Times are getting tougher. Venture Capitalists are tightening their purses and criteria for funding technology startups. Public markets are mostly in the red, as well as the crypto markets. It all sounds like a terrible period to even think of starting a startup, but is it? However, if you are considering starting up during this bear market it is worth considering and learning what causes many early-stage startups to fail across Afrika.

While we are at it talking about starting up in this issue, it's also worth asking if VC startup funding is a Ponzi scheme. We ask this because in some (not all cases) earlier investors only cash out if new investors come along and not based on the financial performance of the startup (that sounds like a Ponzi scheme, no?).

If all else fails, you could always try farming, no, not livestock or crop farming, but the kind that is quite popular in China as we highlight in this issue of Afrika Digest.

In this issue 💬 :

  • Why Startups Fail: It is said that 90% of Afrikan startups fail within the first five years, why do they fail?
  • Funding Ponzi Scheme: In many cases, venture-funded startups make losses for years but investors continue to reap returns on their investments as the startup “grows” and more people invest providing exit liquidity for earlier investors.
  • Click Farm Problem: The profitable business of smartphone click farms.
  • ...and more.

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