For years, discussions around Africa’s startup ecosystem have revolved around one recurring question: How do we attract more venture capital?
According to GetEquity CEO Jude Dike, that may no longer be the right question.
Instead, he argues that the continent’s biggest challenge isn’t raising more money—it’s returning the money that’s already been invested.
Speaking during a CoinAfrica One-on-One interview, Dike said Africa’s next investment cycle will depend less on new funding announcements and more on successful startup exits that put cash back into investors’ pockets.
Venture capital runs on returns, not valuations
Africa has witnessed billions of dollars flow into startups over the past decade, producing several unicorns and record-breaking fundraising rounds.
Yet Dike believes fundraising headlines can sometimes mask a deeper issue.
Investors ultimately need money returned—not just higher valuations.
He explained that while startup valuations often dominate headlines, those figures remain largely theoretical until investors can exit their positions.
“As far as they’ve not IPO’d, it’s still paper money,” Dike said, referring to unrealized gains that cannot yet be recycled into new investments.
More exits create more investment
Dike’s argument is straightforward.
The venture capital ecosystem functions as a recycling engine.
Limited partners provide capital to venture funds.
Funds invest in startups.
Those startups eventually generate exits through acquisitions, secondary sales, or public listings.
The proceeds are then reinvested into the next generation of founders.
When exits slow, the entire cycle slows with them.
“We need to have a lot more exits,” Dike said.
He noted that investors need to see real returns before committing significantly more capital to African startups. According to Dike, despite billions invested across the continent over the past decade, only a fraction has been returned to investors.
GetEquity built around the idea of exits
Interestingly, this philosophy shaped GetEquity’s own investment strategy.
Rather than investing indefinitely, Dike explained that the company’s model focused on entering startups at the pre-seed stage before exiting around the pre-Series A stage.
“So, the strategy was always invest at pre-seed, exit pre-Series A.”
He added that the company has already completed approximately four exits from its publicly listed startup portfolio.
That approach demonstrates a broader principle: liquidity matters.
Capital that returns to investors can be deployed again, helping finance more founders and strengthen the broader ecosystem.
Why funding slowed after 2022
Dike also reflected on why venture capital became significantly harder to raise after 2022.
He linked the downturn to several overlapping developments, including the collapse of FTX and rising U.S. interest rates.
As safer investments such as Treasury bills began offering more attractive returns, many institutional investors shifted capital away from higher-risk venture investments.
Without fresh follow-on funding, many startups struggled to survive.
The result was a broader slowdown across the venture ecosystem.
Africa’s next chapter may look different
Rather than waiting for another record-breaking funding cycle, Dike believes Africa should focus on building companies capable of delivering meaningful investor returns.
Successful exits don’t just reward founders.
They restore investor confidence.
They recycle capital.
They encourage institutions to allocate more funds to African innovation.
In that sense, exits become one of the strongest signals that an ecosystem has matured beyond optimism into sustainable value creation.
CoinAfrica Takeaway
For years, Africa’s startup narrative has been dominated by funding announcements.
Jude Dike offers a different lens.
The continent doesn’t necessarily lack investor interest.
What it needs is a stronger track record of companies successfully returning capital to investors.
If Africa can produce more acquisitions, secondary sales and public listings, the next wave of funding may follow naturally—not because investors are optimistic, but because they’ve already seen the returns.
Key Takeaways
- Jude Dike believes Africa’s venture ecosystem needs more startup exits before it needs more funding.
- Investors recycle capital only after receiving actual returns, not higher paper valuations.
- GetEquity’s investment strategy focused on entering at pre-seed and exiting around pre-Series A.
- Rising U.S. interest rates and the post-FTX venture slowdown reduced capital available for startups.
- Stronger exit activity could unlock the next phase of long-term venture investment across Africa.
Read the full interview with Jude Dike here: GetEquity CEO Jude Dike on Tokenization, AI, and the Future of Africa’s Capital Markets
6 Comments
More successful exits are a positive sign that Africa’s startup ecosystem is continuing to mature.
Funding gets headlines, but exits build sustainable ecosystems. Returning value to investors is what keeps innovation moving forward.
Sustainable startup growth depends on successful exits that deliver real returns, not just bigger valuations.
Strong startup ecosystems are built not just on funding, but on successful exits that recycle capital and attract new investment.
Moving from unrealized valuation gains to real exit liquidity builds long-term investor confidence.
This is a very Valid take on the future of startups in Nigeria