How does it feel to raise VC funds in 2025 as a founder from Africa? To get a true sense of the current market, we spoke with Emenike Olome CEO of Rabbit Africa a B2B Mobility Platform; Toyin olasehinde Co-founder of Woodcore Treford; and Joseph Oloyede a data analyst for TechCabal Insights who works closely with founders and investors.
We break down the challenges, benefits, and things to think about when raising venture capital by 2025.
Pros of VC Funding 2025
Money is Still Important
Capital is still the greatest advantage for many founders. It allows you to hire a great team, acquire the necessary tools and move forward faster.
Toyin is the co-founder of Woodcore and says it simply:
You get the funds you require to do what you have to do.
Working in a field that VCs find interesting, such as AI, might make raising funds easier than bootstrapping.
2. Strategic Backing> Big Cheques (19659010) Emenikeshares a different perspective. For him, the source of your funding is more important than the amount.
I’d rather get $500k from someone that can introduce me Meta than $1M from someone just writing a check.
An investor who can help you connect to the right people, shape your product strategy, and open doors is worth more than just money.
3. Credibility and Market Signals
According Joseph, of TechCabal Insights VC backing is also a way to build credibility. It sends a strong signal to the market. The Cons of VC Funding by 2025
Equity Dilution
I’d rather get $500k from someone that can introduce me Meta than $1M from someone just writing a check.
One of the biggest tradeoffs. Once you start raising outside money, the share of your company will begin to decrease. With that comes less control. Toyin explains
:
You now have to carry the people along, justifying your moves, and at times adjust your plans.
Pressure to Perform
Money brings expectations. Investors expect fast results and this can lead you to chase growth early. Toyin says, “You may build based on what your promised and not what you believe to be right.”
Joseph says that this type of pressure is real. Especially when VCs demand high returns even if the product hasn’t found its feet yet.
3. Risk of Losing your Edge
Emenike brings up another concern: Trust and data security.
You share a pitch that has a unique idea and suddenly, a portfolio company enters your space. Now you are competing against your own idea. They have the capital and infrastructure.
4. You might not need it early on
Today, founders have more tools than they ever had. AI allows you to build MVPs, test ideas, and run models without large teams or expensive spending. Emenike says, “If I was starting today, I would build as much on my own as possible first.”
I would raise money only when I was ready to scale my business with the right partner.
Last thoughts: Should you raise VC funds in 2025?
VC financing can help you grow, but it is not always the best way to start. In 2025, many founders will choose to build lean and test quickly, and only raise money when it makes sense.
Before raising money, you should consider:
- Are you looking for cash or connections? Can you test out your idea without giving away equity? Are you prepared for the pressures and trade-offs of investor money? Raising VC money isn’t bad, but it comes with some terms that you need to understand. Think long-term, protect your equity and only raise money when it will help you achieve your larger goals.
