The Exit Obsession That's Killing African Innovation

Hey, don't shoot the messenger, exits are important! They are proof that business models work, that markets exist, and that value can be created and captured.

But let's face reality: exits don't have to be unicorn exits.

Over the last few months, I have sat in rooms full of African founders and investors alike, and the same question dominated every conversation: "When will we see our next unicorn exit?"

Wrong question.

While we're obsessing over billion-dollar valuations and Silicon Valley metrics, we're missing the real indicators of a thriving ecosystem. And this obsession might actually be stunting our growth.

In my recent conversation with Dr. Houda Ghozzi, PhD , founder of Open Startup , she shared a perspective that challenges everything about how we've been measuring success:

"The continent is a child doing the first steps. How do you validate your kid? You validate your kid when they start walking better and then when they start running slowly."

This metaphor hit hard because it exposes our fundamental misunderstanding of where Africa's innovation journey actually is.

We're Measuring Success All Wrong

I've watched promising startups pivot away from sustainable, profitable models toward venture-scale moonshots because that's what gets attention. I've seen founders burn out chasing metrics that don't match their market reality.

Meanwhile, quietly in the background, hundreds of African entrepreneurs are building solid businesses, creating jobs, solving real problems, and generating actual revenue.

But we don't celebrate them. We don't study them. We barely acknowledge them.

Houda put it perfectly:

"I don't need an exit to have validation. The validation is when you start to see big numbers of people who want to try and more and more initiatives that start to generate revenues and that try to structure and start to grow."

Look at How Real Ecosystems Actually Grow

Consider Silicon Valley's evolution. Before Google and Facebook, there were dozens of smaller, profitable tech companies that created the talent pool, investor confidence, and operational knowledge needed for larger successes.

Or look at Israel's ecosystem: it wasn't built on unicorn dreams but on consistent $50m-$200m exits that created experienced entrepreneurs, angel investors, and a culture of innovation.

Even closer to home, we're seeing this pattern emerge. Nigeria's ecosystem didn't start with Interswitch's billion-dollar valuation - it was built on years of smaller fintech successes, payment innovations, and incremental wins that created the foundation.

Kenya's story follows a similar path: from mobile money innovations to gradual e-commerce growth, then larger financial services plays.

The Real Success Metrics We Should Track

Instead of counting unicorns, what if we measured:

• Number of startups achieving profitability
• Jobs created per dollar invested
• Problems solved for underserved communities
• Local talent retained and developed
• Cross-border collaborations formed
• Regulatory improvements catalyzed

These metrics tell the story of an ecosystem learning to walk before it runs.

The Patience Problem

Here's what frustrates me most about these founder and investor conversations: the impatience. Everyone wants overnight transformation in markets where basic infrastructure is still being built. To be honest, I don't blame them. I am impatient too because I want the world to see the greatness inherent in our continent!

But Dr. Ghozzi's perspective reframes this: "If we start saying that validation is just exits... be patient. The continent is a child doing the first steps."

This isn't about lowering standards. It's about having appropriate expectations that match our context.

What This Means for You

If you're building in Africa:

• Focus on sustainable unit economics before venture scale
• Celebrate revenue milestones, not just funding rounds
• Build for local contexts, not Silicon Valley metrics

If you're investing in Africa:

• Measure impact alongside returns. Yes, you can make a big impact while making big returns.
• Support businesses that create lasting value
• Champion the "singles and doubles," not just home runs. Yes, those 'small' exits matter and give us the much-needed liquidity.

The beautiful irony? When we stop chasing exits and start building sustainable businesses, the exits often follow naturally.

Your Reality Check

The next time you think about Africa's "unicorn problem," flip the script and ask yourself: "How many profitable, growing, job-creating businesses is our ecosystem producing right now?"

How many founders are on their second or third venture? How many startup employees have become angel investors? How many regulatory improvements happened because entrepreneurs and investors pushed for change?

Count those numbers. That's your real ecosystem health score - and it predicts sustainable success better than any unicorn chase ever will.

Listen to my full conversation with Dr. Houda Ghozzi on The Grinders Table podcast for her insights on building Africa's entrepreneurial future.