For decades, analysts have pointed to Africa’s tech startup ecosystem as one of the sectors with the biggest potential for driving economic growth and development. And while there have been some significant advances – in the last decade, for example, the number of African startups receiving funding has increased sevenfold – there’s also clearly a long way to go.
Even amidst rising global interest, very few African startups have been able to scale to the degree that a continent of more than a billion people with growing connectivity, education levels, and living standards, should warrant. There’s evidence of this everywhere, from the amounts of funding raised by African startups versus their US counterparts (US$3.2 billion, versus US$90 billion in 2024), the relative paucity of tech IPOs across the continent, and the shuttering of even well-funded startups.
So, how can the continent better meet its untapped potential? According to Alex de Bruyn, CEO of venture builder Let’sCreate, the answer lies in more sustainable modes of scaling. It’s something that Let’sCreate has leveraged itself.
Founded in January 2024, LetsCreate is bootstrapped and came out of DoshEx, a blockchain and digital asset company created in 2017. Today, it has R3.6 billion worth of revenue under management and has helped create digital commerce products used in more than 1000 stores, with successful digital commerce automation deployments in South Africa, Namibia, Nigeria, and Australia.
“Africa has incredible entrepreneurial talent,” he says. “But too often, they’re hampered by VC and fundraising models developed in Silicon Valley and aren’t suited to the African context. Instead, we should take an approach which allows them to take a longer, more sustainable approach to scaling without the pressures of rapid growth and quick exits.”
The opportunity: Africa’s startup moment
That’s intriguing, because in many ways there’s never been a better moment for African startups to meet their potential. There are more startups across Africa than ever, increased funding (up 50% for the first half of 2025), and growing digital adoption, particularly in major markets like South Africa, Nigeria and Kenya.
The biggest growth sectors – fintech, healthtech, edtech and ecommerce – are also increasingly geared towards meeting the continent’s needs. And, as De Bruyn notes, that’s a pivotal step on the path to success.
Africa, he says, is “a continent of builders with global impact potential. Key to them achieving their potential is solving small, painful problems that people and businesses encounter every day, but which no one talks about. There has never been a better moment for African startups to address those problems head-on.”
The challenges: Scaling beyond the early stage
Of course, De Bruyn notes, startups still face significant challenges, including access to capital, infrastructure, regulation and fragmented markets. The gap between early-stage ideas and scalable businesses also remains significant.
“Too many promising ventures stall not because of lack of vision, but because they lack the structures to scale,” he says.
Unlocking scale through venture building
A key part of the solution, he believes, is increased use of venture builders. Venture builders actively create, fund and scale startups in-house, providing hands-on operational support. Accelerators and incubators, by comparison, primarily offer mentorship, networking, and short-term funding to externally founded startups.
“At Let’sCreate, we believe that venture building is key to bridging the gap between ideas and lasting impact, particularly within the African context,” De Bruyn says. “That’s why we’ve adopted the venture builder model and help ventures with their tech stacks and resources, and offer extensive commercial expertise.”
“There are big benefits to our ecosystem-based approach,” he says. “Wherever possible, we push collaboration among the startups in our portfolio, from shared capabilities to portfolio synergies, and partner integrations.”
Looking ahead: Africa’s tech future
As De Bruyn notes, however, African startups need more than just venture builders to achieve sustainable growth and meet their potential.
“We also need supportive policy, investor confidence, and cross-border opportunities,” he says. “Those factors will only become more important as AI, automation, and digital commerce drive the next wave of growth.”
“Ultimately, the next decade belongs to startups that can scale responsibly and collaboratively,” he concludes. “And Africa’s future depends on building businesses that last.”
