) Not available |
| 13 | Passerine Aircraft | South Africa | Matthew Whalley | South Africa | 2020 | i) After a period of self-employment in 2020, transitioned to a Renewable Energy Engineer role at Balwin Properties, and currently serves as a Director at the company. | i) Not available |
| 14 | Tress | Ghana | i) Priscilla Hazel ii) Esther Olatunde iii) Cassandria Sarfo | i) Ghana ii) Nigeria iii) Ghana | 2018 | i) Proceeded to take up employment with Accra-based fintech Nsano Ltd as Business Fulfilment Executive. Currently Regional Director, West and Central Africa at the company. ii) Proceeded to take up employment as Product Engineer at Dublin-based Intercom. iii) Returned to employment. Currently, User Interface Developerat World Food Programme. | i) Not available ii) Not available iii) Not available |
| 15 | Greenshoe Capital Inc. (Also known as Saida) | Kenya | i) Ngetha Mwangi ii) Kyale Mwendwa | Kenya | 2022 | i) Returned to employment. Currently venture building engagement lead at Catalyst Fund, Kenya. ii) Not Available | i) Not available ii) Not available |
| 16 | Dash | Ghana | Prince Boakye Boampong | Ghana | 2023 | Not Available | Not available |
| 17 | WhereIsMyTransport | South Africa | i) Devin de Vries | South Africa | 2023 | Currently working on a stealth venture | Not available |
| 18 | Lazerpay | Nigeria | i) Emmanuel Njoku ii) Abdulfatai Sulaiman iii)Prosper Ubi | Nigeria | 2023 | i) Employment. ii) Proceeded to take up employment as software engineer at Paystack iii) Employment | i) Yes (SuperMigrate) ii) Yes, BlockradarHQ iii) Not Available |
| 19 | Zazuu | Africa | i) Kayode Akinwunmi ii) Korede FaNot Availableola iii) Tola Alade iv) Tosin Ekolie | Nigeria | 2023 | i) Not Available ii) Not Available iii) Self-employment at a digital media company. iv) Not Available | i) Not Available ii) Not Available iii) Yes, Marmalade Ventures iv) Not Available |
| 20 | Bundle Africa | Nigeria | Yele Badamosi | Nigeria | 2023 | Left in 2021 before shutdown to co-found Nestcoin, a startup that builds, operates and invests in crypto-native products | Yes, Nestcoin |
| 21 | Vibra | Africa | Vincent Li | China | 2023 | Continued as the founding Partner at investment firm Adaverse as well as co-founded NODO, a pan-African Web3 Discovery & News service powered by EMURGO Africa | Yes (NODO; Adaverse) |
| 22 | MarketForce | Kenya | i) Mesongo Sibuti ii) Tesh Mbaabu | Kenya | 2023 | Both co-founders left to co-found Chpter, a social commerce startup. | Yes (Chpter) |
| 23 | Zumi | Kenya | i) William McCarren ii) Mohamed Nuur iii) Sabrina Dorman iv) Tomas Rosales v ) Eric Njogu | i) UK ii) Kenya iii) US iv) Norway v) Kenya | 2023 | i) Proceeded in 2023 to co-found FARO Africa, a retail apparel and fashion startup. ii) Proceeded in 2024 to found Rapid Tech Insights, an IT & Software consultancy company iii) Private Consulting iv) Took up employment as director of global operations at Koko Networks. v) Took up employment as chief operating officer at an international NGO, Adeso. | i) Yes (FARO) ii) Yes, Rapid Tech Insights iii) Not available iv) Not available v) Not available |
| 24 | ThePeer | Nigeria | i) Chike Ononye ii) Michael Okoh | Nigeria | 2024 | Not available | Not available |
| 25 | Afrostream | Africa | i) Tonjé Bakang ii) Ludovic Bostral | i) Cameroon ii) France | 2017 | i) Proceeded in 2018 to become a university lecturer at Sciences Po ii) Proceeded to take up employment as director of innovation at Pixagility. | i) Yes (Onscale) ii) Not available |
| 26 | DealDey | Nigeria | Sim Shagaya | Nigeria | 2019 | Proceeded to start uLesson | Yes (uLesson) |
