Local start-up founders are losing out on lucrative opportunities to raise capital and grow their business - contributing to the high rate of failure among the businesses in the country. This already shuts off majority of start-up founders who are on shoestring budgets in the initial phase of their enterprises. Nine out of 10 start-ups funded in East Africa between 2015 and 2016 were headed by at least one European or North American founder, according to Village Capital. This works against the majority of the local start-up founders who often hold various qualifications, including degrees from local universities and lack the networks for recommendation that can push up their visibility. Recent shareholder wrangles between local start-up founders and foreign investors have exposed what goes wrong when this pattern fails.

Source: Standard Digital September 12, 2017 09:22 UTC