Hello African Catalyst,

This week, Startup Club ZA hosted their first Founder Day in Cape Town. The event hosted a series of masterclasses on Product Market Fit, Strategy, to Fundraising and Marketing.

During the fundraising masterclass, the team from Simple Capital noted that we may well be at the bottom of the curve of the funding winter, and by Q4 2024 or Q1 2025 we can expect to see an emergence.

How do founders and VC operators position for an improved funding market? 

While there is no expectation that the market will return to the extreme funding levels and valuations seen post-COVID, the local VC market is evolving to the next stage of maturity. 

Founders looking to raise in this environment are expected to know their business model and levers inside out, show a path to profitability or growth, and a clear use of proceeds plan tied to KPIs. Founders must also be clear on whether they’re raising for growth or survival, and adapt their funding approach accordingly.

Operators looking to enter the space will need a solid grasp on the technical aspects of  financial modelling including revenue projections and valuation. Attention to detail, strong communication skills and the ability to build and tap into a network are table steaks. 

There is a sense of cautious optimism heading into the second half of 2024. 

While the end of quantative easing and lowering interest rates are good indicators of a market shift, the fundamentals of building a good startup remains: know your customer, adopt an iterative approach to product building and outline solid GTM strategies. This was supported by multiple references to the classic work by Peter Drucker, Eric Ries and Michael Porter.

Finally, whether you’re a founder or an operator, it’s important to continue to maximize your learning while building and make data-informed decisions. 

We’ve just welcomed our fifth Venture Capital cohort. This mix of founders, seasoned corporate professionals looking to start their own funds and operators growing their skillset are positive indicator that across the continent, we’re looking ahead to a funding spring.

Until next time,
Anthea
Head of Platform & Community

Understanding VC Metrics for Startups

In the month of May, we hosted the third installment in our 4-part webinar series on Understanding VC Metrics for Startups. We deep-dived into the core financial metrics VCs consider when assessing a potential startup investment. 

When asked to advise founders on how they can adapt their financial strategy in response to economic downturns, here’s what our speakers had to say: 

“Extend your runway and decrease your monthly burn” - Maya Oda Pacha, Investment Associate at Flat6Labs.

“Go deep instead of going wide. Go deep into your core  product, core customer base and core market as it costs less than acquiring new customer segments or venturing into new markets or hiring new teams to open new distribution strategies and partnerships” - Nivesh Pather, Investment Manager at Norrsken 22. 

Watch the full session here. 

NEXT UP

On the 31st of July, we will be hosting a dynamic panel where we will discuss Breaking into VC: A Guide for Aspiring African VCs. 

• Paths to entering venture capital

• Strategies for building and using networks effectively

• Navigating the challenges of a VC career

CatalyzU Lagos Event

Last week, CatalyzU in partnership with A&A Collective and Founders Factory Africa brought together aspiring VC professionals and CatalyzU Lagos-based alumni members to discuss the complexities around navigating the VC landscape, building relevant relationships and everything in-between. 

See below some photos from the event. 

Vacancies

Who is Enja De Lange?
I'm a South African entrepreneur on a mission to connect young people to meaningful opportunities. After working as a project manager in an edtech company, I'm now launching a startup to bridge the talent gap in high-demand roles, focusing on entry-level talent from South Africa. 

As the national coordinator for Hult Prize South Africa, I inspire social entrepreneurship among students, providing them with access to global opportunities and networks. 

I love hiking, the outdoors, and a good cup of coffee. I'm an extroverted person who loves to hear more about others' stories and am always open to connecting.

One career highlight since completing the CatalyzU fellowship?
A major highlight since CatalyzU was being selected out of 700 applicants for the BeChangeMaker accelerator and having the guts to put my ideas out there. Both these programs are empowering me to turn my vision of bridging South Africa’s youth talent gap into reality. The support and inspiration from these programs were crucial for me during these first steps.

What's one trend you're currently obsessed with?
I'm currently obsessed with the trend of building in public. Reading about the ups and downs of entrepreneurial journeys on platforms like LinkedIn has been inspiring and helpful. It’s given me the courage to do the same. Follow my journey on LinkedIn for updates and insights! 

Any lightbulb moments during the Fellowship?
A class with Iyinoluwa Aboyeji from Andela was eye-opening. His energy and practical approach to solving problems showed me the power of combining passion with pragmatic thinking. His many incredible insights reshaped my perspective on building scalable solutions.

The type of person you would  like to have coffee with next and why?
I’d love to meet Simon Squibb. His work in inspiring people to pursue their dreams is incredible. Discussing how to bring his motivational approach to South Africa would be fascinating, and he seems like a fun person to connect with.

One piece of advice for incoming fellows?
Embrace every opportunity! Engage deeply in classes, connect with peers and mentors, and don’t be shy. The value of the fellowship lies in what you make of it. Also, classes might run over time—be prepared!