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Tag: Investment

Valuing African startups is different.
Startups Tech Entrepreneurs June 7, 2023

Valuing African startups is different.

After 7 years of working with startups and venture capital in Africa, here are the 7 most effective valuation models I’ve found:

1) VC Method

Most commonly used. Calculates the expected return based on exit, terminal value, and discount rate.

Factors in Africa:

– High political risk

– Currency fluctuations

– Thin volume of comparable transactions

Valuations are lower than in developed markets.