As we close the first half of the year, we’re noticing a sustained and intentional shift in conversations about impact investing. Even as encouraging movements take shape within the funding landscape, investment stakeholders are putting increasing emphasis on value addition beyond capital. This month, the Goodwell team reflected this evolution, sharing pieces about resilient impact fundraising, the importance of exit planning, keeping impact central to impact investing, and an illuminating founder story from one of our portfolio companies.
Q2 closes with a hopeful outlook for funding
As avid readers of The Big Deal, we eagerly read their H1 round up. Their data shows that Africa’s startup ecosystem ended H1 2026 in a stronger position than many anticipated. Total funding within the market was down just 6% year-on-year, while equity funding declined by only 7%. That’s almost equal to H1 2025, in spite of increased global instability.
June provided a particularly strong finish to H1, reinforcing a growing trend: investors are active, but selective. Rather than pursuing rapid growth at all costs, they are prioritising companies with strong business fundamentals, resilient unit economics, and pathways to long-term value creation. For founders, the message is clear: quality matters more than ever.
Liquidity moves to the centre of the investment conversation
Fundraising is just one side of the coin, however; exits are the other. A new report by Stears and Ventures Platform explores one of the ecosystem’s most pressing challenges: venture capital liquidity in Africa. The 2025 Africa Venture Capital Exit and Liquidity Report argues that liquidity cannot be assumed; instead, exit considerations need to be embedded into investment decisions from day one.
We have written before about the need to establish realistic exit pathways before actual investment. Investors need to keep this front of mind when constructing a portfolio, and consider what sectors and business models will be most attractive to future strategic buyers. The continent’s exit environment remains challenging, with limited acquisition pathways and a small pool of active buyers. Successful exits, therefore, depend on market conditions as well as company performance.
Inspired by the Stears and Ventures Platform’s report, investor and founder Ido Sum expands the discussion with a powerful question: who actually buys African companies, and why? He reinforces the idea that understanding buyer behaviour is becoming just as important as identifying high-growth businesses. As Africa’s venture ecosystem matures, exit strategy can no longer be an afterthought—it is a core component of investment strategy itself.
Keeping impact at the heart of impact investing
Another timely contribution comes from Caroline Bressan in the Pioneers Post, who reflects on the continued evolution of the impact investing industry. As impact investing grows and attracts larger pools of capital, there is a risk that “impact” itself becomes diluted in favour of financial metrics alone. Bressan calls for a renewed vigour and discipline in delivering “impact-first” investments, emphasising the need for clear measurement and delivery of positive social and environmental outcomes to show impact as an asset class, not just an accompaniment.
Demonstrating that commercial returns and measurable impact can reinforce one another is the ongoing drumbeat behind all impact investors, Goodwell included; maintaining that balance will be even more important as Africa’s markets grow.
Resilient businesses from Africa head to global markets
Speaking of growing markets, founder of Goodwell portfolio company SOUK Farms, Seun Rasheed, was recently featured in How We Made It In Africa. Seun’s story is a textbook example of entrepreneurship creating both commercial opportunities and meaningful impact.
The interview traces Seun’s entrepreneurship journey, which began after he first experienced the significant price difference between fresh produce in Rwanda and European markets. Seven years later, SOUK Farms exports Rwandan-grown avocados, chillies, beans and other produce to supermarkets across Europe and the Middle East, creating market access for local farmers while building an internationally competitive business.
Goodwell has worked with SOUK Farms for several years, and our team has seen first-hand how it contributes to building sustainable agricultural value chains while making a real difference for its farmers and community.
Looking forward
Taken together, these stories paint a picture of a maturing investment ecosystem. Funding remains resilient despite global headwinds, with investors placing increasing value on company quality, sustainable business models, and realistic pathways to liquidity. Companies in Goodwell’s portfolio and beyond demonstrate what this evolution looks like in practice: businesses solving real market challenges, creating value across supply chains and delivering both commercial returns and positive societal outcomes.
