Do You Really Know What Money Is?
Navigating Startup Funding as a Local African Founder
African startups are attracting global interest, but the money often comes with strings – or worse, stereotypes. In Kenya, for example, very few million-dollar deals go to all-local teams. Foreign co-founders dominate the headlines.
It’s not because local founders lack talent or vision. Often, it comes down to investor comfort — and that comfort tends to lean toward founders who look, speak, or pitch like them.
A Bias Problem in Startup Capital
Picture this: You're a brilliant entrepreneur in Nairobi. You’ve hustled hard, got accepted into a big-name international program, and finally, things are looking up. Then you get an email from a global investor that makes your stomach drop:
“Just checking, but you do realize the company’s money isn’t your personal piggy bank, right?”
Ouch.
That kind of tone – skeptical, condescending – is a reality many African founders face when seeking international funding. Would a founder from Silicon Valley get the same treatment? Probably not.
Enter the sad reality: "Mzungu as a Service"
It’s not just a joke – it reflects a sad truth. Some local founders partner with international faces simply to access rooms they’d be shut out of alone.
In response to this bias, a clever local founder coined the term “Mzungu as a Service.” It’s the informal, almost satirical idea that having a white co-founder (or even a foreign face) helps local startups get attention, credibility, and money faster.
Privilege in the Pitch Room
International founders often bring privileges that go beyond capital:
- Elite university networks
- Visa-free travel
- Free time to build startups without income pressure
A founder from Senegal calls it out plainly:
"There's a neo-colonialist vibe sometimes." Local knowledge gets mined while credit and control go elsewhere.
Still, Local Founders Push Forward
Within the African context, local founders navigate significant challenges in securing funding - not only from international investors, but also from domestic financial institutions and venture capital firms who control substantial capital resources yet maintain a notably conservative approach to startup investment.
The regional venture capital landscape demonstrates a measured approach to risk, with many institutions favoring traditional asset-backed investments over innovative ventures. Furthermore, several local venture capital firms tend to adopt conventional investment patterns, primarily directing funds toward internationally-validated ventures or teams with foreign leadership.
However, African entrepreneurs are actively developing solutions to address these challenges through strategic initiatives:
- Establishing regional angel investor networks that prioritize founder-centric terms
- Developing venture capital funds centered on inclusivity and authentic regional expertise
- Implementing platforms that enable broader African participation in technology investment
One Kenyan founder, who built and sold two successful startups, is now focused on empowering the next generation. His belief:
“We can’t just blame outsiders. It’s up to us to build the ecosystem we wish existed — one that truly believes in African founders.”
The Big Picture
The goal is clear: African founders should be judged on ideas, execution, and market insight – not accent, passport, or skin tone.
With growing local support, the days of needing “Mzungu as a Service” might one day be behind us. Until then, founders keep pushing, building, and proving what they’ve always known:
They belong at the table.
