Addressing the Continent’s Underserved Tech Startups

Emmanuel Adegboye, head of Madica—an investment program by Flourish Ventures focused on African startups—has observed a critical trend in the continent’s venture capital landscape. While investments continue to flow into established tech hubs like Nigeria, Kenya, and South Africa, many promising companies in less-visible markets are being overlooked.

“The biggest thing we’ve learned is that early-stage companies require more capital for longer periods than we initially anticipated,” Adegboye explained from Dakar. “A $200,000 cheque isn’t always enough to propel a company forward.” This realization has led Madica to actively co-invest in most deals, recognizing that startups with broader investor syndicates are better positioned to weather fundraising droughts.

Beyond the Familiar Tech Hubs

The program specifically targets founders and ventures often excluded from traditional funding streams—those based in less popular markets, those led by women (who represent at least 50% of Madica’s portfolio), or those working on solutions outside mainstream sectors. This intentional approach addresses a market failure where high-potential startups go unfunded for reasons unrelated to their business merits.

Adapting to Evolving Needs

As the fundraising environment tightens globally, Adegboye notes that early-stage companies are facing increased challenges in securing follow-on funding. This has accelerated Madica’s shift toward co-investments and a more flexible approach to supporting portfolio companies through extended growth periods.

“We need to invest alongside other investors because that gives our founders the best chance of success,” Adegboye stated. “It’s not about writing bigger cheques, but ensuring they have access to the capital they need over time.” He emphasizes that while early-stage funding has dropped sharply in recent months, these investments remain critical for nurturing future tech leaders across Africa.

With a mandate to back overlooked founders and ventures, Madica continues to seek out opportunities beyond the continent’s most visible markets—believing that some of its greatest success stories will emerge from places others aren’t looking.