Investors’ Predictions for Investment Sector in 2019

TechInAfrica – Some investors in Africa’s investor community were asked about 2019’s predictions in the investment sector across the continent. Among these investors, six of them have given their analysis and predictions.

Here are what the investors said:

1. Tidjane Dème, General Partner at ParTech

According to Dème, the investment sector is expecting more in fundraisings of the local teams, especially for early-stage companies. He also highlighted that this year will be more about startups’ significant achievements in the milestone and maturity growth and less about the seed stage. Dème is confident that African markets are established as the tech frontier and great talents will be converged on the continent.

2. Andrea Böhmert, Co-Managing Partner at Knife Capital

Böhmert said: “As a result of the increase in maturity of the ecosystem, I predict 2019 to be a fantastic year for the ecosystem. I see a record year in terms of investments made as a lot of money needs to be placed. I expect some high profile success stories. I also hope (and yes, hope is not a strategy) that all the engagements, conversations, indabas and conferences that talk about stimulating the economy, and supporting entrepreneurship, will finally result in clear actions, decisions and optimal allocation of resources.”

3. Yele Bademosi, Founder and Managing Partner at Microtraction

Bedemosi expects more on new investments to be announced in 2019 so that entrepreneurs can have access to capital without having to go to ‘the valley’. In terms of stage funds, as it’s still been a problem to the investment ecosystem, he’ll see whether or not it can break down the seed funding gaps on the continent. As he said: “We’ll see later stage funds write smaller checks or go even earlier to close the pre-seed and seed funding gaps…”

4. Nico Blaauw, Director for Marketing at Goodwell Investments

Blaauw said: “Evermore,  PE and VC investors will be attracted by growth opportunities in Africa.  Convergence will result in new businesses combining proven models and technologies that allow fast implementation and scale up; while we also expect a growing interest in the logistics and transportation sector as catalyst and facilitator of economic growth.  There will be further integration of the digital ecosystem with the physical world in order to scale to mass populations.”

He continued, “We also expect growing partnerships to scale across regions and expand footprint; the expansion of investment focus in new geographies as “silent giants” emerge for new opportunities; and further discussions on rapid digital lending and the need for responsible investments.”

5. Justin Stanford, Co-Founding General Partner at 4Di Capital

Stanford predicted that FinTech will be acknowledged and adopted more. As it will become more popular as a theme, the next themes will be about insuretech and agtech, according to Stanford’s predictions. The predictions are based on what he has seen on the insuretech increasing activities recently.

As for another trend, Standford said: “Another trend which is picking up steam is the rise of corporate investment, from banks, insurers and other institutions looking to acquire a stake in the disruption space.”

6. Clive Butkow, Chief Executive Officer at Kalon Venture Partners

Butkow predicted, “I think we’ll see more of the same as were the highlights from 2018; far more capital being deployed to African tech startups for both seed and growth capital; and an increase in the number of entrepreneurs seeing entrepreneurship as a viable career path.”