The UK Foreign, Commonwealth & Development Office (FCDO) has issued a new invitation to tender for a comprehensive study of start-up funding in East Africa. The call, titled “Understanding start-up funding in East Africa: ‘Follow the Money’ and Analysing the ‘Valley of Death’ in the African Context”, is designed to close key evidence gaps in how early-stage companies in the region access capital and scale.
The study will target Kenya, Uganda, Tanzania, Rwanda, and Ethiopia, mapping the funding ecosystem across these countries. It aims to explore funding sources (who is investing), recipient profiles, investment criteria, and especially the challenges that start-ups face when moving from MVP (minimum viable product) stage to seed and Series A rounds. This transitional phase is often referred to as the “Valley of Death”.
The study also intends to dig into sectors where innovation has high potential such as fintech, agritech, bioscience, climate tech and to include both successful and unsuccessful case studies to draw lessons about scalability, sustainability, and risk.
Who Can Apply & Funding Details
- Eligible organisations include NGOs, UK-based non-profits, educational institutions, humanitarian relief organisations, and organisations based in Low-Middle Income Countries (LMICs).
- The contract value is between £100,001 and £500,000.
Why It Matters
- This initiative reflects increasing interest by development partners in not just funding innovation, but understanding how innovation gets funded, and what systemic barriers slow its growth. Insights gained will help in designing more effective programmes, policies, and investment vehicles.
- By covering both successful and failed ventures, the study may provide rare clarity around “unknown failure factors” that are often under-reported but very informative.
- The focus on multiple countries will help identify both common trends (e.g. regulatory, infrastructural, financing gaps) and country-specific dynamics. This could support both regional and national policy adjustments.
Potential Challenges & Things to Watch
- As with many studies, access to reliable data especially from failed ventures may be limited, which could bias insights toward success stories.
- Compiling comparable data across five countries with different regulatory, economic, and investment cultures could be complex.
- Ensuring that recommendations translate into concrete action (by funders, governments, accelerator programmes etc.) will require follow-through beyond the research itself.
With this tender, the UK FCDO, via its Kenya Tech Hub, the East Africa Research & Innovation Hub, and Evidence Fund, is pushing to generate actionable evidence that could reshape how start-ups in East Africa are funded. If carried out well, this study could become a cornerstone for smarter funding strategies, better policy design, and, ultimately, stronger growth trajectories for early-stage innovators across the region.
The deadline for application is 3 October 2025, 5:00 PM East African Time.
To apply or for more information visit the website.
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