Sep 14, 2023
Start-up founders failing to report to investors, pose major threat to African tech funding – Report
Source: Tech Focus 24
A newly-release report from Wimbart, the leading PR agency specializing in tech and startup sectors across Africa and emerging markets, indicates that 71% of African tech investors will not invest follow-on funding in startups failing to provide them with regular reporting updates.
Titled “Startup Performance Reporting in Africa: What do investors want to know?”, the report’s findings underscore the significant and timely need for founders across the ecosystem to reprioritize communication efforts with their existing investor base to support their long-term funding requirements.
According to the report, 29% of startup investors stated they did not receive periodic reports from their portfolio companies. These findings are made especially more pertinent for founders considering when asked whether the quality of startup reporting was a significant factor in shaping perceptions of leadership, the average rating provided was 8.5 out of 10. Consistency and reliability were also ranked as the most important features for investors during the reporting process.
Published as Wimbart’s inaugural investor relations report, “Startup Performance Reporting in Africa” explores the potential of consolidated investor reporting in boosting investor confidence and ongoing support in African technology startups.