Silent Strain: Investor Relations Test The Limits Of African Founders’ Wellbeing

Africa’s bubbly tech scene, where innovation and grit power an expanding ecosystem, is playing host to a brewing, quiet crisis. While investors hold the keys to crucial capital, strategic guidance, and growth, a new report from Flourish Ventures reveals a troubling dynamic: rather than easing founders’ burdens, investors may be compounding them.

According to Flourish’s “Passion and Perseverance: Voices from the African Founder Journey,” a rare look into the under-treated topic of founder wellbeing, many African founders aren’t comfortable speaking openly with their investors, and only 11% believe their investors genuinely care about their wellbeing.

This startling gap highlights an undercurrent of distrust that permeates the founder-funder relationship in Africa, one that founders say is adding stress instead of relief. As more than one African founder can attest, the journey to build a business is challenging enough. But when investors add pressure rather than support, it creates a more difficult and isolating environment, pushing many founders toward burnout.

“There’s a difference between constructive stress and counterproductive stress,” said Ameya Upadhyay, Venture Partner at Flourish Ventures, a fintech venture capital firm with notable companies such as Flutterwave and FairMoney in its portfolio.

“Investors don’t have to be soft,” Upadhyay says, “but founders need to understand what’s meant to push them forward versus what risks pulling them apart.”

‘Dear Founder, how art thou?!’

The survey, which gathered responses from over 160 startup founders across 13 African countries, sheds light on the passion driving these entrepreneurs — 81% say they enjoy the founder journey, and nearly two-thirds would start another company even if their current venture fails.

Being a founder is one of the most rewarding things you could ever do,’ says Diana Owusu-Kyereko Co-founder and CEO of MAKA; a fashion and beauty marketplace. “Most founders would say there’s nothing they would rather be doing.”

Yet, that passion is often met with extreme stress, as founders face down a volatile economic landscape marked by inflation, macroeconomic instability, and tight funding environments.

“The external stressors—factors largely outside our control—are big contributors to stress and burnout for most entrepreneurs,” says Iyinoluwa Aboyeji, Founding Partner at Future Africa, an early-stage funder.  “As an investor, I try to help my founders focus on what they can control and let go of what they cannot.”

Nearly 60% of respondents cited fundraising as a top source of stress, underscoring the immense pressure tied to securing and managing investor capital.

In addition, Africa’s female founders face heightened isolation and unique stressors in the startup ecosystem. Compared to their male peers, women are 2.3 times more likely to experience loneliness, 1.7 times more likely to feel strained by work-life balance, and 1.6 times more likely to fear failure, the report highlights.

“Female founders need more equitable representation and visibility in the VC ecosystem, as well as access to peers who truly understand their unique experiences,” says Isis Nyong’o Madison, Partner at Asphalt & Ink and Co-founder of WomenWork Kenya.

The Trust Gap

Many African founders perceive a gap in trust with their investors, with only 17% feeling comfortable enough to have open conversations. Founders are often hesitant to disclose their full scope of challenges, fearful it might be viewed as a weakness.

According to the data, 78% of founders agree that “being a founder is a lonely job,” yet only 14% reported being fully open about their stresses and struggles.

“As the founder and leader of a startup, the buck stops with you,” acknowledges Laurin Hainy Co-founder and CEO of FairMoney, one of Nigeria’s fast-rising challenger banks.

We founders feel the weight of our responsibility to our teams, investors, and communities. We know it’s our burden to bear and we don’t want to put that burden on others.”

This reluctance to communicate openly with investors not only exacerbates isolation but also makes it harder to cultivate a constructive, transparent relationship that could support long-term resilience.

Rose Goslinga, co-founder of Pula, a notable African insurtech startup, emphasised that founders need investors who prioritise them as people, not just as business operators.

“When choosing investors, make sure to ask: Will they put the founder or the business first? The right answer is always the founder, because a dedicated founder prioritises the business above all. Great investors believe in the person behind the business model, not just the model itself,” she says.

Investors’ Role in Founders’ Mental Health

For many founders, the support they receive from investors ends at financial backing and communication barriers exist as many don’t think their investors care. Flourish’s report reveals that fewer than 2 in 10 founders are completely comfortable having an open conversation with their investors, and only 1 in 10 believe investors truly care about their wellbeing.

According to Emmanuel Adegboye, Head Investor at Madica, this is a missed opportunity to foster founder resilience.

“The question is, what role should investors play in helping founders build resilience?” Adegboye asks. “Access to tools like coaching and training can significantly enhance founders’ ability to navigate startup challenges.”

Many founders recognise the value of professional support, yet only 25% reported using resources like coaching or therapy. Zachariah George, Managing Partner at Launch Africa Ventures, observes that “a big component of entrepreneurs’ stress comes from feeling alone.”

Therapy and coaching can provide vital tools to manage stress, yet many founders refrain due to cost, time constraints, and a lingering stigma around seeking help. The survey suggests that a shift in the founder-funder relationship could help break down these barriers, allowing founders the support they need to stay mentally strong.

Coping Mechanisms Under Pressure

Facing the strain of high expectations, African founders have adopted their own coping mechanisms. The survey found that founders frequently lean on exercise (59%), personal relationships (49%), and sleep (45%) to manage stress. Yet even these methods have their limits, especially when investors pile on additional pressure.

Tayo Oviosu, founder of Nigerian fintech Paga, believes more founders could benefit from coaching. “Even the world’s best athletes rely on coaches — why wouldn’t we?” he points out, stressing that proper guidance and encouragement can make a world of difference. But for many, financial and time constraints make access to these resources difficult, underscoring a potential role for investors willing to prioritize founders’ wellbeing.

In a high-stakes industry where competition and investor expectations are intense, fostering healthier relationships between founders and investors is crucial.

The insights from Flourish Ventures’ report are a wake-up call to stakeholders. Thriving startups come from building trust and acknowledging the full human complexity of the founders behind them. For African tech entrepreneurs, the stakes couldn’t be higher: creating an environment where they are seen, supported, and empowered may well be the key to unlocking not only innovation but also sustainable success across the continent.