Five Key Signals That Attract Investment to African Companies

Ibrahim Sagna, executive chairman of Silverbacks Holdings, recently shared his firm’s investment criteria in an interview with How We Made It In Africa. With a track record that includes a 29x exit on the continent, Sagna offers valuable insights for entrepreneurs seeking funding.

Proven Track Record Matters Most

Sagna emphasized that Silverbacks has consistently found success with second-time founders—entrepreneurs who have already launched and grown at least one business. “We haven’t been lucky ever with first-time founders,” he noted, highlighting the importance of experience in navigating the challenges of building a successful company.

Growth Trajectory & Customer Validation

Beyond founder background, Silverbacks seeks companies demonstrating substantial growth: year-on-year increases of at least 60% for three consecutive years. Equally important is customer validation—when clients not only use the product but also invest in the business themselves.

From Customers to Shareholders

Several portfolio companies have followed this pattern:

• Moove, a vehicle supply partner for Uber since its early days, saw Uber become a shareholder in 2024 as part of a $100 million funding round
• At OmniRetail, food giant Flour Mills of Nigeria made the same transition from customer to investor

Currency Risk Mitigation & Global Vision

For Silverbacks, managing currency risk is paramount. They prioritize companies generating at least 30% of their revenue in hard currencies (like USD or EUR) to protect against depreciation seen in local African markets.

Finally, Sagna looks for founders with clear global ambitions—entrepreneurs who envision taking their businesses beyond the continent.