| 27 | Efritin | Nigeria | Nils Hammar | Sweden | 2017 | Returned to Saltside Technologies, an online marketplace which he was running concurrently with Efritin at the time. | Yes (Saltside Technologies) |
| 28 | Bkam | Bkam | Mahmoud Abdel-Fattah Moursy | Egypt | 2016 | Took up employment as product manager at Careem | Yes (ZIDO) |
| 29 | Wabona | Africa | i) Simbarashe Mabasha ii) Simukayi Mukuna | i) Zimbabwe ii) Zimbabwe | 2015 | i) Returned to Afrikan Dust Media Group, which he was running concurrently with Wabona at the time. ii) Took up employment as business development manager at WeChat Africa | i) Yes (The Shava Group) ii) Yes (Gallo Music Investments) |
| 30 | GoMyWay | Nigeria | Damilola Teidi | Nigeria | 2017 | Took up employment as Incubation Manager at Co-creation Hub (CcHUB) | Not Available |
| 31 | Showroom.ng | Nigeria | Sheriff Shittu | Nigeria | 2016 | Started a new venture Switch Innovation Express | Yes (Switch Innovation Express) |
| 32 | Nezal Entertainment | Egypt | Muhammad Ali | Egypt | 2016 | Took up employment as product manager at Google. | Not Available |
| 33 | Cirqy | Egypt | i)Kareem El-Shaffei ii) Mostafa Talaat | Egypt | 2014 | i) Took up employment as head of business development for marketplace at Souq.com ii) Took up employment as senior brand manager at Coca Cola | i) Not Available ii) Not Available |
| 34 | Redbird | Ghana | i) Patrick Beattie ii) Andrew Quao iii) Edward Grandstaff. | i) USA ii) Ghana iii) USA | 2023 | i) Returned to private consultancy services ii) Left before the company’s failure iii) Took up employment as head of business applications at the Norway-based bulking Shipping Company, Western Bulk. | i) Not available ii) Not available iii) Not available |
| 35 | CanGo (formerly SafeMotos) | DRC | i) Barrett Nash ii) Peter Kariuki | i) USA ii) Kenya | 2020 | i) Took up employment as partnership manager at US-based software development company Adalo. ii) Took up employment as senior software engineer at the London-based IT company Circulor. | i) Yes ( InfiniteUp) ii) Not available |
| 36 | iProcure | Kenya | i)Stefano Carcoforo ii)Nicole Galletta iii)Patrick Wanjohi iv) Bernard Maingi | i) Italy ii) Italy iii) Kenya iv) Kenya | 2023 | i) Not Available ii) Not Available iii) Not Available iv) Not Available | i) Not Available ii) Not Available iii) Not Available iv) Not Available |
| 37 | Pillow (Cryptocurrency) | Africa | i) Arindam Roy ii) Rajath KM iii) Kartik Mishra | India | 2023 | i) Took up employment as head of business and product at Scapia. ii) Career Break iii) Career Break | i) Not Available ii) Not Available iii) Not Available |
| 38 | Ousta | Egypt | i) Nader El-Batrawi ii) Omar Salah. | Egypt | 2017 | i) Returned to Jobzella, a startup he was running concurrently with Ousta ii) Not available | Yes (Jobzella) ii) Not available |
| 39 | Nefsak | Egypt | Sherif Nassar | Egypt | 2016 | Not available | Not available |
| 40 | Zoto | Nigeria | Oshone Ikazoboh | Nigeria | 2020 | Embarked on a 1 year founder in residence program at Cape-town based Startupbootcamp, after which he was head, payment services company (Hydrogen) at Access Bank Plc. | Not available |
| 41 | Cova | Nigeria | i) Olu’yomi Ojo ii) Yomi Osamiluyi | Nigeria | 2023 | i) Career Break ii) Took up employment at Canada-based Wealthsimple as security engineering manager | i) Not available ii) Not available |
| 42 | BuyCoins Pro | Nigeria | i) Timi Ajiboye ii) Ire Aderinokun iii) Tomiwa Lasebikan | Nigeria | 2024 | i) Proceeded to found GandalfConnect, an SDK for getting user data from any service (i.e Amazon, YouTube, Instacart, Uber etc). ii) Not available iii) Not available | i) Yes (GandalfConnect) ii) Not available iii) Not available |
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