Kenya Leads African Startup Funding in 2025 as Big Four Dominate
Kenya emerged as Africa’s most funded startup ecosystem in 2025, reinforcing its position at the centre of the continent’
Kenya emerged as Africa’s most funded startup ecosystem in 2025, reinforcing its position at the centre of the continent’
Africa’s startup ecosystem is entering a more disciplined, decisive phase. After a decade defined largely by growth-at-all-costs experimentation, the
Africa’s startup ecosystem accelerates, founders, investors and operators are set to encounter an ever-expanding universe of jargon, metrics and methodologies.
Testing two variations of a product or content to determine which performs best. For example, categorising users into different groups and comparing their experiences.
A startup success model combining acquisition, activation, retention, referrals and revenue as performance data points.
The risk of political, social or cultural factors influencing a business.
The extent to which a product is more expensive than alternative offerings.
Producing goods with little to no input or with superior efficiency.
A structured support programme designed to help startups grow rapidly through mentorship, education, technical resources and often funding. Founders typically apply and compete for entry.
Vesting that takes place more quickly than originally planned, enabling individuals to access the monetary benefits of their stock options earlier.
Money owed by a company to suppliers or creditors after goods or services have been delivered.
Money owed to a company by customers after products or services have been delivered.
An individual who meets legal requirements to invest in certain private ventures.
Accounting method that reports income when earned and expenses when incurred.
Interest accumulated on a debt or asset since the last interest payment.
Information external to a company that can be purchased or hired.
Taking a controlling interest (50% or more) in a company.
Data that links actions to outcomes, enabling data-driven decision-making.
A customer who has made a purchase within the past 12 months.
The measurable number of users taking action on a platform or product.
A project or initiative created to solve a specific problem.
The total possible market for a product.
A metric measuring advertising effectiveness by comparing spend to resultant sales.
A document outlining an advisor’s role, commitments and—optionally—equity compensation.
External advisors who provide strategic guidance.
A strategic approach used in software development involving incremental sprints to address the unpredictability of product development.
Controlled internal testing of a pre-production model to detect design or functionality issues.
Inability to make decisions due to excessive data.
Tools used to track and analyse user behaviour.
A group of angel investors coordinating investment activities.
An individual investing in startups in exchange for equity or debt.
A research tactic where users describe a product or brand using human personality traits.
A legal provision protecting early investors from dilution during future investment rounds or exits.
An opportunity to improve an app or transform it into a more desirable product.
A research tactic where users list words they associate with a product.
The average size of each purchase order.
Total revenue divided by the number of users.
Average revenue generated per sales contract.
A for-profit business addressing social and environmental issues.
A simple business model sketched informally, often literally on a napkin.
A document detailing a company’s assets, liabilities and equity.
A metric used to measure performance or success.
External pilot testing conducted after alpha testing to identify issues under real-world conditions.
Individuals elected by shareholders to oversee company activities. Investors often request board seats in exchange for funding.
Attempting an idea that is too broad or overly ambitious.
Building a business without external funding.
Net profit, appearing at the bottom of financial statements; also referred to as net income.
Using communication channels to drive engagement and brand recognition.
A company’s brand family structure and how its brands relate to one another.
The value derived from a brand’s recognition and reputation.
Allowing manufacturers to produce and sell products under a brand in exchange for profit shares.
Revenue required to cover all operational costs.
Short-term financing used to support cash flow, typically repaid quickly.
A continuous product development cycle for validating and improving ideas.
The rate at which a company spends cash.
A visual tool used to design, analyse and pivot business models.
A detailed document outlining how a company will achieve its objectives.
A document outlining what happens if a co-owner leaves the company.
Purchasing enough shares to gain control of a company.
Cash, goods and assets available for use.
Purchases expected to generate long-term benefits.
The difference between an asset's purchase price and selling price.
The total capital a management team oversees for venture investment.
A table listing all securities issued by a company and their ownership breakdown.
When a valuation cap is placed on a company during an investment round.
The share of investment profits fund managers receive without contributing capital.
Accounting method recording revenue and expenses only when payments occur; ideal for startups with small inventories.
Net cash moving into and out of a business.
A situation where users are needed to create content but content is needed to attract users.
Any quantifiable loss, such as customers, cohorts or revenue.
The percentage of customers who stop subscribing.
The period before a founder or employee becomes partially vested in stock options.
Granting all long-term benefits or options at a single point rather than gradually.
The final stage of an investment where legal documents are signed.
A joint founder who shares equity.
A document detailing responsibilities, roles and equity splits.
A customer group defined by a specific unifying characteristic.
Analysing trends by categorising users into groups.
Evaluating competitors’ strengths and weaknesses.
A manual service replicating the steps of a final product.
The journey from discovering a product to becoming a customer.
The percentage of prospects converted to customers.
Adjusting a website or landing page to improve engagement.
Investments designed to convert into equity during a future valuation event.
Costs of producing goods, including raw materials and labour.
