How do you value African startups (in Kenya)?
In recent years, the burgeoning African Angel Investing ecosystem is beginning to take shape and news of successful African start-ups is making make it on to the global stage – e.g. Cellulant, Twiga, Paygo Energy, etc. The knock-on effect is an increase in the demand for funding from growing number of start-ups across the continent which is met by limited supply in capital particularly from local Angel Investors.
More and more of the few active Angel Investors are also walking away from deals due to unreconcilable differences in valuation figures. This issue is not peculiar to Africa – angel investors in more mature ecosystems face the same issue. However, in Africa the issue is worsened by the absence of reliable internal data from start-ups, as well as external industry and market data.
So how do you value an African start-up in the absence of data?
We are hoping that this virtual round table discussion will provide a platform for seasoned Angel Investors in East Africa to educate others on how they have tackled this challenge.
This event would be a good learning opportunity for any investor (or entrepreneur) that is looking to access the rapidly growing African market.