Looking Set for 2023 with The Ouut
It is difficult to tell what happens in Africa’s startup funding space in 2023, here at the Ouut we are anticipating a bumper year. While founders and innovators remain hopeful for venture funding this year, last year’s chaotic end will keep everyone (investors and founders) cautious about startup activities in Africa. Per Crunchbase analysis, investors are likely to hold back in 2023, at least in the shorter term, as funding valuations trend down.
Investors was obviously skeptic in the final quarters of 2022, and this is likely to continue in the present year. While venture investors raised more money in 2022, financing for startups dramatically decreased. According to a Crunchbase News report, global venture capital decreased by more than 50% year over year in the third quarter of 2022.
While investors’ motivation to fund African startups stays low, startups must look towards more internal measures to stay afloat. Last year’s “tech winter” shoke the whole ecosystem; over 143,507 workers were laid-off. Chipper Cash, Nestcoin, Quidax, and Lazerpay all made staff reductions in the wake of FTX’s bankruptcy, while the stock prices of OVEX, AZA Finance, Wave, VALR, Bitnob, Nestcoin, and Jambo all had sharp declines.
Looking set for 2023 means working around means to manage funding crisis without layoffs. The golabal inflation means that the power and value of money is depreciating, creating a decline in funding desire and reduction in money circulation. The concern for African startups now is to generate revenue for itself and cautiously cut cost. Subscription-based services, huge offices, expenses assets and choosing between offices or co-working space are recurrent costs that can be assessed by startups.
Staying on top of your business expenses involves tracking them. Startups must find what is necessary for growth and concentrate spending on them. It could be time to cut the cord or seek for methods to save money if they are not receiving good value for a certain spending.
It’s a new month in a new year, we are ecstatic about what the next big thing to happen in Africa’s tech space. Here at The Ouut, we look forward to bringing you more information on what is going on in the African technology industry. You can subscribe to receive news the moment it drops by clicking here.