Online advertising where payment is based on measurable results.
Analysis of business expenses and their necessity.
An accounting entry that decreases assets or increases liabilities.
Consumer behaviour showing which products are substitutes.
Raising funds via many individual contributors on an online platform.
Assets used within one year.
Debts payable within one year.
The full cost of acquiring a customer.
The typical or ideal target customer.
The steps a customer goes through when engaging with a product.
Practices used to retain customers.
The breakdown of different customer groups who benefit from a product.
Number of users interacting with a product within 24 hours.
Querying large datasets to extract insights.
The rate at which investment opportunities are presented.
A space where investment discussions and negotiations occur.
An accounting entry that increases assets or reduces liabilities.
Loans requiring repayment over time.
Raising capital by selling bonds or notes with the promise of repayment plus interest.
A measure of the ultimate value an idea can deliver.
Problem-solving by immersing in customer experiences and analysing interactions.
Reduction of ownership percentage as new equity is issued.
Documents prepared by investors detailing compliance requirements and investment specifics.
Creating a new market that displaces an existing one.
A company using its own product to demonstrate confidence in it.
Investor analysis of a company prior to investment.
A person or business that uses a product before the majority.
The first sizeable customer segment to adopt a new product.
The earliest startup phase, often pre-valuation.
An entrepreneur focusing on environmentally friendly products.
When a small price change causes a large change in demand.
A legal document outlining employment requirements and benefits.
An experienced entrepreneur advising within a venture firm.
Ownership in a company, typically represented through shares.
Funding provided in exchange for ownership.
Equity given to employees, often with a waiting period before vesting.
When an investor sells their stake to realise gains or losses.
An investment offer withdrawn if not accepted quickly.
Learning from failure to build a better product.
A quantitative representation of a financial situation, portfolio or project.
Payment to a third party for introducing investors or acquirers.
Benefits gained by being the first in a market space.
A clause requiring shares to be offered to early investors before third parties.
Long-term assets that benefit a company for more than one year.
Costs that do not change with sales volume.
An entrepreneur who starts a venture.
A free service with optional paid features.
An anti-dilution provision protecting investors from extreme dilution.
A mutual fund that invests in other funds.
The projected value of an asset in future.
Adding game elements to non-game experiences to increase engagement.
A complete record of all financial transactions over a company’s lifetime.
Standard accounting rules for financial reporting.
A plan to enter and gain market share.
Transitioning from a public company to a private one via stock repurchase.
Benefits designed to prevent key employees from leaving.
A significant payout granted to executives upon dismissal, often after a takeover.
A market with no restraints or prior solutions.
Percentage of revenue retained after deducting production costs.
Revenue minus production, support and delivery costs.
The earliest startup phase.
An employee focused on achieving rapid, viral growth.
A forceful sales approach encouraging immediate purchase.
An upward growth trend resembling a hockey stick graph.
An entity created to hold assets with minimal operating functions.
Number of users engaging with a product in a 60-minute period.
Combining viral user acquisition with paid channels such as search or SEO.
The creative process of generating and communicating ideas.
A metric measuring exposure generated from an advertisement.
Sales made by users within an application.
A summary of sales, expenses and net profit over a period.
Legally forming a company.
An organisation supporting entrepreneurs with shared resources and expertise.
A potential customer expressing interest in a product.
When a price change causes little change in demand.
A company’s first public sale of shares.
Legal ownership of intangible ideas or concepts.
A legal document protecting investor interests during funding processes.
One cycle of an agile development process, including analysis, design, development and testing.
A temporary partnership formed to achieve a specific objective.
The point when a brand’s evolution begins to decline.
A co-founder or early hire critical to a company’s success, often compensated with equity.
Metrics used to measure progress and success.
The customer segment most hesitant to adopt new products.
The final large group of customers to adopt a product.
A later phase of a startup with a proven product and business model.
Attracting and capturing potential customers to build a sales pipeline.
The largest investor in a funding round, often the principal provider of capital.
Prospective customers who have shared their contact information.
An analogy describing how products lose customers over time.
A document outlining proposed terms between companies.
Acquiring a company using borrowed funds to purchase remaining shares.
The financial obligations of a company.
Allowing another company to manufacture or distribute a product for payment.
A profitable company designed to operate sustainably but without plans for major scale.
Net profit a single customer will generate over time.
A company structure that protects members from personal liability.
A partnership offering limited liability to partners.
An investor with limited control over a partnership but fewer liquidation restrictions.
Turning securities into cash, often during an exit.
The right to receive a predetermined amount in exchange for equity, especially during dissolution.
An event allowing investors to realise gains by selling equity.
Debts payable beyond one year.
Selling a product at a loss to attract customers.
A task or idea with high potential and minimal risk, often found in low-competition markets.
Product development driven primarily by customer demand rather than internal assumptions.
The stage at which a company has stable revenue, predictable operations and clear market positioning.
The combination of two companies into a single new entity.
