47% of investments in Kenya originates from investors based in Europe and North America. There has been a recent spike in Silicon Valley investors coming to Kenya. Market players call them “helicopter investors”: they fly in and out without real knowledge of the realities on the ground. This creates a ‘bubble’ in company valuations, especially for tech-enabled companies. Another consequence of this trend, is that more than 90% of funding for East African start-ups goes to expats, and not to local founders. Women founders receiving investment are under-represented, too.
Read more: Medium