What 22 investors taught us so far in 2026: exits are the only thing that matters

In the sweltering heat of a Lagos afternoon, Ido Sum, a seasoned investor with 14 years of experience as a partner at TLcom, an Africa-focused venture firm, would often sit down with entrepreneurs to discuss the future of their startups. But as the first half of 2026 drew to a close, one question dominated every conversation: can invested money come back? It was a question that seemed to plague every investor, from the bank in Luanda that tracked one startup for three years before investing to the Nairobi firm that spent a decade in equity before leaving it.

As Ido Sum pointed out, African venture capital is not broken, as many think, because of the slow pace of exits; it is just early. He likened Africa's current state to the US in the 1970s and Israel in the 1980s, where ecosystems matured through stepping-stone exits first: deals in the tens of millions, then the low hundreds, with systematic in-continent mergers and acquisitions building trust before anyone realised a billion-dollar outcome. But despite his enthusiasm, he still warns founders that they have a number problem. Every time founders raise at a higher valuation, they shrink the pool of people who can buy the startup. So the question becomes: who are they actually building value for?

Launch Africa, a Mauritius-domiciled fund, provided a clear example of an answer. They returned $2.5 million to their investors, roughly 7% of paid-in capital on their $36 million first fund, after completing 11 exits. Eight of those were secondaries to other VCs and growth-stage investors; three were trade sales or management buyouts. No position came in below 1x, and the best returned 5x. Managing partners Zachariah George and Janade du Plessis made two key points worth holding onto. First, they chose to start returning capital in year five rather than waiting for the fund to wind down at year ten, because early liquidity is what convinces limited partners (LPs) to back the next fund. Second, they built a dedicated head-of-exits role, which most African firms do not have, because in this market, an exit has to be worked for, not waited for.

As the first half of 2026 draws to a close, one thing is clear: exits are the only thing investors want to discuss. It's a lesson that Ido Sum and Launch Africa have taught us. African startups need to focus on building value for the right people, and that means delivering exits that pay off. It's a lesson that will only become more important as the African startup ecosystem continues to grow.

• 22 editions of Ask an Investor were published in the first half of 2026
• African venture capital is not broken, but rather early
• Launch Africa returned $2.5 million to investors after completing 11 exits
• Exits are the only thing investors want to discuss in 2026

As a writer, I've always believed that the key to success lies in understanding the human angle behind the numbers. In this case, the numbers tell a story of a startup ecosystem in growth mode, but also of a need for focus and discipline. African startups need to take a page from Launch Africa's book and prioritize building value for the right people. It's a lesson that will only become more important as the ecosystem continues to grow.