Early-Stage Startups Need More Than $200K

Emmanuel Adegboye, head of Madica—an investment program focused on underfunded African markets—says the reality of early-stage funding on the continent differs significantly from what many investors expect.

Madica, backed by global venture firm Flourish Ventures, makes $200,000 investments in startups across 10 African countries. Adegboye explains that this amount often isn’t sufficient given how long it takes companies to raise additional capital on the continent.

“We initially designed Madica around the premise that a standalone $200,000 cheque could comfortably propel a company forward, but today we actively co-invest in most deals,” he says. “Startups with broader investor support are far more likely to weather extended fundraising periods.”

Shifting Playbook

Adegboye notes that the gap between funding rounds has widened, requiring startups to raise larger sums over longer timeframes than anticipated initially.

“We’ve learned that early-stage companies need significantly more capital for a longer duration,” he explains. “The ecosystem is evolving faster than our initial models accounted for.”

Madica now prioritizes co-investments and actively seeks out startups in markets and sectors often overlooked by traditional investors—including those with female founders, who represent over half of their portfolio.