FSD Africa's Kevin Simmons Tackles Startup Exit Challenges

Kevin Simmons, principal for catalytic investments at FSD Africa, a Nairobi-based development agency funded by British aid, addressed the ongoing challenges investors face in exiting African startups. With many African venture firms nearing the end of their first fund cycles, the issue of returning capital has become increasingly pressing.

Simmons, who previously worked at LoftyInc Capital, an early-stage African venture capital firm, observed difficulties in exiting investments across a portfolio of over 165 companies. He noted that while some businesses have performed well, the overall ecosystem lacks sufficient exit opportunities.

To navigate this, some investors have resorted to selling shares among themselves, leading to secondaries accounting for 23% of exits in 2025, the highest recorded share, as funds opted to sell stakes to other funds instead of waiting for acquisitions by companies.