Fundraising in Francophone Africa: understanding fundraising typologies

Pre-seed is the stage that precedes seed. It is the first search for financing to kick-start the startup project.

This funding generally covers:

• building the MVP (minimum viable product);
• launching the product/service to gather feedback from the first customers;
• testing the startup's business model.

At this stage, founders often self-fund the project (bootstrapping) or rely on their personal network (love money). In Francophone Africa, structures such as incubators and accelerators play a key role in supporting pre-seed startups — this is actually one of the pillars of ALF Academy.

Seed fundraising is the startup's first funding round. It occurs when the startup is generating its first revenue and needs to continue growing to sustain its activity.

This funding generally covers:

• first hires;
• communications and marketing;
• additional sales efforts to generate more revenue.

This is the stage at which you will receive your first term sheet. To understand how to negotiate it, read our dedicated article: How to negotiate your term sheet under French law?

Series A fundraising occurs when the startup is up and running, has found its product-market fit, and needs financing to accelerate its growth. The objectives of this funding round typically include:

• accelerating the startup's growth;
• conquering the domestic market;
• ramping up recruitment;
• protecting innovations.

Protecting your innovations is a major priority at this stage. If you have not yet registered your trademark, now is the time — before a competitor does. Read our guides: Protecting your trademark at OAPI, Protecting your trademark in Tunisia, or file directly via our trademark registration service.

This funding round follows Series A and traditionally allows the startup to:

• sustain its growth;
• expand internationally by entering new markets;
• develop a new business line;
• acquire competitors when necessary to scale more rapidly.

International expansion in Francophone Africa involves navigating multiple jurisdictions — OHADA law, local regulations, and sometimes specific licences. If you operate in fintech, read our dedicated series: Prior authorisations required to launch a fintech and Regulatory obligations for a fintech.

A startup that reaches this stage is ready to diversify its offering and continue acquiring international markets to become a market leader. This round, which generally precedes an IPO, aims to:

• acquire competitors;
• scale up recruitment;
• expand internationally; and
• diversify the product or service offering.

At this stage, compliance regarding personal data becomes critical, especially if you operate across multiple countries. Read our country-specific articles: Data protection in Morocco and Data protection in Burkina Faso.