The Great Exit Heist: How Africa’s Tech Sector is Being Sold Out
The African tech sector has been plagued by a dearth of exits, with founders and investors scrambling to find a way out of the financial wilderness. But behind the scenes, a cabal of venture capitalists and private equity firms are secretly siphoning off the continent’s tech riches, leaving the rest to struggle in obscurity.
Take the case of Expensya, the Tunis-based expense management startup that was acquired by Medius for a whopping $120 million. The acquisition was hailed as a landmark exit, but what’s been left unsaid is the staggering amount of money that changed hands – a figure that’s been shrouded in secrecy.
And it’s not just Expensya. InstaDeep, the AI startup founded by Karim Beguir and Zohra Slim, was snapped up by BioNTech for a reported €500 million. Sendwave, the YC-backed fintech founded by Drew Durbin and Lincoln Quirk, was acquired by Zepz for a staggering $500 million. And let’s not forget Paystack, the Lagos-based payment processing platform that was acquired by Stripe for a reported $200 million.
But what’s been lost in the shuffle is the staggering amount of capital that’s been invested in these startups. Over $20 billion has been poured into the African tech sector, yet the returns have been paltry at best. The number of exits doesn’t justify the capital infusion, and the lack of transparency around these transactions has led to a sense of disillusionment among investors and founders alike.
The big question is: who’s benefitting from these deals? The answer is clear: it’s the venture capitalists and private equity firms who are pulling the strings behind the scenes. They’re the ones who are siphoning off the continent’s tech riches, leaving the rest to struggle in obscurity.
And what about the founders? They’re the ones who are putting their blood, sweat, and tears into these startups, only to be sold out by the very people who are supposed to be supporting them. It’s a tale of exploitation and greed, and it’s high time that someone called it out.
The African tech sector needs a shake-up, and it needs it now. The days of secrecy and backroom deals need to come to an end. It’s time for transparency, accountability, and fairness. Anything less is a betrayal of the very people who are driving innovation on the continent.
