Episode 1 Exploring the startup ecosystem – A story curated by Change Com
Episode 2 The Founder- A story curated by Change Com
We venture into the 2nd episode of our ‘Why invest in Africa’ series, The Founder.
To dig deeper into The Founder’s episode we sat down with Michael Mutie, to explore what it takes to be a founder of a successful startup. Michael is an Investment Manager at Launch Africa Ventures, based in Kenya, Ghana and Mauritius. In addition to capital raising, allocation, strategic enterprise & corporate partnership development, Michael assists in portfolio management for the fund’s 140+ ventures, run by a powerful community of 200+ founders and spread across 20+ African countries.
Launch Africa Ventures partners with exceptional founders and provides them with access to early-stage investment capital, corporate and follow-on investor networks, partnerships, talent, and capacity building opportunities.
IA: Can you tell us about your work and what the main challenges Launch Africa is aiming to solve?
Michael: Launch Africa Ventures is focused on Investing, growing and scaling the next generation of African technology startups. We’re a leading Pan-African VC fund solving the significant funding gap in the Seed and pre-Series A investment landscape in Africa. With a decade-long track record of venture building alongside some of the smartest founding teams in Africa, we back startups across multiple sectors, regions, and products that tackle the most meaningful challenges on the continent.
IA: You’ve built an empowered community of 200+founders- this is quite unique, which benefits do you see coming from this?
Michael: We’ve built a strong connected community of exceptional founders across 23+ markets in Africa. Through the various linkages that we’ve enabled within the portfolio, we’ve seen firsthand the power this connected community has unlocked at scale; mainly through partnerships, market access, commercial opportunities, knowledge sharing, peer-to-peer learning and community support.
This is essentially one of the benefits that set Launch Africa Ventures apart from any other institutional VC fund in Africa. At Launch Africa we’re not only building Africa’s next generation of technology companies, we’re also building Africa’s next generation of business relationships.
IA: For founders and entrepreneurs who have success with building their vision and brand, what was important and instrumental for them to get to where they are now?
Michael: I’d say success hinges on having a clear and compelling vision, backed by strong execution and an unwavering commitment to resilience. The ability to adapt quickly to evolving market demands is crucial, as is maintaining a customer-centric approach. Additionally, building a talented team, staying focused on long-term goals, and leveraging strategic partnerships were key factors that helped these founders overcome challenges and scale their businesses effectively.
IA: What would they have liked to see more of?
Michael: Founders often express a need for more comprehensive resources to scale their businesses, including better access to industry-specific expertise, mentorship, and strategic partnerships. Additionally, stronger support networks and faster, more efficient access to funding would help them navigate the challenges of growth. Accelerated processes for securing investment and practical tools for scaling would significantly empower founders to focus on expanding their ventures without unnecessary delays.
IA: How do founders experience international investors’ perception in the meeting with them on investing in African startups?
Michael: Founders building in Africa often encounter skepticism from both local and international investors due to concerns around market risks and scalability. However, Founders usually overcome this by presenting compelling data, demonstrating proven market traction, and showcasing a clear, actionable growth plan. By addressing potential concerns head-on with solid evidence of product-market fit, customer demand, and a scalable business model, founders shift the narrative and build investor confidence in the growth potential of their ventures.
IA: How important do you believe it is for founders when attracting investors that they can show scalability beyond Kenya and how do they best present this?
Michael: It’s absolutely critical. Investors want to see that the business can expand beyond local markets, and founders need to demonstrate clear market potential, proven demand, and a scalable business model. This means showcasing traction in multiple regions, evidence of adaptability, and a robust tech infrastructure that supports growth. Founders should present data on regional expansion, market fit, and a strategic plan for scaling, while highlighting key milestones and partnerships that reinforce their ability to scale effectively.
IA: How are founders able to connect with global investors?
Michael: In today’s interconnected world, tools like the internet make it easier than ever for founders to connect with global investors. However, building meaningful relationships and trust is crucial for successful collaborations. Founders should focus on nurturing authentic connections, engaging in industry networks, and demonstrating consistent value. By leveraging both personal networks and platforms, and maintaining transparency, founders can establish long-term relationships with investors who are aligned with their vision. Trust and credibility are key to securing investment and fostering impactful partnerships.
IA: How can Founders unlock bottlenecks to raise funds to scale their ideas?
Michael: Founders can unlock bottlenecks by developing a product or service that addresses a significant market need with a clear gap. It’s crucial to demonstrate that there is sustained customer demand, with a business model that ensures recurring revenue. Investors want to see proven traction, so founders should focus on building a scalable solution, backed by data that shows customer willingness to pay consistently. A strong product-market fit, coupled with a clear path to monetization and growth, will make it easier to secure the funds needed to scale.
IA: And how do you see the future of entrepreneurship in Africa?
Michael: The future of entrepreneurship in Africa is incredibly promising. African entrepreneurs are uniquely positioned to solve local challenges with innovative solutions that have global applications. As they leverage the continent’s untapped potential, they are not only addressing pressing issues within Africa but also creating scalable solutions that can be implemented worldwide. This shift is driving a new wave of innovation that will reshape industries and elevate Africa’s role on the global stage. The future is bright for entrepreneurs who can turn these challenges into transformative, globally impactful opportunities.
IA: How does Launch Africa work with building a better platform for founders to get the help to move forward?
Michael: When we (Launch Africa Ventures) invest in a company, we become their partner. We support them not only with our capital but with the platform we put underneath them. Platform at Launch Africa is managed by the Platform team and executed by everyone. Our platform offering has been developed with 4 strategic pillars which enables us to deliver tailored venture building support to our portfolio companies as they grow with and post our investment.
These pillars include:
1. Network: Access to investors, advisors, founders, clients, and board members.
2. Partnerships: $1.2M (and growing) in credits with major platforms like Google, AWS, Microsoft, and more.
3. Talent: Help with hiring for operational, senior, and gig roles across different geographies.
4. Upskilling: Support in areas like financial reporting, governance, cost optimization, and peer coaching for founders.
These pillars enable our portfolio companies to grow and succeed, both during and after our investment.
