Tech Leader: Startup Failure Is Normal, Not Shameful

Iyin Aboyeji wants everyone in the startup world to accept an uncomfortable truth: most new businesses are supposed to fail.

The Future Africa co-founder shared this perspective at the Africa Deep Tech Conference 2026, where he told a packed room that "failure is the default outcome of a startup." His goal isn't to discourage entrepreneurs but to bring much-needed honesty to how people invest and build companies.

The numbers back him up. Globally, about 90% of startups eventually shut down, and roughly 75% of venture-backed companies never return investor money. Yet conversations about African startup closures like Okra, Edukoya, and Lydia still spark intense speculation and criticism.

Aboyeji argues this fear of failure creates unrealistic expectations. When investors expect every bet to succeed, they make worse decisions and founders feel pressured to hide struggles until it's too late.

During the conference discussion with tech operator Adia Sowho, the conversation explored what holds African tech back. Sowho emphasized that builders need to create products customers will actually pay for before seeking big investments. "Build something your mother will pay for," she said. "The only way you hold onto ownership is if you have a path to survivability."

The pair also tackled why African companies sometimes choose foreign solutions over local ones. Sowho believes many African builders don't chase global standards, instead creating "whatever works" under pressure to generate quick revenue. "Until we start to own what is ours confidently, we're not going to give birth to solutions that don't have to travel outside before they're validated," she explained.

Aboyeji acknowledged the challenge is tougher for deep tech companies that need years of research before becoming commercially viable. These businesses can't always wait for paying customers before raising capital.

Why This Inspires

This conversation matters because honesty about failure could actually create more success. When investors accept that most bets won't pay off, they can structure deals that give founders room to experiment. When founders accept failure as normal, they can pivot faster and share struggles sooner.

The African tech ecosystem has grown remarkably over the past decade, but sustainable growth requires realistic expectations. By normalizing failure, leaders like Aboyeji are creating space for the kind of bold experimentation that leads to genuine breakthroughs.

His message isn't pessimistic but practical: make failure less expensive, less shameful, and easier to learn from.