Debt funding for tech startups – the African experience

  • Africa tech startups raised US$767mn in debt in 2021. Fintechs received more than half of this funding. Nigeria took 45%

  • For lenders, debt becomes more viable in later funding stages with more cashflow certainty and asset collateralisation

  • For tech startups, debt limits dilution, provides a cushion between equity rounds and can fund temporary cashflow needs

March 11th, 2022
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