An ambitious, high-risk innovation effort aimed at achieving a major breakthrough rather than incremental improvement.
The simplest functional version of a product released to gather user feedback and validate market demand.
A customer who is likely to recommend a product or service to others.
Total sales generated after deducting returns, damaged goods and missing products.
The percentage of successfully delivered emails or advertisements that are opened by recipients.
A profitability ratio that measures operational efficiency and pricing strategy.
A situation where an investor’s liquidation preferences exceed the company’s current value.
A usability testing method in which users interact with a manual, low-fidelity version of an interface to simulate functionality.
An online advertising model where advertisers pay only when users click on their advert.
A functional product model that uses existing tools and services to replicate the intended user experience.
A small-scale test designed to evaluate the viability of a full product or service.
The total potential value of all sales opportunities within a sales funnel.
A strategic change in direction based on learning, data or market feedback.
The value of a company after an investment has been made.
A programme offering mentorship and support to startups before they enter a formal accelerator.
A clause allowing investors to maintain their ownership percentage during future share issuances.
The value of a company before new investment capital is added.
Shares that carry preferential rights, often including dividends and liquidation priority.
The current worth of a future sum of money, discounted to reflect time and risk.
Investments made in private companies whose shares are not publicly traded.
An early version of a product used to test feasibility, usability or scalability.
A model of customer decision-making that reflects its non-linear and complex nature, unlike a traditional funnel.
The process of ensuring that a product meets defined quality standards and customer expectations.
The minimum number of shareholders or directors required to legally conduct a meeting or vote.
A company that generates enough profit to cover the basic living expenses of its founders or team.
Predictable income generated on a regular basis, excluding one-off or professional service fees.
A marketing strategy aimed at changing how a product is perceived by customers.
A marketing technique that serves ads to users who have previously interacted with a product or brand.
A metric measuring how many customers remain over a given period.
A performance metric calculated by dividing net profit by the cost of an investment, usually expressed as a percentage.
The total income generated from sales before expenses.
The level of risk an investor is willing to accept.
Projected annual revenue based on current performance, excluding churn.
A controlled environment where experimentation can occur without risk to core systems or operations.
The ability of a product or business to grow without a proportional increase in costs.
Describes a business that can maintain or improve profit margins as sales increase.
A predefined timeline determining when employees gain access to equity.
The defined boundaries and deliverables of a project.
An agile development framework characterised by short iterations, self-organising teams and frequent communication.
The sale of additional shares to the public after an initial public offering (IPO).
The purchase of shares from an existing shareholder rather than directly from the company.
Financial instruments representing equity or debt.
The first formal round of funding, typically used to build a prototype or validate a concept.
An early startup phase where profitability is unlikely and capital is focused on learning and validation.
The first major venture capital funding round, usually involving preferred shares.
Later funding rounds focused on scaling and expansion.
The portion of the total market that a company can realistically target.
A legal provision requiring investor approval before issuing or selling shares.
A contrived startup concept driven by the desire to build something rather than solve a real problem.
Software delivered via the internet on a subscription basis.
Any individual or group with an interest in a company’s performance or outcomes.
A company in the early stages of development, typically focused on growth and innovation.
A board voting system where each share carries one vote.
A defined roadmap outlining how a company plans to generate income.
A measure of user engagement and retention.
The right to buy or sell shares at a predetermined price within a set timeframe.
An individual or entity that owns shares in a company.
A unit used in scrum to estimate the effort required to complete a task.
Investors who provide industry expertise, networks or operational support in addition to capital.
Ownership granted in exchange for labour or services rather than cash.
A venture capital practice where multiple investors jointly fund a company.
Rights allowing investors to sell their shares on the same terms as founders in a sale.
A non-binding document outlining the key terms of an investment.
A single, focused metric used to guide decision-making and measure success.
The total demand for a product or service if market share were unlimited.
An assessment of how difficult it is to launch a functional first version of a product.
Evidence that users are actively adopting and using a product.
Convertible instruments without a valuation cap, often favouring founders.
A privately held technology company valued at over US$1 billion.
A clear statement explaining why a product is valuable and differentiated.
Revenue and costs analysed on a per-unit basis.
The process of converting individuals into active users.
The process of determining a company’s financial worth.
A business endeavour involving risk and potential reward.
An investor who deploys capital from a venture capital fund into high-growth companies.
The process by which employees earn equity over time.
A measure of how effectively users bring in additional users.
A shareholder’s right to vote on corporate matters.
The right to buy or sell a security at a fixed price within a specified period.
A linear product development approach consisting of sequential phases.
The number of users engaging with a product over a seven-day period.
A narrowly focused startup designed to serve a specific audience exceptionally well.
A product produced by one company and rebranded by another.
A complex issue with no clear solution due to shifting requirements or constraints.
A product that appears automated but is operated manually behind the scenes.
Completing a series of seemingly unrelated tasks that are necessary to achieve a larger goal.
A financial state where a company is close to being unable to meet its obligations.
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